2564
Aan
S.' u: \v- <*. s 1 ' 4r Sr* M - V> ; r' rtr: :*>v
de Leden van de Tweede Kamer der Staten-Generaal.
B12


BIBLIOTHEEK DER RIJKSUNIVERSITEIT TE LEIDEN.
Uit de boekverzameling der voormalige Ned.-Ind. Bestuursacademie.
Bruikleen van het Departement van Koloniën.
Juli 1923.


'/e- t>cm ^l^&eec/e- ' _.^/rzrnet- c/ez-
Ondergeteekende neemt de vrijheid, Uwe aandacht te vestigen op zijn navolgend schrijven dd. 10 dezer aan Zijne Excellentie, den Minister van Koloniën.
Met verschuldigden eerbied,
J. G. SCHLIMMER, Directeur-Generaal der Borneo-Sumatra-Handel-Maatschappij.
Bandjermasin, 15 Januari 1912.





S^rïne Wccce/fën&e c/en< van
<j. C^br/tsenfz'iztze
Naar aanleiding van het kort verslag der vergaderingen van de Tweede Kamer der Staten Generaal in zake djeloetongconcessies, neemt ondergeteekende eerbiedig de vrijheid de aandacht van Uwe Excellentie op het volgende te vestigen.
Uwe Excellentie blijft van meening, dat de uitgifte van Djeloetongconcessies niet met de belangen van de bevolking in strijd zoude zijn; uit de talrijke requesten van de bevolking, die voortdurend bij den Resident der Zuider- & Oosteraideeling) van Borneo binnen komen en uit een hierbij gevoegden afdruk van een artikel uit de Straits Times dd. 28/4'11 betreffende de gevolgen van het monopolie stelsel op Sarawack, moet echter het tegendeel afgeleid worden, ook de toestand, die momenteel in het stroomgebied van Pemboeang heerscht, waar concessionarissen - de Nederlandsch Indische Boschproducten Maatschappij — reeds een jaar zoogenaamd werken, bewijst afdoende, dat de belangen der bevolking in hooge mate geschaad
worden.
Concessionarissen hebben in dat jaar nog niet eens aan hunne eerste \erplichting voldaan, om het concessieterrein behoorlijk af te bakenen door plaatsing op de snijpunten en wegen van duurzame goed zichtbare merkteekenen.
Niettegenstaande dat wordt de bevolking toch maar geaelit precies te weten wat concessieterrein en wat geen concessieterrein is, althans in de vorige maand werden verscheidene djeloetongzoekers te Pemboeang gearresteerd en hun product geconfisqueerd. Ik refereer aan mijne hierbij in afdruk gaande correspondentie met den Resident der Zuider- & Oosterafdeeling van Borneo, n.1. mijn schrijven van 20/H'll; antwoord van den Resident dd. 23/11*11; mijn schrijven dd. 29/11 11.
Concessionarissen hebben tot dusverre niets anders gedaan dan het djeloetongverzamelen voor de bevolking'' onmogelijk gemaakt door voorschriften betreffende tapwijze, die thans gebleken zijn onuitvoerbaar te zijn, daar er geen voldoende product mede verkregen kan worden. Zelf hebben concessionarissen die zoogenaamde verbeterde tapwijze met een Europeaan en een twintigtal koelies (vertegenwoordigende hun geheele personeel in het reusachtige gebied) trac ten oe te passen, doch eveneens zonder succes. Waar blijft dus de verbeterde tapwijze, die concessionarissen beloofden te zullen invoeren en waarop het Gouvernement de concessie-uitgifte gebaseerd heeft? Stelde ik, tijdens het onderhoud, dat Uwe Excellentie mij dd. 10 Juni j. 1. toestond, niet terecht de vraag aan den Heer Tunwp iTaah- - ..of wii dan maar voetstoots moeten aannemen wat een Duit


scher of Amerikaan ons belieft wijs te maken en belooft te zullen doen?" -
Concessionarissen hebben in het afgeloopen jaar dus zelt nagenoeg geen djeloetong geproduceerd en het de bevolking onmogelijk gemaakt dooi inzameling van djeloetong in haar levensonderhoud te voorzien.
Be belangen der bevolking zijn dus niet alleen geschaad, docli gedurende een geheel jaar heeft deze bron van inkomsten voor de bevolking te Pemboeang opgehouden te bestaan.
Als men nu in verband hiermede nog eens de concessievooi waai den naleest, moet bij een ieder elke gedachte aan een ernstig streven van concessionarissen, om die voorwaarden na te leven, verdwijnen. Als men verder de Balans van de United Malaysian Rubber Company inziet (die hierbij in afdruk gaat en waaruit blijkt, dat de Nederlandsch Indische Boschproducten Maatschappij eene zustermaatschappij is van de United Malaysian Rubber Company, uitsluitend ge\ormd om aan de Nederlandsch Indische wetgeving betreffende concessies te voldoen) en ten slotte kennis neemt van dé hierbij gevoegde afdrukken van hetgeen in de Financial Times van 15-16 en 21 November 1911 gepubliceerd is geworden omtrent deze oorspronkelijk Amerikaansche onderneming, dan:mag men niet meer aannemen, dat dergelijke ondernemingen dit land (Borneo) en volk tot heil zullen strekken.
Ieder zal zich de vraag stellen, hoe is de Maatschappij, die de concessies houdt, ontstaan, en welk doel hebben de Amerikanen gehad, om die maatschappij in het leven te roepen. Na hetgeen laatstelijk aan het licht gekomen is, kan niemand op die vraag antwoorden: „dat het doel van ondernemers is geweest,
• de djeloetongboomen te sparen".
Het argument, dat voor de uitgifte van de concessies gebezigd wordt, n.1.: „dat concessionarissen belang hebben bij de instandhouding der boomen kan alleen gewicht in de schaal leggen, indien men met serieuse concessionarissen te doen heeft, doch serieuse concessionarissen zullen nooit verplichtingen op zich nemen, die zij vooruit weten niet te zullen kunnen naleven.
Wat betreft de mededeelingen die Uwe Excellentie gedaan heeft, betreffende de Borneo-Sumatra-Handel-Maatschappij, ben ik te allen tijde bereid, indien Uw e Excellentie daarop prijs stelt, te bewijzen, dat Uwe Excellentie onvolledige en onjuiste inlichtingen heeft ontvangen; ook aan andere belangstellenden wil ik
desgewenscht gaarne dat bewijs leveren.
Ik had bij de Regeering meerdere appreciatie verwacht voor een lichaam als de Borneo-Sumatra-Handel-Maatschappij, dat sedert meer dan 25 jaren (vroeger onder den naam van Schlimmer & Co.) met succes tot de ontwikkeling van Borneo heeft medegewerkt. Het schijnt echter niet de richting der Nederlandsch Indische ambtenaren te zijn, om zuiver Hollandsche Maatschappijen met dezelfde égards te behandelen als buitenlandsche combinaties, waar men niets van weet.
Ik hoop, dat het bovenstaande Uwe Excellentie tot de overtuiging moge brengen, dat djeloetongconcessies geen heil over Borneo zullen brengen, doch veel ellende; niet alleen de bevolking van Borneo zal hierdoor getroffen worden, maar ook de goedgeloovigen in Europa, die er hun geld voor geven, evenals de thans wakker géworden aandeelhouders van de United Malaysian Rubber Company.
Het is te betreuren, dat Borneo weder in deze ongelukkige zaak betrokken


is; dit land geniet op de Europeesche geldmarkten toch al zoo weinig vertrouwen, omdat het steeds een geliefkoosd operatieveld is geweest-voor avonturiers.
Moge het Uwe Excellentie behagen alsnog de noodige maatregelen te nemen ter voorkoming dat de bevolking van Borneo en de goedgeloovigen in Europa de dupe worden van wilde speculaties, die slechts ten uitvoer gebracht kunnen worden zoolang de Regeering voortgaat een gewillig oor te leenen aan niet te vervullen beloften van concessionarissen, die de concessies noodig hebben, om menschen, die de waarde ervan niet beoordeelen kunnen, te doen deelnemen in ondernemingen die den naam van Borneo verder in discrediet zullen brengen.
't welk doende,
Uwer Excellentie dienstw. dienaar J. G. SCHLIMMER,
Direct eur-G ener aal der Borneo-Sumatra-Handel-Maatschappij.
Bandjekmasin, 10 Januari 1912.
■





