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For the descendents of Richard Dearie and his son John Russell


Malayan Matches. Sources in the Archives. Transcribed by Pam Cohen and Claire Grey.

Advertisements appear in the Press in November 1922, including in "The Planter".


 

MINUTES OF THE FEDERAL COUNCIL 25TH NOVEMBER 1919

 

Copy of minutes of the Federal Council

Of 25th November, 1919

______________

 

18.       The Chief Secretary moves:

That this Council resolves that, with a view to encouraging the establishment of a match-making industry in the Federated Malay States, it is expedient that an import duty be imposed on matches imported into the Federated Malay States during a period of five years.

            The Resident of Negri Sembilan seconds the resolution.

            Mr. Harvey moves amendment by addition of words “at the present rate” after “import duty”.

            Mr. Clodd seconds the amendment.

            Mr. Macfadyen opposes the amendment.

The British Resident, Perak, addresses the Council

Mr. Brash addresses the Council

The President proposes second amendment by insertion of the words “not exceeding the present duty” after the words “import duty”.

The resolution is adopted with the second amendment.

 

 

Resolution then reads

-import duty not exceeding the present duty be imposed on matches imported-

 

From National Archives of Malaysia.  5351/19  Transcribed by P.C.

 

 

 

 

THE MATCH MANUFACTURING PLANT OF NORTH INDIA MATCHES LTD

 

(It should be noted that this plant was erected for a production of 1400-1500 gross filled boxes per day:  this list is intended for preliminary information-it is not a complete specification of the machines and adjuncts under consideration.)

                                                                                                Makers

1 Log Cross-cut Saw                                                     Roller & Co. Berlin.

1   “           “          “                                                      Baden Engineering Co.

2 Peeling Machines 29” Type S.L.H.                               Roller & Co. Berlin

2        “             “      19”                                               Baden Engineering Co

1 Splint-chopping MachinesV.A.D.                                 Roller & Co.

1        “                  “                                                     Baden Engineering Co.

1 Box Veneer Cutting machine S.P.R.                 Roller & Co.

1     “                   “              “                                        Baden Engineering Co.

1 Splint drying and polishing drum H.T.T.                     Roller & Co.

1 Double Acting        “              “                                   Baden Engineering Co.

1 single acting      “            “             “                            “             “

            Type E.P.)                         (E.G.A.

1 Splint cleaning ) and 1 levelling                                  Roller & Co.

2 Combined      “               “                                          Baden Engineering Co.

2 Cone mill grinders                                                      Baden Engineering Co

1 Cylindrical Grinding Mill for friction

                        composition type M.T.               Roller & Co.

1 Ball Mill                                                                      Baden Engineering Co.

4 Inside Box-making Machines                          Baden Engineering Co.

3   “               “               “                                 I.K.S.    Roller & co.

5 Wrapper Outside Box-making machines                     Baden Engineering Co.

3 Outside Box-making machines                       H.K.S.   Roller & Co.

1 Box painting machine                                     Baden Engineering Co.

1 “          “               “       V.S.M/2                                 Roller & Co.

1 Automatic knife-grinding machine                              Baden Engineering Co

1   “             “                       “       K.S.M.                      Roller & Co.

1 Paste-cooking Apparatus                                            Baden Engineering Co.

6 Change Wheels                                                          “          “               “

1 Czerweny automatic match-dipping machine  J.M.Veith

1 Simples continuous match-dripping machine

                type S.C.M. (without box filling device)          Roller & Co.

2 Automatic Securitas box-filling machines                    Vulkan Engineering Works

2 Jonkoping Box-filling Machines with 4

                         filling apparatus           G.J.F.                Roller & Co.

1 Dozen packeting Machine for pasted Wrappers

                                    Type R.P.M.                              Roller & Co

1                     “               “                     “                     ? Ahrens and Co. Sweden

1 Drying Apparatus for outside boxes, with

          travelling screens and pipes (Type V.S.T./7)        Roller & Co.

1              “             “ for inside boxes                            Roller & Co.

1 Complete transport apparatus                                   Roller & Co.

Packing- case making Machines

1 42 Self-acting rope feed Circular Saw Bench

  G.D.” (with timber & carriages                                    Sagar & Co.

1 Plank-cross-cutting Machine for 24” Saws

1 Saw Sharpening Machine for Circular Saws

1 “B.P.A.” Small Grooving and tonguing Machine

     for boards up to 1.5/8” thick                                    ?Kirchner

Power Plant

1 Suckling water tube Steam Boiler, framework

      and Spares.  H.P.156 Pressure 150 lbs                    Tohmas Beeley and Sons

Fire-place constructed to take weed-fuel waste 

1 133 B.H.P. 2 crank compound enclosed forced

                        lubrication Engine                                 Ashworth & Parker

1 Generator 90 K.W. 220 V. 600 rpm.

1 Field Rheostat with Switch Board mounting

      for 90 K.W. Generator                                            

1 Switch Board complete

1 “Weirs” Feed Pump 3 ½ “ x 5’ 6”                                Weirs Glasgow

1 Worthington Feed Pump

1 Feed-Water Heater                                                     Babcock & Wilcox

1 11 H.P. Water “G” 220 V, 535 r.p.m.              British Westinghouse Co.

1  7        “              “      “        550    “                                       “

1  7         “              “      “         “       “                                     “

1  5 ½     “              “      “        610    “                          “

2  3         “              “        “          “      “                         “

2  8         “              “        “        950    “                                    “

3  18       “              “       “        950     “                                    “

General                                                             Vulcan Iron Works

1 ton Herrick crane

1 10” Centre self-acting general purpose

          lathe;                                      bed 16’

1  6”    “              “                            bed 6 ‘

5  24” belt driven fans                                                  Southgate Pile Driver Co.

1  42”?  Rege-Radical Drilling Machine               Walmsley & Co.

All shafting, collars, couplings, wall brackets,                 __________

      blocks, pullies, belts, erected with the before

      mentioned plant and machines; also all tools,

      bench vices, and spares issued to Factory and

      removed from stack of “Stores”

 

From National Archives of Malaysia   Sel 2139/19 Transcribed by P.C

 

The Malay Mail, Wednesday, 26th June 1918, p.8 and The Straits Echo Mail Edition, Vol. 16, No.? 26, June 26th 1918

Match Trade in Malaya

At the present time says the London and China Express, when matches are a scarce commodity, it may seem superfluous, to call attention the market that awaits exploitation in the Far East; but after the war new markets will be sought for British made goods and British matches might share in a trade that is steadily on the increase. At one time Sweden was the principal supplier of matches to the Far East. In recent years however Japan has practically captured the trade, as is shown in the following statistics from the Straits Settlements. What is true of British Malaya probably applies to every country east of Suez.

The value of the imports and exports of matches into the Straits Settlements over a period of years was as follows: -

Imports                        Exports

1913                £112,918                     £63,815

1914                £102,244                     £61,903

1915                £190,435                     £120,177

1916                £200,876                     £129,188

The imports came chiefly from the following places: -

 

1913                1914

Japan               £99,254           £86,962

Sweden            £19,142           £8,495

Hong Kong       £1,663 £5,134

Denmark          -                       -

United Kingdom-                      -

 

                        1915                1916

Japan               £134,339         £162,966

Sweden            £20,679           £15,741

Hong Kong       £19,058           £19,103

Denmark          £7,207             -

United Kingdom -                     £108

The exports go mainly to the Malay States, British North Borneo, Netherlands India and Siam, with the Federated Malay States the largest consumer. It is probable that the matches imported from Hong Kong were largely of Japanese manufacture, being merely transhipped at the northern port.

LETTER FROM J.A.RUSSELL & CO. TO THE COMMISSIONER TRADE AND CUSTOMS, F.M.S.  3RD MAY 1919

 

Kuala Lumpur 3rd May 1919

J.A.RUSSELL & CO.

 

 

Sir,

We have the honour to enclose herein a list of match making machinery which is under offer to ourselves.

You will notice that fully 85% of the plant is of German origin and although the vendors inform us it was purchased pre-war, we should like to be assured before committing ourselves to purchase that Government would be willing to allow the importation of the plant into Malaya free of the present duty of 100% upon goods of enemy origin.

We should of course prefer to purchase machinery of other than enemy origin but having made very careful enquiries, without success, we believe it is impossible to procure the same whether now or for some years to come.

We should also be very greatly obliged if you could ascertain from the Indian Government whether or not a similar, but export, duty would be levied?

We have addressed a letter to the Hon. The Chief Secretary upon the subject of match making in the Federated Malay States and in the same we have referred to the question of free import of the plant in question.

We have etc.

J.A.RUSSELL & CO.

 

 

From National Archives of Malaysia  Sel 2139/19 Transcribed by P.C

Malay Mail Saturday August 2nd, 1919

The prospectus was issued yesterday of Malayan Matches, Ltd. The project is to make matches in a factory to be erected near Malayan Collieries, in Selangor. The authorised capital of the Company is $1,000,000 in $1 shares, with the present issue of $525,000. Mr. J. A. Russell of Malayan Collieries is the vendor and a director, and other directors named are the Hon. Mr. Clodd, Messrs. Bannon and F. G. Harvey.

 

LETTER FROM COMMISSIONER TRADE AND CUSTOMS F.M.S. TO THE SECRETARY TO RESIDENT, SELANGOR 5TH MAY 1919

 

Office of Commissioner, Trade and Customs

Kuala Lumpur, 5th May 1919

No. 2 in 406/19

 

Sir,

I have the honour to forward copy of a letter from the Manager of J.A.Russell & Co. on the subject of the importation of a match making machinery of German origin.

2.  Under Notification No. 2684 of 9th September 1914 an import duty of 100% ad valorem is leviable on goods manufactured in any place in German territory subject to the exemptions prescribed by Notification No. 2968 of 28th September 1914.  This machinery does not appear to come under either of the exceptions.

3.  Under Notification No. 995 of 14.3.19 the British Resident may by special order in each case exempt under circumstances of an exceptional nature, to be stated in such order from payment of Customs duty imposed under the Customs Duties Enactment any goods on which such duties are imposed.

4.  I recommend this case for special consideration and exemption from the 100% ad valorem duty in view of the machinery being needed for a pioneer industry.

 

I have the honour to be,

Sir,

Your obedient servant

?

Commissioner Trade & Customs

F.M.S.

 

 

 

           

From National Archives of Malaysia  Sel 2139.19 Transcribed by P.C

LETTER FROM J.A.RUSSELL& CO. TO SECRETARY TO THE RESIDENT SELANGOR.  15TH MAY 1919

 

Kuala Lumpur 15th May 1919

 

Sir,

Match Making Machinery

I have the honour to enquire what day and time would be convenient for the British Resident to see me with regard to the question of Import Duty on certain Match Making Machinery.

2.  I enclose a copy of our letter to the Commissioner of Trade and Customs on the subject and his reply thereto.

 

I have the honour to be,

Sir,

Your obedient servant

R.C.Russell

 

From National Archives of Malaysia   2139/19 Transcribed by P.C

 

LETTER FROM SECRETARY TO RESIDENT, SELANGOR , TO THE UNDER SECRETARY F.M.S.  30TH DECEMBER 1919

 

(3) in 5351/19

Kuala Lumpur, 30 December 1919

 

 

Matches, import duty on.

______________

_______________

 

Sir,

In reply to your memo of date 20th  December,  1919 your paper 7862/19, I am directed to say that the Resident would propose that a notification should be published in the Gazette in the usual form stating that in the exercise of the powers in them severally vested by the Customs Duties’ Enactments 1898 (N.S.1807) and with the approval of the Chief Secretary to Government the Residents of Perak, Selangor, Negri Sembilan and Pahang each for the State where of he is Resident hereby impose an import duty upon the article specified in Table A here to appended at the rate therein specified.

Table A.

Description of Article                                                     Duty

1. Matches per case of 7200 boxes,                              $60/-

2. Matches in quantity less than one case                     one cent per box provided that no                                                                     duty shall be charged on

quantities less than 20 boxes.

 

 

I have the honour to be,

Sir,

Your obedient servant

C. ?Harbin

Secretary to Resident

Selangor

 

 

From National Archives of Malaysia  5351/19  Transcribed by P.C.

PROCEEDINGS OF THE FEDERAL COUNCIL, FEDERATED MALAY STATES, 1919 THE CHIEF SECRETARY moves: That this Council resolves that, with a view to encouraging the establishment of a match making industry in the Federated Malay States, it is expedient that an import duty be imposed on matches imported into the Federated Malay States during a period of five years. THE CHIEF SECRETARY says: This resolution is brought forward in consequence of a promise given by His Excellency’s predecessor, Sir Arthur Young, when a syndicate of gentlemen, interested in industry, approached him. These gentlemen proposed to establish a match factory in this country, and they asked that, in order to ensure the success of such an industry, there should be, at the start at any rate, a tax on all imported matches. Ten years was the period suggested, but Sir Arthur Young thought five years sufficient and promised that it should receive the consideration of the Council. What the syndicate particularly laid stress upon was that they would have to purchase machinery at war prices, whilst similar industries were manufacturing with machinery purchased at pre-war prices. It is simply protection, and I move this resolution to ascertain the general feeling in the matter. The ACTING RESIDENT OF NEGRI SEMBILAN seconds the resolution. Mr F.G.HARVEY moves amendment by addition of words “at the present rate” after “import duty”. Mr H.P.CLODD seconds the amendment Mr E.MACFADYEN says: I think it is a policy that the Council ought to enter upon only with a great deal of circumspection. Cheap matches are not necessities, but they are the poor man’s luxuries, and I shall be very sorry to see them remain at the high price they are today, still more so to see them higher. On the other hand I consider the industry one which might be successfully established here and the promoters are men who have shown, in connection with the coalfield, that they deserve to be supported. Therefore, I am prepared to offer my support to the resolution, But, being entirely ignorant of the manufacture of matches, I am not prepared to support the imposition of any fixed amount at the present moment. I supported the imposition of the existing rate to assist the Empire in the prosecution of the war, but I am not prepared to support the same rate for the benefit of individuals. Therefore, I think it will be sufficient to support the Chief Secretary’s resolution as proposed without the amendment, and to leave it to further investigation to see if $60 or $40 a case would be a suitable amount. Mr.R.P.BRASH asks: Will this resolution bar the importation of British-made matches? THE PRESIDENT replies: They will have to pay the duty. THE PRESIDENT proposes second amendment by insertion of the words “not exceeding the present duty” after the words “import duty” The resolution is adopted with the second amendment,

From National Archives of Malaysia Transcribed by P.C


1918

The beginning of Malayan Matches.

"In 1918 the late Mr. P. Morely Parker, who was my then manager and held my power of attorney, conducted on my behalf with a Mr. Evance, whom we had engaged, several experiments on the possibilities of local match manufacture; in which work we were actively assisted by the F.M.S. Forest Department." J.A.R. letter 20th April 1921

1919. J. A Russell ask the Government if they can import German made match making machinery from India without paying the heavy duty liable on goods made in Germany.
1920

THE STRAITS ECHO MAIL 11TH Feb 1920 MATCHES Kobe-Jan.15.

-The export of Japanese matches, particularly to India, Singapore and the South Seas, is reported to be exceedingly brisk, there being an unremitting inflow of orders from these places. A certain brand of half-inch size is especially in great demand and even second grade quality is fetching the high price of Y92 to Y93. Safety matches, the brand mostly to Chinese taste, are also unexpectedly firm in spite of the boycott; their quotations standing in the vicinity of Y64 or Y 65. On the other hand, yellow phosphorus matches are at present taking a breather at a level of Y72 to Y73. The makers of these abominations, as a matter of fact, do not care to force up the price too far, as China is the only country which takes them now and she will probably forbid them before long.-Japan Chronicle.

From National Archives of Malaysia Transcribed by P.C

THE MALAY MAIL. TUESDAY MARCH 2ND 1920 MALAYAN MATCHES _____________ THE STATUTORY MEETING ______________ ARRIVAL OF PLANT

The statutory meeting of this Company was held on Friday, Feb. 27th, at the registered offices, Hongkong and Shanghai Bank Buildings, Kuala Lumpur, Mr R.B. Bannon presiding. A representative of the Secretaries (Messrs. J.A.Russell and Co.) having read the notice convening the meeting and the auditors’ report the Chairman said:- Gentlemen, As you are aware this, the first or statutory meeting of this Company is convened in compliance with the Companies Enactment. The report as to receipts and payments have been certified by the directors and by the Company’s auditors-they have been for some days past in your hands and I therefore now propose to take the report as read. With regard to the statement of payments in the statutory report I would call your attention to the item: Remittance to India on account of purchase of plant and machinery $234,003,23. This sum exceeds the amount estimated in the prospectus by $9,000 and is due to the rise in Indian exchange which occurred just after the incorporation of the Company. We were fortunate, however, in anticipating further rises, and your Secretaries, in consultation with the Board, purchased rupees forward in August last, and this action saved us a loss of some $40,000, which would have been the difference in exchange on the date the purchase of the plant was completed. I think, therefore, we may say that we were fortunate in overcoming the difficulties of the sharp rise in exchange with little damage to the Company. The other item that calls for comment in the particulars of payments is Preliminary Expenses $3,285,24, an excess of $285,24 over the amount the Company agreed to pay, and this sum $285,24 has now been refunded by the vendor. You would now no doubt like to hear what progress has been made with regard to the factory and the plant. The majority of the machinery has now arrived on the site, the balance being in transit, and a contract has been let for the erection of the factory, which will be completed in four to five months, and it is hoped we will be able to commence manufacturing matches within six months. The Company experienced considerable delay in shipping the plant, due to the unforeseen shortage of rolling stock on the Indian Railways and a shortage of shipping space in Calcutta. However, as I have stated, your plant has arrived and is being assembled. With regard to the plant purchased I do not think that I can do better than to read you an extract from a report your directors have received from Mr. P.A. Morley Parker. Mr. Parker went to India to superintend the dismantling, packing and forwarding of the machinery and reports as follows:-“The plan is really two complete and independent plants each of 700 to 750 gross boxes per day of 10 hours capacity, made by the best makers of match machinery. In addition we have a complete set of auxiliary machinery, comprising log carrier, saw and veneer knife sharpeners, mills for grinding and mixing composition, machine mortars for the same purpose, paste boilers, and ventilating fans. The workshop comprises 2 radial drills, planer lathes. There is also a smith shop, and a tongueing and grooving machine for making packing cases. I consider the plant was in excellent condition when I took it over and a good bargain.” I do not think there is any further information I can give you, but if any shareholder desires to ask any questions regarding the statutory report I shall be very pleased to answer the same to the best of my ability. There being no questions, the meeting terminated with a vote of thanks to the Chairman.

From National Archives of Malaysia Transcribed by P.C

THE STRAITS ECHO MAIL EDITION. Vol 18. NO 9. 3RD MARCH 1920 MALAYAN MATCHES STATE AID APPROVED.

Referring to Malayan Matches Ltd, the Times says: An interesting experiment in affording a moderate amount of State support to a new industry is being made in British Malaya. The Federated Malay States have hitherto imported all their matches from other countries. A large proportion of them came from Sweden and Japan and the shipping conditions which prevailed during the war gave those countries a pronounced advantage over the British manufactured article. Recently an expert in the match industry visited Malaya and examined the forests of the country with a view to ascertaining whether they contained timber suitable and sufficient for the establishment of a match factory. His report was favourable and a syndicate of local capitalists has been formed to inaugurate and develop the industry. It is obvious that a new industry of this nature would have small chance in its early days against the rivalry of imports from countries where the trade is firmly established and where labour conditions are favourable to its growth. Those interested in the enterprise accordingly approached the Government of the Federated Malay States with a request for some support from the State during the early years of the industry. At a recent meeting of the Federal Council it was resolved to assist the newly-fledged industry by imposing an import duty during five years upon matches imported into the F.M.S.

