13th annual general meeting of the Java Consolidated Rubber & Coffee Estate, Ld., held on Wednesday at. the offices of the secretaries and general managers, Messrs. J. A. Wattie & Ca., Ld., 10 Canton: Road There were also present Mr. A. P Nazer (director) Mr. ©. J. L. Stewart (secretary) and shareholders representing 8,676 shares.
The secretary having read the notice convening the meeting and the auditors' report, the chairman said:—
The year under review opened with the state of affairs in the yuhher industry just about as bad as it could be, which condition ontinued until November, when che British Government passed a measure making restriction of the output of rubber compulsory apon all producers in the British Colonies. This had an immediate effect upon the price of the raw material and the year closed with much brighter prospects than had been evident for some years past.
Your directors, in common with those of the majority of British-owned estates in the Dutch Indies, have agreed to restrict the output voluntarily on the same basis as is being done in the Straits. This company's estates, having ample veserves of bark, and therefore being in a position to tap more heavily than are many others, would appear to be rather heavily penalized by this decision, but, gentlemen, you must bear in mind that restriction is only a temporary measure and one designed to benefit the industry as a whole and, in the opinion of your directors, it was not fair or even expedient to take advantage of the benefits without also contributing our quota to the cause that brought them about. Moreover, the lighter system of tapping now in vogue will have the effect of still further increasing our 1e-serves of bark and thus the company will be in a position to resume full tapping with equanimity, whenever it is called for.
The output of rubber for the year was 53,202 lb. less than was produced in 1921, but in spite of this large decrease the average cost of production was nearly 1d. per lb. cheaper. This result was only achieved by the exercise of the most rigid economy and by the adoption of a more economical and conservative system of tapping. In spite of the drastic curtailment of expenditure, the estates are both reported to be in first class condition and our best thanks are due to the two managers, their staffs and to the agents in Java for the very efficient manner in which they have administered the affairs of the com pany during a most difficult period.
Diseases and pests gave very little trouble during the year and, j when found, responded rapidly to! treatment. The managers both report that the milder system of tapping now in vogue has had most beneficial results upon the health of the trees and that cases of dis-"'}ease are becoming less and less frequent. The supply of labour was adequate throughout the year and the health of the coolies satisfactory.
Turning now to the accounts of the Dutch company, you will see that the balance of working account transferred to the profit and loss account is F. 68,236.13. the improvement brought about by restriction is not apparent from the accounts now before you, since the unsold stock of rubber at ihe end of the year was valued at the cost of production and not at che market price. This stock has not yet all been sold, but, as far as one can calculate, there should be a surplus of over F. 45,000 to be added to the results of the 1923 working. After deducting the audit and legal expenses, paying F. 59,- 241.36 for income tax and making the usual transfers to the Shaughai company, the profit and loss account shows an adverse balance of F. 1,911.18, which, when deducted fromthe balance brought ierward from last year, leaves an available, credit balance of 5,994.39. "Capital expenditure during the year was negligible and I do not think that there is anything in the balance sheet that requires explanation.
As regards the Shanghai company, the profit for the year amounted to Tls. 11,874.19, which, when added to the balance brought forward from last year, makes the total undivided profits Ts..54,464.- This amount your directors recommend be carried forward.
The financial position of the two companies combined is quite satisfactory, as on December 31, 1922, the liquid assets exceeded the cash liabilities and reserve for taxes by Tls. 60,850.07 and I hope that, if the present price of rubber is maintained, as 1 believe it certainly will be, we shall shortly reach a dividend paying stage voce more.
There being no questions, the formal resolutions were put the meeting and carried unanimously,
Text read from the printed page and cleaned; old type leaves the occasional error.