Afdruk van een artikel uit de Straits Times, ddo. 28 April 1911.
The Rajah Bevokes.
We have liad occasion once or twice to refer to the mauner in which the interests of the people in Sarawak have been sacrificed lately. Why the Rajah gave a group of American speculators a monopoly of all the jelutong produced in his country when there was a free market for it in Singapore, is not, we imagine, a matter of which he could give an explanation that would be consistent with his dutiful interest in the welfare of the people. But, at all events, when the monopoly right was granted there was a plenitudè of assurances that the interests of the people had been the first consideration of His Highness. In proof of this, it was made an essential part of the contract that the price paid for jelutong by the United Malaysian Company sliould be the price current in Singapore. In the natural course of business, the excellent people wlio run the United Malaysian interests in Sarawak, took a very different view of Singapore priccs from that of Singapore buvers. In fact, thev got the jelutong from the unfortunate collectors, the humble subjects of His High ness the Rajah, at pretty much their own price and loud protests were the consequence. To silence these protests a very proper order was issued that "a notice should in future be hung up on the court wall in Kuching to show what the Singapore price is, and in the event. of the sellers not o'otaining the price quoted from the Malaysian Company tliey will be free to sell or export the jelutong to Singapore or elsewhere. The sellers must guarantee the jelutong to be of good quality".
Now that order lias worked very well for about a year — so well, in fact, that when His Highness the Rajah was in London recently, the worthy gentlemen wlio manage United Malaysian in "that city made a pointof seeing him and using influences which have sufficed to produce a revoke.
Buying at the prices Singapore was willing to pay they could not, they plaintivelv assured His Highness, make a profit. The royal heart was softened towards tliem, and 011e of the first acts on getting back to Sarawak has been cancellation of an order which was the sole guarantee the -elutong collectors possessed of being treated with a moderate degree of fairness. We seein to recall a flamboyant prospectus in which magnificent dividends were to be made by buying, as per the agreement, at Singapore prices. We seem to remember, also, that we treated these promises of big profits with scorn, and that] the Secretary of the company wrote to a London financial journal to expose the 'enormity of our offence. But it would appear that we were right. 1 he alternative theory is that the heads of the United Malaysian told His llighness falsehoods when they said they could not make profits if they bought at Singapore prices, and that, of course, is an alternative which it would be improper to adopt.
If they can make the profits alleged in their prospectus wliile buying at the price they agreed to pay, it is a wicked injustice to grind the faces of the poor jelutong collectors by deprhing them of a fair market for their produce. If they cannot make these profits, the prospectus was misleading, and we, as the critics of it, were correct. It may be that His Highness the Rajah has lost touch with the vulgarities of trade, and does not understand the grossness of the injustice he- is perpetrating upon his people, and through them upon the State it is his privilege to rule. We will endeavour to explain to him how the matter stands. As long as the United Malaysian was required to pay Singapore prices for jelutong, the concession to the American speculators was not really a vital injury to Sarawak. It may have ruined the business of a few merchants who bought for re-sale to Singapore firms but it did not reduce the total suui paid in Sarawak for jelutong. That clause, in fact, was the only one of real consequence to the people. The moment it is abolislied — and for all practical purposes, we believe, the withdrawal of the order to post Singapore prices is equivalent to its abolition — the United Malaysian Company has the wliole of the" people connected with jelutong collection in a position of abject slaverv. They must go on collecting jelutong or starve, and they must take for that jelutong whatever the United Malaysian is pleased to offer. Singapore may be willing to give $ 10.000.— fora given quantity of the produce; the Malaysian gang can buy it all up for half the sum, because the collectors dare not sell to anvone else until the Shvlocks have had an opportunity of refusal. Now, His Highness the Rajah


ïnay not be very familiar with vulgar details of commerce, but he ought to be capable of understanding that if'his people get only half as mach as they ought to get for one of the great staple products of their country, they are being robbed as individuals, and the country must suffer. Th ere is another aspect of the matter. If a Rajah, great or small, permits any flnancial syndicate to rob bis country and places it thereby in a specially favourable position for competing against otlier companies, he is inHicting a serious injury 011 otlier people tlian lus own. He is, in fact, subsidising unfair competition against everyone else who is engaged in the rubber business. How that might be a serious matter, and we would point out to His Highness the Rajah that liis state is under British protection, that Eritain cannot allow it to be mishandled in a manner that would injure any of her own people, and that it might not be wholesome for his Rajasliip if the attention of' the world in gener.al were called to the wav in whicli the functions of government in matters of commerce are being discharged. Tliere should be 110 need to say any more, but without delay the guarantees of a free market in whicli fair prices will rule ought to be restored.
Straits Timet, April 28, 1911.
COPIE. Aan den Resident der Zuider- & Oosterafdeeling van Borneo, Bandjermasin.
Bandjermasin, 20 November 1911.
HoorjEd. Ges tv. Heer.
In mijn schrijven van 30 October j.1. stelde ik U HoogEd. Gestr. de \raag, of het stroomgebied Sebangau al dan niet vrij is voor de bevolking voor verzameling van Djeloetong. Daar deze vraag tot heden nog niet door U HoogEd. Gestr. beantwoord werd, neem ik de vrijheid copy van bovengenoemd schrijven in te sluiten.
Verder bedoel ik met dit schrijven U HoogEd. Gestr. bekend te maken met de geruchten, dat een zeer groot aantal djeloetongzoekers te Pemboeang door den Vertegenwoordiger van Jelotong-concessionaris „de Nederl. Indische Boschproducten Maatschappij", zijn aangehouden, terwijl hun product door dien vertegenwoordigei tijdelijk moet zijn geconfisqueerd, in afwachting van een nader in te stellen onderzoek der aanklachten, dat de betreffende djeloetongzoekers de grenzen van het concessie-terrein overschreden zouden hebben.
Op dit onderzoek, dat vermoedelijk geleid zal moeten worden door den Controleur van Sampit, wachten de menschen reeds verscheidene weken. Zij kunnen intusschen niet werken, ook hun djeloetong niet verkoopen, doch wel gaan hun
dagelijksche uitgaven voort.
Al mocht dus het te verwachten onderzoek, waarop men nog onbepaalden tijd zal moeten wachten, ten gunste van beklaagden afloopen, dan zullen zij toch geruineerde menschen zijn.