From National Archives of Malaysia Transcribed by P.C

 

THE MALAYAN LEADER MAY 21ST 1920 MALAYAN INDUSTRIES MANUFACTURE OF MATCHES

Good Prospects in the Country. As is already known, a company was recently formed to manufacture matches in Malaya, and the public are watching the development of the industry with considerable interest. The existence of one company is, however, no reason why others should not start the same industry even on a smaller scale. It will be generally admitted that Malaya consumes a very large quantity of matches in a year. This is inordinately high owing to the extraordinary number of people who smoke tobacco in this country. Moreover, a large proportion of the matches now imported both from Japan and China is so inferior that considerable waste is unavoidable. Some of the boxes of matches now on the market cannot even stand slight pressure of one’s fingers. Half the match sticks do not contain any chemical compound which assists combustion while the other half consists of half-broken bits of wood with heads of different sizes and different shapes or none at all. During the war when freight was high and scarce, and when production was slow and unsatisfactory, the procuring of European made matches was impossible and people had to be satisfied with anything which answered the purpose of matches even in the slightest degree. But that necessity does not exist now and it would be possible, with some trouble, to import Swedish matches if we were prepared to pay a high premium. In addition to the extra cost we would have to pay the duty which the F.M.S. Government is retaining for another five years. It is this tax, to which the Government agreed with the sole object of encouraging local enterprise, that is, or should be, encouraging to anyone who intends to start a match manufactory in this country. It is, however, not likely that this tax will be retained after such an enterprise has had a fair chance of establishing itself. Wood and Plant In the manufacture of matches, however, the most important thing to consider is whether suitable soft wood in ample quantities is available in the country. Without a large quantity of wood of this kind it would be useless to attempt to manufacture matches on any large scale, because the importation of wood from another country would be both expensive and wasteful. According to Mr. G.C.Evance-who it might be stated in passing was lately the expert advisor to Malayan Matches Ltd, and who is the happy possessor of three gold medals for work he has done in India and elsewhere in connection with the match industry, Malaya abounds in soft and suitable woods, easily procurable for the manufacture of match sticks. He has made a thorough study of the woods of Malaya and speaks highly of their properties for this particular purpose. Having got over the difficulty of suitable wood the next point to consider is the question of machinery. The machinery has to be imported but need not necessarily be of very large proportions. A fairly small set of machinery, which could be conveniently procured and easily set up would be able to produce about 700 gross of matches a day, a quantity which should be fairly sufficient for our immediate needs, and satisfactory from the point of view of the manufacturers. To procure machinery of such capacity build a house and store, and run the business within six months, a capital of $200,000 is considered quite ample, and Mr. Evance thinks that if the capital was forthcoming he would be able to get the matches on the market within six months. That is undoubtedly a very satisfactory prospect to contemplate and after going into the figures with Mr. Evance no business firm would be reluctant to put up that sum. The Cost Mr Evance thinks that retailers should be able to sell matches manufactured locally at one cent a box at fair profit and the company should be able to pay a dividend of 10 per cent if it were worked economically and sensibly. The establishment expenses, he thinks, could be reduced to a minimum when there is a full set of automatic machinery. The only part of the business which Mr Evance thinks could not be done by machinery is the dipping of the match sticks in the chemical compound, which, he thinks, should be done by hand. The factory should be situated close to where the necessary wood could be easily procured and the machinery could be driven by an engine, the firewood for which would be available. Mr Evance thinks that a small factory of this kind could be started by a small syndicate and then floated into a company ?as results come before the public. When results are before the public the latter would unhesitatingly subscribe because the industry is in the first place a local one and in the second place is one which affects their purse, to a very great extent. Mr Evance is at present waiting for the decision of certain gentlemen who are interested in the matter and who are discussing it with a view to forming a private syndicate. Whoever has the courage to embark on the venture undoubtedly has in Mr Evance an experienced match maker who has established factories in several centres in India and whose father at one time was the proprietor of a match factory at Home. He has therefore had every opportunity of studying the industry in its various aspects. With the excellent start given by the Malayan Matches Ltd., there is no reason why others should not follow suit and retain for Malaya the many hundreds of thousands of dollars that go to enrich manufacturers in other countries.

H. H. Robbins writes to the Resident asking for the title for the land which Malayan Matches now occupy at Malayan Collieries.

"The explanation of the circumstances leading to the erection were again set forth in a letter to the Secretary to Resident, Selangor, from Malayan Collieries, Ltd., dated 21st March, 1921, in which letter it was asked that the factory area be excised and a separate lease issued".

 

FROM MALAYAN COLLIERIES PP J.A.RUSSELL & CO. TO THE SECRETARY TO RESIDENT SELANGOR.  21ST MARCH 1921

 

Kuala Lumpur 21st March 1921

 

Sir, With reference to the conversation between yourself and Mr. Geo. Dickinson, representing Messrs. Malayan Matches, Ltd, upon the subject of an excision from our title M.L. No.2549 Portion No. 1285 District of Ulu Selangor, we have the honour to confirm that we are prepared to agree to the exclusion of an area of 30 acres from our property as shown on the tracing A hereto attached.

2.         The 30 acres in question comprise the area upon which is erected the factory and bungalows of Messrs. Malayan Matches, Ltd.

3.         Borings have proved that this area does not contain coal.

4.         We believe that you are aware of the circumstances under which permission was granted by us to Messrs. Malayan Matches, Ltd., to erect their factory upon this land.

5.         It was originally hoped by Messrs. Malayan Matches, Ltd., that they would be able to erect the factory upon that part of the Forest Reserve over which they possess a licence, it being essential that the factory should be as contiguous as possible to their source of matchwood supply.

6.         It is also essential that the factory should be on a railway line, and an arrangement was accordingly made with our Company to allow Messrs. Malayan Matches, Ltd., to prolong our private sidings to their factory site.

7.         It was, however, eventually found that before Messrs. Malayan Matches, Ltd., could erect their factory within the Forest Reserve, a part of the Reserve would first have to be revoked, a course of action which the Forest Office did not desire and which would in any case have meant a serious delay of several months’ time.

8.         Messrs. Malayan Matches, Ltd., then suggested to us that as they would probably be taking fuel or power from us, we should allow them to erect their factory upon the edge of our property at a site adjacent to the Forest reserve, which site had already by borings been proved not to contain coal.

9.         Although the amount of fuel which Malayan Matches, Ltd., may be taking from us is not likely to be great, in order to assist a sister industry of considerable economic value to the country in a difficulty, we agreed to their proposal.

10.       Messrs. Malayan Matches, Ltd., now inform us that they find that the absence of a title direct from Government and in their own name is a serious disadvantage to them, and they have therefore asked us to agree to the excision of the area occupied by them from our property, to which course we understand that Government is agreeable, and they have further requested us to address to you this letter confirming our consent.

We have the honour to be,

Sir,

Your obedient servants

Malayan Collieries Ltd.,

p.p. J.A.Russell & Co

signed H.H.Robbins

Managing Agents and Secretaries.

 

From National Archives of Malaysia. Sel 1353/21   Transcribed by P.C


LETTER FROM GEO. DICKINSON, MALAY MATCHES LTD. TO A.S.JELF ACTING UNDER SECRETARY, KUALA LUMPUR.  14TH APRIL 1921

 

MALAYAN MATCHES LTD

__________

Kuala Lumpur

14th April, 1921

Sir,

Your reference G. 3145/20.

 

Further to your letter of March 31st ,  and our Mr Dickinson’s interview with you this morning, when it was suggested that we might be better able to get down to rock-bottom, if an interview could be arranged so that we might discuss the whole matter with the Chief Secretary.

It now occurs to us, pending the possibility of such an interview, that a recital of the salient features representing our position, might assist in arriving at a final settlement of the distressing matter between us.

In 1919, Mr J.A.Russell took a very active interest in the possibilities of establishing a “Match Industry” in this country.  This at the time, was of paramount interest to the Government Forest Department, and certain leading Government officials, whom Mr Russell interviewed on the matter.

This is evidenced by exchanged correspondence at the time, resulting in the following letter being addressed to Messrs. J.A.Russell & Co., dated 26th May, 1919, from the Secretariat:-

 

            “No. 5287/1918

            Gentlemen,

With reference to your letter of May 2nd on the subject of the local manufacture of Matches, I am directed to inform you that under the circumstances of this particular case this Government is prepared to waive the import duty of 100% ad valorem on Match manufacturing plant which you propose to import from India.”

 

“With regard to you application for a timber concession on the Rantan Panjang Forest Reserve, I am to state that the Government is prepared to allow you to take a second class timber from trees selected by the Forest Department in that Reserve, with due regard to the requirements of your Match manufacturing Company, and also to agree that, for a maximum period of five years from date of formation of the Company, royalty shall be charged you on such timber only, if and to the extent by which the profits of the Company exceed 6% on the capital outlay-the royalty payable for the said period in no case to exceed that payable on similar timber from State land.”

 

“With regard to the continuance of the present import duty on Matches, I am to state that the Government will at a convenient date bring the question of imposing for a period a duty on imported Matches before the Federal Council for consideration.”

 

“I am to add that if coal from Malayan Collieries is used in connection with the Match manufactory, a royalty at the rate of 25 cents per ton would be payable on all coal so used.”

I have the honour to be,

Sir,

Your obedient servant,

Sd. W. Mackray,

Ag. Under Secretary to Government. F.M.S.

 

May we ask that you would give this letter your special consideration as evidence.

 

(1)       That Government then was anxious to do everything in its power to encourage the establishment of the Match industry in this country, to the extent that it waived the ad valorem duty on the machinery.

 

(2)       That Government gave us certain rights over the Rantau Panjang Forest Reserve.

 

(3)       And specially considered the question of importing for a period a duty on importing matches.

 

(4)       We on our part agreeing to pay a royalty at the rate of 25 cents a ton on all coal used from Malayan Collieries, Ltd.

 

In addition to the above mentioned features of this matter, we quote the above letter as evidence also that Government was aware that our proposed Match factory would be situated somewhere between the Malayan Colliery and the Rantau Panjang Forest Reserve.

 

We wish therefore to place it on record, that at no time has there been a secret of the intentions of those gentlemen concerned with the formation of this company.

 

The almost overwhelming detail of sending experts to India to inspect the plant, the carrying out of timber tests, the compiling of figures for the launching of a public Company, with the fully paid capital of $505,000/-, were all matters which might account for a slight technical breach, but at no time have we felt, that in the presence of such a breach, would we be caused irremediable loss.

 

Subconsciously we felt that any difficulty that might ultimately crop up, we should have the sympathetic ear of Government, to say the least, we at no time thought that any disabilities we might suffer would be made more difficult.  Yet this is proving to be the case, practically to the point of our having to  consider going into liquidation.

 

Unauthorised buildings etc.

 

On the question of the unauthorised building on Malayan Collieries concession.  The first intimation that we had that there might be something in this, was a letter from the Collector of Land Revenue, Kuala Kubu, dated 29th October, 1920 (U.S.L. 2032/20) to J.A.Russell & Co., enquiring if Malayan Collieries Ltd., had allowed Malayan Machines Ltd., to build a Match Factory and a bungalow upon its property.

 

To this letter a reply was sent of the 5th November, 1920, to which there has not been any reply, or intimation that we were in the wrong, until we received your letter of March 31st, 1921, nearly five months, when you refer the matter to us, as per clause 4 of your letter, as follows:-

“Until, however, the matter of the unauthorised building on Malayan Collieries Concession is settled satisfactorily, it is premature to discuss the question of Mr. Gosswein’s admission to the Federated Malay States.”

What we fail to understand is how these two matters, i.e., unauthorised buildings, and Gosswein’s admittance for specific and highly technical Match machine work, become related, or even dependent on one another, unless, of course, your remarks mean that Mr. Gosswein will not be necessary, as the unauthorised buildings will have to be removed.  In which case we have no hesitation in saying the industrial development of this country, which is such an urgent necessity, will have received a knock-out blow, as it would be practically impossible to again influence public monies for “industrials.”

Financial Disabilities

In course of time we ourselves realised certain financial disabilities in not possessing a title for the land on which our factory was built, and here again frank confession was made to the Acting Chief Secretary, the Hon. Mr. Voules, when, owing to the sudden withdrawal of the authority of Mr. Gosswein’s admission into this country, we were thrown into financial difficulty.

 

It was then definitely stated that without a title for the land on which our property was built, it was practically impossible to raise a first mortgage loan, or make an issue of debentures.

 

To overcome this difficulty, Mr J.A.Russell offered Government his Batu Road site, payment to be deferred for two years by means of a promissory note for this period.  By this means he could have financed us privately through his bankers.

 

Delay accrued on this proposition, so that other steps had to be taken.

 

The writer interviewed Mr. Hemmant, Collector of Land Revenue, and it was arranged that an application should be sent in for a special grant of approximately 30 acres, comprising those lands on which our buildings had been erected, and to allow for the building of housing accommodation for the Match staff, Malayan Collieries having agreed to waive any rights they had over this given area.

 

The question of Mr Gosswein.

 

As we have already stated, we cannot understand why this matter should be interlaced with the matter of our buildings, but as you treat them together we have no alternative.

 

Briefly the outstanding facts concerning this gentleman are as follows:-

 

Though this man happens to be an enemy alien, he was never never a combatant one, on the contrary, owing to his specific, and rare knowledge, he was allowed by the Indian Government, to proceed in the erection of the very Match plant we now own, for the Northern India Match Co., Barielly.

 

For the initiation of this industry in this country, we originally had the services of Mr P.A. Morley Parker, a very highly qualified engineer, who died last August through an illness contracted during the time he was inspecting this plant in India.

 

Our other expert, a Mr. Evance, proved to be a dipsomaniac and a man of distinctly disreputable habits otherwise.  He had to be sent away, and we were thus high and dry.

 

Mr. Russell, as Chairman of Malayan Matches Ltd., had to make a special journey to London, in the hope of securing the services of Mr. E.L.Bell, (who at the time was not demobilised.)

 

This gentleman is a member of one of the largest firms of Match makers in the world, R. Bell & Co., Ltd., London and Australia.

 

Although it was of no personal concern to him to come to this country, our position was such that he agreed to come to our assistance, with the object mainly of bringing his influence to bear on securing us a nucleus of the right men, who, may we say, are rarer than gold.

 

He (Mr Bell) crossed over to Berlin in search of Mr. Gosswein, Rollers expert erector. (Rollers are the largest manufacturers of Match plant in the world).

 

Mr Bell knew there would be some difficulty in securing authority for his admission into this country.  He had a personal interview with the Colonial Secretary (Downing Street). The result of which interview was that Mr. Bell received the assurance of the Colonial Secretary himself, that he would do everything in his power to assist us, should the matter be referred back to him.

 

On leaving London Mr. Bell had letters of introduction to W.E.Horne Esq.,M.P., and Sir Laurence Guillemard, K.C.B. (copies of the letters enclosed).

 

Mr Bell interviewed Sir Laurence Guillemard, as a result of which the Governor intimated that he would communicate with the Hon. Mr. F.S.James, the Acting Chief Secretary, and assist all he could in the matter.

 

On arrival here (Kuala Lumpur) Mr. Bell interviewed the Hon. Mr. James and on the 2nd July, 1920, received the following communication:-

 

 

Ch.S.O. 1339/1920”

“Dear Sir,

With reference to an interview you had with the Acting Chief Secretary, I am directed to inform you that Mr, James is prepared to grant a permit for three months to enable Mr. Gosswein to enter and remain in Malaya for the purpose of putting up the machinery required by the Malayan Match Company of Kuala Lumpur.

I am to add that unless circumstances arise to prevent it, there will be no objection to a renewal of the permit.

I have the honour to be,

Sir,

Your obedient servant,

Sd. C.Sennett

Private Secretary

E.L.Bell, Esq.,

Malayan Match Company,

Kuala Lumpur

 

It would be impossible to receive from any Government official of authority more definite assurance of good faith.

 

This was dated July 22nd, 1920-it is now April 14th, 1921, yet we are still being pushed from pillar to post in the matter.  Our obligations to this man, entered into on the authority of the letter dated 2nd July, 1920, are such that we are still maintaining him in costly idleness, whereas his services would be the very breath of our enterprise.

 

This man was brought to our very door, merely to be told that he would not be allowed to land.  This is a matter which has meant a loss to our company of its entire margin of working capital, and unless it is settled at an early date, threatens to cost this company its very existence.

 

In an interview on this matter between the Hon. Mr. Voules, Mr. A.S. Jelf, Mr. J. A. Russell, and the writer Mr. Voules said that he realised that this change of front had landed us in serious difficulty, for which Government were prepared to pay.  At no time has this been a matter which we have sought to make use of.  Our deepest concern at all times has been to manufacture Matches, as those who have money invested in this Company are becoming distressingly uneasy.

 

The date of our General Meeting is rapidly approaching, and we have nothing but disappointment upon disappointment, to report to our shareholders.

 

Our General Manager is so perturbed at Government’s action throughout the whole matter, that he threatens to resign, unless the Government offers some speedy remedy for the disastrous position into which Government’s attitude has precipitated this Company, as a protest against the breach of good faith, with the vested interests of an important new industry, which he has endeavoured to establish with all the enterprise, and energy at his command.

 

Mr. Bell takes a very serious view of this matter, from the aspect of his personal prestige in Match circles, and emphasises that if this Company must go into liquidation, as a direct result of the withdrawal of the authority given to him to bring Mr. Gosswein to our works for the express purpose of erecting the plant, he would have no alternative, on his return to England and in his private capacity, but to refer this matter to the Match Combine in London and Liverpool, for reference to the Colonial Secretary, as, in his opinion, the whole matter is diametrically opposed to the express official request of Lord Milner in his message to the Colonies. 

 

The whole matter is one, assuming really serious proportions, involving vested interests of over half a million dollars of public monies, and we look to you to assist us all you can on the two points at issue, which cannot possibly be regarded as irremediable.

We have etc.,

Sd. Geo. Dickinson

For Malayan Matches Ltd.

 

From National Archives of Malaysia  Sel 5654/20 Transcribed by P.C

 

To Messrs. J.A.Russell & Co., dated 26th May, 1919, from the Secretariat:-

 

            “No. 5287/1918

            Gentlemen,

With reference to your letter of May 2nd on the subject of the local manufacture of Matches, I am directed to inform you that under the circumstances of this particular case this Government is prepared to waive the import duty of 100% ad valorem on Match manufacturing plant which you propose to import from India.”

 

“With regard to you application for a timber concession on the Rantan Panjang Forest Reserve, I am to state that the Government is prepared to allow you to take a second class timber from trees selected by the Forest Department in that Reserve, with due regard to the requirements of your Match manufacturing Company, and also to agree that, for a maximum period of five years from date of formation of the Company, royalty shall be charged you on such timber only, if and to the extent by which the profits of the Company exceed 6% on the capital outlay-the royalty payable for the said period in no case to exceed that payable on similar timber from State land.”

 

“With regard to the continuance of the present import duty on Matches, I am to state that the Government will at a convenient date bring the question of imposing for a period a duty on imported Matches before the Federal Council for consideration.”

 

“I am to add that if coal from Malayan Collieries is used in connection with the Match manufactory, a royalty at the rate of 25 cents per ton would be payable on all coal so used.”

I have the honour to be,

Sir,

Your obedient servant,

Sd. W. Mackray,

Ag. Under Secretary to Government. F.M.S

 

 

From : LETTER FROM GEO. DICKINSON, MALAY MATCHES LTD. TO A.S.JELF ACTING UNDER SECRETARY, KUALA LUMPUR.  14TH APRIL 1921.

July 2, 1920

 

Ch.S.O. 1339/1920”

“Dear Sir,

With reference to an interview you had with the Acting Chief Secretary, I am directed to inform you that Mr, James is prepared to grant a permit for three months to enable Mr. Gosswein to enter and remain in Malaya for the purpose of putting up the machinery required by the Malayan Match Company of Kuala Lumpur.

I am to add that unless circumstances arise to prevent it, there will be no objection to a renewal of the permit.

I have the honour to be,

Sir,

Your obedient servant,

Sd. C.Sennett

Private Secretary

E.L.Bell, Esq.,

Malayan Match Company,

Kuala Lumpur

 

From: LETTER FROM GEO. DICKINSON, MALAY MATCHES LTD. TO A.S.JELF ACTING UNDER SECRETARY, KUALA LUMPUR.  14TH APRIL 1921.

 

The Singapore Free Press and Mercantile Advertiser (1884-1942), 10 August 1920, Page 11

It is with regret that we record says the Malay Mail the death of Mr. Philip Morley Parker, of Messrs. J. A. Russell and Co., Kuala Lumpur, which occurred in Kuala Lumpur after a short illness. The deceased was taken ill on Monday evening and was attended by Dr. Travers. He had some time been suffering from heart affection, and this was the cause of his death. Mr. Parker arrived in British Malaya about two and half years ago to join the staff of Messrs. J. A. Russell and Co. as technical and scientific advisor. Latterly he had been appointed manager of the firm.


LETTER FROM J.A.RUSSELL TO THE UNDER SECRETARY F.M.S. 20TH APRIL 1921 J.A.RUSSELL & CO.

