The faci tha small output w: Fesponsible for a large reduction in the company's profits during the year was reported at the annual general meeting of the Kapayang Rubber Estates Ca., Ltd., held in the offices of the secretaries, Messrs J. A. Wattie & Ca., Ltd. yesterday. Mr A. J. Welch (Chairman) presided and was supported by Messrs. L. E. Canning and L. Kadoorie (directors), and Mr. A. W. A. Welch, representing the secretaries, Total shares represented were 4,145.
The Chairman said:
The working for the past year resulted in a small profit of St. $238—as compared with St. $38,057.65 for the previous year. This poor result is largely attributable to the fact that the output was 49,195 1b. smaller than it was last year which resulted in the expenditure on revenue account being three farthings per pound higher. The effect of this increase in expenditure was further accentuated by the fact that the average price realised for our product was 234 pence per pound lower.
The increase in the rate of expenditure per pound is entirely accounted for by the decrease in the exportable allowance and would have been greater had it not been for a reduction in wages which fell from an average of 46.95 cents to 43.73 cents per day. These are all factors over which neither your Manager nor your Directors have any control whatsoever.
The Company is not in too robust a position financially but, if your capital asset is to be preserved, we must continue the programme of gradually replanting the whole area of the estate, since the trees are approaching the stage when they will no longer be economical producers. By this I do not wish for one moment to give you the impression that the estate is at present worthless, because this is far from being the case. but the position is that the stand of trees per acre is, from one cause or another, gradually becoming £o sparse that in the not too distant future the output per acre will cease to be an economical yield and it is therefore desirable to forestall this event by replanting certain areas 50 that they will come into bearing be fore the time when some of the older areas cease to be of commercial valve.
Text read from the printed page and cleaned; old type leaves the occasional error.