Verder werd mij bericht, dat de grenzen der concessie-terreinen niet behoorlijk zijn afgezet, zoodat een inlander, die in het oerwoud ronddwaalt om producten te verzamelen, onbewust in de concessie-terreinen terecht kan komen, hetgeen geen verwondering behoeft te baren, indien men bedenkt, dat militaire troepen zeer \ aak verdwalen in de oerwouden en de plaats niet kunnen vaststellen, waar zij zich bevinden.
Ik vraag mij verder af, hoe de rechtdoende ambtenaar, die zich tot onderzoek van de zaak naar Pemboeang zal begeven, moet constateeren of de beklaagden werkelijk op de concessie-terreinen djeloetong getapt hebben. Hij zal zonder meer deze verklaring van concessionaris, eventueel bekrachtigd door een paar inlandsche getuigen, moeten aannemen, immers hemzelf staan geen hulpmiddelen ten dienste om het concessie-terrein door ondergeschikte ambtenaren te doen bewaken en indien het concessie-terrein niet nauwkeurig en goed zichtbaar afgezet is, zullen zelfs eventueel ter bewaking aangestelde ambtenaren moeilijk de plaats, waar een vermeende overtreding geschiedt, kunnen vaststellen.
Indien de rechtdoende ambtenaar in dit opzicht niet met de grootste omzichtigheid te werk gaat, zal de inlandsche djeloetongverzamelaar geheel overgeleverd worden aan de willekeur van Concessionaris en dit is alleen te vermijden, indien het Nederl. Ind. Gouvernement in de onmiddellijke nabijheid van concessie-terreinen over voldoende ambtenaren beschikt, die overtredingen kunnen vaststellen en \lug recht kunnen doen geschieden. Dan eerst zal niet, zooals thans, weken wellicht maanden op een onderzoek gewacht moeten worden, dat, hoe ook de uitslag daarvan moge zijn, den inlandschen djeloetongverzamelaar zekerlijk ruineert.
De toestand in Pemboeang bevestigt reeds, dat zijn vrees, uitgedrukt in mijn onderhoud dd. 10 Juni j.1. met den Minister van Koloniën, waarvan een memo in U HoogEd. Gestr.'s bezit is, geenszins denkbeeldig is.
Ik wees n.L op het gevaar, om monopolies resp. concessies te geven over een reusachtig gebied, waarop het Gouvernement zelf geen toezicht kan houden, bij gebrek aan voldoende daarvoor geschikte ambtenaren.
Moge het U HoogEd. Gestr. behagen spoedigst maatregelen te nemen, die den inlander tegen eventueele willekeur beschermen.
Hoogachtend,
BORNEO-SUMATRA-HANDEL-MAATSCHAPPIJ,
(IV. g.) J. G. SCHLIMMER,
Directeur-Gen.





THE UNITED MALAYSIAN RUBBER CO.. LIMITED.
BALANCE SHEET, 3Ist MAY; 1911.
Dr. Cr
TO CAPITAL AUTHORISED — | BY PURCHASE OF BUSINESS.
2,000,0c0 Shares of £1. each £ 2,000,000. 0. 0 ■ Cost of acquiring all the Capital Stock
Taan™™ of the Malaysian Rubber Co £1,997,500. 0. 0
cAfiiALi löSULD — Deduct: Value of Assetsacquiredupon
1,997,500 Shares of £ 1. each £1,997,500. 0. 0 1 the liquidation of the Malaysian
Less: Shares forfeited . 210. 0. 0 Rubber Co., )ess liabilities „ 270,831. 0.10.
Balance: 1.997,290 Shares fully paid £ 1,997,290. 0. 0 STJ'1
TO FORFEITED SHARES ACCOONT — each, in the British Maiavsian Ma-
Cash paid on 210 Shares forfeited... . 60.0.0 nufacturing Co., of which'68.498 are
To Advances against Rubber . „ 26,968. 3. 4 1 lul'y P^id and 25.000 are Is. paid,
To Bills Payable „ 7,792.19.5 , including losson Workingof Factory
To Sundrv Creditors and Outstandings. . . " 11,366.17.1 II during the experimental stages prior
to the liquidation of the Malaysian
Rubber co £1,726,668 19.2
By DevelopmentofConcessionsFurther expenditure to date „ 3,691. 8. 7
| BY GOEBILT FACTORY DEVELOPMENT PLANT AND EQUIPMENT.
Expenditure by the Malaysian Rubber
Co £ 61,870, 2. 4.
Further expenditure to date „ t,019,11. 4.
£ 72,889.13. 8
By KARIMON RUBBER MAAT-
SCHAPPIJ.
Advances forDevelopment, Plant and Equipment of Factory at Karimon and Working Capital.
Advances by Malaysian Rubber Co. . £ 16,386.13. 7
Further advances to date „ 92.080.19.10
£ 108,467.18. 5
(To be satisfied by the issue of Shares
in the aboye Company).
By NEDERL. INDISCHE BOSCHPRODUCTEN MAATSCHAPPIJ. \ /
Cost of 100 shares of ƒ2,000.— each, /\
upon which the sum of ƒ 177,441.16 / \
has been paid.
Advances by Malaysian Rubber Co... £ 10,386. 7. 1
Further advances to date „ 4,314. 3. 7
„ 14,700.10. 8
Of these 47 fully paid Shares have v .
been given to the Dutch Directors \/
for consenting to act as such. f\
By Office Furniture and Fittings,less ' ^
depreciation „ 593. 2. 4
By Stores on Hand and in Transit „ 22,712. 4. 5
By Produce on Hand and in Transit
Rubber, since sold £ 23,084.13. 9
Resin etc „ 4,590. 0. 0
„ 27.674.13. 9
By Sundry Debtors and Outstandings „ 6,579. 3. 3
By Cash at Bankers and in Hand „ 2,602.16.10
By PR0F1T AND LOSS ACCOUNT.
Balance of Administration Expenditure of the United Malaysian Rub-
NOTE: There is a contingent liability for calls on ber Co., Limited, to date.. . ..... £ 14,126.2.9
British Malaysian Manufacturing Co.,Limited, £, Aan' Loshoii Trading frora 80th
Shares of £ 23 750, and on Nederlandsch Indi; September, 1910, the date of Liqui-
sche Boschproducien Maatschappij Shares of dation of the Malaysian Rubber Co., _ „
Fl. 22,558.84 or £1,867. to Sist May, 1911 27,815.5.9
„ 41,941. 8. 6
By Preliminary Expenses, including Brokerage £ 342. 9. 0 „ 14,965. 5. 3
£2,043,477.19.10 £ 2,043,477.19.10
- FRANCIS W. LOWE. I M. G. HALE. j Dlrftctors-
REPORT OF THE AUDITORS TO THE SHAREHOLDERS OF THE UNITED MALAYSIAN RUBBER Co., LIMITED.
We have examined the above Balance Sheet, dated 31st May, 1911, with the books and vouchers of the Company in London and with the returns from New-^ork and the East, signed by the respective Managers. ÜVe have received all the inforraation and explanations we have required. In our opinion such Balance Sheet is properly drawn up so as to exhibit a true and correct view ot the state of the Company's affairs according to the best of our information and the expJanations given us, and as shown by the books of the Company and the returns referred to. Exchange with Singapore has been taken at 2/4- per Straits dollar, and with New-York at 4.87 U. S. A. dollars per £ sterling.
o t, ^ ™ _ « _ „ , PRICE, WATERHOUSE and Co.
B Frederick s Place, London. E. C. lOth November, 1011.