Kuala Lumpur, 20th April 1921. Sir, I have the honour to address you with reference to a letter from Mr G. Dickinson writing on behalf of Messrs. Malayan Matches, Ltd., dated 14th April 1921, and referring to your G.3145/20. I was unfortunately not shown this letter until today, and hasten to say that I was unaware that it had been written or sent to you. I was absent from Kuala Lumpur on the 14th instant, otherwise I have no doubt that, as my name and that of my firm is more than once mentioned in it, the letter would have been shown to me before dispatch. Mr. Dickinson’s letter was written to convey the views and beliefs of the Manager of Malayan Matches, Ltd., and not as necessarily representing those of myself or of my firm, and while the letter seems to me to be mainly correct both in its statements and in its views, there are one or two minor inaccuracies in connection with myself to which I think I ought at once to draw your attention. I would first explain that the writer of the letter did not join either me or Malayan Matches, Ltd., until the year 1920, which accounts for the slight errors he has unwittingly made. He is inaccurate when he states that I interviewed leading Government officials in connection with the formation of Malayan Matches, Ltd. In 1918 the late Mr. P.A. Morley Parker, who was my then manager and held my power of attorney, conducted upon my behalf with a Mr. Evance, whom we had engaged, several experiments on the possibilities of local match manufacture; in which work we were actively assisted by the F.M.S. Forest Department. Before the final result of the experiments and negotiations with Government was obtained, I had left for China, returning to the F.M.S. for about a month or more in February, 1919, and leaving again for America in March of that year. I did not return to the F.M.S. until 20th December 1919. Towards the end of 1919 I received a cable in London telling me that a match company had been floated of which I had been appointed Chairman of Directors and asking me to engage the services of a Mr. E.L. Bell, a well-known Match expert then in London. Owing to my having been since leaving the F.M.S. continually travelling, this was practically the first intimation I had received that the affairs in connection with match manufacture in the F.M.S. were so far advanced. I engaged the services of Mr. E.L. Bell for the new Company, and on his advice sent him to Germany to interview the makers of the plant, Messrs. Rollers of Berlin, and to obtain an erector for their Simplex machine which apparently, contrary to its name, can only be erected by their specially trained erectors. Mr Bell through them engaged Mr. Gosswein. Mr Bell on his return to London made further arrangements to engage a match mechanical-engineer to carry out the erection of the other and simpler machines, and to run the whole plant on the completion of the factory. Mr. Simons was eventually obtained for this latter work and has since arrived out here and is engaged at the present time in erecting all but the Simplex automatic machine referred to above. You will see that I had little to do with the floatation of the Company, and did not have interviews with the leading Government officials as stated by Mr. Dickinson. Mr. Parker, however, had a number of such interviews and I have absolutely no hesitation in saying that I was certain from what he told me that he fully discussed with the Government the idea of erecting the factory upon the Batu Arang property of Malayan Collieries Ltd. Owing to Mr. Parker’s sudden death, at a time when I was again absent, and to the confusion of his papers, we do not possess complete records of all his correspondence, while I have also no doubt that many or most of the arrangements made between himself and Government officials were verbal; but from such papers as we do possess there is sufficient evidence clearly to prove Mr. Parker’s statement that the question of erecting a factory on Malayan Collieries Batu Arang property was mentioned and agreed to. Reference to the intention to erect at Batu Arang was, I find, made in a letter addressed as early as 5th November, 1918, to the Chief Secretary. The Acting Under Secretary to Government in a letter dated 26th May, 1919, No. 5287/18 states that a royalty of 25 cents a ton will be charged on any Malayan Collieries coal used by the Match Company, which is absolute and positive proof that several months before the flotation of Malayan Matches Ltd., the Government knew and approved of the intention to erect the factory upon the property of Malayan Collieries, Ltd., as were it intended to build the factory elsewhere, this question of coal royalty would not have arisen or be relevant. Not only can I swear on oath that Mr. Parker informed me upon my return to this country that the Government knew and agreed to the proposal to erect the factory upon the property of Malayan Collieries, Ltd., but I have always been under the impression that the arrangement was made mainly to suit the convenience of the Forest Department who did not wish to be put to the trouble of having to revoke a small part of its reserve in order to provide a factory site for a match plant. It is a further fact that no concealment has ever been made about the proposed site of the factory. It was mentioned in the Company’s prospectus, and we also say that its erection must have been known to several Government officials who saw it during the course of construction or knew that it was in course of construction. After, however, allowing the factory and other buildings and improvements (costing in all about $140,000/-) to be completed, the Government has adopted the attitude of professing to know nothing about the matter, an attitude no doubt due to the official changes that have since been made. The question of authorisation was first raised by a newly-come Collector of Land Revenue, Ulu Selangor, in a letter dated 29th October, 1920, (U.S.L. 2032/20) which was replied to in ours of the 5th November, 1920, a copy of which I herewith attach. No reply was made to our explanation and the matter apparently allowed to drop. The explanation of the circumstances leading to the erection were again set forth in a letter to the Secretary to Resident, Selangor, from Malayan Collieries, Ltd., dated 21st March, 1921, in which letter it was asked that the factory area be excised and a separate lease issued. A copy of this letter is also attached. Yet despite this knowledge and these letters, on the 31st March, 1921, you write to say in connection with an application of ours that “until the matter of the unauthorised building on Malayan Collieries Concession is settled satisfactorily, it is premature to discuss, etc.” In Malayan Matches Ltd’s reply of the 4th April to your above letter, the Company asks you kindly to let it know what is meant “by satisfactory settlement.” I understand from Mr. Dickinson that, not receiving a reply, upon his seeing you and requesting an answer to the Company’s question, he was told that you considered the letter of 4th April to be evasive, that it certainly would not be answered, that the Chief Secretary took a very serious view of the whole matter and finally, that the Government was not to be “bluffed” by Mr. Russell. I can assure you that you are mistaken in believing that this letter of the 4th April was intended to be any of the things which you assert. I honestly do not know of what action, intention or crime the Government suspects or wishes to accuse Malayan Matches, Ltd., or me personally, nor what it now requires the Company or me to do. I can only repeat our humble and earnest request that you will be more explicit and will reply to the letter of the 4th April stating the nature of the settlement which you require. If the Government has any charges to make against myself or Malayan Matches, Ltd., I think that you will agree that it is only simple justice to let both of us know the exact nature of these. Does the Government believe that in erecting the factory upon its present site I, or Malayan Matches, Ltd., or Malayan Collieries, Ltd., had any ulterior motive, or were making any secret profit, or had any objective whatsoever other than a legitimate, straightforward and candid desire honestly to do our respective bests successfully to promote a new and as we thought desirable industry in British Malaya?. Has Government has any reason to doubt our bona-fide in this matter? But even omitting the question of the factory having been constructed on its present site for economic considerations in the making of matches and because of convenience to the Forest Department, and moreover having been erected with the knowledge and sanction of a former Chief Secretary, is this particular site now thought to be detrimental to the best interests of the State or open to other grave objections, and if so what is the nature of these other objections? If they exist and you will state them, Malayan Matches, Ltd., may possibly be able to suggest a remedy which will obviate all this threatening of disaster to an infant and not yet sturdy industry. When it was first proposed to manufacture matches from local timbers and to start a fresh F.M.S. industry, the Government were most encouraging and sympathetic. The Commissioner of Forests and other Government officials were quite anxious that we should so the pioneer work, and endeavour to establish a local factory. But now the Government’s attitude appears to have changed and to be one bordering almost on antagonism. It has been pointed out by Mr. Dickinson that until this site question which you have raised and other matters be settled, we cannot obtain the additional funds which we so urgently need, funds to a great extent made necessary by the Government’s inconsistent policy regarding our erector, and yet I regret to have to say that nothing is done except to give us seemingly ambiguous replies, and finally with some signs of anger, to tell us verbally that our letter is “bluff” and will not be answered. It would almost seem as though Government has recently had reason to change its views upon the desirability of match manufacture in this country, but for reasons of policy does not wish to tell us so in too direct a fashion. I wish expressly to disassociate myself personally from the expressions contained in the penultimate paragraph of Mr. Dickinson’s letter of the 14th instant, wherein he mentions the possibility of Mr. Bell in a private capacity referring the matter to a Match Combine in England who would take up the question with the Secretary of State for the Colonies. I am sure that this was not intended to be in the nature of a threat, but even so I cannot allow you to think that it was written with my approval or contains my views. As the whole question connected with the erection of the factory upon its present site affects not only Malayan, Matches Ltd., but apparently from your remarks to Mr. Dickinson, me personally, I would ask you kindly to forward this letter and enclosures to the Chief Secretary. In conclusion I desire to make it quite clear that this letter is not written in any but frankly sincere spirit. Apart from the legitimate interests of Malayan Matches, Ltd., which it is my duty to protect and to further to the best of my abilities, I have also, even at the risk of possibly offending or tiring you, written plainly and at some length because I personally seem to be involved and to have incurred your disapprobation which I am not conscious of meriting. I have etc Sd. J.A. Russell Enclosures

From National Archives of Malaysia. Sel 5654/20 Transcribed by P.C

Archie offered the Batu Road Site to the Government to raise money but this fell through due to delays.

George Dickinson met with Mr. Hemmant, Collector of Land Revenue to arrange for a special grant.

The Acting Chief Secretary, was the Hon. Mr. Voules

A list of the match making machinery in India.
The Commissioner for Trade asks the Resident for special exemption for the machinery.
Bob Russell asks to see the Resident about the Import Duty.

The import duty is waved.

 

 

" the whole of the investigations before the flotation of the Company, and of its business after flotation had been in Mr. Parker’s capable hands"

From :THE MALAY MAIL, MAY 31st 1921 MALAYAN MATCHES THE ANNUAL REPORT

Mr Parker went to India in about September to supervise the dismantling and shipping of the machinery.

"Mr. Parker was half a year in India examining, dismantling, packing and forwarding the plant and he incurred a great deal of expenditure made up of a number of small items, the details of which he probably only noted in some missing pocket book or other." Archie

" Mr. Morley Parker carried out all the details of purchase and the payments in connection with the same. He also arranged matters of transport and insurance, and I believe economically and satisfactorily." "While dismantling and packing the machinery I received a letter asking me on what terms I would I would undertake management of the Factory. I replied my idea as to salary was $1,000 per month payable as $600 and $400 as a bonus." Mr. Evance letter, The Straits Times, 1 October 1920

 

"Towards the end of 1919 I received a cable in London telling me that a match company had been floated of which I had been appointed Chairman of Directors and asking me to engage the services of a Mr. E.L. Bell, a well-known Match expert then in London.... I engaged the services of Mr. E.L. Bell for the new Company, and on his advice sent him to Germany to interview the makers of the plant, Messrs. Rollers of Berlin, and to obtain an erector for their Simplex machine which apparently, contrary to its name, can only be erected by their specially trained erectors. Mr Bell through them engaged Mr. Gosswein. Mr Bell on his return to London made further arrangements to engage a match mechanical-engineer to carry out the erection of the other and simpler machines, and to run the whole plant on the completion of the factory. Mr. Simons was eventually obtained for this latter work and has since arrived out here and is engaged at the present time in erecting all but the Simplex automatic machine referred to above."

Archie: 20TH APRIL 1921

 

An interview with Mr. Evance who seems to be considering setting up his own match making company.
First meeting of Malayan Matches. The majority of the machinery has arrived on site, its dismantling in India supervised by Mr. Parker.

Mr. Parker returns from India in March after 6 months there.

"Some time before the death of Mr. Parker, the Company had dispensed with the services of Mr. Evance, but fortunately they had secured as general manager Mr E.L. Bell, late of Messrs. R. Bell and Co., Ltd."

Mr. Bell is arrives June. Mr Evance has resigned.

THE MALAY MAIL 29TH APRIL 1920-PAGE 8

The Directors of Malayan Matches Ltd., have secured the services of Mr. E.L.Bell, a member of the well known “Bell’s Wax Vesta” family and, until lately, General manager of the Australian Match Co. Mr. Bell has now left England and is expected to arrive in Malaya early in June. Mr G.C. Evance having tendered his resignation, severs his connection with the Company from April 30th.

"Your directors regret that, shortly after the return of Mr. Parker from India and before the whole of the plant shipped by him had been received, the illness which he had contracted in that country proved fatal."" Mr. Parker’s death occurred about 5 months after that gentleman’s return from India."
Mr. Bell leaves for Australia on 30 August.
The Straits Times also notes the loss of Mr. Evance, who is later described by Mr. Dickinson as a dipsomaniac.

The Malay Mail Friday 1 October 1920, p.10

Malayan Matches. Loss of Machinery. The following circular, dated Sept 15th, 1920 has been issued to shareholders in Malayan Matches, Ltd., by Messrs. J. A. Russell & Co., Agents and Secretaries. “We are instructed by your directors in making a final call of 25 cents per share to explain the present position of the company and the reason for the delay in the completion of the factory owing to difficulties which have arisen since the statutory meeting was held. We have thus to inform you that most unfortunately 68 cases of machine parts have been lost in shipment, and that despite every attempt made to trace them, they have not yet been found. Your directors have now given up hope of recovering these cases, and have made a claim on the insurance company for their value. Although the directors hope that the value will in due course be recovered, they are sorry to have to inform you that the loss is a most serious one in that it has completely held up for the time being the completion of the match factory. Part of the machinery that has arrived is also damaged, due to bad mishandling in transit. Your directors, however, confidently hope to be able to replace or repair any missing or damaged parts. Your agents’ London office was cabled to, instructing it to engage a first class match manager, and the services of Mr. E. L. Bell, one of the leading men in the match trade, was secured. Mr. Bell was originally connected with those well-known match makers, Messrs. Bell and Co. Ltd of Bow, London and until he left Australia to accept a commission in France, was managing director of Messrs. Bryant and May’s and Bell’s Ltd., the pioneers of the match industry in Australia and the owners of the largest factory there. Mr. Bell was responsible for the complete inauguration of this latter firm and thus for the introduction of the industry into Australia. Mr. Bell made arrangements to engage a competent staff of European foremen, one of whom will shortly be arriving in the F.M.S. On reaching this country last June Mr. Bell was confronted with the dilemma caused by the missing cases. Match machinery is at present almost impossible to obtain, so the loss is more serious than the insurance value of the lost plant would indicate. Under these circumstances it was decided that Mr. Bell should proceed to Australia and endeavour to obtain from his former works the missing parts, Mr. Bell being confident that he can do this, even although it may take him two or three months to get them shipped to us. Mr. Bell actually left for Australia on 20th August and should shortly be arriving in Sydney. However even so the completion of the factory will be greatly delayed, and, although your directors are unable under the circumstances to give any very definite date, they anticipate that the factory will be fully completed and in full running order sometime during the first half of next year. Your directors are also considering the question of utilising part of the company’s veneering machinery for the manufacture of three-ply veneer rubber packing cases. Mr. Bell has had experience in the manufacture of these cases, the demand for which in this country is great. Your match factory is very well equipped with wood veneering plant. It is interesting to note that the local price of matches is still high and the demand great. We are instructed in conclusion to express your directors’ deep regrets at the serious delay occasioned by the loss of part of the plant, a loss during shipment which could not in any way be foreseen or prevented by your company and for which your company is in no way responsible.

A Malayan Matches circular reports the loss of machine parts and the delay to the opening of the factory.

Later on at their first A.G.M. Archie says: "However, upon the Company’s Mechanical Engineer arriving from Home, he went through the machinery and found nothing serious, the condition of the plant was evidently far better than shareholders had been led to believe from the circular."

The Straits Times, 29 September 1920, Page 9

MALAYAN MATCHES. Delay Through Loss of Machine Parts.. At the statutory meeting of Malayan Matches, Limited, a report of which appeared in our issue of March 3, it was stated that “The majority of the machinery has now arrived on the site, the balance being in transit, and a contract has been let for the creation of the factory, which will be completed in four or five months, and it is hoped that we will be able to commence manufacturing matches within six months” Several copies of a circular dated September 15 have been sent to us. It is signed by Messrs. J. A. Russell and Co. the Agents and Secretaries, and it states that “ 68 cases of machine parts have been lost in shipment”. The directors have given up hope of recovering these cases, and have made a claim on the Insurance Company for their value. Meantime there have been differences of opinion with Mr. Evance, the match expert, who came from India, and it has been decided “ not to enter into a definite agreement for service with him”. After this Mr. E. L. Bell was appointed in England. Mr. Bell reached Malaya in June, but without the missing machinery, he could do nothing; and as such machinery is unprocurable in the open market, he left for Australia in August in the hope of being able to procure the missing parts from the factory with which he was formerly connected with there. The Malayan factory should actually be in working order now, if the forecast made at the statutory meeting had been realised, and our correspondents raise a question as to whether all is as it ought to be. It certainly is not, but the directors cannot reasonably be held responsible for the wholly mysterious and inexplicable disappearance of 68 cases of machine parts, or for the difficulty of replacing such parts, and their difference with Mr. Evance is a matter into which we cannot enter. The delay in making a start is deplorable, but it does not in the slightest degree affect the question whether Malayan Matches is going to be a paying proposition when it does start. Holders of shares, who have just been required to pay up a final call of 25 cents per share, ought not to get alarmed unduly. They must have patience and give the directors a fair chance. Apart from the great misfortune over the machinery everything connected with the company, is as favourable as it has ever been.

LETTER FROM MALAYAN COLLIERIES LTD TO THE COLLECTOR OF LAND REVENUE, ULU SELANGOR. 5TH NOVEMBER 1920 Kuala Lumpur, 5th November. 1920

Sir, With reference to your letter of the 29th ultimo numbered (1) in U.S.L. 2032/20, inquiring whether Malayan Collieries Ltd., has allowed Malayan Matches Ltd., to erect a Match factory and a bungalow upon its property, we have the honour to reply that this is so and also that both the fact and the reason for our so doing are we believe, well known to the Government, or at least to certain officials in the Government, but as you do not appear to be aware of them yourself, for your own information we explain below the position. The Government gave to the promoters of Malayan Matches Limited a concession for the manufacture of Matches over that part of the Rantau Panjang Forest reserve which, contained no hard wood, is useless for practically any other economic purpose and which happens to adjoin the property of Malayan Collieries Ltd. Unfortunately, however, the Forest Department could not give Malayan Matches Ltd., a factory site without first revoking the Forest Reserve, a lengthy and tedious process which the Forest Department was not anxious to do, and which would in any case have taken considerable time to complete, and thus have deferred or prevent the formation of the Company and the inauguration of a useful local industry. As it was also necessary for Malayan Matched, Ltd., to obtain sanction to use the Railway siding constructed over the property of and belonging to Malayan Collieries Ltd., and to extend the same, the simplest way that suggested itself of solving the difficulty confronting Malayan Matches Ltd., and the Forest Department in the matter of a site, was for Malayan Collieries Ltd., to grant Malayan Matches, Ltd., permission not only to use and extend the line and siding traversing its property, but also to erect a factory and bungalows at the edge of its property at a point where this property adjoins that part of the Forest Reserve conceded by the Government to Malayan Matches, Ltd. Malayan Matches, Ltd, in approaching Malayan Collieries Ltd., for this permission, assured Malayan Collieries Ltd., that it would in no way obstruct or hinder the latter from the proper and efficient working of its coal concession, and that on being given due notice by the latter it would, if necessary, remove its buildings and sidings to another site or entirely from off the latter’s property. No concealment has ever been made regarding the assistance in the matter of rail facilities and a site which Malayan Collieries, Ltd., rendered to Malayan Matches, Ltd., and the aid it has given is well known to Government and certainly to those officials with whom Malayan Matches, ltd., negotiated for its Match concession and a protective import tariff. The assistance which Malayan Collieries Ltd., has given is of only a nominal benefit to itself and has been made solely with the idea of aiding in the establishment of a useful fellow-industry, of obviating the difficulty in connection with revoking the Forest Reserve and in the general interest of the State and the community. Malayan Collieries Ltd., has consistently endeavoured to help others where it could do so without harm to itself. It has twice given up part of the area it has held under its Prospecting License to Rubber Companies which were entirely unconnected with itself or with any of its shareholders, and it also on one occasion surrendered a large area from its prospecting License for the formation of Protective Forest Belt. We have, etc. Malayan Collieries Ltd., J.A.Russell & Co. Sd. H.H.Robbins (Manager) The Collector of Land revenues Ulu Selangor K.Kubu.

From National Archives of Malaysia. Transcribed by P.C

The acting Chief Secretary agrees that Mr. Gosswein, the expert in the erection of the German match making machinery should be allowed to enter and remain in Malaya for three months.

 

H.H. Robbins as Manager of Malayan Collieries replies to the land revenue about the erection of the match factory on Malayan Collieries land. There is no reply to this letter.
George Dickinson for J. A. Russell as Agents and Secretaries writes to the Acting Under Secretary after a meeting with him asking for a meeting with the Chief Secretary and notes the main facts.

A letter from the Collector of Land Revenue, Kuala Kubu, dated 29th October, 1920 (U.S.L.2032/20) to J.A.Russell & Co., enquires if Malayan Collieries Ltd., had allowed Malayan Machines Ltd., to build a Match Factory and a bungalow upon its property. H.H. Robins sends the letter of 5th November in reply.

"The question of authorisation was first raised by a newly-come Collector of Land Revenue, Ulu Selangor, in a letter dated 29th October, 1920, (U.S.L. 2032/20)"

 

Letter from the Acting Under Secretary of March 31st, 1921, clause 4:

 

“Until, however, the matter of the unauthorised building on Malayan Collieries Concession is settled satisfactorily, it is premature to discuss the question of Mr. Gosswein’s admission to the Federated Malay States.”

"Mr Bell knew there would be some difficulty in securing authority for his (Mr Gosswein) admission into this country. He had a personal interview with the Colonial Secretary (Downing Street). The result of which interview was that Mr. Bell received the assurance of the Colonial Secretary himself, that he would do everything in his power to assist us, should the matter be referred back to him. On leaving London Mr. Bell had letters of introduction to W.E.Horne Esq.,M.P., and Sir Laurence Guillemard, K.C.B. Mr Bell interviewed Sir Laurence Guillemard, as a result of which the Governor intimated that he would communicate with the Hon. Mr. F.S.James, the Acting Chief Secretary, and assist all he could in the matter. On arrival here (Kuala Lumpur) Mr. Bell interviewed the Hon. Mr. James and on the 2nd July, 1920, received the following communication." See below:

 

Upon Mr. Bell’s arrival he saw the High Commissioner and the Chief Secretary, and obtained a permit admitting the erector into the F.M.S

Archie writes a letter to the Under Secretary about George Dickinson's letter to correct inaccuracies.
Mr. Dickinson joined the staff in 1920. " Mr. Dickinson has been in charge in the office of the agents and secretaries of the affairs of the Company"
Mr. Parker’s statement that the question of erecting a factory on Malayan Collieries Batu Arang property was mentioned and agreed to. Reference to the intention to erect at Batu Arang was, I find, made in a letter addressed as early as 5th November, 1918, to the Chief Secretary. J.A.R. letter 20th April 1921
In Malayan Matches Ltd’s reply of the 4th April to your (The under Secretary) above letter, the Company asks you kindly to let it know what is meant “by satisfactory settlement.” I understand from Mr. Dickinson that, not receiving a reply, upon his seeing you and requesting an answer to the Company’s question, he was told that you considered the letter of 4th April to be evasive, that it certainly would not be answered, that the Chief Secretary took a very serious view of the whole matter and finally, that the Government was not to be “bluffed” by Mr. Russell" Archie LETTER TO THE UNDER SECRETARY , 20TH APRIL 1921

From: THE MALAY MAIL, MAY 31st 1921 MALAYAN MATCHES THE ANNUAL REPORT

On May 23rd the Government at length agreed to admit the erector. (Mr. Gosswein) The directors would point out that, had not the Government during all those months held up the written sanction it had previously granted, the plant would have by now been fully erected, and the Company producing matches. The Company has been making representations to the Government almost daily, and urging upon it the serious financial position in which its action has placed the Company. Heavy salaries and expenses have been going on month after month, and, while the Government has been endeavouring to make up its mind, the Company has in consequence run short of funds. The whole matter has been interminably protracted, each official referring it to some other official or to his successor. It should be remarked that during all this time former enemy aliens were being admitted in to Singapore for purposes of trading there.

