572 
Rubber Companies’ Statistics. 
A FEW INTERESTING NOTES BY MR. ARTHUR SHEPHARD ON HIS 
TABLE AND THE PLANTATION INDUSTRY. 
The high dividends which were being paid by rubber companies 
attracted my attention to the subject, and I felt the need for a 
table which should compare the respective merits of the various 
companies. My desire to find such a table was much stimulated by 
the publication in The Financier from time to time of interesting 
comparisons of the positions of various companies. 
Here and there in other publications 1 found interesting esti- 
mates of future outputs from various estates— estimates extending 
sometimes over many years. It appeared to me, however, that in 
estimating the output of future years there must of necessity be far 
too much guesswork. Intimate knowledge of the particular estate 
was necessary in order to frame such an estimate, and the plan was 
therefore, not practicable for dealing with any very large number ot 
companies. 
Rubber estates, of course, differ (like other estates) very greatly 
in value, and the market prices of shares differ quite as widely, 
and not always in direct ratio to the value of the estate. It seemed 
to me that a much sounder basis for comparison could be obtained 
by bringing together the figures relating to the leading companies, 
and comparing the planted acreages with the ages of the rubber and 
the capital expended, and these items with the prices of the shares. 
By this method the price of the rubber land is clearly ascertained— 
guesswork forms no part of the plan— and, having ascertained 
the price, the investor may then use his judgment as to wether he 
will pay a larger sum for the rubber of similar age in another 
company. If he can now secure reliable opinions as to the pro- 
ductivity of various estates, and as to the ability of the management, 
he will be well-equipped with the means of making a judicious 
investment. 
Some of the uses of the table may be indicated as follows 
(a) The Capital Issued, Undivided Profits and Loans 
will, when compared with the Cost of the Estate, 
show the capital resources of the company, and will 
show whether the company has sufficient capital to bring 
its young rubber into bearing. Development expendi- 
ture has to be met either out of capital or out of future 
profits, and, if profits are to be applied to development 
purposes, dividends must suffer,; 