Tlie Chairman replied tlnit tlie auditors had not thought it necessarv to separate the amount from the other items contained in that part of the balanee-slieet, and the directors could not give any further information about it, nor did he see that it was very material.
Mr. Souter retorted that he found it very material, and he pressed the Chairman for either an answer or a refusal, on behalf of the Board, to afford the information songht.
The Chairman eventually said that to the best of his recollection it was £ 50.000.
Mr. Soutek asked what part of this loss was incurreJ prior to the flotation of the company.
The Chairman: We asked the auditors to inform us on that point. and they said they were unable to do so.
Mr. Souter: I would call your attention to the following passage in the prospectus: — "On the basis of the fignres shown in the above mentioned report of Messrs. Phice Waterhouse and Co. . . . the Malaysian Company will . . . have a working capital of about £260.000". How could any auditor sav that you were going to have that working capital if they could not teil you whether a loss of £50.000 was made before we took over the company or not? (Applause.)
Mr. Matthew 6. Hale (a director): You must ask Price Waterhouse and Co.
Mr. Souter went on to ask whether a bona fide trade shipment of rubber was ever made by the Malaysian Company of New Jersey prior to the issue of the prospectus of the United Malaysian Company.
The Chairman: Yes, manv shipments were made.
Mr. Souter's speech.
Mr. Souter said he wished to explain his motives in addressing the meeting. It had come to his notice that a certain section of the Board considered that he was endeavouring to wreek the company. 11e hoped his fellow-shareholders would give him credit for a totally different motive. (Hear, hear.) He was a very large shareholder, but what was of greater importance to him was that a great many of his friends had bought shares in the company upon his recommendation, and nothing would give him greater pleasure than to see those gentlemen get back the money they had invested on his recommendation. He could not see, therefore, that it was in any way to his interest to attempt to wreek the company. He held that everyone wlio had the best interests and future welfare of joint stock company business at heart should, wlien it was considered necessary, offer legitimate criticisms. (Hear, liear.) He held that sucli criticisms were not onlv beneficial, but were apt to act as a deterrent. Unless London was to become more and more the happy hunting ground of unscrupulous company promoters, who at times could all too readilv obtain attractive names for their prospectuses, it behoved shareholders more and more to give legitimate expression to their feelings when they considered they had been wronged. (Hear, hear.) He hoped the day was not far distant when a Shareholders' Pefence League or Association would be formed, and when it was he hoped one of its first spheres of activity would be so to strengthen the company laws, and so facilitate Board of Trade inquiries, that the onus of individual effort on the part of shareholders would be removed. (Hear, hear.) No doubt all had listened with great interest to the address from tlie Chair, and he was sure that they all fervently hoped that the company had now rounded the corner, as the Chairman anticipated, and that the forecasts as to the future might be realised.
The profit and loss account.
The balanee-slieet was now in the shareholders' hands and he did not know what others thought of the omission from it of the profit and loss account, and whether they considered the Chairman's observations thereon satisfactorv. Tliere was very naturallv a feeling that this profit and loss account had been deliberately and intentionally withheld.
The Chairman said Mr. Souter could have a copy of the account that moment if he wished.
Mr. Souter responded that everv shareholder should have one. Their feeling when they received the report without a profit and loss account was that it had been withheld for the purpose of hiding something or sliielding somebody. He confessed that he shared that opinion. After all that had happened in regard to this flotation the omission of the profit and loss account to which the shareholders were most justly entitled had tended to create an atmosphere of suspicion, and to destrov the confideuce that should mark the relationship between shareholders and their Board.
The Chairman said he would read it now if the shareholders wished. Tliere was nothing to conceal.


Mr. Souter said lie hoped the shareholders would onlv consent to pass the accounts on an assurance from the Chair that the profit and loss account should be sent to every shareholder as soon as possible.
The Chairman said it would certainlv be done, although it would not add to the information already in the possession of the shareholders.
Mr. Soutjïr, continuing, said that prepared as tliev must have been for an unfavourable report, from what took place at the last meeting lie doubted if any of them could have expected sobad a report as the one that was now in their hands. He did not know whether any of them had studied the balance-sheet with the original prospectus; if so, the true nature of the flotation of this United Malaysian Company must have been vividlv brought home to them.
Wrat tuk Vendors sold.
At the last meeting he formally asked the Chairman to explain exactly what the vendors had sold to this company. The reply, be thought, was a vague one and did not convey the necessarv information; but he let it pass, for he feit that, without the balance-sheet showing the result of the flrst year's working, it was useless then to press tlie matter further. A sirnple answer could now be given to that question, for a study of the balance-sheet revealed most clearly the astounding fact that the whole of the company's share capital, namely, £ 1.G00.000 in fully paid shares and £400.000 in casli, had been paid away in excliange for an American company, and that, therefore, the vendors had sold them a company which apparently had never paid a dividend and possibly never earned a profit — a company which they now learned was onlv in the experimental stage, and whose experiments bad cost this company 110 less a stim than £50.000. This American company was stated to possess large concessions in Sarawak, with limitless supplies of jelutong, but wlien the new company commenced operations apparently it could onl v buy jelutong, and at such prices as to result in heavy losses. Further, this American company was stated to be the owner of a valuable process for extracting rubber from jelutong, a process which they now learned, to their amazement, was not even perfected. In fact, it produced a rubber a large percentage of which, so he had heard from Mincing Lane, sold as low as 0 d. per lb. This, then, was all that the United Company received (with the addition of certain machinery and plant) for their two millions sterling. Was there the slightest hint in the prospectus that the process was not perfected? No! Every reference to it would lead one to believe the contrary. and they were distinctlv told that this process was already being worked on a large commercial basis wlien the United Company was formed. Was there the slightest bint in the prospectus that they would have competition in the buying of jelutong on the concessions or so-called concessions; or that they would have to pay a prohibitive price for it? Again he said No! It was clearly stated (in bold type) that they would be in an impregnable position as regards the raw material and that all competition was therefore impossible. He had no hesitation in saying that if the true facts, as they now knew them, had been clearly stated in the prospectus, no sane person would have subscribed a single penny towards the capital of the United Malaysian Company. (Hear, hear.). It was true, thanks to organising and business abilities of the present managing director, arrangement» had now been made, as they had heard from the Chair, for a cessation of the American competition in the buying of jelutong, and this fact, with an improvement in the process, enabled rubber now to be produced at a profit.
The Purchase Money.
This, however, in no way altered bis statements, which, put in another way, were simply this: That the whole of the capital of two million sterling was paid to take over as a going concern a business which showed, as a result of the first year's working, a loss of nearly £100,000 — namely, £ 50,000, the cost of the experiments, and £ 42,000 for administration expenses, &c. — a result which practicallv ran them into bankruptcy in a little over a year. This was the business which, according to the prospectus, was such a flourishing one that there was to be "no waiting period" and they were to receive an immediate return on their monev. Another fact that now stood out most clearly revealed bv tlie report was that the lnige sum of over £ 1.700.000 in shares and cash had been paid away for absolutely nothing — that they had received for it no tangible asset whatsoever. He would challenge anyone to refute this assertion. He would challenge anyone to prove that this vast sum did not entirely represent the vendors' profits, and that sofaras the shareholders were concerned it meant to them nothing more or less than water. (Hear, hear.)


A CoMMITTEE BUGGESTBD.
Mr, J. M. Henderson said the company's position was very serious. They had been told that the process of extraction was in commercial operation in April, 1910, hut as far as lie could discover, only certain experiments had then been carried out, and if this were correct there had been a gross misstatement of facts for which someone sliould be taken to task very seriouslv. (Applause.) He failed to see how the company could succeed, and the shareholders had substantial ground for complaint. He seconded Mr. Souter's resolution, with the addition af a clause providing for the appointment of a committee to confer with the direetors as to what steps should be taken.
Mr. Souter, however, said lie preferred bis resolution as he had moved it. and Mr. Henderson thereupon seconded it as it stood.
The resolution on a show of hands was adopted by a large majority, and Mr. L. G. Haas (Managing Director) demanded a poll.
Mr. Souter said that if the demand were persisted in the would move that steps be taken to secure a Board of Trade inquiry into the wliole matter. (Applause.)
Sir Percy Cunynghame and Mr. Hale expressed tliemselves in favour of the adoption of tlie resolution, which, Mr. Hknderson pointed out, committed the Board to nothing.
Eventually Mr. Haas withdrew his demand, and Mr. Souter's resolution was deciared carried. (Applause.)
Mr. Hale having, in expressing his view that the resolution should be adopted, stated that the name of Mr. Souter's firm, Messrs. J. Silverston and Co., appeared in the prospectus as brokers to the companv.
Mr. Souter said that his firm had lost largely in money and reputation through their association with the concern. They had permitted their name to appear only after being asked to do so by friends in Paris, and after careful study of tlie prospectus, of tlie directorate, and of tlie identity of the solicitors and auditors.
The Chairman then proposed an extra-ordinary resolution altering the articles of association so as to make the maximum number of direetors five instead of seven.
Mr. Souter asked whether, if the resolution were passed, the original direetors still 011 the Board would resign; but the Chairman ruled the matter out of order, and the extra-ordinary resolution, which was seconded by Mr. Haas, was adopted.
The Chairman moved the re-election of the auditors, Messrs. Pric e Wateriiouse and Co., which was seconded by Mr. J. M. Henderson.
A Shareholder suggested that as the auditors appeared to have been unable to provide the direetors with certain information, they should have new auditors. (Applause.)
The resolution was then put to the meeting and rejected on a show of hands. A poll was demanded, the result of which, the Chairman stated, would be announoed at the company's offices at noon to-dav (Tuesday).
A cordial vote of tlianks to the Chairman concluded the proceedings.