LETTER FROM THE GENERAL MANAGER FEDERATED MALAY STATES RAILWAYS TO THE COLLECTOR OF LAND REVENUE 25TH MAY 1921 FEDERATED MALAY STATES RAILWAYS

General Manager’s Office Kuala Lumpur Selangor, 25th May 1921 No. G.M.R. 8857/20. Confidential. Sir, In reply to your letter of the 21st instant, No. (48) in Confidential 1821/20, forwarding a draft of the proposed agreement with Messrs. The Malayan Collieries Ltd. For the surrender of the Railway reserve at Batu Arang, I would refer you to Section 9 which provided that the lessees shall supply for the use of the Government such quantities of coal as may be applied for at a price not exceeding the lowest price at which coal of the quality required is supplied by the lessee to any other person. 2. The Railway Department already has and will continue to have very large contracts of coal with the Malayan Collieries at a price very considerably less than that at which coal is supplied to any other person. I should like to be quite clear that section 9 cannot be used in the future as an argument that contracts with the Railway should be based on the lowest price at which coal is supplied to other persons. I have the honour to be, Sir, Your obedient servant, Sd: P.A .Anthony General Manager To. The Collector of Land revenue Ulu Selangor Kuala Lumpur

From National Archives of Malaysia. Transcribed by P.C

First Annual Report.

The factory has now been completed, and is a fireproof steel building 225 feet by 75 feet. The power house has also been finished, and is a fireproof building 75 feet by 25 feet.

Mr. Simons, late of Messrs. Bryant and May, was engaged at Home as the Company’s engineer, and has now erected practically all the plant except the automatic machine, which still awaits the arrival of the erector.

THE MALAY MAIL, MAY 31st 1921 MALAYAN MATCHES, THE ANNUAL REPORT, CHAPTER OF MISFORTUNES

The first annual meeting of Malayan Matches, Ltd., will be held at the registered offices of the Company in Kuala Lumpur on June 7th at 11 a.m. to receive the balance sheet and directors’ and auditors’ reports, elect directors in place of those retired and auditors for the coming year. The report of the directors, signed by Messrs J.A. Russell and Co, agents and secretaries by order of the directors, for the year ending March 31st, 1921, is as follows:- Directors: Messrs. R.C. Russell, acting substitute for J.A. Russell (Chairman), F.B. Ivens, acting substitute for R.B. Hannon, A.A. Henggeler and Geo. Dickinson. The directors beg to submit their first annual report and statement of accounts for the year ended March 31st, 1921. The directors desire to preface this report by saying that they greatly regret the most unfortunate, yet uncontrollable delay in the completion of the factory, and more especially the erection of the plant, with the consequent inability of the Company to manufacture matches anywhere near the date at which it was originally hoped to commence production. Factory and Power House Tenders for the erection of a factory and power house had unfortunately to be called for during the period of great inflation in the costs of labour and materials, with the result that not only were the prices quoted the Company excessive; but owing to the boom and subsequent demand for skilled labour the time required for completion in every case was abnormally long. Acting upon the advice of your Company’s architects, the directors selected the most favourable tender; but even so, their original estimates of time and cost were greatly exceeded. The factory has now been completed, and is a fireproof steel building 225 feet by 75 feet. The power house has also been finished, and is a fireproof building 75 feet by 25 feet. Other works.-Railway sidings and a platform have been constructed, two small bungalows erected, a chemical store and a reservoir built. Shipment of Plant.-The ill-luck which this Company has sustained commenced with the shipment of the plant from India. The dismantling and packing of the plant in India was in the hands of Messrs Parker and Evance. Mr. Parker unfortunately fell ill while in India, and had moreover to contend with the greatest difficulties, for owing to Frontier troubles and internal unrest the military had engaged or commandeered most of the available mechanics, carpenters and timber. By the time the plant had been finally dismantled and packed, railway rolling stock had also been commandeered. It took months to get the plant to Calcutta, and months more to get it shipped. The congestion at the Calcutta docks was so great that in order to relieve it the shipment of even coal from Calcutta had finally to be entirely prohibited, which gives an idea of the state of affairs prevailing. It thus came about that the plant did not actually arrive in Kuala Lumpur until after the time that it was originally hoped to have it erected and running. Condition of Plant.-Several packages of plant never arrived at all, while many cases were badly damaged, Your directors are, however, happy to be able to say that on careful inspection the damages and losses were found to be not at all serious, nothing vital being either missing or broken. Missing plant has since been replaced and breakages repaired. Erector for Plant Mr. Bell visited upon the Company’s behalf the makers in Berlin and obtained plans and particulars of the plant. Before going to Germany, Mr. Bell called at the Colonial Office in London and explained that it would be necessary to engage an expert erector from the makers to put together part of the highly complicated automatic plant. The Colonial Office informed Mr. Bell that, where it would serve British interests, the policy of the British Government was to make as much use of Germany and Germans as possible. It was desirable not only to sell as much as we could to Germany but also to extract as much benefit as we could from individual Germans provided that such benefit was greater to us than any corresponding benefit which might possibly be derived by the Germans. The Colonial Office furnished Mr. Bell with a copy of the “Former Enemy Alien Admission Regulations” published in a supplement of the F.M.S. Gazette, Oct. 16th 1919 and pointed out that the Chief Secretary had power, especially granted ? to admit Germans under licence. Mr. Bell accordingly engaged the services of an erector for the plant in Berlin. Upon Mr. Bell’s arrival he saw the High Commissioner and the Chief Secretary, and obtained a permit admitting the erector into the F.M.S. Unfortunately when the erector arrived in Penang on Dec. 30th 1920, the new Acting Chief Secretary told your Chairman that the Government had changed its mind with regard to the admission of the erector, but instead would be prepared to consider any claim which the Company might make against it for compensation. The Company decided, if necessary, to appeal to the Home authorities, so sent their erector on to Java, where they have been maintaining him ever since. Your directors have for several months been fighting the matter with the Government, and on May 23rd the Government at length agreed to admit the erector. The directors would point out that, had not the Government during all those months held up the written sanction it had previously granted, the plant would have by now been fully erected, and the Company producing matches. The Company has been making representations to the Government almost daily, and urging upon it the serious financial position in which its action has placed the Company. Heavy salaries and expenses have been going on month after month, and, while the Government has been endeavouring to make up its mind, the Company has in consequence run short of funds. The whole matter has been interminably protracted, each official referring it to some other official or to his successor. It should be remarked that during all this time former enemy aliens were being admitted in to Singapore for purposes of trading there. Present Position of Plant Mr. Simons, late of Messrs. Bryant and May, was engaged at Home as the Company’s engineer, and has now erected practically all the plant except the automatic machine, which still awaits the arrival of the erector. The plant already erected looks exceedingly well and the directors are confident that those share-holders who care to visit the factory will be pleased with what they see. Power Plant:-All the power plant is of the very best British make, the boilers by Messrs. Babcock and Wilcox, the engine by Messrs. Allen of Bury, and the generators and dynamos by the British Westinghouse Co. Machine Shop:-The factory is fully equipped with lathes, radial drills etc., of the best British make. Proportion of British Plant. More than half the value of the whole plant and factory is of British make. To your directors’ best belief actual match making machinery is not at present manufactured in Great Britain, although such manufacture is contemplated in the future. Timber. When the Company was floated, certain timbers had been tested by hand, and two or three selected as being eminently suitable for the manufacture of matches. Since then Mr. Bell has had logs of those selected timbers made into matches by machinery in Australia, with the most excellent results. It is thought, that, apart from the manufacture of actual matches, the Company may be able to make and ship splints to countries such as Australia, where suitable match wood does not grow. Staff Your directors regret that, shortly after the return of Mr. Parker from India and before the whole of the plant shipped by him had been received, the illness which he had contracted in that country proved fatal. As the whole of the investigations before the flotation of the Company, and of its business after flotation had been in Mr. Parker’s capable hands, his sudden and sad end was a great loss. Mr. Parker’s demise was so unexpected that many papers and vouchers in connection with his visit to India could not be found among his effects, while much valuable information which he had gathered regarding match making in Malaya and the plant in India, was lost. The late Mr. Parker was scientifically an exceedingly able man of the highest qualifications, and possessing a wide range of experience in industrial technique, besides being the author of several standard scientific works, but he was apt to carry most of his facts and information in his head and to rely upon his abnormal powers of memory. His sudden death was, therefore, all the greater disaster to the Company and has left it in many matters without adequate record. Some time before the death of Mr. Parker, the Company had dispensed with the services of Mr. Evance, but fortunately they had secured as general manager Mr E.L. Bell, late of Messrs. R. Bell and Co., Ltd. When the erector was refused admission, Mr. Simons who had been engaged as mechanical engineer to run the plant after its erection, was cabled for and has since arrived. During the short time that Mr. Simons has been here he has done good work, and has erected nearly all the plant except the highly complicated automatic machine which still awaits the arrival of the expert erector. Finance Owing to the great delay in the production and sale of matches, the Company has exhausted all its funds. It had been led to expect by a former Acting Chief Secretary that as the delay and serious expense had been to a great extent caused by the Government, the Company might look to it for a certain measure of financial aid., but this so far has not been forthcoming, although the directors trust that Government will see its way to compensate the Company for the grave losses suffered. It is recognised that at a time like this it would be inopportune, if it could possibly be avoided, to ask all shareholders, whether financially able to do so or not, to contribute a cess of so much upon their shareholding, and your directors have consequently arranged for a loan of up to $75,000, by an issue of debentures to shareholders able and willing to avail themselves of the investment offered. The debentures will only be issued as and when required, and it is thought that it will not be necessary to issue more than $50,000 in all. The issue will be by first mortgage redeemable debentures bearing interest at 9% per annum, payable half-yearly secured as a first charge on the whole of the assets present and future and the unissued capital of the Company-and a reference to the audited balance sheet will show the very ample nature of the security available. The debentures are redeemable at par in two years’ time or earlier by the Company giving six months’ notice of its intention to repay, and the Company may also at its own option by giving one month’s notice redeem any debentures at $110.00 per cent-A brokerage of 1 per cent may be paid to brokers and others at the discretion of the directors. The debentures will be issued in certificates of $100 each, and any shareholders wishing to avail themselves of the investment, and at the same time assist the Company to reach the producing stage on which its future success must depend, should communicate immediately with the secretaries, informing them the amount of debentures they wish to secure. In order to ensure the Company obtaining its minimum requirements, the secretaries, Messrs. J.A. Russell and Co, have consented to underwrite $50,000 worth of debentures free of any charge or commission to the Company so that its finance is thus assured. Under this heading it may be mentioned that although the directors have had an unusually trying year of office, necessitating the devotion of a great deal of time and thought to the Company’s affairs, yet as the Company has not yet arrived at the producing stage, the directors have waived their right to fees for the period under review. Home Negotiations Your directors have been and still are negotiating with a powerful combine of British match manufacturers who possess branches and interests in most parts of the world. It is too early yet to say anything in regard to the probable outcome of these negotiations. Date of Production.-A cable has been sent to the erector in Java and his arrival is shortly expected. It is confidently believed that within from 4 to 6 months of his arrival at the factory the company will be producing matches. Directors.-The retiring directors are Messrs. F.G. Harvey and H.P. Clodd who having left the country do not seek re-election. Mr R.B. Bannon was granted leave of absence during the year and appointed Mr. F.B. Ivens to act as his alternate. The directors have asked Mr A.A. Henggeler and Mr G. Dickinson to fill the vacancies on the board, to which request these gentlemen have kindly consented and whose election you are now asked to confirm. The directors wish to explain that since the death of Mr. Parker, Mr. Dickinson has been in charge in the office of the agents and secretaries of the affairs of the Company, but is now leaving Messrs. J.A. Russell and Co. to look after his own private interests, although he will still be resident in Kuala Lumpur. Mr. Dickinson is a shareholder in the Company and is willing to continue to take, by means of a seat on the board, an active interest in its affairs. Owing to Mr. Dickinson’s intimate knowledge of these affairs, the board have been glad to avail themselves of his offer. Auditors.-Messrs. Evatt and Co., retire, but being eligible offer themselves for re-election.

"The dismantling and packing of the plant in India was in the hands of Messrs Parker and Evance. Mr. Parker unfortunately fell ill while in India, and had moreover to contend with the greatest difficulties, for owing to Frontier troubles and internal unrest the military had engaged or commandeered most of the available mechanics, carpenters and timber. By the time the plant had been finally dismantled and packed, railway rolling stock had also been commandeered. It took months to get the plant to Calcutta, and months more to get it shipped. The congestion at the Calcutta docks was so great that in order to relieve it the shipment of even coal from Calcutta had finally to be entirely prohibited, which gives an idea of the state of affairs prevailing. It thus came about that the plant did not actually arrive in Kuala Lumpur until after the time that it was originally hoped to have it erected and running."
"Erector for Plant Mr. Bell visited upon the Company’s behalf the makers in Berlin and obtained plans and particulars of the plant. Before going to Germany, Mr. Bell called at the Colonial Office in London and explained that it would be necessary to engage an expert erector from the makers to put together part of the highly complicated automatic plant. The Colonial Office informed Mr. Bell that, where it would serve British interests, the policy of the British Government was to make as much use of Germany and Germans as possible. It was desirable not only to sell as much as we could to Germany but also to extract as much benefit as we could from individual Germans provided that such benefit was greater to us than any corresponding benefit which might possibly be derived by the Germans. The Colonial Office furnished Mr. Bell with a copy of the “Former Enemy Alien Admission Regulations” published in a supplement of the F.M.S. Gazette, Oct. 16th 1919 and pointed out that the Chief Secretary had power, especially granted ? to admit Germans under licence. Mr. Bell accordingly engaged the services of an erector for the plant in Berlin."

When Mr. Gosswein " arrived in Penang on Dec. 30th 1920, the new Acting Chief Secretary told your Chairman that the Government had changed its mind with regard to the admission of the erector, but instead would be prepared to consider any claim which the Company might make against it for compensation. The Company decided, if necessary, to appeal to the Home authorities, so sent their erector on to Java, where they have been maintaining him ever since.

From THE MALAY MAIL, MAY 31st 1921 MALAYAN MATCHES THE ANNUAL REPORT

" When the erector was refused admission, Mr. Simons who had been engaged as mechanical engineer to run the plant after its erection, was cabled for and has since arrived. During the short time that Mr. Simons has been here he has done good work, and has erected nearly all the plant except the highly complicated automatic machine which still awaits the arrival of the expert erector."

MAY 31st 1921

FIRST A.G.M.

 

THE MALAY MAIL. THURSDAY, JUNE 9, 1921 MALAYAN MATCHES THE ANNUAL MEETING SHAREHOLDER’S QUESTIONS

The first annual general meeting of Malayan Matches, Ltd., was held on Tuesday at the registered office of the Company, Hongkong Bank Building, Mr. J.A. Russell presiding. The Chairman said:-Gentlemen the reports and accounts having been in your hands for the prescribed period, I will, with your permission, take them as read. The directors’ report has been made as explanatory as possible as to the present position of the company, but perhaps there are one or two points in connection with the accounts and auditors’ certificate which need some explanation. The item sundry creditors, $49,574.33, has since been reduced by $18,250 and will be liquidated by the available cash and the proceeds of the debenture issue. Calls in Arrear of $18,825.00-This amount has since been reduced to $15,900 of which $8,637 is represented by calls due by shareholders in India. In response to the notice issued by your directors drawing attention to the company’s power to forfeit shares for non-payment of calls various communications were received from India pointing out the adverse nature of the exchange and requesting that any action regarding forfeiture should be postponed until after 31st May. The request seemed reasonable in the circumstances and your directors are of opinion that it would be more equitable to charge interest on calls in arrear and to only use their power s of forfeiture in cases where neither payment of interest nor principle is forthcoming. The articles provide for interest being charged for up to a rate of 10 per cent per annum. I will now turn to the auditors’ certificate where you will note a clause stating that no lease had as yet been received for the factory site. The Company was, as you know, granted by Malayan Collieries, Ltd., a site upon the edge of its property. Although Malayan Collieries may possibly sell fuel to Malayan Matches, its main object in allowing the Company to erect its factory on this site was to assist a sister industry. It was intended originally to erect the factory within the Government’s timber concession but this would have meant revoking the forest reserve, and as the Company had already come to an understanding with Malayan Collieries in regard to obtaining fuel and extending the railway sidings the easiest solution of the difficulty was to shift the factory site, so that, while practically in the forest reserve, it was actually just over the boundary and built on the adjoining colliery property. The only written stipulation the then Chief Secretary made was that for all fuel consumed Malayan Matches should pay the Government royalty of 25 cents per ton as though the coal used had been sold to a consumer situated outside Malayan Collieries boundaries instead of within them. Correspondence with Government Long after this arrangement had been mutually made, after full publicity had been given to all the facts, when considerable sums had been spent in openly constructing the factory, power house, bungalows and sidings, in fact when the company pressed for the admission of its erector, your directors were suddenly told that it had been found that its buildings upon their present site were “unauthorised” and until the matter had been satisfactorily settled the question of the admission of the erector could not be considered. After a lengthy correspondence-in which your directors expressed their surprise at this sudden attitude of the Government and maintained that the Government had, amongst other ways, by its stipulation that Malayan Matches should pay a royalty on any coal consumed by it upon the property of Malayan Collieries, definitely acquiesced in and authorised the erection of the factory on Malayan Collieries property-your directors were told that the matter had been passed on to the British Resident, Selangor, who was engaged in preparing a satisfactory solution and from whom the company might shortly expect to hear. Owing to this question arising concerning the formal authorisation of the Company’s present site, the lease which had been prepared has not yet been executed, it being considered advisable to await the British Resident’s solution. Your directors believe that this legalising of the permission already-but apparently somewhat informally-granted to the company by the Government during the administration of a Previous Chief Secretary, may be expected very shortly, and that although rectifying the matter so far as the Government is concerned, it will not affect the company’s position. The other point in the auditors’ certificate which may need elucidation is the statement that no vouchers had been prepared for $11,989.20 being amounts expended in India by the late Mr. Parker. As explained in the directors’ report, many papers and vouchers in connection with Mr. Parker’s visit to India could not be found. Mr. Parker disbursed upwards of $200,000 on the company’s behalf during his lengthy stay in India and from time to time rendered full accounts of his expenditure. Except for his untimely decease final accounts would have been forthcoming and the directors have no hesitation in the circumstances in stating that the amount was properly disbursed and therefore adding it to the cost of plant and machinery. I now beg formally to move that the report the directors produced, together with the statement of the company’s accounts as at March 31st duly audited, be now received, approved and adopted, which motion I shall ask Mr. Dickinson to second, but before putting it to the meeting I shall first endeavour to answer to the best of my ability any questions that share-holders present care to put. The report was passed Messrs. Dickinson and Henggeler were elected directors in place of Messrs. F.G. Harvey and H.P. Gold.

Shareholders questions at the first A.G.M.

THE MALAY MAIL. FRIDAY JUNE 10TH 1921 MALAYAN MATCHES QUESTIONS BY SHAREHOLDERS

Chairman’s replies We printed yesterday the address of the Chairman (Mr. J.A. Russell) at the annual meeting of Malayan Matches, Ltd., on June 7th. Following are questions asked by share-holders and the answers given:- Mr. ?Blunn enquired how long was it after his return from India that Mr. Parker died. The Chairman replied that he himself was not in the country either at the time of the formation of the Company or for some months afterwards, but he believed that Mr. Parker’s death occurred about 5 months after that gentleman’s return from India. Mr. ?Blunn considered that it should be easy for the Company to procure duplicate vouchers for such expenditure on machinery as was not accounted for in the vouchers and papers examined after Mr. Parker’s death. If the money had been spent in travelling, it was remarkable that Mr. Parker’s papers did not show this to be so, as the sum was a large one. The Company had had sufficient time to procure a complete statement. The Chairman admitted that five months seemed sufficient in which to obtain a full statement of accounts from the late Mr. Parker, but as had been explained in the report Mr. Parker, though able, was not the most methodical of men. Mr. Parker was half a year in India examining, dismantling, packing and forwarding the plant and he incurred a great deal of expenditure made up of a number of small items, the details of which he probably only noted in some missing pocket book or other. Although it was unfortunate that full details were lacking, the total sum spent by Mr. Parker was not at all unreasonable, and with this opinion the Company’s auditors agreed. The directors were fully satisfied that the money had been expended by Mr. Parker in India upon the Company’s behalf. Mr. Cooray wished to know whether the plant upon which they had spent $275, 849.4 was in the same excellent condition at the present time as it was when Mr. Parker had reported on it, and whether after it had arrived, Mr. Bell had reported on it. The Chairman answered that shareholders were already aware from the circular issued to them by the Company that the plant had suffered in transport and on arrival was not apparently in as satisfactory a condition as could have been desired. Owing to the trouble in India, and the Railway and Dock congestion difficulties there, the plant was many months en route. On arrival many cases were found to be broken and part of the plant did not look in absolutely first class condition, and a circular was issued informing shareholders of this fact. However, upon the Company’s Mechanical Engineer arriving from Home, he went through the machinery and found nothing serious, the condition of the plant was evidently far better than shareholders had been led to believe from the circular. With the exception of one machine, all the plant was now up and appeared to be in quite a satisfactory condition. When connected up with the power, the usual minor adjustments would no doubt be required before the whole of the plant was running sweetly. Mr. Cooray further enquired whether, in view of the attitude of the Government in regard to the admission of the erector, the directors had taken steps to ensure that the Government would keep its promise in regard to imposing an import duty on foreign matches. The Chairman stated that the directors had taken no steps in such direction. The report and accounts, having been seconded by Mr. G. Dickinson, were duly passed. Messrs. G. Dickinson and A.A. Henggeler were elected directors, and Messrs. Evett and Company, auditors. Mr. Cooray proposed that the meeting pass a vote of condolence to the relations of the late Mr. Parker which motion was carried and the meeting terminated at 11.30.

The reallocation of the lease is finally granted by the Acting British Resident Oliver Marks and signed by Archie as Director of Malayan Collieries.

