Means of Reducing Costs and Effects on Working Efficiency: Some Popular Fallacies Exposed It Is fairly obvious from the letter "Latex" October 21 that the per whose Identity is covered by that ame has a superficial knowledge of the working of Malayan rubber estates, resulting most probably from residence in Malaya. Unfortunately for him a little knowledge has been dangerous thing and the so-called facts which he presents in his letter, dased on his superficial knowledge by no means reflect the true state of things and the standards he sets by which to judge the. efficiency or otherwise, the cheapness or otherwise of running rubber companies are valueless and meaningless, rent wages for labour (sey a check roll average of 40 es. per day which leaves little scope for reduction' the estate expenses such es tapping, feld up-keep, the minimum mantfaciuring cost, transport, quit rent and the like, all of which would be unaffected by amalgamations, cost over 24 a Ib, respective of reduction in super visory staff expenses or agency fees Jand as the labour authorities are not kely' to allow any reduction labour rates it is impossible to see how Latex's estimate of 2d, a Ib. for {the total cost of production is to be secured no matter what acreage the property may be, Alter dealing with the early history of the plantation rubber industry he brings his readers to the time when on account of slump conditions. the industry commenced to" rationalize itself by amalgamations and by the weaker estates being absorbed by Anancially strong ones. This led to reduction in staffs and cheaper supervision costs. Latex's lack' of knowledge—or perhaps he merely exaggerates in order to mislead his readers as to the advantages accruing. from "these amalgamations is shown in this comparison of staffs. he Tanager and two frequently supervise 5,000 acres whereas in 1920 a thousand acre estate would have a manager with either one or two European assist ants besides a kranz, His glib desription of the present staff on the 5,000 acres amalgamation, however, likely to mislead those who do do not know anything about estate management, Why Asiatics were Employed Does Latex mean to imply that on the 5,000 acres there are erals employed—just the one manager and one or two assistants? If hho does then he is wrong for gener= ally speaking the reduction in Buro-can' supervision on rubber' estates has meant an increase in the employment of less expensive and monerally less eM™icient, "Asiatic supervisors. The smaller salaries for which such Asiatic supervision could be obtained compared with were very convenient, any even a necessity during those times when the price of rubber remained at an unremunerative level but whether this policy of cheap and insufficient supervision will be a sound one to follow when the price of rubber reaches higher levels is a matter for consideration. A sufficient and proper supervisory staff should be maintained on an estate whether it 1,000 oF 6,000 acres to see that the maximum benest tothe property. secured from the money spent on the work of the coolles. cannot see, however, how Latex's dream for a decade hence in which through "this logical and, inevitable process of amalgamation" average rubber companies will be controlling. at least 10,000 acres with a cost of Production in the vicinity of 2d. per Bb, can be realized and particularly #0" as far as the Shanghai rubber investing public are concerned, Latex merely contents himself by saying there is every reason to believe" but gives no. basis for such reasoning and surely after he has demonstrated so clearly his but meagre Knowledge of rubber estate matters cannot expert his readers to be cotitent to accept such a statement fon his mere personal assurance. Sweeping statements like that of Latex are easy to make and they "Jock good" to the casual reader.
Text read from the printed page and cleaned; old type leaves the occasional error.