COPIE schrijven van den Resident der Zuider- & Oosterafdeeling van Borneo aan den Directeur-Generaal der Borneo-Sumatra-Handel-Mij.
Bandjermasin, 23 November 1911.
No. 6317/5.
In antwoord op Uwen brief van 20 dezer heb ik de eer het navolgende te Uwer kennis te brengen :
re het geval van Hadjie Abdodkarim van Sebangau.
Uw brief van 30 October po. werd door mij op 1 dezer aan den Controleur van Sampit gerenvoyeerd om inlichtingen, welke tot heden nog niet zijn ontvangen.
Omtrent de vrije inzameling van getah djeloetong in het stroomgebied der Sebangaurivier kan ik echter nu reeds mededeelen, dat vermits in beginsel besloten is, om aan de Schön Co's Boschproducten Maatschappij concessie te verleenen tot inzameling van dat melksap in genoemd stroomgebied, aan anderen dan opwonenden van die landstreek geen vergunningen tot vrije inzameling van dat boschproduct worden verleend.
re het aanhouden van een zeer groot aantal djeloetong zoekers te Pemboeang door den Vertegenwoordiger van de N ederl.-Jndische Boschproducten Maatschappij met tijdelijke confiscatie van hun product door dien Vertegeniooordiger.
Blijkens een gisteren van den wd. controleur van Sampit ontvangen schrijven zijn op aanklacht van den Vertegenwoordiger van genoemde Maatschappij een 57-tal djeloetongzoekers, allen afkomstig van buiten de afdeeling Sampit, door het districtshoofd van Pemboeang aangehouden wegens inzameling van getah djeloetong binnen de grenzen van het aan genoemde Maatschappij afgestane concessieterrein.
Bij onderzoek door het districtshoofd en den wd. controleur is de aanklacht gegrond bevonden, weshalve de delinquenten ter zake gerechtelijk zullen vervolgd worden:
9 hunner voor het Magistraatsgerecht; deze personen zijn in volle confessie.
de overigen voor den Landraad, vermits het gepleegde feit tot de competentie van die rechtbank behoort.
Voorts heeft geen hunner van het plaatselijk bestuur vergunning gevraagd of verkregen om waar ook in de afdeeling Sampit getah djeloetong in te zamelen.
Inderdaad zijn de grenzen van het concessieterrein in het district Pemboeang nog niet geheel afgebakend door plaatsing van merkteekens op alle snijpunten dier grenzen onderling en met de rivieren. Dit heeft echter voor de opwonenden van het concessieterrein geen bezwaar opgeleverd, zijnde toch tot nog toe geen hunner wegens clandestiene inzameling van getah djeloetong op het concessieterrein vervolgd.


Indien de thans vervolgde delinquenten voor het inzamelen van getah djeloetong de voorgeschreven vergunning aan den controleur te Sampit hadden gevraagd, dan hadden zij van dien ambtenaar dadelijk vernomen, dat de streek, waar zij wilden inzamelen en ook ingezameld hebben, binnen de grenzen van het concessieterrein gelegen was. Het concessieterrein strekt zich toch aan beide oevers der Pemboeang rivier over eene breedte van eenige tientallen kilometers uit en het gebeurt hoogst zelden, dat djeloetongzoekers zich voor hun bedrijf verder dan eenige kilometers van de rivier verwijderen.
Yan willekeur van de zijde van den Vertegenwoordiger der Nederl.-Indische Boschproducten Maatschappij tegenover Inlandsche verzamelaars is ten opzichte van de onderwerpelijke delinquenten geen sprake geweest.
Ik kan U de verzekering geven, dat ik bescherming van den Inlander, tegen willekeur van wien ook, als een mijner eerste plichten beschouw en dienovereenkomstig handel. Aan den anderen kant heeft een concessionaris evenzeer recht op bescherming zijner belangen, wanneer die door Inlanders bedreigd worden.
De aanstaande komst van den nieuwen controleur van Sampit, die den 27sten dezer alhier verwacht wordt, zal het mogelijk maken, de djeloetongzaken in het district Pemboeang afdoende te regelen en vlug recht te verzekeren.
De Resident (w. (j.) L. R.IJCKMANS.
COPIE. Aan den Resident der Zuider- & Oosterafdeeling van Borneo, Bandjermasin.
Bandjekmasin, 29 November 1911.
HoogEd. Gestr. Heer.
In het bezit van UHEdGestr's schrijven d.d. 28 dezer, zeg ik UHEdGestr. dank voor de daarin verstrekte inlichtingen.
Het doet mij leed, de geruchten, dat Sebangau voor de bevolking gesloten is, door UHEdGestr. bevestigd te zien. De inlanders, die daar vroeger werkten, en belangrijke kosten gemaakt hebben, zijn er dus verdreven, om er niet te mogen terugkeeren.
Het blijkt mij, dat UHEdGestr. onderscheid maakt tusschen opwonenden van een landstreek en inlanders van buiten die landstreek afkomstig; ook is het mij bekend, dat voorstanders van Djeloetong concessies „pour besoin de la cause"