LETTER FROM SECRETARY TO RESIDENT, SELANGOR TO J.A. RUSSELL AND COMPANY, 19TH JULY, 1921 Kuala Lumpur, 19th July 1921 (3) 1353/1921

Gentlemen, With reference to your application of the 21st March, 1921 for the excision of 30 acres from Mining Lease 2549 and the subsequent grant of this area to Malayan Matches Limited, I am directed to inform you that upon surrender of the mining lease for this 30 acres the land will be granted to Malayan Matches Limited upon the following terms:- Premium Nil Rent $4.00 per acre Special Condition The Land hereby granted shall be used for the purpose of a match factory and buildings appurtenant thereto. 2. I am to request you to communicate with the District Officer, Ulu Selangor and arrange with him the necessary details connected with this transaction I have the honour to be, Gentlemen, Your obedient servant, G. Hemmant Secretary to Resident, Selangor Messrs. J.A. Russell and Company Agents and Secretaries The Malayan Collieries Limited, Kuala Lumpur

From National Archives of Malaysia. Transcribed by P.C

Mr. Gosswein arrives in June and Mr. Bell resigns in June.

AGREEMENT BETWEEN THE GOVERNMENT OF SELANGOR AND MALAYAN COLLIERIES, LIMITED. 16TH JULY 1921

An Agreement between the Resident of Selangor for and on behalf of the Government of Selangor hereinafter called the lessor and Malayan Collieries, Limited, hereinafter called the lessee. 2. The lessee hereby agrees to surrender to the lessor an area coloured red on the plan attached to and forming part of this agreement computed to be 35 acres 2 roods 5 poles and surveyed as portion 1.604, from the land surveyed as portion 1,285 and held by the lessee under mining lease, 2,549. 3. The lessor hereby agrees to grant the lessee, at the lessee’s request made in writing in the due course of the lessee’s mining operations, the sole right to extract from the area hereby surrendered all coal that may be found therein. 4. On receipt of authority to commence mining operations in the area hereby surrendered the lessee shall pay to:- (a) the Collector of Land Revenue, Ulu Selangor, a rental on the total area hereby surrendered at the rate of $1 (one dollar) per acre per annum. (b) the State Treasurer in Kuala Lumpur a royalty of 25 cents per ton of coal removed or transported beyond the boundaries of the land hereby surrendered. 5. No export duty shall be chargeable on any coal won from land hereby surrendered. 6. The lessee hereby undertakes so to conduct his mining operations on the land hereby surrendered as not to interfere with or obstruct the construction, maintenance or use of the railway or sidings or any works appurtenant thereto or to endanger the good order or stability thereof. 7. The lessee shall furnish to the Resident of Selangor on or before the 15th day of January, April, July and October in every year a return showing for the three months immediately preceding the month in which the return is required to be furnished, (a) the amount of coal raised, (b) the amount of coal sold, (c) the stock of coal in stacks, trucks and bins on the last day of the month immediately preceding the month in which the return is required to be furnished. (d) the price or prices at which the coal has been sold and the amount paid to the Government as royalty. 8. The lessee shall from time to time on demand produce for the inspection of the Commissioner of Trade and Customs and the Senior Warden of Mines and of any officer authorised by either of them all books and accounts kept in pursuance of the obligation imposed by section 16 (x) of “The Mining Enactment 1911,” and shall at all times permit, and on demand afford, all reasonable facilities for the checking by the said Commissioner or Senior warden or any officer authorised as aforesaid of the amount of coal in stock. Provided that the lessee shall not be required to remove any of such books from the place or places where they are for the time being kept. 9. The lessee shall on application made from time to time by or on behalf of the said Resident or the Chief Secretary to Government, Federated Malay States, supply for the use of the Government such quantities of coal as may be applied for at a price not exceeding the lowest price at which coal of the quality required is supplied by the lessee to any other person. Provided that, should the Government at any time require a supply of coal in excess of 200 tons but not exceeding 2,000 tons per mensem, three months’ notice of such requirement shall be given to the lessee, and should the Government at any time require a supply of coal in excess of 2,000 but not exceeding 5,000 tons per mensem, six months’ notice of such requirement shall be given to the lessee, and should the Government at any time require a supply of coal in excess of 5,000 tons per mensem, 12 months’ notice of such requirement shall be given to the lessee. 10. All Government officers authorised in that behalf by the said Resident in writing shall at all times have free access to the land comprised in this agreement with all necessary workmen and apparatus for the purpose of winning and taking therefrom mineral oil for the ships of His Britannic Majesty’s Navy and for other purposes of His Britannic Majesty’s Admiralty and the lessee shall in no way obstruct or interfere with any such entry or operations. Provided that for any loss or damage caused to the lessee by the exercise of the rights conferred upon this condition, reasonable compensation shall on complaint being made within twelve months by the lessee to the said Resident be payable by the Government to the lessee: and provided further that, if and so often as the Government and the lessee shall differ as to the merits of any claim for such compensation as aforesaid or as to the amount of compensation to be paid, such difference shall be submitted to the arbitration of two arbitrators, one to be appointed by the said Resident and the other by the lessee and such arbitrators shall appoint an umpire or third arbitrator. Such arbitration shall proceed in accordance with the provisions of “The Arbitration Enactment, 1912,” or any enacted modification thereof. 11. The permission to extract coal from the surrendered area granted in accordance with clause 3 of this agreement shall be liable to be cancelled by the lessor upon breach by the lessee of any of the obligations herein set forth and compensation shall be paid by the lessee for any damage to the railways or sidings or any works appurtenant thereto due to his mining operations. Questions of damage, of liability, and of compensation shall be decided in the manner provided in the last preceding paragraph. 12. This agreement shall continue and remain in force for the term of the mining lease granted to the lessee in respect of portions 1,596 and 1,597 formerly contained in portion 1,285 and held under mining lease 2,549 and of any extension of the said mining lease and shall cease upon the determination thereof. Dated at Kuala Lumpur this 16th day of July 1921 In witness whereof the said Seal of the State of Selangor Resident has hereunto set his hand and caused the public seal of the Sd/-Oliver Marks Ag. British State to be affixed at Kuala Lumpur Resident, Selangor this 16th day of July 1921 in the presence of G. Hemmant Seal of Malayan Collieries Ltd. Sealed by the said lessee this 15th day of Malayan Collieries Ltd July 1921 in the presence of sd/-J.A. Russell Director Henry E. Swan Collector J.A. Russell & Co. Sd/-H.D.Brown Secretaries and Agents

From National Archives of Malaysia. Sel 565419/20 Transcribed by P.C

"Mr. Gosswein, the German expert erector, finally arrived in the F.M.S. during June 1921, and then only under a permit from Government for a three months stay. After a delay of practically twelve months in being admitted to the country, during which time the Company had to maintain him in Java, Mr. Gosswein was greatly perturbed at the temporary nature of his permit and when a position offered in Europe he decided to accept it and to return, and he left the country in September, 1921, before much of the machinery had been assembled."

"From September 1921, the general management of the company was conducted by the Agents with Mr. Simons, the Engineer, in charge of the factory. Under this arrangement satisfactory progress was made, but unfortunately the working capital had all been exhausted necessitating an issue of debentures." From 2nd AGM.

LETTER FROM THE DISTRICT OFFICER, ULU SELANGOR TO THE SECRETARY TO RESIDENT, SELANGOR. 8TH SEPTEMBER 1921

District Office, Rasa, 8th September, 1921 No. (11) in U.S.L. 251/21 Sir, With reference to your correspondence 1353/21 I have the honour to report that the 30 acres to be granted to Malay Matches Limited are made up of two parts, 12 acres from Mining Lease 2549 and 18 acres from an adjoining Mining Lease 3239, and not from Mining Lease 2549 only as was previously stated by Malayan Collieries Limited. These parts will form one block. I have therefore accepted the surrender of these separate areas, but consider that the opportunity should be taken of rectifying the special condition of the grant as suggested by Mr. Worthington and approved by the Hon’ble Resident. 2. I take it that the Colliery Company will pay the fees of subdivision and the Match Company will pay the fees for preparation and registration of title. Neither of these companies have been informed that Government will not bear the expenses of resurvey, except for the surrender of the railway reserve the cost of which should be borne by Government. I have the honour to be, Sir, Your obedient servant, ? District officer. Ula Selangor To. The Secretary to Resident, Selangor

From National Archives of Malaysia. Sel 1353/20 Transcribed by P.C

On 20 October 1921 a duty on imported matches is introduced.

THE MALAY MAIL. MONDAY NOVEMBER 28TH 1921 MATCH IMPORTS NEW DUTIES EXPLAINED

Rules for Assessing The Acting Commissioner, Trade and Customs, F.M.S., asks us to publish the following for the information of the public and particularly for that portion of the community trading in matches:- On the 20th October, 1921, a duty at the rate of $60 per case of 7.200 boxes was imposed on matches imported into the Federated Malay States and power was conferred on the Chief Secretary to define what should be deemed a “box” for the purposes of levying this duty. The Chief Secretary has now approved of the following rules and import duty on matches will be assessed in accordance therewith:- (i) When the number of matches per receptacle or box does not exceed 85 the duty shall be assessed at the rate of $60 per case of 7,200 boxes. (ii) When the number of matches per receptacle or box exceeds 85 but does not exceed 95 the duty shall be assessed at the rate of $65 per case of 7,200 such boxes. (iii) When the number of matches per receptacle or box exceeds 95 but does not exceed 105 the duty shall be assessed at the rate of $70 per case of 7,200 such boxes. (iv) When the number of matches per receptacle or box exceeds 105 but does not exceed 115 the duty shall be assessed at the rate of $72 per case of 7,200 such boxes. (v) The specified rate of 1 cent per box on all quantities exceeding 20 boxes but less than 1 case shall be charged unless the number of matches per receptacle or box exceeds 115 It will be seen that as long as the number of matches in a box does not exceed 115 the import duty will in no case exceed that of 1 cent per box. 3. It may be of use if I append herewith a list of the various brands of matches now on the market and showing the number of matches normally contained at present in the boxes of various brands. SWEDISH MATCHES 1. The Three Birds …58 to 60 2. The Ship …68 “ 70 3. No 222 …58 “ 60 4. Elephant Brand (small box) …58 “ 62 5. The Ant …68 “ 70 JAPANESE MATCHES 6. Matsutani …90 “ 92 CHINESE MATCHES 7. The Republican Matches -Chop Tai Yik- … 100 “102 8. The Deer brand -Chop How Ming- …100” 102 9. Canton-Seong Hee … 86 “ 90 10. Indo-Chaina-Hanoi… 57 “ 60 11. The Doli Brand -Chop How Ming …100 to 102 12. Sam Fook -Chop Man Sang …97 “ 100 13. Seong Kwah (Two Gourds) Chop Lee Sang …103 to 112

In September 1922 The Match Factory is described by the Press.This article is illustrated with photographs.

NB. The copies available at the Mayalsian Archives are too dark to reproduce.

 

 

MALAYAN OBSERVER SATURDAY SEPTEMBER 30TH 1922 MALAYAN INDUSTRIES BASIS FOR RECONSTRUCTION MATCH MANUFACTURE DESCRIBED

In the following article our Special Commissioner describes the match factory at Batu Arang which is now turning out an article which compares very favourably with the excellent pre-war matches which were imported to this country The match box is a vital necessity of our daily life. It is a sine qua non with the rich as well as the poor. The method of its manufacture should therefore be of universal interest. BY OUR SPECIAL COMMISSIONER A match box is a little box with a number of sticks in it, which when rubbed against the side of the box strikes a light, and this box can be bought at any “kedai” for about a cent. This probably is the sum total of the knowledge of this most useful article that the average man or woman possesses. It costs only a paltry cent, and one can buy it anywhere and at all times. So why waste any effort in thinking about it? The one cent was raised to two cents recently. Then there was a growl. But two cents, after all, is not much, so the matter was forgotten. No one realised that thousands of dollars were going out of the country every year in these one cent and two cent prices. Few were aware of the fact that foreign countries such as Sweden and Japan were reaping a rich harvest on account of our ignorance and indifference. Even if they did, no one thought it possible to retain the money in the country by making use of the materials available until in 1919 when Mr. J.A. Russell was first advised that Malayan forests contained timbers suitable in quality and quantity for manufacture of matches. A considerable sum was expended in investigating the possibilities, and eventually a Company was successfully floated under the name “Malayan Matches Ltd.” Scene of Operations The site of the factory was determined with a view to an easy supply of timber, centrality for distribution etc., and the selection would seem to be a wise one. Batu Arang may be reached by rail via Kuang, or by car in a little over an hour from Kuala Lumpur, along a very fair road through interesting country. The Factory buildings are commodious and substantially constructed of steel and brick throughout. The main building is 225 ft. long by 75 ft. wide in three bays of 25 ft. each. The Power House, machine and grinding shops are in a semi detached building about 75 ft. by 40 ft. In addition there are a number of outbuildings such as chemical store etc., which altogether present a distinctly imposing appearance. This then is the scene, 27 miles from the Federal Capital, of a decidedly well assorted assembly of over one hundred persons consisting of Malays, Chinese, Indians, Ceylonese, and Javanese actively engaged in turning out the modern lucifer something over 100 years after its inception. Historical Aspects The matches of the present day are, of course far different from the first lucifer originated by Chancel in 1805. In those days out forebears had to carry a bundle of sticks tipped with a mixture of potassium chlorate and sugar, a piece of asbestos, and a bottle containing concentrated sulphuric acid. For the sticks were fired by touching the tip of the stick on the asbestos, which is first soaked with sulphuric acid from the bottle. In the present day it will be laughed at as the essence of inconvenience and discomfort. But they were considered a boon in those days of tinder boxes, which they had completely displaced by 1820. They reigned supreme in the match world till the middle of the 19th century when their place was taken by the friction match. Matches Past and Present Friction matches have been considerably improved since they were first introduced, but in principle have remained the same. Since the white phosphorous variety has been dropped on account of the ill effects it had on the operatives, there have been in main only two kinds of friction matches. One is the “Strike anywhere” match in the manufacture of which sesqui sulphide of phosphorous is used. This variety of matches is used in France-where the industry is in the hands of the Government-also in England and Belgium. The other kind is the match box with wooden sticks and friction surface. This variety is used in Switzerland and Germany. Wherever suitable timber is obtained this variety is by far the cheaper match, and for this reason the local factory is fitted to produce these matches. Right at the back of the factory can be seen large logs of wood, varying from 18 inches to about 86 inches in diameter. So large are these that one does not at first sight connect them in any way with the tiny matches. Some of them are “Jelutong.” All are obtainable in the Rantau Panjang Forest close by. The Jelutong is used for the match sticks or rather splints, as they are known, and the other timbers are for the boxes. These timbers, it must be noted, are not generally used for building or other similar purposes, and therefore the match making industry practically creates a new demand for our Forest produce. First Operation The first operation these huge logs undergo is to be cut into convenient lengths of about 24 inches. For this purpose a power driven crosscut saw is used. The logs after being cut are stripped of their bark, and submitted to a steam bath, in a brick well of sufficient dimensions to take ten to twenty logs at a time into which steam is admitted at the bottom. The logs are kept in this well for varying terms of hours according to the density of the timber before being taken to the Peeling machine. There are two peeling machines in constant operation, one being used for the splints and the other for the box veneers. On the peeler for the boxes, all logs except Jelutong are worked, and a continuous band of veneer is turned off the rotating log by an automatically advancing knife edge. The thickness of the veneer is for certain requirements but a fraction of a millimetre. The veneer is at the same time cut lengthwise into ribbons as broad as is wanted. For the boxes the ribbons are cut into three different sizes. One-for the “outer” box the ribbon for which is as broad as the periphery of the box; the other for the sides of the “inner” or drawer, and the third for the “bottom” of the drawer. At the same time the ribbons are scored to the proper dimensions, so that the strips can be easily folded, without breaking, to the required shape and size to form the boxes. These three operations of veneering, cutting into ribbons and grooving are all done simultaneously and by the same machine. The ribbons are then taken to the chopper. This machine automatically cuts them up into the required lengths. One is lost in admiration at the ingenuity and skill displayed in the design of these machines and the work they turn out. In action they are often weird and uncanny in the almost human feats performed. The strips are then passed to the box making machines. Of these there are two kinds, one is the “outer” box machine and the other the “inner” box machine. The edges of the “outer” pieces are dyed before going to the box making machine. This is done for effect only, and is the only operation done by hand. A few Malay boys are in charge of the dyeing. In the box making section something of a surprise awaits the visitor, for here are seen Malay and Chinese women in charge of highly sensitive power driven machines. In answer to our comment the Engineer expressed the view that women, where quick, light action of hand is required, are more satisfactory, hence their evident success on the lighter machines. Outer and inner boxes are made on separate machines. Those devoted to the former are faster in action than the others, three only being required to keep pace with six “inners”. The discharge of finished boxes from these reminds one of the action of a battery of machine guns. The machine takes the strips of veneer in a receptacle, folds it to shape, passes it on to a block which turns it around. At this place, the end of a reel of paper catches the veneer, is whirled round pressed on and the ?whole thrown into a travelling belt, a finished article. These are elevated to the top of a drying chamber consisting of six tiers of horizontal wire mesh belts travelling in opposite directions, one discharging on to the other next beneath, the product being finally discharged dry and ready for the next process. The inner boxes are made from two separate pieces of timber. The veneers for the sides are taken in one receptacle, and those for the bottom in another. Each piece for the side is picked up, folded to shape, pasted and passed automatically on for the next operation on the same machine. At this place the “bottle” is fitted, the paper folded over and pasted, and then passed on to another moving belt of wire mesh and through a second drying chamber. “Nesting Process” From the drying chambers the inners and outers are deposited into separate baskets and are then taken to the “nesting” machine. The “outers” are deposited in one receiver, and the “inners” in another. The machine picks up one of each, pushes the “inner” into the “outer,” and pastes the “Tiger” label on top, and the boxes are complete and ready to receive the matches. Each of the machines can do about 40,000 boxes a day. Having followed the boxes and having seen them completed we go back to the splints. The Jelutong logs are taken from the steaming well to one peeler, which is adjusted to peel veneers the thickness of a match. The thickness has been determined according to the strength of the wood, its burning qualities and comfort of the users. The veneer is cut in the same manner as for the boxes, and the breadth of ribbons cut are all of the same size, namely about the length of five matches. On the Guillotine The ribbons of veneer are then shifted to another chopper, which cuts them up with a guillotine knife into square sticks of the proper length. This machine can cut from ten to fifteen million splints in eight hours. The splints are now taken to a huge revolving drum, about 6 ft. in diameter and 20 ft. in length, which is heated by steam pipes. The splints are made quite hot in order to drive off the moisture and help absorption of the paraffin at the last operation. The capacity of the drum is about 12 million splints. From the drum the splints go to a levelling machine or “shaker.” This machine arranges the splints neatly into little trays by a violent shaking process, the whole chaotic mass of sticks settling down in a few seconds to neat little heaps. Matches on the March Now comes the main operation when the splints are taken to the automatic Dipping machine. From the trays this machine picks up the splints, and punches each splint into a little hole in a broad perforated band. This being continually on the move dips the splints first into a paraffin bath and then into the igniting chemical composition which is kept agitated in a revolving triangular tray and at a constant depth. Both these are kept at a given temperature all the time. When the splints emerge from the tray of composition the head is already formed. While the splints pass from one end of the machine to the other they appear like a vast army of well trained and tiny Hussars on the march. By the time the splints reach the end of the course the heads are quite dry. The splints are then punched out by aid of pins, and discharged into small trays of a size to fit the magazines of the filling machines for which they are ready. A Momentous Meeting At the next machine the splints and the boxes meet for the first time, and they are introduced by the “box filling” machine. These are very pretty devices and in action remind one of a racing game. The table, or top, is shaped like a racing board and the boxes going round the course one behind the other makes one feel inclined to stake a penny as to which will come in first. But they do not race. They have to follow each other in a definite order. The complete boxes are placed in a recess. Twelve of them drop in the course, and keep moving. At one place in the course the boxes are opened. At the next the “inners” are filled with matches from the magazine of splints; at the next the box is closed and at the end of the course they are ejected into a tray and their place taken by twelve more empty ones. The next is the final operation so far as the boxes are concerned. This is to provide the friction surface to the sides of the boxes, and is done by the “painting” machine, which applies the striking mixture wet at one end and discharges the boxes dry at the other. The match boxes now complete are ready for use, and are shifted to the “packeting” machine. This machine picks up ten boxes at a time, wraps the paper round, pastes it down and passes the packets on to a magazine of large labels, one of which is fixed to each packet, and the Malayan Matches are ready for the market. Capacity of the Factory The present output of the factory is over 50,000 boxes per day and is steadily increasing. At the time of our visit the entire plant purchased by the Company was not running pending the completion of erection, which work is well in hand. The installed plant has a capacity of well over 100,000 boxes per day. The ultimate capacity of the whole plant is in the vicinity of a quarter of a million boxes. At present output is controlled also by the proficiency of the various machine operators. As the labour becomes more proficient the output will increase. The management hopes, within the next month or so, to reach a figure in the vicinity of the maximum capacity of the installed plant. A Comparison It was thought that the local matches were dearer than the Chinese and Japanese matches as they contained fewer sticks. The writer bought at the nearest “kedai” a Chinese box and a Malayan box and counted the sticks, and found that the former contained 90 sticks and the latter 58. The price of the former being two cents, or a packet for 18 cents, and the latter one cent, or 16 cents per packet. This being so, it is apparent which is the cheaper. To this should be added that a good many sticks of the Chinese and Japanese matches break, being too slender, and that often one has to hold two sticks together to get a sufficiently strong flame. An experiment was also made with the duration of a lighted match, and it was found that the local matches last about 50 per cent longer, the former burning about 20 seconds and the latter about half a minute. Under these circumstances the day is not far when all but local matches will almost disappear from the country. The distribution of matches throughout Malaya has been undertaken by two well known firms-----Messrs. Aylesbury and Nutter for Perak and Messrs. Benjamin Talalla & Co. for Selangor.


