T’JtV I, 1891.] 
THE TROPIOAL AQR10ULTURI8T. 
33 
THE CEYLON TEA PLANTATIONS 
COMPANY. 
Adbrbis of tub Chaiumam, Mb. D. Hbib, 
AT TUB BBCENT UBNBKAU MbKTIKB. 
Okntlemkn, — I »m very pleiaed io Again meel the 
ihAreholdern with a aAtiarAotoiy bAlanoe theot, and 
to be able io aesoce you that, iu the opinion of the 
Board, the pueition or the Company baa atreugthvned 
with each aueceaeire year oi ite eziatetice. Before 
referring to my rieil to Ceylon end reviewing the 
Company’a preaunt poaitiou, I wiah to give a few 
ezplauatioDa of the aooounla. On the debtor side 
of the Balanoe Sheet you will find that the lleeerre 
at the end of the year stood at £J,‘J57, while only 
£3,000 was carried to that fnnd from last yeat’a 
profits; the ditlerence— £257— is premium on new 
shares issued during tbo year. The addition pro- 
posed to bo carried from the profits of 1890 to 
this fuud will bring it up to £9,000. On tlie 
debtor side of the profit and loss account, you 
will find an item of £122— Puriough account. As 
stated in the Directors’ report, £1,760 has been pro- 
vided out of the working eapunscB of this year for 
this purpose, and each separate estate has been de- 
bited with the sum set npsrt for the Furlough of 
the Staff engaged on it. The £122 appealing in the 
profit and loss acoount is to provide for the Ceylon 
Manager's furlough. The aum of £1,750 is abuor- 
naaily higb, as it had to be oalculsted from the dates 
onr seveial aupermtendeuta and asa.stauta entered 
the Company’s servioe — it is, in fact, a provi- 
sion that covers net oco, but four years. Now the 
Workiug expense's of er.ch year will bo debited with the 
Uabiiity incurred under tlii- bead daring that year, 
which will bo about £0o0 per annum, 'i'lie sum of 
£200 reserved for “'i’ubaooo ouitivaUou experiment” is 
HU amount the Diieotore have set aside to cover a 
possible lo.ia on an experiment they have made on a 
small scale in growing tobacco it Lunugala. Until the 
tobacco Is brought to market, we caunet say whether 
there will be a Ils.! or a profit. 1 think the acoouuts 
otherwise are plain and will be readily understood by 
the shareholders. Let mo now refer to my visit to 
Ceylon. I visited, in company with Mr. Talbot, your 
manager iu Ceylon, every estate in which the compauy 
is interested, and personally discussed with him and the 
various ■uperiotendents of estates the condition and pros- 
pects of the Company’s property. Coming fresh from 
such a visit, 1 presume that what the shareholders will 
wish to know is the opinion 1 have formed of the value 
of the Company’s property, the stability of its position 
and the charaeter of the management. Tho value of 
out properly at a pcofit-eaming concern can be clearly 
seen by anyone who baa read the four annual reports, 
which show that the position of the Company has been 
one of growing a I ability and improved prospects. 1 
particularly directed my attention while in Ceylon to a 
study of the prospects of our tea continuing to give os 
good crops. The conditions of a good tea eetate are : 1st, 
suitable soil and climate ; find, good planting with the 
best jat of plants ; and 3rd catefnl nursing while the 
tea IS young. The aotnal results obtained and disi- 
deuds are, 1 think, good evidenoe that the first and 
second conditions have been sssored, and 1 have to 
state my opinion that, with very trifling exceptions, 
oxceptions so small as not to affect appreciably the 
character of the whole, the Company's property 
fulfils the conditions I have named. Let mo now 
»y a word atout the third condilioo, that is, care- 
ful nursing while the tea is young. If |t is attempted 
to gel Urge profits from tea in its early years by 
toverti pluckiog, th© ©ital© b© OTOfttly dikinftflod 
and even pormaneutly deteriorated. Amongst other 
things patience is required to maka a good tea estate. 