verder gaan en die menschen afkomstig van 1 tuiten vergelijken met Djeloetong stroopers en roovers.
Indien men echter bedenkt,
dat die zoogenaamde roovers en stroopers allen menschen zijn uit dit gewest, n.1. uit de Zuider afdeeling van Borneo, en zooals van zelf spreekt grootendeels afkomstig zijn van de zeer dicht bevolkte streken boven Bandjermasin, dat diezelfde menschen zich destijds over de Zuidkust verspreid hebben, en daar het djeloetong-bedrijf in het leven hebben geroepen, terwijl zij aan het handjevol opwonenden van de Zuidkust het bedrijf geleerd hebben,
dan voelt een ieder het onrecht, om die menschen als roovers en stroopers te beschouwen; ieder onbevooroordeelde zal hen rangschikken onder de energieken der bevolking van de Zuider afdeeling van Borneo, die niet blijven hangen op de plaats, waar zij gevestigd zijn, doch die den moed bezitten zich te verplaatsen, in casu van een dicht bevolkte streek naar een nagenoeg onbewoonde streek, welke beide gelegen zijn in de Zuider Afdeeling van Borneo.
Dat zijn de menschen, die de Zuidkust van Borneo tot bloei hebben gebracht, die ondernemingsgeest genoeg hadden, om daarheen te trekken en de niet onbelangrijke kosten te maken aan djeloetong exploitatie verbonden, en dat zijn ook do menschen, die plotseling verdreven zijn geworden als roovers en stroopers, niettegenstaande het Bestuur, voordat het aan Djeloetong-concessies dacht, met vreugde zag, hoe de Zuidkust zich ontwikkelde en aan de menschen, die er heen trokken, geen moeilijkheden in den weg legde.
Wat de aanklacht betreft van den Vertegenwoordiger van de Nederl.-Indische Boschproducten Maatschappij tegen 57 Djeloetong-zoekers, die op concessie-terrein op Pemboeang gewerkt zouden hebben, verzoek ik UHEdGestr. dringend, de volgende feiten in gedachte te houden:
1°. Het concessie-terrein is, niettegenstaande concessionaris er meer dan een jaar werkt, nog niet behoorlijk afgezet en voor eiken inlander, die in het oerwoud ronddwaalt, is het onmogelijk de plaats vast te stellen, waar hij zich bevindt, dus ook, of hij op een concessie-terrein komt.
2°. Beschuldigden zijn niet op heeterdaa.d betrapt, doch de aanhouding en con fiscatie heeft plaats gehad, toen de menschen met hun product ter markt kwamen.
3°. Het Gouvernement beschikt te Pemboeang zeker niet over voldoende betrouwbare ambtenaren, om in zulk een kort tijdsverloop 57 menschen te arresteeren op grond van voldoende bewijzen voor overtredingen, die op diverse plaatsen gepleegd zouden zijn over eene zoo groote uitgestrektheid als het concessie-terrein. Ook is het personeel van concessionaris geheel onvoldoende ter bewaking, laat staan controleering van het concessie-terrein dat hen door het Gouvernement is toevertrouwd.
4°. Voordat het misdrijf door de bevoegde Rechtbank is vastgesteld, confisqueert een districtshoofd in combinatie met concessionaris Djeloetong, en indien UHEdGestr. zulks toelaat, de zeer onvoldoende contrölekrachten, zoowel van het Gouvernement alsook van Concessionaris, in aanmerking nemende, dan betwijfel ik, of inlanders zooveel als mogelijk beschermd zijn tegen willekeur.


Wat nu de kwestie betreft, of de aangehouden 57 man in -het bezit waren van eenft vergunning tot inzamelen van Djeloetoeng in Pemboeang, is dit dunkt mij eene kwestie, die niet direct met de aanhouding in verband staat. Ditiseene avertreding van de zooveel gecritiseerde Djeloetoeng-keur. Bij strenge toepassing van bedoelde in alle opzichten onpractische keur, zal men nagenoeg iederen Djeloetongzoeker voor overtreding kunnen straffen, immers ter voldoening aan die beur, zouden zij moeten beginnen een terrein, dat zij willen exploiteeren, op te meten, en de grenzen vast te stellen, daarna de op die oppervlakte aanwezige boomen te tellen.
Deze voorbereidende maatregelen zouden op zich zelf al zoo kostbaar zijn, dat geen enkele djeloetong-zoeker in staat zou zijn daaraan te voldoen.
Het gevolg van deze ongeluks-keur is dan ook reeds, dat de meeste vergunningen in handen van hadji's en chineezen zijn, die den kleinen man uitzuigen. Aan de omstandigheid, toeval of wat het ook zijn moge, dat speciale personen een zeer groot aantal vergunningen hebben, en eenvoudig een recht heffen van dikwijls meer dan / 1.- per pikol van dien kleinen man, die zich in de bosschen begeeft, terwijl de houder van die vele vergunningen met niets doen groote winsten maakt ten koste van den kleinen man, hoop ik binnenkort publiciteit te geven, zoodra mij nog meerdere gegevens ten dienste staan.
Dat de aanstaande komst van den nieuwen Controleur te Sampit in den toestand eenige verbetering zal brengen is zekerlijk te verwachten, doch het gebied is te groot, om te mogen aannemen, dat twee controleurs den toestand op de Zuidkust van Borneo zullen kunnen belieerschen, en waar opvolging van keuren geëischt wordt en de controle in hoofdzaak aan inlanders overgelaten moet worden, daar kan men achten, dat alle deuren wagenwijd geopend zijn voor
intreding van willekeur.
Moge het UHEdGestr. behagen maatregelen te nemen, die noodig zijn, om het zoozeer geschokte vertrouwen van den inlandschen djeloetong-zoeker weer te herstellen, en daarvoor zal noodig zijn geen toepassing van verordeningen en keuren te dulden, die voor geen enkelen djeloetong-zoeker uitvoerbaar zijn, en die aanleiding geven tot allerhande wantoestanden.
Hoogachtend,
BORNEO-SUMATRA-HANDEL-MAATSCHAPPIJ,
{io.g.) J. G. SCHL1MMER,
Dir.-Gen.





Financial Times - London, 15 November 1911. - page 2.
United Malaysian Rubber.
The report of the United Malaysian Rubber Companv, Ltd., for the year ended Sist May last, to be submitted to the meeting on the 20th instant, covers the first year of the company's trading. The expectations of those who advised the Board on the formation of the company have so far not been realised, and, instead of the large profits anticipated being made, a considerable deficit bas been incurred. This has been in a great measure due to the process of manufacture acquired by the company not having been perfected when the business was taken over, and to a large amount of money having in consequence to be spent in work of an experimental nature. It was further due to a number of fortuitous circumstances, which could not very well have been foreseen; sucli, for instance, as temporary cessation of work at the Goebilt factory, owing to breakdown in the machinery, defects in the manner of applying the solvent, and various other causes; the delay in the completion of the Karimon factory, in consequence of the nature of the soil requiring foundations of a much greater extent and stability than the borings indicated would be necessary; the unexpected rise in the price of jelutong. caused by excessive competition in the buying of it, and, on the other hand, the heavy fall which has taken place in the price of rubber. But, notwithstanding these drawbacks, the directors report that considerable progress has been made, and tliey have every reason to hope that they have now turned the corner, and that the ultimate success of the business is practically assured. They consider that the large amount of money which has been expended should not be regarded as wasted, for it has enabled them to complete the process of manufacture, and to demonstrate beyond question the fact thatbymeans of this process liighgrade rubber can be produced in large quantities from jelutong and sold (even at the present low prices) so as to yield a substantial protit on every pound weight of rubber produced. Some of the shipments of rubber which have reaclied this company in the earlier stages of the undertaking were very far from being satisfactory in qualitv, and it has taken some time for the directors to get over the ill efl'ects which were thus produced on the market for their rubber, but this difflculty has now been largely overcome, and the rubber, which is now being produced in increasing quantities, is nearly all of first-rate quality, and a ready mai ket is being found for it at remunerative prices, not only in England, but in other parts of Europe and in America. Considerable economies in the working of the business of the company have recently been eflected, and the management hopes to make further progress in this direction. The facts above enumerated lead the directors to believe that tliere is a great future in store for the company, especially when the new factory at Karimon starts working which they have reason to expect will be in January next. They therefore appeal to the shareholders for a renewal of their confidence, and beg to assure them tliat, if they will only exercise a little patience and forbearance, there is every reason to hope that by the end of another year a balance-sheet of a much more satisfactory nature may be presented to them. The accounts show a trading loss of £27,S00, to which must be added the balance of administration expenses, £ 14,100—together £ 41,900.
Financial Times — London, 15 November 1911. — page 6.
United Malaysian Results.
Owing to the magnitude of the undertaking and the controversy which arose in respect of the value of jelutong some time ago the first report of the 1 nited Malaysian Rubber Company, just issued, is a document of more than ordinary interest. The salient fact, which is admitted by the Directors, is that expectations with regard to the Company have not been realised. This is very evident when it is seeu that the balance-sheet shows a trading loss for the eight months to .'Sist May last of £ 27,800, and the inclusion of the balance of administrative expenditure brings the total debit to £42.000. In addition, preliminary expenses account for an outlay of another £15,000. The profits estimated in the prospectus in April, 1910, were £ 100,(00 for six months in 1910 and £600,000 for 1911. Why such disappointing results have been achieved will assuredly form the subject of careful inquiry on the part of the shareholders. A number of reasons are


