COMPANY MEETING
MENDARIS (SUMATRA) RUBBER AND PRODUCE ESTATES
A COMPACT UNIT THE CHAIRMAN'S REPORT
THE twenty-eighth ordinary general meeting of the Mendaris (Sumatra) Rubber & Produce Estates, Limited, was held on April 19th in London.
Mr. H. Eric Miller (the chairman) in the course of his speech, said: The raising of our 1938 standard production to 3,205,572 lbs. is an indication of the real injustice of previous assessments. The revised standard represents about soo lbs. per mature acre.
Looking at the results we secured with an average price rd. per lb. higher than the current value, you will no doubt agree with me when I say that there is every justification for producers feel- ing that the market price should be substantially higher before they can be said to be receiving an adequate return for their labours. Our issued capital of £430,862 on a planted area of 6,400 acres is admittedly higher than the average capitalisation of rubber- producing companies, but the estate is a compact unit of sufficient size to ensure economic working, carrying trees in good condi- tion, yet, after deducting provision for depreciation of mature areas on a 2 per cent. basis, the net earnings, including £3,700 realised above the valuation on the balance of the previous year's stock enable us to distribute a dividend of only 3 per cent. I am glad to observe that several chairmen of rubber-producing com- panies have given expression to the view, which I share, that the present price level for rubber is too low. However, until the state of international political tension gives place to more reasonable conditions we can hardly look for solid improvement, notwith- standing the statistical strength of our commodity.
Considering the much smaller crop accounted for I am glad to say that the unit cost of production showed a very moderate in- crease, part of which was represented by the higher rate of export duty. We feel we have a distinct grievance that rubber-producers in the Netherlands Indies should have been singled out to contri- bute a special export duty, but, until the Government's financial position is materially better, I am afraid we are not likely to be relieved of this burden.
Previous page
