Of $267,871.55
"Financially, the company is in a sound position and on January 31, 1959, the liquid assets exceeded the cash liabilities by $253,474.48," said Mr. A. J. Welch. chairman, at the annual general meeting of Tebong Rubber Estate, held at 1145 yesterday in the offices of J. A. Wattie Ca, Ltd, secretaries and general managers.
Mr. Wattie was supported by Messrs. H. Kadoorie and R. N. Swann, directors, and Mr. C. F. Shackleton, representing Wattie & Ca, while shares present and represented totalled 2,162,909 shares.
The chairman said The working for the year under review has resulted in a profit of $397,846.29 as compared with a profit last year of $267,971.55. This profit is equivalertt to St. $53.63 per acre so, whilst the profit earned represents a considerable percentage of the issued capital, the profit per acre is only moderate.
This satisfactory result was attributable to the facts that the output was some 326,000 Ib. greater and the average price realized for our product was:17 of a penny per pound higher. The expenditure on revenue account was, however, one fifth of a penny greater, mainly due to the increase in the rate of wages.
Possible Appeal The standard production for 1938 allotted to the estate is 1,375,900 Ib. being a decrease of 263407 Ib. over that for 1937. The Straits agents are now occupied in investigating when ther an appeal against this assessment is likely to be successful or not.
There stan item on the Jiability side of the balance sheet that perhaps I should enlarge upon and that is sundry creditors, $18,190.17. This appears at first glance to be a very large amount but it is capable of very simple explanation. Of this sum $46,465.70 represents the usual liabilities on the estate at the end of any given month, including the proportion of the quit rent for the eleven months February to December 1938 amounting to $15,414.77, The only other large item included under this heading is the bonus to the estate manager and the staff amounting to $2837947, Financially, the company is in strong position and on Janlary 3l, 1938 the liquid assets exceeded the cash liabilities by $253,474.48. Capital expenditure during the year amounted. to $29,672.04 which was utilized as follows $23,913.88 were expended on replanting on area of 28 acres and on preparing a further area of 81 acres for replanting.
$3,841.42 represents the cost of 3 Latex tanks, refrigerators and inset lavatory besins for the various bungalows, and $93421 were spent on extending the transmission of the water supply.
"General Charges"
A shareholder has written in a ing for particulars' of the items that comprise general charges and in reply I may inform|him and you that general charges tóvers 17 subheadings. The net increase in expenditure this year under the heading of general charges as compared with last year is Straits $5,164.90 which is mainly due to increases under the following sub-headings:—Contingencies, St, $309.09, which was almost rely attributable to the Corona-lion celebrations which had to cater for a labour force of 610 souls and their dependents.
Recruiting and assessment cost an extra St. $2,062.52 owing to the employment of a larger number of coolies in order to cope with the increase output. The expenditure on the up-keep of buildings was greater by St. $2187.84 owing to the reroofing of some of the coolie lines and the reconditioning of two of the bangalows, Wells and water supply cost an extra St/$662.55 owing th the extension of the water service to the iwo bungalows that were reconditioned. The increases or decreases under other headings were negligible Panting Matters As regards planting matters the orly change in the planted area during the year was that 28 acres that were cut out last financial year were replanted with specially selected seedlings, which are reported to -be making very satisfactory progress, A further area of 81 acres was cut out and prepared for replanting when the proper season to do so arrived.
An average area of 2,626 acres was tapped daily throughout the year fro which a yield of 510 Ib. per acre per annum was obtained. The tapping system in vogue continues on a rotational basis whereby two-thirds of the area is always in tapping whilst the other one-third is resting. This system has resulted in a steadily increasing yield per acre and a great strengthening of the bark renewal and reserves not to mention economy in the cost of tapping.
Beyond the usual amount of root disease amongst the old rubber. neither pests nor diseases gave any special trouble during the year and any sporadic cases that occurred were promptly given the necessary treatment. The supply of labour was ample for all requirements during the year but the average daily rate of pay was.47.31 cents as against 39.16 cents the previous year.
The expenditure under the heading "Hospital and Medical" was grea'ir by St.$2,139.60 which was entirely due to the fact that there were outbreaks Ci measles, mumps and influenza during the year Tire were 15 deaths and 23 births dur' in addition to" which were given hospital treatment and ihere were 1374 out-patients.
Weeding cost 23 cents per acre per month as compared with 19 ec 's last year. The inereare was entirely due to the higher rate of wages ruling.
The factory and plant functioned satisfactorily during the year and no complaints were received from buyers regarding the quality of our product. All buildings were given the necessary upkeep and are reported to be in a reasonably satisfactory condi tion. Speaking generally, the estate is in good condition and free. from lallang and other harmful growths.
Letter from Mr. Soyka There is one other matter to which I will allude before I sit down as the subject will probably be referred to later on at this meeting.
Rather less than three weeks ago May 112% B +4%—Reuter, Mr. H. Kadoorie received a letter from Mr. L. Soyka in which the latter complained, inter alia, of the lack of attempts by the directors of shanghai rubber. companies in general to affect amalgamations and to the alleged exorbitant fees that the directors of certain companies \in particular, permit Messrs. Kennedy, Burkill & Ca., Ltd. to charge. "Mr. Soyka has also in the past complained about the amounts paid for directors and secretarial fees by these componies. Attached to, this letter w: a Statement showing what the writ alleged were the fees at present bejhg
the management of J.A. Wattle & Ca., paid by eight of the companies wder Ltd, and cited what, in his estimat tion, the fees ought to be if all these eight companies were amalgamated into one unit; Later on im his letter he stated that he had received an offer, from some firm in the Straits, whose name he refuses to disclose, to take over all the estates at present managed by Kennedy Burkill & Ca., Ltd., on the following terms:—
(a) A specific fee for each estate.
(b) 'A commission of 34 rer cent on the sales of rubber. (N.B. The universal Commission now paid on o; dinary Sales is only!$ per cent). (6), handling fee of 225. cenis per (d) Insurance at 2!? cents per cent.
Text read from the printed page and cleaned; old type leaves the occasional error.