26 JANUARY 1940, Page 36

UNITED SERDANG (SUMATRA) RUBBER PLANTATIONS

IMPROVED PROSPECTS

THE 32nd ordinary general meeting of the United Serdang (Sumatra) Rubber Plantations, Limited, was held on January 25th in London.

Mr. H. Eric Miller (the chairman) said: You will understand that the reduction in the amount of profit available for distribution is due to causes outside our control, viz., considerable reduction in the permitted exports of rubber, lower prices for palm oil, and last, but not least, higher taxation.

We only know the permissible exportable percentage for the first seven months of our current working year, but we are calculating on being able to account for something like 11,000,000 lbs., com- pared with a crop of just over 7,500,000 lbs. in the accounts now before you. Including contracts for forward delivery we have sold to date out of the 1939-40 crop more than 5,000,000 lbs. at prices equivalent to about II2d. per lb. London landed terms, and 488,000 lbs. of the 194o-41 crop at 1 id. per lb. London landed equivalent.

Costs of production and of transport must inevitably be higher under war conditions. World values of our products have moved up appreciably in terms of sterling, but part of the rise is due to the further depreciation in the exchange value of the pound. But exchange disabilities fade into insignificance when one comes to consider the taxation burden.

I have had something to say at previous meetings on the subject of double taxation as it affects British companies trading in the Netherlands Indies. Under war conditions there is, in my opinion, not the slightest hope of getting any alleviation from this burden. In the 1938-9 accounts we have had to provide £57,300 for export duties and company tax payable in the Netherlands Indies; then £8,500 for National Defence Contribution here and a further £6o,00o for British income-tax.

The measure of this taxation can be better realised when I tell you that the Netherlands Indies export duty and company tax are approximately 4 per cent. on the company's issued share capita!, British income-tax and National Defence Contribution approxi- mately 5 per cent., making a total of 9 per cent., as compared with a dividend of 5 per cent. for the year, which aksorbs the remaining balance of the year's profits. The prospects of our current financial year are better from a profit-earning point of view. Our estates are in good shape, and we have no difficulty in producing all the crop we are allowed to export.

The report and accounts were adopted.