given bv the Directors, chiefly relating to difficulties in factory building and other technical obstacles, but what nnist bemainreason — namely, the fall in the price of rubber — is still operative, anil under these circumstances the progress claimed by the Directors is somewhat far to seek. The report is deficient in some very necessary details, such as the amount of rubber handled and the prices realised. In the absence of these hard facts the shareholders are hardly likely to be satisfied witli pious opinions as to the Company's future.
The Financial Times — London, 16 November 1911. — pag 6.
United Malaysian Rubber.
The plantation rubber industry in the Middle East lias been unfortunate in the fact that the very great succes attending its inception attracted a number of more or less unscrupulous promoters, who used the rubber boom as a means of floating off undesirable propositions on the public at remarkably high prices. As a rule, these ventures, which have seriously prejudiced the value of the shares of companies of the better sort, we re not plantation companies at all, but were pronioted under concessions of various sorts for the collection, preparation and marketing of wild rubber. The number of failures among this particular group of undertakings has been extraordinarily high, and it is a matter of satisfaction to lis tliat, while giving full credit to the proSt-earning power of properly-organised plantation companies, we have persistently warnedour readers against the risks involved in enterprises relying mainly upon the profits from the collection of w ild rubber. A partïcularly flagrant instance of the dangers we refer to, and of the optimistic assumptions made by their iiromoters, is provided by the first annual report of the United Malaysian Rubber Company, upon which we briefly commented yesterday, a concern tloated some eighteen months ago to exp'.oit certain concessions in Sarawak and elsewere for the collection of "jelutong" from wild trees and the extraction~of the rubber contents by a patent process. The report is of a very unsatisfactory character, exliibiting an actual loss on working of £ 41,900, and shareholders perusing it must be inclined to wipe their eves and wonder whetlier thepromisein the prospectus of an initial profit of £ 160,000 for the first half-year's working can have been a mere dream. The discrepancy between such a big profit and the actual loss realised is so great as to leave it a matter of wonder how the prospectus estimates could possibly have been compiled, and the surprise is increased wlien it is remembered that the Board includes the names of two such well-known American financial magnates as Mr. Cornelius Vaxdekbilt and j\lr. Robekt Goelet. We imagine that anyone who subscribed for the shares on the strength of seeing their names on the "front page" will be inclined to look witli suspicion upon American financial ventures for some time to come. There were, we imagine, few among our readers who came within that category, for at the time of the flotation we took occasion to point out strongly the risky character of the enterprise and the way in which the value of the shares in the American Company, which constituted the sole assets acquired, had been inflated by intermediary profits. "The venture", we added, can scarcely be described as other tlian heavily capitalised and of a speculative nature, for the business has yet to be thoroughly established as an industrial undertaking."
The last remark has proved to be singularly well justilied, for it is now admitted that the process of manufacture was not perfected when the business was acquired, and the results of the first year's working to 31st May last suggest that the venture was really in its initial stages and that there was no justification for the high price at which the shares of the American Malaysian Company, which owned the concessions and patent process, were acquired. It mav be remarked that the total capital of the United Malaysian Rubber Company is £ 2,000,000, in £ 1 shares, of which £ 400,000 was subscribed for in cash. The whole of this, in cash and shares, was used to acquire the stock of the Malaysian Rubber Company, of the nominal value of $ 4,000,000, or about £824,000. The excuse for this extravagant purchase was that dealings in the dollar shares had taken place in New York at 100 per cent. premium. The Malaysian Company had a working capital of about £ 2(50,000, but the whole of this has now been expended, mainly on extensions and iniprovements in the factory at Goebilt and the building of the new factory at Karimon, with the result that last August an attempt was made to raise further working capital by an issue of £ 100,000 in Six per Cent. Cumulative Preference shares. Of that projected issue nothing whatever has been heard since, and curiously enough 110 mention is made of it in the present report, which, although the accounts are made up to 31st May, is dated lOth instant.


This is by no means the only oinission in the Directors' statement, which is, indeed, singularly deficient in just those details which are neeessary to enable a clear idea to be obtained of the Company's position. No protit and loss account is furnished, but as already mentioned a loss 011 trading of £ 27,800 is exhibited, increased to £ 41,900 by the inclusion of administration expenses. This is in respect of eight months' actual working. The prospectus estimate for the first six rnontlis was for a profit of £160,000 on an output of 1,600,000 lbs. of rubber. The actual amount of rubber dealt with is not given, nor is there anything from which the total of working expenses can be estimated, and in the circunistances this omission is remarkable. The official explanation of the loss on working is that the process of manufacture was not perfected wlien the business was taken over, entailing delay and heavy expenditure on work of an experimental character, and the rise in the price of jelutong caused by excessive competition in the buying of it, coupled with the heavy fall in the price of rubber. The foriner reason suggests that the prospectus estimate of profits was based 011 insufficiënt or incorrect information. The second reason is, however, even more serious. Under the Company's concession in Sarawak an export tax is put upon all jelutong collected by the natives which lias not previously been offered for sale to the company "at the current market price." The extract of rubber from jelutong is about 10 per cent., and the opinion lias been expressed locally that the estimates put forward as to the amount of jelutong which could be purcliased were very niucli too liigli. It looks as thougli the local critics had grounds for tlieir belief, and that in the competition for the liniited amount of the produce available prices liad been 1'orced up to a level which rendered working unremunerative. The report itself states that tlie result of the large expenditure to complete the process of manufacture lias been "to demonstrate beyond question the fact that by means of this process high grade rubber can be produced in large quantities from jelutong and sold (even at the present low prices) so as to vield a substantial profit on every pound." It would have been mucli more satisfactory if, instead of this indefinite statement, particulars had been given of the present average price at which jelutong can be purcliased from the natives, the cost of manufacture per lb and the average price obtained for tlie rubber when marketed. As a melanclioly instance of the extremes touched during the boom, it may be mentioned that these sliares were at one time puslied up to as high as35s eacli. Tliey are now quoted at 2s to 2s 6d, and there is nothing in the report to suggest that they are cheap even at that figure.
Financial Times — London, 21 November 1911 — page 4.
United Malaysian Rubber.
Vendobs TO liK INVITED to surrender a million siiarks.
The ordinary general meeting of the United Malaysian Rubber Company, Ltd., was held yesterday at Winchester House, Old Broad-street, E.C., Sir Francis William Lowe, M.I'., Chairman of the company, presiding.
The Chairman, in moving the adoption of the report and accounts, said that the whole of the new issue of £ 100,000 of Preference shares had been taken up, which had enabled tlieni to meet all tlieir engagements, and, he hoped, would last them for some considerable time to come. They were now practically free from debt. The Karimon factory was progressing steadily towards completion, and they hoped it would be ready for work early in the new year. They had a good stock of jelutong and all the ingredients neeessary for use in the manufacture of rubber. They could not as yet say that tliey were making profit on every bit of rubber produced, because it necessarily varied in quality to some extent; but they could say that considerable progress had been made in this direction since he last addressed the shareholders. During the interval the cost of production had been steadily declining, wliile the prices obtained for their rubber had been steadily increasing, and if they had not produced as much rubber as they should have produced it was simply because of their wisli to avoid all risk of producing any rubber at a loss. Their process had to be perfected to such an extent that they had been able to demonstrate beyond all question their ability to produce rubber of an excellent quality in large quantities yielding a substantial profit even at the present low prices of rubber. Under the new management considerable economies had been efiected, estimated to amount to several thousands per annum, and the directors hoped to make further reductions in the dead working expenditure. Yarious shareholders had questioned him as to the quantitv of rubber they had produced, the cost of


