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Yuen Wai survived into this century, however.

Today, incense wood is no longer ground by water power. All of the three incense wood mills operating in Hong Kong in 1987 had large electrically operated grinders which were introduced in the 1960s. The traditional water-wheels proved to be less and less capable of keeping up with the increasing demand for incense wood. The speed of grinding by electricity is almost ten times that by water power. Grinding by water power could only produce a few tan of incense powder per day; however, 30-40 tan of incense powder could be accomplished within the same time by electric grinders. As a result, those factories which failed to increase the speed of production were forced out of business.

Joss Stick Manufacturing

By the 1960s, the emphasis was on the manufacture of joss sticks rather than incense wood milling. It appears that incense wood milling acted as a catalyst for the development of joss stick manufacturing since the latter depended very much on the availability of raw materials. Joss sticks first appeared in the Official Trade Statistics in the Hong Kong Blue Book as an export item in 1855. Unfortunately, the absence of a trade statistics department made the compilation of regular trade statistics impossible so that the picture of the early joss stick industry is blurred. However, in all likelihood, it seems that the joss stick industry prospered. As Bridges recalled,

Hong Kong being a Free Port it is impossible to give any accurate Return of Imports and Exports but it may be stated that the general Trade of the Colony has increased very considerably during the year and to an extent unequalled in former years.

25

In 1880, there were 74 citizens engaged as sandalwood dealers and workers and the number increased further in 1881 to 76.26

The interwar years saw the establishment of a number of large scale factories, employing several hundred workers. Some of these are still in business today. Of the 60 factories interviewed in a survey carried out by the author in 1987, 14 were established before the Second World War.

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