The 2nd Annual Report.

The Malayan Observer IPOH, FRIDAY 20TH, OCTOBER 1922,The Straits Times, 21 October 1922, Page 11

MALAYAN MATCHES, LIMITED REPORT OF THE DIRECTORS At the Annual General meeting of the Malayan Matches Ltd., to be held at Kuala Lumpur on Oct. 26, the following report will be presented:- In submitting the Second Annual Report and Statement of Accounts for the Financial Year ended 31st March 1922, your Directors regret that the Manufacture and sale of Matches had not commenced in time to influence the Balance Sheet. The year’s operations were conducted with the money advanced against Debentures. The support of this Issue by shareholders was not encouraging but the Company’s Agents, Messrs. J.A. Russell & Co., have advanced from time to time in exchange for Debentures the money required to finance the Company. Share Capital. The whole of the issued capital is now fully paid. 21,975 shares were forfeited for non-payment of the final call. These were sold on the open market, and, after the liability of 25 cents per share had been deducted, a surplus of $2,500,06 remained. Debentures. Of the authorised amount of $75,000.00, $43,400.00, had been issued within the period covered by the attached accounts. The amount issued at the end of September was $63,500.00 Production. After considerable experimental work, packing on a small although gradually increasing scale commenced during the second half of June. To date 15,500 gross have been manufactured and it is hoped by the end of the Company’s year to reach, with the plant at present erected, 700-800 gross per day. Sales. Of the above quantity manufactured, 12,000 gross have been sold. With the small daily output to date it was considered inadvisable to have all States thoroughly canvassed with a view to stimulating sales. The Company has taken steps to improve the quality of the product and is expected to be able to dispose of the maximum output of the installed plant at a price shewing a reasonable profit to the Company. Machinery & Plant. The whole of the Roller Plant, with a rated capacity of 800 gross per day, is installed and running. The condition of the plant is good and the Engineer in charge reports that efficiency on the part of the various native machine operators is only now required in order to produce the plant’s full rated output. The installation of the duplicate plant is in hand, and at the time of writing the Engineer in charge has been relieved of all work of a non-technical nature for which he was formerly responsible, the erection of this additional plant can now be pushed forward. Lease. The lease to the Company’s property at Batu Arang has been issued by Government. Staff. Since the departure of Messrs. Bell and Gosswein, whose services were terminated during the year, Mr D.J. Simons has been acting in charge of the Factory, assisted by the Managing Agents. Now that the Factory has almost commenced to pay its way, it has been considered advisable to appoint a European Manager to take charge of the Factory Organisation. Mr F.C. Passmore has been appointed to this position, and commences duties on 1st October. Consulting Chemist. Due to the courtesy of his principals, Lt. Col. S.W. Bunker, D.S.O., M.C., B.Sc., F.L.C., F.O.S., has been enabled to agree to act as the Company’s Consulting Chemist, and experiments for the improvement of the match composites are now being conducted. Directors. Messrs. R.B. Bannon and A.A. Henggeler have resigned. Mr G. Dickinson, having disposed of his qualifying share holding in the Company, ceased to be a Director. Since the close of the Company’s year on the 31st March, Major H. Gough and Mr. J. Davidson have joined the Board, and the confirmation of their appointment is now sought.-By Order of the Board J.A. RUSSELL & CO., Managing Agents & Secretaries.

Messrs. Bell and Gosswein, services were terminated during the year, Mr D.J. Simons has been acting in charge of the Factory, assisted by the Managing Agents.

"After considerable experimental work, packing on a small although gradually increasing scale commenced during the second half of June. "

From 2nd Annual Report.

The 2nd A.G.M.

 

The Straits Times, 27 October 1922, Page 10, and short edited version:The Singapore Free Press and Mercantile Advertiser 28 October 1922, Page 6
 and this version in THE MALAY MAIL, FRIDAY OCTOBER 27TH 1922

MALAYAN MATCHES THE ANNUAL MEETING Government and Duty The second annual general meeting of Malayan Matches Ltd., was held on Thursday, 26th October at noon in the offices of Messrs. J.A. Russell and Co., agents and secretaries. Mr. J. A. Russell was in the chair. Present: Major Gough and Mr. James Davidson (Directors) and Mr. H.D. Brown, representing the agents and secretaries. The notice convening the meeting having been read by the secretary, the adoption of the Director’s report and the accounts was proposed by the Chairman who said inter alia:- The report and accounts have been in your hands for the prescribed period and I will with your kind permission take them as read. The report deals with the salient features of the Company’s year, and to render it more useful and informative has been brought up to date as at the 13th of this month. I regret that the producing stage was not arrived at by the close of the financial year under review, but this having now been reached, the yearly accounts should, and I hope will, in future afford more interesting reading. On turning to those now before you, you will notice that the year’s operations were financed for the most part by money raised by the debenture issue. Of the $43,400 issued within the period covered by the accounts only the sum of $2,300 was taken up by shareholders. The Company’s lawyers and architects were good enough to accept $5,100 in payment of their several fees, leaving the balance of the debentures to be subscribed for by your managing Agents and Secretaries, who had given shareholders a promise to take up to $50,000 worth of the issue. To date the sum of $63,500 has been issued, the whole of the extra amount since the close of the year having been advanced by my firm; so its promise to subscribe for $50,000 worth of debentures has been more than fulfilled. Such funds as the Company may still require to finance it during its initial stages of production is also being advanced by my firm. Our bankers, you will notice, are our creditors for a small overdraft on current account of $421.11. Debenture interest is payable on 30th June and 31st December and the item $823.89 represents the three months’ interest accrued. Trade creditors for the most part consist of the contactors for the erection of the main building and of the boiler house and plant. This amount has been reduced by over $6,000/ as at 30th September. On the assets side, expenditure on factory and general buildings increased by $22,861.55, and apart from the cost of covering the costly and unsuccessful Fibrolite roof to the main building with galvanised iron your assets may be regarded as having been increased by this amount. Under the heading “Machinery and Plant,” expenditure increased by $24,909.43, largely on account of power house equipment. Stores and materials were augmented by a consignment of chemicals from Home to the value of $9,421.03 ordered in anticipation of the commencement of manufacture. Of the sum of $13,344.26 for salaries appearing under Development Account, $8,183.26 was in respect of Messrs. Bell’s and Gosswein’s services; although this sum represents but a small fraction of their total cost to the Company. The years operations were fraught with difficulties, not least of which were in connection with staff. As the year under review advanced it became disappointingly and increasingly apparent that whatever might be the capabilities of your former General Manager, Mr Bell, in the way of managing an already established match manufacturing business where he had expert advice always readily available on any technical questions likely to arise, he was very much out of his depth in the organising and establishment of an entirely new match industry under the, to him very strange and unfamiliar, conditions obtaining in Malaya. Your directors realised that Mr Bell was unfortunately the very reverse of the particular type of match man which they required. He had during the course of his experience run very big match factories controlled by his family, but he was nevertheless hardly a practical match manufacturer of the kind the Company needed, and he was too old to adapt himself to conditions other that those to which he had for years been accustomed. Full power was at first given to Mr. Bell as General Manager, until it became apparent to the Directors that his ideas in regard to expenditure were such as the Board could not possibly contemplate with equanimity, and that the Company’s funds were being rapidly exhausted. It later on became also equally clear that despite the heavy expenditure being incurred, practically no progress was being made. It was of course several months before these conditions were abundantly proved and in this way about a year’s valuable time and much money had been irretrievably lost. In July 1921 your directors decided to inform Mr. Bell that if he had the interests of the Company at heart he could best further them by tendering his resignation. The wisdom of this was acknowledged and Mr. Bell’s agreement was cancelled on the 5th August 1921. Mr Gosswein, the German expert erector finally arrived in the F.M.S. during June 1921 and then only under a permit from Government for a three months’ stay. After a delay of practically twelve months in being admitted to the country, during which time the Company had to maintain him in Java, Mr. Gosswein was greatly perturbed at the temporary nature of his permit and when a position offered in Europe he decided to accept it and to return and he left the country in September, 1921, before much of the machinery had been assembled. From September, 1921, the general management of the Company was conducted by the Agents with Mr. Simons the engineer in charge of the Factory. Under this arrangement satisfactory progress was made, but unfortunately the working capital had all been exhausted, necessitating an issue of debentures. On the recent commencement of production it was thought that it would be advisable to appoint a Factory Manager to take over the factory organisation, leaving Mr. Simons free to devote his full time and abilities to running and erecting the plant. The Company has to thank Mr. Simons for carrying on the factory management during the time when he was the only European at Batu Arang. After due consideration, and in the light of our past experience, a decision was arrived at in favour of engaging a man with local knowledge in organising and general manufacturing principles as against a man with specialist knowledge but unfamiliar with local conditions, and Mr. F.C. Pasmore was accordingly appointed as of the 1st of this month. In order to raise the quality of our product and to maintain it at a high standard, the Board has, I am glad to say, been able to arrange with Lt. Col. W.S. Bunker to act as the Company’s consulting chemist, and Col. Bunker is now engaged upon this work. Your Directors are confident of shortly securing very fruitful results from his investigations, with a corresponding improvement in the quality of the matches. With regard to the financial prospects of the Company, as you are already aware packing for the market on a small scale only commenced during June and the production to date has not been large. During this short period, however, the revenue obtained has gone a long way towards meeting working expenses and promises well for the future when our output is larger. The output of the Factory is increasing and we have every hope of being in a position to dispose of a fair proportion of its ultimate production within the F.M.S., which should enable us to export any surplus at rates competitive with foreign manufacturers and at the same time to show a fair profit to the Company. However, we will be in a better position to predict the future, more especially as regards the export business, on the conclusion of negotiations now proceeding with the F.M.S. Government relative to two vital points-Duty and Timber. Our expectations of Government in respect of these are, in our opinion, quite reasonable, being only those upon which our original calculations were based, and we have therefore every hope of obtaining a satisfactory issue. If we are given time to get well established, say about one year from date, we are prepared to consider doing something to meet Government in regard to the matter of duty which it is at present raising; but if consideration be not accorded to us now, we shall be obliged to close down our Factory just when, after a long struggle, we have begun to produce. In the event of the Government altering existing conditions, it would be useless for the Company to proceed, nor would my firm be justified in advancing any further money to put it on its feet, as there would be no reasonable chance of its ever attaining to such a position. Should, however, the two points I have mentioned be satisfactorily cleared up and our hopes realised in respect of outturn and sales, we have every ground for believing that the future holds for the Company a fair meed of prosperity. This will be doubly welcome in view of the worrying, and at times almost disheartening, events which have resulted in so much delay and loss in the past. I must, however, in conclusion say that there being unfortunately no positive certainty about anything in these days, it would be unwise completely to ignore the possibility, however unlikely, of our hopes not being entirely fulfilled even in regard to the matter of output and sales. Your Directors therefore feel that in view of this uncertainty in the company’s outlook, the position must be carefully reviewed by them within the next few months, as if after that lapse of time it has not yet been possible to place the Company upon a sound profit-earning basis, they may have no option but to recommend for the consideration of shareholders some form or other of reconstruction. That such a course will be necessary is not at present seriously contemplated; but it is as well that shareholders should be forewarned as to its possibility, even if it is not probable, and be prepared if needs be to take such steps as their future interests may render advisable. I now beg formally to propose that the report and accounts before you be adopted and passed, but before asking Major Gough to second this resolution, I will answer, so far as I may be able to do so, any questions put by shareholders present. I might mention that, as in the previous year, the Directors are not taking any fees. No questions were asked. Major Gough seconded. Carried nem.con. The next business on the agenda was to confirm the appointment of Directors in place of those resigned. The Chairman proposed Major Gough and this was seconded by Mr. Davidson. Carried. The Chairman proposed Mr. James Davidson and this was seconded by Major Gough. Carried. Messrs. Evatt and Co. were re-elected auditors for the coming year. Church Gift The chairman proposed that a gift of a case of matches be given to the St. Mary’s Church bazaar. This was unanimously agreed to. A vote of thanks to the chair terminated the proceedings.

 

1923

The Straits Times, 1 October 1920, Page 10
.. Malayan Matches, Limited.

To the Editor of the Straits Times. Sir. I notice with much surprise an article in your paper of September 29 re inability of Malayan Matches, Ltd., to start their factory. 0. I hope in order to vindicate myself in the eyes of the shareholders of this Company, you will insert this letter not by way of an apology on my part, as I do not think I have anything to apologise for. But as my name has been mentioned in your article I should like to explain why I gave notice to the Company to terminate my services when the majority of the machinery had arrived at Batu Arang (the site of the factory.) I was ordered by the Directors to erect the machinery before even the site had been levelled. I pointed out that this could not be done except on a level floor, and in any case the machines would have to be dismantled again to be carried over to the site. It was insisted that I erect these machines. In (as I thought) the interests of the shareholders I told them rather than do what I knew would be wrong with regard to such complicated machinery I offered my resignation which was accepted. I cannot understand how so many cases of machinery have been lost, viz., 68. Are the Directors certain that they mean cases or only parts of auxiliary plant that could easily be replaced here? I cannot imagine that cases have been lost. As it is believed by many people that I thought the machinery in India I would like to point out that this is not the case. I found the machinery and put Messrs. J. A. Russell and Co. in direct communication with the sellers in order to facilitate the purchase as other firms were competing for it. I might here state that I received no brokerage or remuneration from buyer or seller in connection with this deal. I was about four months in Bombay during the negotiations, and it was only after the purchase that I was engaged to dismantle the machinery and pack it for transhipment for Malay States. The late Mr. Morley Parker carried out all the details of purchase and the payments in connection with the same. He also arranged matters of transport and insurance, and I believe economically and satisfactorily. Differences of opinion commenced almost at the beginning of my engagement with the firm. While dismantling and packing the machinery I received a letter asking me on what terms I would I would undertake management of the Factory. I replied my idea as to salary was $1,000 per month payable as $600 and $400 as a bonus. These terms were accepted, but on arrival at Kuala Lumpur I was informed that this salary did not commence until my arrival in Penang. Four months went by and I was then informed that I should not get the $400 per month until the factory started. I was disappointed, but still told them I would not let the matter stand in the way of doing my best for the Company. I wanted a certain Engineer Assistant; I was given another. I also found that my name appeared on the prospectus as First Factory Manager. I had not at that time been appointed, and indeed up to the time of my resignation I had not been asked to sign any agreement. I never saw the Board of Directors at any time, which seemed to me very unusual. You mention that Mr. Bell has gone to Australia to try and secure missing parts. I do not think he is likely to be able to do this. I am quite willing rather than see the enterprise fail, to meet the Company and help them in so far as my abilities can do so. 0. I believe that the vital parts are not missing but as the machinery is very complicated many may be overlooked and in the matter of 700 or 800 cases small parts are difficult to find or even know when seen by those who do not understand the machinery. – Yours, etc. G. C. Evance. Singapore, September 30, 1920.

The Straits Times, 6 October 1920, Page 10
 Malayan Matches.

To the Editor of the Straits Times. Sir,- As I am interested in progress in the East I very carefully read your article dealing with loss of machinery by the Malayan Matches, Ltd., and Mr. Evance's reply thereto. In their report of March 3 it was stated “ The majority of the machinery has now arrived in Kuala Lumpur” I know Mr. Evance arrived in Kuala Lumpur in the latter end of December, 1919. That being so it is to be presumed that the machinery had been dismantled and packed ready for shipment before he left India for the F.M.S. Therefore it has taken about 10 months for the machinery to reach here and for the directors to find out that as many as 68 cases were lost! Mr. Evance suggests in his letter that machine parts are not likely to be lost to so great an extent. As he packed the machinery I should think that his view of the matter is likely to be correct. He cannot but be interested in the progress of the Company seeing that he is an expert in the business. (a fact well-known in the East) and his future prospects depend upon the success of the enterprise, and not its failure. It is not necessary to go into” differences of opinion” between him and the Company. There may be faults, and they may be on both sides. That is a matter which does not interest the people, who invested their capital, or the general public. But Mr. Evance at the end of his letter states that “ rather than see the enterprise fail” (rather ominous that, and not very assuring), he would be willing to meet the Company; for the purpose I take it, of overcoming any difficulties that may exist. According to the company’s own prospectus he certainly has great experience and he says that his name was put into the prospectus without his knowledge or sanction, he should be given a chance to make good in the eyes of the shareholders who invested capital on the strength of his experience. Why was he not made to sign a contract before the prospectus was issued? That is the usual and safest course in the promotion of such an enterprise. Possibly the shareholders may want to know something of this at the next general meeting. Meanwhile this oft repeated Asquith motto “ wait and see” will have to suffice. What if Mr. Bell does not succeed in getting the parts said to be necessary, and that even after all (if what Mr. Evance suggests is a fact) these parts are not necessary not having been lost, Mr. Bell’s trip to Australia will cost the Company more than would have sufficed to pay the 400 dollars per month bonus to Mr. Evance for some time to come. Well, well so, the ball rolls on and nothing will matter one hundred years hence to any one of to-day. 0. But the fact remains that the Match Industry is a good one in the East; it has been proved in India, Burmah, the Philippines and more especially in China and Japan. But there is no doubt that expert knowledge of the whole business coupled with a knowledge of Eastern conditions is required to endure success. 0. Wit apologies for taking up your valuable space and time, which I hope you will pardon, as it deals with the establishment of a very important industry.- Yours etc., MATCHLESS. . Singapore, October 4, 1920.

Mr. Evance writes to The Straits Times
Mr Gosswein is engaged in a letter on 2 July.
Mr. Evance arrived in Kuala Lumpur in the latter end of December, 1919.

"I found the machinery and put Messrs. J. A. Russell and Co. in direct communication with the sellers in order to facilitate the purchase as other firms were competing for it. I might here state that I received no brokerage or remuneration from buyer or seller in connection with this deal." ""I was about four months in Bombay during the negotiations, and it was only after the purchase that I was engaged to dismantle the machinery and pack it for transhipment for Malay States."

Mr. Evance letter: The Straits Times, 1 October 1920

The Straits Times, 14 February 1921, Page 8,The Singapore Free Press and Mercantile Advertiser, 15 February 1921, Page 6
 and 17 February 1921, Page 105,
 TUESDAY, FEBRUARY 15, 1921.


The long expected expert engaged by Malayan Matches. Ltd., Mr. Simons late of Messrs. Bryant and May. Ltd., arrived at Penang with his wife on Friday by the Kashmir, and is proceeding to the company’s factory at Batu Arang, Selangor

The Straits Times, 24 February 1921, Page 6


Mr. D. J. Simons writes contradicting the report which has been circulated in Malaya to the effect that “the long-expected expert engaged by Malayan Matches Ltd., Mr. Simons, late of Messrs. Bryant and May, Ltd., has arrived at Penang, and is proceeding to the company's factory at Batu Arang, Selangor."

1921

The Singapore Free Press and Mercantile Advertiser, 2 June 1921, Page 350, and The Singapore Free Press and Mercantile Advertiser, 31 May 1921, Page 6

MALAYAN MATCHES. It is stated in the first annual report of the Malayan Matches, Ltd., for the year ended March 31st, that the directors regret to announce that the manufacture of matches has not yet commenced owing to an unfortunate delay caused by the authorities refusing to allow the German erector to land in Penang, in spite of permission having been granted in England and the F.M.S. for his admittance. The erector was sent to Java, and the local government have at length agreed to admit him. It was confidently expected that within from four to six months of his arrival, the Company will be producing matches. Owing to this delay the Company has exhausted all its funds, and the directors have consequently arranged for a loan of up to $75,000 by an issue of Debentures to shareholders able and willing to avail themselves of the investment offered.

In May 1921 in Singapore Mr. Evance met Mr. Lee Kim Soo. He told him he was match maker and that it would be an easy thing to start a match factory there. Mr. Lee Kim Soo agreed to pay Evance $75 a month until the work of erecting the factory was commenced. The factory was erected at Mc Neill Road within three months and Mr. Evance became manager on August 1st 1921. Elkayes Matches made a brand called "Crocodile"

The Singapore Free Press and Mercantile Advertiser, 12 August 1921, Page 6 and FRIDAY, AUGUST 12, 1921. The Singapore Free Press and Mercantile Advertiser, 18 August 1921, Page 101
, FRIDAY, AUGUST 12, 1921

The connection between Malayan Matches, Limited, and Mr. E. A. Bell, general manager, has been severed, and Mr.Bell is returning to England this month. M.M.

The Straits Times, 10 September 1921, Page 8
 SOCIAL AND PERSONAL.

Mr. Edwin L. Bell, who resigned his position as General Manager of Malayan Matches, Ltd., in June, is returning with his wife to London by the Bibby liner Yorkshire from Rangoon on September 15.

1922

The Straits Times, 26 January 1922, Page 9


THE ROYAL VISIT. Malaya-Borneo Exhibition Arrangements...Malayan Matches Limited are showing two machines in operation..

The Singapore Free Press and Mercantile Advertiser, 4 February 1922, Page 1,


TOPICS OF THE WEEK. ... the topicist can hardly absolve a brother scribe from a mean joke when in his account he said that the Malayan Matches Ltd. would show a machine making a match. Probably he holds shares in the Company.

The Straits Times, 21 July 1922, Page 8


Malayan matches are obtainable in many Kuala Lumpur shops at prices ranging from 10 to 13 cents.

The Singapore Free Press and Mercantile Advertiser, 12 July 1922, Page 11


MALAYAN MATCHES. • Malayan matches are now being made. Several of our friends have been seen using these matches. For a first attempt the manufacturers are to be congratulated. 222 matches will for the present maintain their premier position, but most of the other imported matches are so bad that Malayan matches will have very little difficulty in getting into second place straight away. The following is a true story. One of our Malay Rulers was shown a box of Malayan matches. “ Made in Malaya?” “Yes” “ Ah very pretty: let me look at the box. Umph!. Chinese inscription – Chinese inscription. I do not see any Malay inscription.” (M.M.)