production and the profit or loss made upon it. He could easily answer all these questions, hut the Board feit that it would not be in the interests of the company to publish sncli details. He would, however, give them certain information. From the commencement of the company they had produced over 1,000,000 lbs of rubber, the greater portion of it of good quality, some of it moderate and a small portion distinctly bad. As they had progressed the proportion of good had increased, and they were still on the up grade in tliis respect. As to prices, quite recentlv they had obtained as much as 5s 3d per lb. In the old days, wlien rubber prices generally were much higher, they obtained 9s 4d per lb. He believed he was correct in saying that the average price novv obtained was between 3s and 3s 6d per lb. The cost of production varied owing to the variations in the price of jel 11 tong and other causes; but as they had to compete with other producers 011 a large scale, it was not desirable to make these tigures public.
p«ospective profits.
It stood to reason that as the output increased the cost would be furtlier diminished, and wlien the new factory at Karimon began working they would at once have a muchlargeroutput. Wlien the two factories were in full working order they would have an estimated output capacity of 40.000 lbs. of rubber per day; but if only half that quantity were produced and the profit were only 6d. per lb. they would earn sufficiënt to pay 71/, per cent, 011 the company's large capital. He lioped and believed they would earn more than 0 d. per lb. on the present price of rubber, and if they turned out less than half the estimated possible output of the two factories, they must still, he thought, make stilficient profit to pay 5 per cent, on the capital. I11 tliis he was taking rather a pessimistic view; he had reason to hope that the actual results would exceed rather than fall short of these expectations. TJiere need be 110 uneasiness with regard to the supply of jelutong. He was told that there was any quantity in the neiglibourliood of the factories. He believed the concessions the company held were tliemselves aniply sufficiënt to secure the factories against any shortage; and in any event tliey would be able to obtain a sufficiënt quantity in the open market. ïlie Sa ra wak concessions still held good. There could be 110 doubt that the hopes of tliose who advised the Board wlien the company was formed were far too sanguine. They had not been realised in any sense, but the exact opposite had been the case. Instead ofa large profit a considerable deficit had been incurred, due to a variety of causes, some of whicli could not verv well have been foreseen. The loss, however, was not nearly as bad as it miglit have been under the circumstances. The loss on trading account was £ 27.815, and administration expenses were £14.126, making a total loss of £41.941. During the eight months covered by the report they had produced about 615.000 lbs. of rubber, and if the prices of jelutong and rubber had remained the same as at the date of the prospectus they would have made at least 1 s. and probably 2 s. per lb. more on all the rubber they had sold. Having regard to all the circumstances, it was rather encouraging that they had made so small a loss. The non-publication of a profit and loss account had been commented upon. It was not at all unusual not to publish a profit and loss account, and the law did not require it; but, furtlier, he assured the shareholders that there was 110 sinister motive in the minds of the directors. Their sole reason for not publishing such an account was that it gave 110 material information which was not set fortli in the balancesheet published. He would read the profit and loss account if any shareholder desired it, and anyone who wished to se© it miglit do so.
Sir Percy F. Cunynghame, Bart., who secondedrthe motion, said that the process was a proved success, and the rubber they produced was of high quality, while the cost of production was being steadily diminished. Hitherto the whole process had been more or less experimental, and therefore the costs had been high. If it paid people to export jelutong, 70 per cent of which was water, to America and there convert it into rubber, surely it must be more profitable to manufacture on the spot, where labour was clieaper and jelutong could be bouglit to greater advantage.
Questions and Answers.
Mr. Frank Souter asked why a profit and loss account, such as it was customary to include in the annual reports of all companies, had been omitted frorn that of the United Malaysian Company.
The Chairinan said he had replied to that question in his speech.
Mr. Souter pointed out that in the balanceslieet the credit item of £1,707,668 was made lip of sundry items, "including loss on working of factory during the experimental stages prior to liquidation of the Malaysian Rubber Company". What, he asked, was the amount of this loss ?


Wliat had the original directors to say to this? Above all, what had the vendors to say? (Hear, hear.) As to the directors, he proposed as a later stage to move another resolution which would be of the nature of a vote of a censure. What had been the vendors' sliare in this lamentable business? Were the shareholders to tliink tliat, by jugglery of flgures and misrepresentations in the prospectus, the vendors had deliberately stooped to palm off on the public an experimental company at ten times-nay, at twenty times-its value, or were the vendors themselves mistaken? If they had behaved honourably, and in good faith, towards the shareholders, as he was all too ready to believe, the vendors were in the extraordinarilv fortunate position of being able to prove to the shareholders their bona fides in this matter by making a restitution to the compan in a manner he would suggest. (Hear, hear.) The vendors, in addition to their cash profits, had received the colossal sum of £ 1.000.000 in fullv paid sliares. The Chairman informed them at the last meeting — that the vendors had not sold any of these shares, and as the market price since that time had fluctuated between 1 s. and 1! s. it was fair to presume that they had not sold any since. Therefore he was going to formally move a resolution that the directors he requested to negotiate with the venders for a restitution to the shareholders of 1.000.000 shares, therebv reducing the Ordinarv capital of the company from £ 2,000,000 to £ 1,000,000. (Hear, hear.) It was quite iiripossible that the company could ever do any good 011 its present capital, weiglited as it was with a millstone round its neck of nearly 90 per cent of water, and their only hope in the future lav in this restitution being made. He submitted that such a restitution was the only course open to men desirous of showing that they had dealt honourably with the shareholders, and desirous of retaining their respect in the future. In fact, theyshould, in his opinion, welcome the opportunitv of making such a reparation to the shareholders. He knew of a company where the vendors recently, and of their own free will, gave up every share of their flotation profits, owing to their having formed too sanguine estimates, and being desirous, by such a reduction of capital, of helping the shareholders who had supported them. (Hear, hear.)
Moderation.
His first intention was to ask for the restitution of 1,500,000 shares, hut he wished to be moderate. He wished also to ask for nothing that there should be the slightest difficulty in obtaining. He wished also still to leave the vendors a profit, grossly in excess though it might be of what might be considered a legitimate profit on this flotation. He wished, in fact, to treat them with such leniencv that, if they were fair-minded men, they would readily agree to the restitution he was proposing. It was the only hope for the company, for, with a capital of j£ 1,000,000 instead of £ 2,000,000, heavily handicapped as it would even then be, there would be some cliance in the future of their obtaining a return on the capital they had invested. Ile formally moved: — "That in view of the estimates in the prospectus of the United Malavsian Rubber Company not having been realised, and in view of the disastrous results of the first vear's working, the directors are hereby requested by the shareholders to negotiate with the vendors for a restitution of one million shares to the company, therebv reducing the capital of the United Malavsian Rubber Company from two millions to one million Ordinarv shares. Further, that the directors report upon the result of these negotiations at the earliest oppertunity to the shareholders." He had not asked anyone to second this resolution, bilt hoped someone would do so. He would ask everyone present to vote in its favour, and so to strengthen the hands of the Board that they would feel, when entering into these negotiations, that they were doing so at the unanimous request of the shareholders present at this, the first annual meeting of this company. (Applause.)
The Chairman said that Mr. Souter's resolution was out of order at that juncture, and Mr. Souter replied that if the Chairman would give an assurance that a copv of the profit and loss account would be sent to every shareholder, and that his motion would be allowed to be brought forward at a later stage of the proceedings, he would support the adoption of the report and accounts.
The Chairman said a profit and loss account would certainly be sent to the shareholders, and Mr. Souter's resolution could come on later. The Chairman resolution was thereupon put to the meeting and adopted.
Mr. Souter having again formally moved the resolution.
The Chairman suggested that the matter might advantageously be left in the hands of the Board for the present. He did not say the Board would not be willing to consider the matter, if necessarv, at a later date. hut. first of all. it would be better to see how they got on fortlienext year. (Cries of "No".)