In conclusion, gentlemen, you will expect me to say something about the proposed amalgamation of this company with the See Kee Rubber Estates (1918) Ld,, although the matter will be put before you more. fully at a later date after it has been passed upon by the shareholders in the See Kee Company.
Your directors have given this matter a great deal of thought and after careful consideration of all the factors involved, have no besit tion in recommending you to confirm. the arrangement when the time comes for you to be asked to do so.
As far as your interests as shareholders in this company are concerned, I have already told you that with ordinary luck we should have extinguished our debt by the end. of this year, but thereafter it will be necessary' to accumulate a reserve of working capital, so that there is very little chance of our being able to distribute any profits that may be. earned until towards the end of 1926 or say the better part.of two years hence. It is true that if this was the only consideration we could hold an extraordinary meeting and our authorized capital sufficient sum to extinguish our indebtedness without, [considering an amalgamation at all, but the procedure in cither case is almost identical so that the difference in expenditure between the two alternatives is negligible.
Tt was pointed out to you in the report that the standard produetion allowed to this company was 14 very poor one, being equivalent at 100 per. cent. to only 2794 Th. per }planted acre. The greatest efforts this assessment, but, owing to the [lack of proper field records for' the! earlier years, we were unsuccessful, The next re-assessment takes place] after October 31, this year, when we shall again try to substantiate cur claim to a larger allowance, In the meantime, if the amalgamation goes through, you will participate in the much larger allowance granted to Sec Kee which works out at 400 Ib. per. acre, the combined standard productions for} the two properties being 210 Ib. per
Text read from the printed page and cleaned; old type leaves the occasional error.