The Singapore Free Press and Mercantile Advertiser, 21 July 1922, Page 6


Malayan Matches are now on sale in the town at 15 cents the package. (M.M.) 



The Singapore Free Press and Mercantile Advertiser, 22 July 1922, Page 15


A note appeared recently to the effect that Malayan matches were selling at 15 cents a packet. We have since been in formed that they are obtainable from any shops at prices ranging from 10 to 13 cents. Consumers are advised not to pay more as we understand that a fair profit is being made by retailers at the lower prices. (M.M.)

The Singapore Free Press and Mercantile Advertiser (1884-1942), 14 August 1922, Page 6


A Correspondent writes asking where Malayan Matches can be bought in Singapore, as he is anxious to patronize them. We do not know exactly, but the intelligent Tamby Kechil has seen them and is out on the warpath, or it may be in search of the fiery torch.

The Straits Times, 6 October 1922, Page 8
SOCIAL AND PERSONAL.

Mr. F. C. Pasmore, late of Kajang Central Factory, has been appointed manager of the factory of Malaya Matches Ltd., and is now in residence at Batu Arang. Mr. D. J. Simons continues as factory engineer in charge of running machinery and installation of the duplicate plant.

The Singapore Free Press and Mercantile Advertiser (1884-1942), 5 October 1922, Page 7


Mr. F. F. Pasmore, who for several years has been on the Staff of the Kajang Central Rubber Factory has accepted the appointment of Manager of Malayan Matches, Ltd. Mr. and Mrs, Pasmore prior to their departure were entertained to tea last Thursday, by their many friends in the district. (M.M.)

The Singapore Free Press and Mercantile Advertiser 13 October 1922, Page 4


 COMMERCIAL WOODS OF MALAYA. VALUABLE ASSET Malayan Matches , Limited was almost ready to begin manufacture of matches locally at the end of the year.

The Singapore Free Press and Mercantile Advertiser , 25 December 1922, Page 6


Mr. Grocutt, late of Majedie Estate, Johore, is temporarily acting as manager of Malayan Matches Ltd.

The Singapore Free Press and Mercantile Advertiser, 18 September 1918, Page 10 and 19 September 1918, Page 187

Mr. Evance, who established the match industry in Burma, is now in Kuala Lumpur with a view to opening up the industry in the F. M. S.

The Singapore Free Press and Mercantile Advertiser, 26 September 1918, Page 3


 Mr. G. C. Evance, the match expert, left by the week end boat for Singapore to prosecute his enquiries into the possibilities of ordering chemicals and machinery through local agents. (M.M.)

The Straits Times, 8 October 1918, Page 7
 Kuala Lumpur Comments. Kuala. Lumpur, October 7 (Part of longer article.)

Mr. Evance, the match manufacturing expert, who went into the jungle at Batu Arang last Monday to investigate the suitable timber there returned on Saturday to Kuala Lumpur. In three days, within a one mile radius of the Malayan Collieries he discovered no less than 47 varieties of wood suitable for match manufacture. This beats the record for his discoveries in Northern India, Burma and Mysore. In Mysore he found 87 varieties in a tour of six weeks through the whole state; but 47 within a mile from the spot from which he happened first to start is prodigious! Each tree averages about 150 cubic feet of wood. The question of whether we have wood enough to feed a match factory is settled.

31st March 1922,

" your Directors regret that the Manufacture and sale of Matches had not commenced"

A European Manager to take charge of the Factory Organisation, Mr F.C. Passmore was appointed and commenced duties on 1st October."

"On the recent commencement of production it was thought that it would be advisable to appoint a factory manager to take over the factory organization leaving Mr. Simons free to devote his full time and abilities to running and erecting the plant. After due consideration, and in the light of our past experience, a decision was arrived at in favour of engaging a man of local knowledge in organising and general manufacturing principles and Mr. F. C. Passmore was accordingly appointed as from the first of this month."

From 2nd AGM

The Singapore Free Press and Mercantile Advertiser 15 June 1923, Page 6

Mr. D. A. Simons, Factory Engineer, of Malayan Matches Ltd., will shortly be leaving that firm.

The Straits Times, 3 July 1923, Page 11


Agricultural Show. Large Crowds Visit Exhibition At Kuala Lumpur. (From Our Own Correspondent.) Kuala Lumpur, July 1 Extract: “Messrs. H.B. Tallalla and Co.’s stand was prettily decorated and no one visiting the show could have failed to notice it, centrally situated facing the lawn. Hundreds of people were here supplied with free cigarettes and Malayan Matches.”

The Straits Times, 13 July 1923, Page 10

Matches and Bricks. To the Editor of the Straits Times. Sir, Being interested in two industrial flotations in Kuala Lumpur, to wit, Malayan Matches and Sand Lime Bricks, I am most anxious to know if these concern are still to the fore as one hardly ever hears a thing about them. “Matches” are quoted at somewhere around 7 cents per share and “Bricks” so far as one can gather are “dead.” To the speculator who has the interest of local and F.M.S. propositions at heart this is sad outlook indeed and one cannot but think there has been culpable neglect somewhere. With “ Matches” we had a glowing prospectus, supported by promises of Government protection in the matter of an import tax on all outside manufacturers coming into the F.M.S. High grade men were to be engaged, some were actually taken on the staff, but results were wretched in the extreme, at least as far as one can gather? I understand that one of the experts, probably the first engaged, came to Singapore and in co-operation with Chinese help has put up and run to a successful issue an up to date Match Factory. Now this is most peculiar. A good man is allowed to slip out and nothing is done since he resigned or was dispensed with, at least one cannot hear of any great strides having been made since that period in the history of the Company. Shareholders are all dead losers as far as can be seen to date. “Sand lime bricks” started operations with great promise, and those who came up with the cash in support of local industry were sure that with promises of Government orders galore, and local support they were onto a good thing! Alas for our found hopes- the sand was found unsuitable for making bricks or some such twaddle as that ad experiments were entered into to find new supplies, but up to date where are we? The factory stands idle, another white elephant on the long road of half cooked F.M.S. efforts. Surely something can be done to make good all the promises held out in the original glowing prospectus matter, so boldly held out as sprats to catch unwary mackerel. It says very little for the promoters of both mentioned propositions that so little has been done in the interests of shareholders, and I think it is up to those responsible for the floatations to come forward with some real and tangible data as to why the promises made have not fructified. No matter how the varnish is laid on, there would appear to be no real excuse possible why two concerns so well supported by local and F.M.S. capital should be in such a moribund condition. So far as I am concerned, not another cent of my money will ever be placed in any industrial flotation in the Federated Malay States and I think it will be found that there are others in plenty of the same mind as myself! -Yours etc. TWICE BITTEN ETC. ETC.

MALAY MAIL, MONDAY OCTOBER 22, 1923

MALAYAN MATCHES Optimism at the Annual Meeting NO USE BEWAILING THE PAST The third annual meeting of Malayan Matches Ltd., was held on Saturday at the offices of the company, Hongkong and Shanghai Bank buildings, Kuala Lumpur. Mr R.C. Russell (alternate for Mr. J. A. Russell) presided and the others present were Mr. E.H.T. Gough, Mr. James Davidson (directors) Mr. A.McLennan and Mr. H.D. Brown (representing the agents and secretaries.) The notice convening the meeting having been read, the chairman addressed the meeting as follows:- Gentlemen, -The report and accounts having been in your hands for the prescribed period, I will, with your permission, take them as read. The total loss on the year’s operation is shown as $84,729.85, made up as follows:- $40,430.22, depreciation of plant, and $44, 296.52, being the difference between the year’s expenditure and the amount realised by sale of matches. I would point out, however, that owing to the company having exhausted its capital your directors have charged to revenue all items of wages and materials incurred in connection with erection and additions to plant, instead of making such charges on capital account. Debentures The balance of the authorised debentures was issued, the total amount now standing at $75,000, of which $67,000, or 90 per cent., was subscribed by your managing agents and secretaries. These debentures were redeemable on June 30, 1923, but I am glad to be able to report that the debenture holders have agreed to an extension of time for repayment, and the debentures now become payable on June 30, 1925. In addition to this, Messrs. J.A. Russell and Co. have since financed the company, by advancing amounts from time to time and by guaranteeing bank credits against which bills are drawn in London for paper, chemicals, etc. Sundry Creditors Sundry creditors stand at $61.560.88, made up of an overdraft at the company’s bankers of $367.50, debenture interest for the three months ending March 31 but not payable until June 30, $1,720.30, and trade creditors $59,473.08. Of this item $1, 828.80 is a liability in respect of orders unexecuted at the close of the company’s year but included in the year’s sales, $4,527.70 for bills payable for manufacturing materials from Europe and since paid, $27.675.23 balances due to contractors for the erection of the main building, boiler and boiler-house,$13,309.94 is due to the managing agents and secretaries, being sums advanced from time to time to finance the company’s operations, and the balance of $12,131.41 represents current trade accounts which have since been discharged. The Assets On the assets side the value of buildings has been increased by $2,288.18 by the erection of manager’s and clerks’ quarters. “Boilers, Machinery and Plant” is reduced by $2,274.83, this sum being the difference between the amount realised by the sale of surplus plant and the amount expended on additions and renewals. The item “furniture in office and bungalows” was increased by $901.29. Manufacturing stores and materials on hand stood at $6,177.16 against $17,471.14 at the close of 1921. Sundry debtors, for the most part on account of the previous months’ sales of matches, have now been paid. Future Prospects I very much regret that the hopes your directors had at the last meeting, that during the coming year the factory would be on a profit-making basis, have not materialised. This has been due to a variety of causes which your directors were powerless to avert, and with your permission, I will not dwell on them. All I can say is that owing to the efforts of Mr. Robbins, to whom your thanks are due, the running of the whole factory has been reorganised and the board is very confident that the arrangements that have been made will prove successful. Colonel Bunker’s investigations have enabled the company to produce a much better article, in fact, in competition with the other local match factory we secured the first prize at the recent Agri-Horticultural Show held in Kuala Lumpur. Our product is readily saleable, demand being in excess of our production, and the future seems brighter. Reconstruction Proposed It is no use bewailing past mistakes and expenditure, but I hope and think that with reconstruction the company will become a paying proposition. What form this reconstruction will take is at present engaging the attention of the board, and they hope to be able to place a scheme before you in the near future. Timber Supplies In conclusion, I would state that your directors have solved the question of timber supplies to which the chairman at the last meeting referred: we have concluded an arrangement with the Forest Department, satisfactory to both parties, whereby the company is assured of an ample supply of easily accessible timber for a term of years. I now beg formally to move that report and accounts before you be adopted and passed, but, before asking Major Gough to second this resolution, I will answer, to the best of my ability, any questions put by shareholders present. I might mention that, as in previous years, the directors are not taking any fees. There were no questions. Major Gough seconded the resolution and the report and accounts were adopted. Mr. J.A. Russell, the retiring director was re-elected. Messrs. Evatt and Co. were re-elected auditors. The report The following is the report of the directors:- Your directors beg to submit their annual report and statement of accounts for the third financial year of the company, ended March 31, 1923. The considerable loss on the year’s working, is mainly due to the fact that the whole of the running expenses for the period have been charged against only nine months’ revenue, during which period the output was substantially below what has since been achieved. Share Capital.-This remains unaltered. Debentures.-The whole of the authorised debentures of $75,000 have been issued. These were redeemable on June 30, 1923, but the company not being in a position to comply with this condition, the debenture holders have not pressed their claim; Mr. J.A. Russell, who is holder of 90 per cent of the issue, has given the company to understand that he will not press for repayment while there is hope of the company’s efforts ultimately proving successful. Production.-During the nine months of production 50,900 gross of boxes were produced and sold. The controlling influence upon capacity is the match dipping machinery; with the completion of the erection of the second machine of this nature your directors are still confident of being able to produce the previously estimated 700 to 800 gross per day. Sales.-A ready market has been created for the whole of the output of the factory to date, due to the improved quality of the matches and the energy and keen business acumen of our distributors, and we have every hope that this market will continue for the larger outputs of the current and future years. Machinery and Plant The work of erecting the duplicate plant was continued during the year, the existing plant being maintained in running order. Staff.-Several changes in management were necessary during the year under review and at the close of the period only Mr. Simons as factory engineer was in charge. Since the close of the year Mr. Simon’s period of service was brought to a conclusion and Mr. E. Mudispacher, who is proving himself capable of carrying out the combined duties of factory manager and engineer, is at present in charge. Directors.-The personnel of the board remains unaltered. Mr. J.A. Russell retires in conformity with the articles of association, and, being eligible, offers himself for re-election. Auditors.-Messrs. Evatt and Co., retire, but being eligible offer themselves for re-election.-On behalf of the Board R.C. Russell. Chairman

3rd A.G.M.
Mr. Evance was working as manager of the Elkayes Match Factory, Singapore, the only other local match factory. Mr. Lee Kim Soo dismissed him in October 1923.

The Straits Times, 3 November 1923, Page 9


F.M.S. Revenue. (From a Correspondent.) The Federated Malay States can still boast that they turn out printed estimates for each of the four states, and go one better by producing a federal estimate besides. Extract “The duty on matches imported amounted to as much as over a quarter of a million, so, perhaps the Government is not over keen in fostering local industry. The recent report of Malayan Matches Ltd. “ disclosed a huge loss, but it is sincerely hoped that the reconstruction scheme will put the company on a paying basis after so many years of apparently uphill work”

LETTER FROM DISTRICT OFFICER, KLANG, TO THE SECRETARY TO RESIDENT, SELANGOR. 13TH NOVEMBER, 1923 1 in D.O.K. 407/1923 District office, Klang 13th: November, 1923

Sir, I have the honour to report the receipt of enquiries from Mr Lee Kim Soo of the “Elkayes Match Factory Singapore” with reference to the possibility of establishing a Match Factory in Klang. 2. I shall be glad if I may be informed (a) whether any monopoly of any kind has been granted to Malayan Matches Limited. (b) for what period is the present duty on matches imposed, and what are the prospects of its continuance thereafter. I have the honour to be, Sir, Your obedient servant, ? District Officer, KLANG

From National Archives of Malaysia. Sel 4569/23 Transcribed by P.C

" in competition with the other local match factory we secured the first prize at the recent Agri-Horticultural Show held in Kuala Lumpur."

The Singapore Free Press and Mercantile Advertiser, 16 November 1923, Page 7

LOCAL WIRES. THE FEDERAL COUNCIL. (From Our Own Correspondent.) Kuala Lumpur, Nov. 15. The Federal Council sat till 4.30 p.m., and adjourned till Saturday. Extract: Mr Choo Kia Peng “ asked for the withdrawal of the matches tax as soon as the obligations to Malayan Matches Co. had been discharged.”

LETTER FROM THE SECRETARY TO RESIDENT, SELANGOR TO THE DISTRICT OFFICER, KLANG. 29TH NOVEMBER, 1923 (2) IN 4569/23 Kuala Lumpur, 29th November, 1923.

Sir, In reply to your letter 407/23 dated 13th November, 1923, I am directed to inform you that (i) No monopoly has been granted to Malayan Matches limited, (ii) An import duty will be in force until the 25th November, 1924: the continuance of the duty after that date will be a matter for the decision of the Federal Council. 2. If the “Elkayes Match Factory” desires to set up a factory in Klang it will have to submit full details as to the site, plan and specification for the consideration of the Sanitary Board, the Licensing Officer and the Resident. I have the honour to be, Sir, Your obedient servant, ? Secretary to Resident, Selangor

From National Archives of Malaysia. Sel 4569/23 Transcribed by P.C

FROM PROCEEDINGS OF THE FEDERAL COUNCIL OF THE FEDERATED MALAY STATES. VOL 1-1923

The next question to which I would refer is the question of the taxation of matches. You will remember that when we put this taxation on it was during the war period, partly to get more money during the war and partly owing to the arrangement made with Malayan Matches. I do not know whether I am right or not, but I believe the end of our obligations to Malayan Matches must be drawing near. We are only getting from this taxation less than half a million dollars a year, and I think most people would agree that that this small tax generally comes from the poor people. This form of taxation is not equitable. I hope as soon as we can afford, and as soon as our obligations to Malayan Matches are over, that the Government will take it off.

The Straits Times, 22 February 1924, Page 9
,The Singapore Free Press and Mercantile Advertiser , 22 February 1924, Page 7, The Straits Times, 27 February 1924, Page 10, The Straits Times, 28 February 1924, Page 9, The Singapore Free Press and Mercantile Advertiser, 28 February 1924, Page 9, The Straits Times, 29 February 1924, Page 9, The Singapore Free Press and Mercantile Advertiser, 29 February 1924, Page 7,The Singapore Free Press and Mercantile Advertiser, 5 March 1924, Page 7,The Singapore Free Press and Mercantile Advertiser , 6 March 1924, Page 9
and The Singapore Free Press and Mercantile Advertiser, 7 March 1924, Page 7



Coverage of the trial in which Lee Kim Soo was sued by Mr. Evance, his former manager of the Elkayes Match Factory, who make Crocodile Matches, for damages for wrongful dismissal before Mr. Justice Alton. "Mr G. C Evance in addition to damages for wrongful dismissal, also claims to be entitled to a share of the profits. The defendant counterclaims for $10,000 damages, which he alleges he has suffered as a result of the plaintiff’s negligence."
Mr. Simmons who had succeeded Mr. Evance as manager also gave evidence against him.


1924

LETTER FROM DISTRICT OFFICER, KLANG, TO THE SECRETARY TO RESIDENT, SELANGOR. 10TH JANUARY 1924 7 in D.O.K. 407/1923 District office, Klang 10th January 1924.

Match Factory at Klang Sir, With reference to your letter No. 2 in 4569/1923 dated the 29th November, 1923, I have the honour to report that Mr. Kim Lee Soo would be glad of further information as to the nature of the specification to be furnished. 2. A plan of the building can be supplied. I have the honour to be, Sir, Your obedient servant, ? District Officer, KLANG.

From National Archives of Malaysia. Sel 4569/23 Transcribed by P.C

LETTER FROM THE DEPUTY COMMISSIONER, CHIEF POLICE OFFICER, SELANGOR TO THE SECRETARY TO RESIDENT SELANGOR. 26TH JANUARY 1924 5 in C.P.O. Sel: 63/24 Kuala Lumpur, 26th January, 1924.

Sir, I have the honour to submit the attached plan of a Match Factory to be erected at Port Swettenham by Mr. Lee Kim Soo. 2. The Government Town Planner, the Health Officer and Executive Engineer Klang, have no objection. 3. I recommend that a provisional license be issued, on the understanding that fees will be settled and paid afterwards and that suitable fire extinguishers are provided to the satisfaction of the Superintendent Fire Brigade. I have the honour to be, Sir, Your obedient servant, ? Deputy Commissioner, Chief Police Officer Selangor

From National Archives of Malaysia. Sel 4569/23 Transcribed by P.C

Malayan Matches. Reorganisation and Reduction Of Capital. [Articles] The Straits Times, 18 August 1924, Page 12 and The Malay Mail, August 19, 1924, page 9, and The Singapore Free Press and Mercantile Advertiser, 21 August 1924, Page 11

