There was some discussion on questions of policy at the annual meeting of the Sungei Duri Rubber Eatates, Ld,, held on Tuesday at the, offices of the Secretaries and Managers, Messrs, A. R. Burkill Sons. Mr, A. W. Burkill presided, over an attendance representing 12, 652 shares, The notice convening the mesting, and the auditor's report, having een read, the Chairman' said: Gentlemen: The report and accounts having been in your hands for some time I will, with your permission, follow the usual course and take them as read.
For many years, our estates have been associated with low producing costs but this year I regret: to say our cost of production is higher than it has been for a considerable nu Dor of years. Several factors hat contributed to this end, the principal causes being the lower output obtained, higher cost of supervision and! special concessions to the mar in coxpeet to families' passage The! all: in cost of production, including. Shanghai charges, was 10.174. as against 7.484, the previous year, an increase of nearly 24d. per pound, Reference to the report will show. you hat the crop harvested was con-Bitlorably below last year's figures, this being due to the fact that restriction was in force for only eight months of the previous year. Against the increased cost, however, Tam pleased to say that we were to some extent compensated better average price realized. The profit for the year was Tls. 15,43 08 which, added to the amount of Tis, 22,766.98 brought forward from ast year's accounts, makes a total of Tis, 98,197.01 standing at credit of profit and loss account, and it is proposed to write off a sum of Ts, 15,601.72 and carry forward the balance of Tls. 22,695.29. Shavely Harrison after the Chair] speech then said:—"Mr. Chairman and gentlemen: Before putting certain resolutions, I desire to make a few remarks. In doing so I regret that I have to strike a discordant note, but I feel very strongly that the ' time has come for the making of drastic changes in the interests of the owners of this company—the shareholders.
'My most immediate reason for saying this is that, with all facts and figures of 60 per cent, production before him, at last' year's meeting the then Chairman esti this year's cost at 83d. per Ib, whereas it tually averaged for the two estates in excess of 10d. Tt is true that owing to restriction, production for this year as combat ed with last has been redueed come 23 per cent. The increase in cost this year, as compared to last is out of all proportion to the reduction in production, the latter being only 23 Per cent and the former nearly 50 per cent. The lack of relationship. between these two figures is made. the more glaring by considering that. '48 production is reduced, certain expenses are also reduced and there-[fore that redueing production 25 }Per cent., should not have incre cost by more than around 15 per London managed companies produc-With innumerable Singapore and
ing at between Gd. and 7d. one does not need to be a prophet to say that if things are allowed to go on as at present, we ave going to be annually faced with similar report as gener-"ally. the inception of the no dividend of great} Prospects. In which connextion I) might say that whereas London plantation companies have averaged a return of nearly 10 per cent, during the past 12 years, we hat had leas than 3 per cent. This the more unsatisfactory seeing that. our Selama estate is not only of such size us to be capable of producing at 4 competitive price but is in point ever fall below 3/6, or the dividend below 25 per cent, be reduced to—for Malaya $100" per month, for Shanghai-Tis, 150.
'3. That in future' "all possible information be supplied to shareholders in annual balance sheets and accounts, including all statistical data as prior to this year. In this connexion, I suggest that the accounts of the Ayer Tawah Rubber Ca. might be taken as a model.
4, That the value of the com-'Pany's property, having - been already sufficiently written down, the amount that it is proposed to write off development be carried forward. Tam the more puzzled to understand the Directors proposal in this regard in view of the fect that all recent expenditure has resulted in the company increasing its Selama property by some 400] acres of excellent rubber, ready for the Knife but as yet untouched."
The Chairman replied to the effect that he could not at a moment's notice' reply in detail to' fall of Mr. Harrison's remarks, With regard to the high cost production, this" was due to unforeseen expenditure in connexion ith the management as explained in the speech. As to the sale of Sungei Duri estate, for several years efforts had been made to pose of this property, but "up the present no suitable offers had been received. Recently an inquiry had beea received from an. adjoining property, and although no definite offer was made, the Directors decided to wait until the price of rubber improved when a better price might be realized. Reter-ving to the suggestion of putting, the Sungei Duri Estate in the hands of a' native conductor, the Chairman explained that this matter had already been under consideration for some time. With regard to the distribution profits, it was the usual euston for all companies to write off certain sums and to carry forward an amount represented by liquid sets, Pore Morin said that he would like to make a suggestion that the. Directors write a further sum off development account in order to bring the property and development acount to at amount equal to the! capital of the company.
