APSENDIX
Mr G
DICKSON
(29)
125
IR
Bank of Mauritius, Limited.
Port Louis, Mauritius, 26th July 1909.
As several witnesses have suggested that Government funds might be advanced to planters against the security of their crops. I take the liberty of forwarding you, for the information of the Commissioners, an extract from a report issued to the shareholders of the Crédit Foncier of Mauritius in February last, which shows what the experience of this Company has been with regard to this particular class of business.
The statements on page 2 which I have underlined also bears out my contention that the amount stated as required for faisance valoir of the estates is much exaggerated, and, as a further proof of this. I enclose copy of when applying for a credit, which shows that. an estate budget handed me this year by a bailleur de fonds
not expected to exceed Although thefaisance valoir" amounted to Rs. 276.700 the total advances were R 120,000
A J. Harding, Esq., Secretary,
Mauritius Royal Commission.
1,80M) feet.
FURTHER INFORMATION CONCERNING THE TEA INDUSTRY IN MAURITIUS
Estate Lebretou & Bour. Curepipe
Height above sea level
Anunal rafall
Average mean temperature
Approximate maximum temperature
minimum
Value of estate
Capital paying dividend
Area of Petate
Area planted in tea
(Of which 74 69 acres are yielding ten į
I am, Sir.
Your obedient servant,
GEO. DICKSON
120 inches
67 Fahr
H4
44
45
Rs. 110,000
Rs. 75,000
270 acres
96.33
THE CREDIT Foncier of MAURITIUS, LIMITED. Report of Committee of Shareholders, February, 1909.
The Committee have been informed that the business of the Crédit Foncier of Mauriting was at first restricted to lending money on mortgage over estates in Mauritius, the advances not exceeding fifty per cent. of the value of the land mortgaged. That business appears to have been a safe one, and while adhered to the protite earned were very satisfactory. But it became difficult to find a sufficient number of securities of that lass, and about twenty years ago the Company began also to make advances for the working of estates in the Colony. This new branch of the business involved considerable risk, and in the opinion of the Committee it accounts for the present unfortunate position. It made the Company practically dependent on the prosperity of While they prospered large profits could be made, but in times of depression the Company had practically to bear the losses. In recent years the industry has been depressed, and not only have very large losses been incurred, but (as evidenced by the present prices of the shares, preference stock and debenture stock) the credit of the Company itself has suffered."'
Mugar estates.
Annual Expendi
Your
Total
Output
ture, exclusive of
Interest on
Mortgage
Delte
Annual Expendi ture, including Interest on Mortgage Debts.
Income
Profit per Acre
per Acre. |
Total Cost per Acre
at
RR 72
per l
Gross
Net
"First Series :----
&
(a) Fourteen debtors whose obligations are believed to be good
95,900
(b) Balance of price of estate sold in July, 1907, with substantial down payment (c) Business premises in Port Louis
36,800
1,700
£133,000
L
Second Seriean ---
RA
R
RH
Ro
Re
Rs
Seven debtors whose estates are overburdened .
300,000
LL
1902 03
31,325
1903-04
24,530
1904 405
34,821
1905-46
27,624
15.727 73 19.912 73
267
1:00-07
27,950
14,31191 18,496 91
248
269
1:07-08
30,787
17,111-14
21.296 14
285
297
1908. Ot
28.100
17,146 29 21,331 29
286
271
++1
1116637
Third Series:-
U
15
Average
29,305
16,074-26 20,259 26
271
276
61
4 50
RB.
Mortgage debt op extate
Debts to sundry creditors
40,000 at 9 per cent.
2,500
H
3,000.. 12
Four estates taken over by the Company
"The First Series requires no special comment, as the money will probably be gradually repaid, and is yielding a good return.“
"The Second Series.-In each of these seven cases arrears have accumulated.
A valuation of the estates
was made by the Mauritius Board and manager in 1907, and the debts have been written down in the balance sheet in accordance with these valuations. In that way the anticipated losses have already been provided for. In six of the seven cases the money required to work the estates is annually supplied by the Company, the yearly sum needed being about 75,000, although the maximum sum actually disbursed at any one time in The Company thus runs the whole risk of working the estates. normal years is only about half of that amount.
the debit balances being increased when a loss is made, and only profits on the estates being available towards payment of either principal or interest. Thus the 300,0001. involved in these estates is really embarked in the sugar industry, and, in the meantime at all events, is tied up and unavailable for any other purpose."'
1907.
The Third Series-The estates in the Company's possession are taken on the basis of the valuation made in The annual sum required to work them is about 45,0001., although in this case also the maximum sum One other estate was actually disbursed at any one me in normal years is only about half of that amount.
sold in 1907, with a substantial down payment, and at the price at which it had been valued in that year. One of the four estates is presently being divided up, and is in course of being sold at prices somewhat greater than the valuation."
These explanations about the investments in Mauritius appear to demonstrate that the financial resources of the Company are locked up in assets which, although apparently of large intrinsic value, require very careful handling, and can only be realised slowly, and that, therefore, the Company is unable to revert, at least in the meantime, to the safer business of lending money on well secured mortgages."
ESTATE BUDGET.
Requirements of the " Oakbank "sugar estate for year 1909, as supplied to their " Bailleur de Fonds.**
156,900
£590,800
During January
February
++
March
April
May
June
+
July
Angurt
*
Beptember
Rs.
Rs.
+
13,000
During October
17,000
19,800
November
19,000
26,500
11
December
27,000
16,000
12.200
Ba 208,700
14,000
12,200
For purchase of canes to be taken in
August-September
70,000
13,400
28,000
Rs. 276,700
As in all probability we shall have sugars in town in August, the total amount of our requirements will not
we think, exceed Rs. 120,000.
Crop estimated ut 5,000,000 Mw.
PUBLIC RECORD OFFICE
Reference :-
C.O. 882
9
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
126
MAURITIUS ROYAL COMMISSION, 1909.
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