I can aesure the shareholders that our profits have 
not boon obtainod by imperilling the fntnre. Our 
young tea has been treated with regard mainly to 
producing strong bushes that can be relied on to 
give largo yields after arriving at maturity. In 
regard to the condition of the Company's property, 
>1 is in the highest state of cultivation, and has 
thioogbout » moil thriving appearaaoe, Alt th* 
« 
fastories are of the moet permanent description, 
thorongbly well built and well-designed, and adapted 
for economical aud effioient working. No money 
has been wasted in patting up fancy or show build- 
ings, but no outlay has been grudged to give our 
suporiutendents tho means of makuig good tea. I 
should like uuw, as has been my practice at previous 
annual geueral meeliugs, to lake a general view of 
the property with which we started busiaess this year: 
The oust of the properties is shewn by taking the 
first item on the creditor side of the balance sheet, 
adding to it the cost of purchase of West Holyrood; 
Ardallie, aud Hathnillokelly estates, and deducting 
the £1,000 written off for depreoiaticu. Taken in 
round figure.'! this amouuis to £-323,000. Against 
thU you have, as shown by the Directors’ report, 
6,307 acres of tea-planted laud, and 2,831 aorea of 
land of which a considerable portion is fit for 
planting with tea, Kevenuo has beeu charged with 
all renewals and repairs to machinery and buildings 
and the piautiug ol a oousiderable area witli timber 
trees. Without taking into aow^uut the Kesurvo 
fund of £9,000, and allowing £4 per acre for 
uoplauted laud, tbo aureage under cultivation will 
stand at £83 per acre as against £84 last year. 
This does not, however, represeut alt our capital 
a'sels. We have a business of manufacturing tea 
grown by other proprietors whiob last year amounted 
to nearly 12 million lb., and from which a con* 
siderable profit was mado. I do not, however, deem 
it advisable to assume our manufacturing business as 
representing much capital value, as our ouslomurs 
may at any time build tbomsolvcs a factory, aud so 
1 prefer valuing jour property for yon _olely on the 
basis of s price pet uoru lor tbe whole bu'ioess as a 
going couuern. But, although out manufacturing 
hasioess is nut one we oau be certain of rotaiuing 
purmaoeuUy, there is this to bo observed— that wo 
possess buildings aud tskcbiaery suCBcieut to spate 
to deal with Ih'S atop of our own estates, not as 
they are now, bat ss tlioy will be when every acre 
shall be in full besring. I can best give an idea of 
the extent and completeness of the Company's equip- 
ment, when 1 tell you that in January, February and 
Marcii of this year we made at our own factories 
over one million lb. of lea and three large factories, 
vis : Mudamsna, Bosila and Tangakelly, were net 
completed, but all three will bo at work on or before 
June let of this year. After these factories are 
finished, we shall he iu a poaitiou to deal with con- 
siderably over four million lb. of tea per annam. 
Taking these facts iu conjunction with Ibo Directors 
report which shows that during 1890 a profit 
of over £81,000 was made from a plucking area 
of less than 4,000 seres, 1 think I am justified in 
desoritiuig the Company’s position ss one of growing 
prosperity and stability. 1 shonld like now to ssy a 
word about the expsnsiou of the Ooinpany by new pur- 
chases, and I have to inform you that siuoe issoing 
our report tbe Directors bare oonoliided negotislioua 
for the pnrcbsie of the Yoxiotd estate from Mossrr, 
Baring Utus. for £18,000. 
I am, after careful iuipeclion aud cousideratioD , 
well aaiiified with all tbe Company’s new properties, 
and 1 am no less pleased to be able to assure the 
shareholders that I aea no signs of detcrioratiou in onr 
oldest estates. The Company’s estates in the Kelaui 
Valley are looking healthy aud vigoroui aud have given 
very heavy crops during the present year. 'The sitna- 
tiou of the OempHuy’s faeluries U generally most 
favourable for aiding one another in times of pressure 
or break down, several of one large factories being at 
railway staiiens, and all very accoaaiblo by rosd. Let 
me now say a word about the mauagemeui iu Ceylon, 
Any property, however fine, may easily be ruined by 
mis-niauagi'uient, and 1 have given anxious attention 
to the ouusidcration of tho efiioieiioy of our staff. I 
have the fullest ootifldence in assuring the shareholders 
that 110 property iu Ceylon is more oaiefully or skil- 
fuily managed than is their property by Mr. Talbot 
and the able superinieudeuts and assistants who form 
the Company's staff, and I have to express my great 
satisfaction with the excellent feeling of mutual respect 
and ttust whloh l know exists between the Board of 