To this the Chairman replied that the views of Mr. Harrison holders may feel some disappoint-lof fact one of the best situated and, and Pere M were diametric lly ment at the Directors' decision to forego the payment of a dividend, but I feel sure you will agree that this question may be left until conditions are more settled, The present outlook is more promising than ft has been for some time past and you may rest assured that your Directors will give every consideration to the payment of fan interim dividend at the first possible opportunity.
connexion with the estates, all works have been maintained on a very high standard of efficiency. Pests nnd diseases, which for many years have been a constant source of trouble on Sclama, are being given special attention. Mr. HI. G, Pinching, conigr scientisie officer of the Research Baboratory of the R. G. A., made & special visit to, Solama estate last April. In his. Report, Mr. Pinching states 'Byery care is being exercised by the management to maintain the trees in as healthy condition as possible and the efforts expend in this direction are meeting with considerable success.' equally good condition as any estate in Malaya. Tam able to say} this, not only as the result of what I heard when in Malaya but from my. own personal observation, Apart from standing charges that are altogether too high in relation to j the turnover, the dead weight that is {strangling this company and that will continue to strangle it unless come such changes as Iam going to {ririnal Singol Duti Estate. That suggest be made, is the 273 acre
is utterly impossible to produce economically on so small an estate s obvious from consideration of one fures only—direct management charges. On present allowance these cost about per Ib, of rubber produced, or eay estate, as compared to one penny oF 16 per cent, of the similar cost of an estate of satisfactory size that is being efficiently managed.
Gentlemen, T could and would like funder other circumstances to say a food cal more' but recognising Uthat, 1 have already" occupied too much of your time I beg to I might also state that Mr. A. B. Milne, the well-known Visiting: Axent, is making monthly visits to Solama in connexion with disease work, and his reports indicate a general all-round improvement.
Weeding on both properties is very satisfactory and renewals are stated to be in good order. The position as regards labour is that we have ample for present requirements, and the health of the force throughout the yenr has been entirely satisfactory.
During the year Mr. Adair, Manager of Sclama estate and Mr. Mackie, Manager of Sungei Duri estate, proceeded on home leave, and the estates have been respec tively in charge of Mr. Speeden and Mr. H. E. Roberton, and I would like to take this opportunity; of recording the Boards apprecia tion to all these gentlemen for the good care of our properties. hat the Directors be istrict.
to approach the, owners of Aijoining estates with a view to the ale of Sunge! Duti at the: frst favourable opportunity. "There being several uch estates it i not to be apprehended that there will be any difficulty in selling at a price very considerably in excess of the! figure at" which it stands in out Boks. "Te "the meantime the Manager be requestd, on Teciving suitable compensation, to fad one Jotier position and' thereafter the aperintendence of the estate, pen cal, be left in the hands of 2 native conductor or Khrant, working "under the constant supervision of the Company's "Local Agents. One Shana owned company already docs this with excellent Fests the fast being about one halt Penny. per or only some 15 per cent of what it is costing us, {,2 The "Agency and General Forward sales of four tons, Managers remuneration in Malaya motithly October/December 1924 at and Shanghai fixed at the- present 49 tents, and three tons monthly Seures of say, $200 and Tls. 350 Tanuary/Decombe~ 1925 at 59 cents reapettively, iven it was not expect-per lb,'foib. have been made. ied that the price of rubber would opposed, one suggesting that a smaller amount should be written. off and a larger amount carried forward and the other vice versa.
He was of the opinion, however, atthe distribution as put for-war the correct one as the amount to be carried forward represented approximately the actual Hiquid assets of the Company.
There were no further questions and the following resolutions were put to the meeting and carrie Proposed by Mr. A. W. Burkill, seconded by Mr. R. I. Fearon: "That the report and accounts for the year ended June 30, 1924, as presented, be accepted.'
Proposed by Mr. A. W. Burkill seconded by Mr. R. I. Fearon: "That the following appropriation of thi balance at credit of profit and I account be accepted:—Tis.
Write off Development Account 14,870.44 Write off Buildings and
Write off Bullocks and Furniture 534,90,
Carry forward to next Carts 87.38 year's accounts 22,695.29
Text read from the printed page and cleaned; old type leaves the occasional error.