To the Editor of the "Nomru-Cunwa Dany News"
Sim—I am writing this after hav-Ing seen the circular to shareholders issued by Messrs. J. A. Wattle & Ca, La., the Secretaries for the Rubbei Trust Companies wherein they recommend the purchase of an estate in. Burma, For Chinese dollars seventeen hundred thousand odd, The Estate is assessed at 637,000 ths Standard Production and. it proposed o finance the purchase by the issue of 541,000_hew shares at $3—doubling the present capital—each, and the vendors are willing to take up the whole new issue as the purchase price. Of this Thave not the least doubt, and why By analysing the prospects of the proposed purchase exactly the same other local companies with the quota at 80 per cent. for 1987, one finds that each new share is entitied to 04 of one pound of rubber. Assuming that the cost of production equivalent to 15 Straits cents and the selling price at 30 cents, each share will be earning a profit of 38 cents Chinese, roughly" speaking.
Appended below T give a few of the local companies and their yield per share on the basis of 80 per cent. of Standard Production and at 34 cents Singapore currency; the cost fof production the same as last year, which will show how more prefably the $1,700,000 could be invested by Duying local shares of approved standing, which are about 20 per cent, cheaper than the recommended purchase.
As x matter of fact the vendors are pooling their interest with the Rubber Trust Ca, that is, their Standard Production of 637,000 Tbs with the Standard Production of over 1,000,000 of the Rubber Trust, and sharing equally with this com: pany, which over and above the rubber estates has investments. in. local companies which should be worth not much less whan about half a million dollars. "Is it any wonder that the vendors are willing to take shares instead of cash if this be not forth-though not favoured as a means of speculation but are held mainly. by investors.
Text read from the printed page and cleaned; old type leaves the occasional error.