Malayan Matches. 0. Reorganisation and Reduction Of Capital. 0. (From Our Own Correspondent.) 0. Kuala Lumpur, August 15. 0. The fourth annual general meeting of Malayan Matches, Ltd., was held to-day at the offices of the managing agents and secretaries, Messrs. J. A. Russell and Co., Hongkong and Shanghai Bank Buildings. 0. Mr. James Davidson (director) presided, and on assuming the chair, proceeded to read the speech prepared by Mr. R. C. Russell, who was unavoidably absent owing to an injured foot. 0. The speech was as follows: Gentlemen the report and accounts having been in your hands for the prescribed period, I will with your permission take them as read. The total loss on the years operations is shown as $48, 560.76, made up of as $37, 136.17 on account of depreciation, $6, 750 denture interest, and the balance of $4,674.59 being the difference between the actual expenditure on manufacture and the amount realized on the sale of the product. As in the past, your directors have been very conservative in their additions to capital accounts with the result that the manufacturing coasts shown contain considerable expenditure properly charged to capital accounts in a company less over-capitalised than yours is. After making due deductions for these accounts the factory on the years working may be said to have just about paid its way. 0. Capital.- This remains unaltered but your directors have formulated a scheme for the re-organisation and reduction of this, and in this connection you have already been circularised. 0. Debentures.- These also remain unaltered at $75.000. As you have already been informed, the debenture issue was redeemable on June 30, but owing to the courtesy of the denture holders, this date has been extended to June 30, 1925. It now seems certain that through force of circumstances the majority of the debenture holders will require due payment or a definite proposal from the company, and this a letter at least it is hoped to be able to give if the proposed scheme of re-arrangement of capital is fully supported. 0. On turning to the balance sheet it will be seen that liabilities under the head of sundry creditors have increased by $23,587,98. On the account of $83,461,36 shown as due to sundry creditors $37,642.37 is owing to your managing agents on account of cash advanced from time to time and accrued interest on the debentures to the value of $67,000 held by them, while the balance is made up of as to $17,955.22 principally on account of erection of power house and plant and $11,895.72 on account of the erection of factory building while $15,385.38 is for current trade liabilities; of this the latter amount has since been discharged. It is by the aid of the advances made by J. A. Russell and Co. that all trade accounts over the past year have been kept paid up. Messrs. J. A. Russell and Co. have charged no interest on these advances. 0. Company’s Assets. 0. On the assets side, the various capital accounts were increased by additions amounting to $596.25 on account of factory and other buildings; $1,128.34 on account of machinery and plant and $4667 on account of furniature, or a total of $1,772,24, while the whole was written down by $37,136.17 0. The item of $1,345,37 under Jelutong Getah Manufacturing account represents an amount invested in materials and equipment for the development of this business as a side line. After considerable experimenting your managing agents have perfected a process of manufacture the product of which has been very highly reported upon by one of the Principal New York manufacturers and a small contract now running is at a considerable premium over ruling rates for other locally manufactured Jelutong. It is too early to predict the result of this small side line, but it is hoped that it may be be made to augment in a small way the revenue from the principal business of the company. 0. As you will realize form the circular letter of the August 1, 1924, which you have received, the above amount by which your assets were written down during the year was arrived at by following the accepted practice of a per centage depreciation per annum rather than due regard to the actual value of the plant under existing conditions and in the scheme of re organization you are asked to authorize the cancellation of that portion of the capital not represented by available assets. As for liquid assets, it will be seen that stocks are approximately $10,000 and sundry debtors about $3,000 up on the year. 0. Production of Matches. 0. The production during the year, principally through causes explained in the recent circular to shareholders, has been diassapointing. The best month’s output was just 15,000 gross and with the new capital sought it is confidently expected to increase this by 60 per cent. as a regular thing. The plant has now been tested to its full capacity and we are confident that without further expenditure on new plant an economic an economic output cannot be maintained. Two share holders have been good enough to write asking certain questions, the principal being why the plant originally stated as capable of a larger output has not been able to reach it. In reply your managing agents have conveyed your directors’ considered opinion that under the best possible conditions in the way of local climate, labour and materials the standard machines of European construction such as those installed in your factory are not capable of more than 50 per cent of the manufacturers rated capacity. We also understand this percentage as maximum sums up the experience gained in repeated attempts to establish the match industry in India. 0. Another factor has been the controlling influence of the principal machine in the factory. The second match making machine has been in working order for some months but not in an entirely satisfactory manner. The defect can be remedied by an improved automatic attachment for feeding splints into the machine and the small cost of this addition is included in the amount stated as required for new plant and parts. However the matter having a great effect upon output, and costs has been the lack of working capital. While your managing agents have personally guaranteed payment of all shipments of raw materials from Europe from time to time, they were not disposed to do this in respect of quantities larger than those absolutely required which resulted in inadequate reserve stocks which, with the source of supply on the other side of the world, must inevitably result in some dealy and lost working time. 0. Such has been the experience of the factory over the 12 months under review and during the first quarter of the present year. We have now arrived at that point where definite action by shareholders is necessary, and to put it plainly it is either a matter of reorganistaion of capital along the lines suggested, or liquidation. 0. The Import Duty. 0. While it is not the object of your directors to stress the point it may be well to remind shareholders of the fact that the match industry is being developed under the protection of an import duty and the estimates of the possibilities of the company’s undertaking are based upon the assumption that Government will see their way to continue the present duty until the company is really on a paying basis. Therefore, while it is not claimed that the company will be able to compete with the imported article unaided by an import duty, it is hoped that it will be able to operate profitably under a lower duty or under the same duty upon payment of a reasonable duty on output in the form of excise. Your directors have this matter of meeting Government well before them and it is hoped to be able to make mutually satisfactory arrangements when the time comes. In the meantime. However, it is plain that the company could not carry on in open competition with the imported article. 0. The matter of fire insurance has been mentioned in our report. It is regrettable that the position of the company has not made due attention to this possible and this matter has been a further worry and responsibility of your board. With the subscription of new capital, fire insurance would be the first matter for attention. 0. Mr. E. Mudispacher was in charge of the factory since August last and your directors wish to express their appreciation of the services rendered by Mr. Mudispacher over a very difficult period. Before formally moving the adoption of the accounts I will endeavor to the best of my ability to answer any questions form shareholders. 0. The report and accounts were adopted. Major E. H. T. Gough, the retiring director was re elected and Messrs Evatt and co were reappointed auditors for the curret year. 0. Resolutions for the reoganisation and reduction of capital were then passed.

Malayan Saturday Post, 18 July 1925, Page 14


MALAYAN MATCHES. A recent visit to the Factory at Batu Arang where the Malayan Matches are produced proved of such interest to us that we feel sure that our readers will welcome something about a young and we feel sure growing Malayan industry. So far as we have been able to find out the references to this enterprise are few and far between, and in fact the only reference that we have been able to find is in a book called comprehensively Malaya where under the chapter entitled “Industries” we read the following: - “ Hitherto the Malay states have depended on other countries for MATCHES, but a plant for their manufacture is being erected. It is proposed to use wood from suitable local trees. In 1920 the value of matches imported was nearly $700,000.” 0. The last sentence which have italicized, seems to us very important, and if this money can be kept in the country instead of going outside it will be a good thing for Malaya. 0. The history of the manufacture and the invention of matches is along one, and it is interesting to those who are likely to think about the subject which affects us all daily. We can scarcely consider now what we should do without those small useful pieces of stick which most of us carry about in our pocket, and yet it is not until the close of the eighteenth century that close study of the possibilities of thus producing artificial fire was perfected and understood. Until then our forefathers had had to be content with flint and steel with tinder box and sulphur tipped splints of wood, “ spunks” or matches as these were called. We will quote an authority on the subject. “The sparks struck off by the percussion of flint and steel were made to fall among the tinder, which consisted of carbonized fragments of cotton and linen,; the entire mass of the tinder was set a glow, developing sufficient heat to ignite the sulphur with which the matches were tipped, and hereby the matches themselves were set on fire.” 0. In 1805 chemical action was tried and small bottle containing asbestos saturated with strong sulphuric acid was used with matches again tipped with sulphur. Contact produced a flame. This was a clumsy and dangerous expedient, and it was not until 1827 that the first really practical friction matches were made. These were sold in boxes which contained 84 and cost one shilling. We van see how prices have dropped at any rate in this one particular commodity since then! 0. These matches had supplied with them a piece of folded glass paper, “ the folds of which were to be tightly pressed together, while the match was drawn between them.” Our present day phosphorus friction matches were produced in 1833. The manufacture of matches used to be a very dangerous trade, and the sulphur caused many diseases among the workers. Since those early days, however, new inventions have eliminated the danger to the workers and the so called “ safety matches” are not only safe for the user, but also for the worker in the factory. 0. In the factory which we were privileged to see can be seen all the latest machines which modern science has invented. It would need a very much longer article than we have space for to detail half the wonders that can be seen in only a small factory, but it is necessary perhaps to indicate some of the main necessities. When we buy an ordinary packet of matches in a shop we hardly realize the care and trouble that has gone into its manufacture, and if could only bring a little more imagination to bear on this subject we might find life itself a more interesting affair. There are four distinct sets of operations necessary in the manufacture of matches. First of all there is the preparation of the splints, the matches themselves. Next there is the dipping of these matches with the solution which when struck will produce a flame. Then there is the whole art of box-making; and finally the filling of the matches into boxes and the wrapping of boxes in bundles. All these processes can be clearly seen at Batu Arang, and very interesting are all the machines which do the work and the workers who tend them. 0. On entering the factory we see first all the wood which is going to be cut into lengths and thus form the match boxes. An ingenious machine cuts the wood and at the same time dents it so that it will easily fold into he required shape of the outside of the box. In addition the machine also gives off a long strip of wood which is to form the side of the box. We next see an ingenious machine making boxes- but not lids. Blue paper is fed into this machine and receives a coat of glue in the process. The long narrow strip of wood which is to form the side of the match box is then pressed against the square bottom of the box, the glued paper is turned round the whole and overlaps at the bottom, and out of the machine is thrown the completed box. The box is now complete and is sent into a machine which dries it, and then it is stacked in a tray and waits for its load of matches. After this it enters another machine where it receives its lid, and thereafter it is a completed box and merely waits its wrapper to convert it into a packet. 0. Meanwhile the splints or matches themselves. Again we have been able to see an ingenious machine which is cutting off strips of wood into matches faster than one can think. These are fed into a basket, but all around the floor and elsewhere are showers of match sticks, and in this department at any rate it seemed to us there was great waste. The basket seemed to us a very primitive method of catching the match sticks, and there seemed no need for this excessive waste. Next the matches must be sorted out, and then they are put into a machine which will dip them in a chocolaty solution which we saw a man stirring in another room, and which made us feel quite hungry and think we had got to Mr. Cadbury’s at Bourneville and were not in Malaya at all! The matches having been dipped are then sorted out, and finally boxed, and last of all we see the completed box in one of the most ingenious machines of all. Here boxes of matches are made into bundles, paper is wrapped round them, and the competed packet is thrown out of the machine, to the wonder of the beholder. This is the merest glimpse of a most fascinating factory, and we hope that it will achieve great prosperity in the years to come. 0. We hesitate to make suggestions, but we should certainly like to know that the elimination of waste had been brought to a fine art- and we should like to see more advertising by those responsible for these matches. Our experience is admittedly very limited, but we have travelled fairly extensively throughout Malaya and very few advertisements have we seen of these matches. No big trade will ever be done either in this country or elsewhere without advertising. And unless people know about your goods you cannot get that criticism which is going to improve their quality. There is no reason why Malaya should import a single match stick- and that $700,000 rather sticks in our throats. It is sending money out of the country which might well stay here. We have adequate timber, and now the machines are installed there is nothing to prevent the concern being one which is really profitable. We thank the proprietors for their courtesy in letting us see their interesting exhibits.

4th A.G.M.

The Straits Times, 17 September 1925, Page 10 and The Malay Mail September 18, 1925, page 9.

Malayan Matches. Headline: S.T. Managing Agents Financing The Company, Headline: M.M.: Financed by Managing Agents. Wanted: A Miracle. (From Our Own Correspondent.) Kuala Lumpur, September 16. The annual general meeting of Malayan Matches, Ltd., was held to-day at the company offices, Hongkong and Shanghai Bank Building. 0. In the absence of the chairman, Mr. J. A. Russell, Mr. James Davidson presided and the others present were Mr. H. H. Robbins, (director) W.D. Simons, formerly engineer at the company’s factory, P.N Nair, and A. Fernandez (shareholders) two members of the clerical staff of Messrs. J. A. Russell and Co. and Mr. H. D. Brown, representing the secretaries, J. A. Russell and Co. 0. The Chairman said that Mr. J. A. Russell, who had had to leave for England quite suddenly on medical advice, had before leaving sent him a speech to read at that meeting. He proceeded to read the speech which was as follow: -Gentlemen. - 0. The report and accounts have been in your hands for the prescribed period and with your permission I will take them as read. It is greatly to be regretted that a further loss falls to be recorded, the amount being $26,076.22 This loss is due to depreciation, which item also absorbed $8,419.55, that sum being the profit which was made by the company on its working during the year. Included in the cost of production is the debenture interest paid during the twelve months amounting to $6,750. It, moreover, became necessary during the year to make fairly heavy replacements and additions in the factory and to spend a certain amount on accommodation for labour; the bulk of this expenditure, as in the past, being charged to revenue. 0. Capital. 0. The capital of the company remains unaltered. It is to be regretted that the scheme of reorganization put before the shareholders in August last did not receive the support which your Board felt it really deserved. In the circular to shareholders setting out that scheme, the position was clearly stated and the alternative to reorganization was not disguised. A like frankness characterized the speech of the Chairman at the last annual meeting. The position remains the same now as it was then. The company has been kept going firstly by its $75,000 of debentures, nine tenths of which were subscribed for and are held by its managing agents, and then by further advances from its managing agents, totalling to over $45,000. These advances by Messrs. J. A. Russell and Co. are not only unsecured, but my firm has charged the company no interest upon them. Your managing agents, moreover, personally guarantee every bill drawn upon the company for the supply of chemicals, paper and new plant. The company in fact has only been kept going by Messrs. J. A. Russell and Co.’s financial aid. 0. Shareholders and Reconstruction. 0. There seems to be a reasonable hope that, provided its managing agents continue to finance it for nothing the Company may be able to carry on almost indefinitely without increasing its outside unsecured liabilities; but the reduction of these liabilities, the redemption of its debentures and the payment of dividends are different matters. One can only hope that by carrying on, the company may eventually be able first to pay its debts and then to make a return to shareholders but although I believe in the truth of the adage that “ while there’s life there is hope” and, by the way, it is wonderful what results perseverance, hard work and a refusal to be beaten will often achieve, nevertheless I have to confess that without a change of circumstances amounting almost to a miracle happening, I cannot clearly foresee how the company is to arrive at so happy a position; certainly not without reconstruction. One likes to pay one’s debts whatever else one does and, quite apart from the unsecured indebtedness to my own firm, I should like this company gradually to pay off all its unsecured trade liabilities; but if shareholders will not only not support any scheme of reconstruction, but on the other hand to write letters of unconstructive criticism to the local press, then I fear that your managing agents will not be prepared to risk any more of their money in financing the company, nor will they feel justified in doing anything to prevent the debenture holders from realizing their security. 0. If we now turn to the balance sheet, it will be seen that sundry creditors have increased by $10,929.88. This increase is purely on current accounts and is accounted for on the assets side as to $8,518,19 by increase in stocks of manufacturing materials. The amounts due to the principal creditors remain practically unaltered. 0. Jelutong Development. 0. On the assets side, the various capital accounts were increased by additions amounting to $4,094.84 against which depreciation amounting to $34,495.77 was deducted. This item of depreciation is heavy owing of course to the heavy capitalization. Had the proposed scheme of reconstruction gone through, this depreciation would, on a percentage basis, have been very considerably lighter. Sundry debtors are up $9,106.69 on the year, due to the larger sales. The item Jelutong Getah Manufacturing has disappeared, initial outlay having been written down out of earnings during the year. In view of the comparatively large capital outlay required for Jelutong development, it was at first proposed to work in a small way within the areas in which the company enjoys timber cutting rights. It was later realised, however, that the size of the stands of trees, the amount of the flow of latex, the rate of bark consumption, the period of renewal and the necessity for close and efficient supervision were such as to call for large tapping areas in order to attain to economic production. Applications were made for these and had suitable areas been forthcoming to justify working on a large scale, your managing agents proposed to lend to the company the necessary extra capital. To date, however, these areas have not been secured, and owing to the rival of demand for tapping coolies on rubber estates, it is now difficult to attract workers into the jungle, even at the rates which the premium that our product commands over other manufacturers makes it possible for us to pay. In the meantime, we are carrying on in a small way, and if opportunity for profitable expansion in the F.M.S. presents itself, your managing agents will probably find the necessary extra capital, in the hope that the results so obtained may tend to ease the general finances of the company. 0. In order to make this Jelutong industry profitable and efficient, it would be necessary to engage a European who could devote the whole of his time to this particular side of the Company’s activities, efficient and intelligent jungle supervision over the tapping and coagulation of the product being very essential. But the Forest Department policy is to give out its reserves in small areas to several applicants, so that it pays none to spend the money upon it and give to it the attention which the industry might otherwise be able to afford and which it certainly requires. The particular process employed by Malayan Matches ltd. was worked out by J. A. Russell and co in their own time and at their own expense, and there is a large demand for Jelutong prepared by this particular method, and it therefore commands a substantial premium over gum manufactured by other processes. Worked on a scale large enough to employ a special European, the prospects are not unpromising, our New York agents being willing to make a contract with Malayan Matches Ltd., at prices quite remunerative, could one but obtain fair quantities of Jelutong. But as it is, Malayan Matches will probably have to drop the business, it being at present too insignificant to be worth while, and, moreover, too risky without a good-class European assistant in the jungle. 0. New Plant Required. 0. Production of matches during the year shows an improvement, and the figure of 158,508 gross may be taken as a fair percentage of the maximum production possible with the existing plant and under the present financial circumstances of the Company. We have been in correspondence with the manufacturers of the best portion of our plant who have expressed their willingness to meet the company in the matter of payment for the new plant required, and had the proposed reconstruction been reasonably well supported they might have been prevailed upon to accept shares in payment of their plant. 0. Considerable improvements have of late years been effected in the newer models of certain match making machines, and in order to compare the performance of these newer models with that of our own older type and second hand machines, we have sent a consignment of Malayan timbers to Europe for testing purposes. The results, when to hand should be interesting. The financing of trading was considerably easier over the year, but, as remarked above, your managing agents continued to have to guarantee personally bills drawn in London for manufacturing materials supplied. 0. The matter of fire insurance has been mentioned in our report, and it is regrettable that not at any time during the year was the Company in a position to have this risk underwritten. Mr. E. Mudispacher continued in charge of the factory during the year, and the directors wish to express their appreciation of the services rendered by him. 0. Before formally moving the adoption of the report and accounts, I will endeavour to the best of my ability to answer questions from shareholders. 0. Mr. Symonds asked what was the stock of matches on hand when the balance sheet was drawn up? 0. Mr. Brown was heard to intimate that the shareholder was not entitled to ask the question. 0. The Chairman ruled that the question was permissible and Mr. Brown answered that the stock on March 31, 1925, was 8,816 gross, the whole of which was sold in the following month’s sale. 0. Mr. Symons: We have the item production: 158,508 gross boxes were produced for the first 12 months. We find that the sales were $170,635.77. Where does our Getah Jeluntong item come in and why was it not put in as a separate entry? 0. Mr. Brown: Simply because it was not necessary. 0. Mr. Symons said that he had worked out all the figures very carefully and was proceeding to explain what the daily output should be according to these figures when Mr. Brown said that all those figures had been checked and passed by Messrs. Evatt and Co. 0. Mr. Symons; Then I can only say that they could not have been supplied with the correct information. 0. Mr. Symons, proceeding: Our company has a plant able to produce 1,200 gross per day and we have been getting this year 440 gross per day working as much as 20 hours per day. Do you think it is possible for the company to improve on the output? We have been looking for some years and things are getting worse rather than better. 0. Mr. Brown quoted figures to show that when Mr. Symons was in charge from July, 1922 to March, 1923, the production was 41,072 gross and the production for the corresponding eight months this year was 87,997 gross. 0. Mr. Symons said that when he took over he had to train up the people who were there now. He proposed that the balance sheet be not passed. 0. The Chairman’s motion that the balance sheet and accounts be adopted was seconded by Mr. Robbins and carried with one dissentient. 0. The Secretary explained that circulars had been sent to all shareholders calling for nominations for the directorate, but not a single nomination had been received. 0. The Chairman said that being the case the two retiring directors automatically remained in office. 0. Messrs. Evatt and Co. were reappointed auditors. 0. This concluded the proceedings. 0. 0. 0. (1958 words) 0. NB. A slightly diff version of the end of this meeting in M.M.: 0. Mr. Simons was of the opinion that another director should be appointed. The meeting was informed that the present board entirely concurred with Mr. Simons’s suggestion, but in response to the director’s invitation, although there were some 550 shareholders, no nomination for a further director or directors had been received. A resolution authorizing the two present directors to carry on was then formerly put to the meeting and carried Mr. Simons dissenting.”

The Straits Times, 8 September 1925, Page 3 .

MALAYAN MATCHES, LIMITED Company's Progress During Past Year. The report of the directors of Malayan Matches, Ltd. for the fifth financial year of the company ended March 31, 1925 states: - 0. Your directors regret they still have to record a loss, but it will be observed from the accounts that that the company’s revenue for the year showed considerable expansion and was more than sufficient to meet actual expenditure. The provision of $34,495.77 for depreciation has, however, resulted in the loss of $26,076.22 being shown for the twelve months. The results, though the best so far recorded in the company’s history, cannot be regarded as other than disappointing. 0. Share capital. - This remains unaltered. The scheme of reorganization referred to last year, by which it was hoped to relieve the company of debt, to write off its previous losses and to place the company on a dividend paying basis, was duly submitted to all shareholders. Out of some 600 shareholders only 12 members responded (all supporting the scheme) applying for only 2,865 shares. The response was totally inadequate to carry out the scheme in view, and consequently subscriptions were returned and the scheme reluctantly abandoned. The Company therefore still remaining heavily in debt with, it is feared, little possibility of both discharging its indebtedness and paying a return on its capital as at present constituted. 0. Debentures. - The debenture issue of $75,000 fell due for redemption on June 30 last, but no action by the debenture holders has yet been taken. Without radical reconstruction of the company, there seems to be small probability of it’s being able voluntarily to meet this obligation in the near future. 0. Production and Sales. 0. During the year 158,508 gross boxes were produced, showing an improvement on the corresponding figure for the previous year. 0. For the most part throughout the year the demand for the company's product was satisfactory; indeed during the first half of the year demand was so greatly in excess of production that the booking of orders was suspended for several months while the arrears of deliveries were dealt with. Towards the end of the financial year the booking of orders was resumed, but it was unfortunately found that several dealers had in the meantime made other arrangements for their supply, with the results that some difficulty in disposing of the entire factory output has since been encountered. 0. Machinery and Plant. - The plant was maintained in running order, while additions within the capacity of the company’s financial resources were also made with a view to improving the output. 0. Fire Insurance. - owing to the rate of premium demanded by insurance companies, the companies property remained, and still remains, uninsured against fire; but as in the past a liberal supply of chemical fire extinguishers have been kept in readiness for emergencies. 0. It is regretted, however, that the manager’s bungalow, situated some distance from the factory, was destroyed by fire involving the total loss of its contents. The origin of the fire remains a mystery, Mr. Mudispacher being strongly of the opinion that its cause was not accidental. 0. Jelutong. - During the year 74,000lbs of refined Getah Jelotong was produced and sold at profit. 0. Staff. - Mr. Mudispacher remained in sole charge of the factory during the year, and the Board desire to place on record their appreciation of his services. 0. Directors. 0. Mr. J. A. Russell, Mr. James Davidson and Major H Gogh held the office throughout the year but owing to pressure of work the last named gentleman has since tendered his resignation. The two remaining directors are willing to continue to officiate, but would welcome the nomination of another shareholder of suitable commercial experience who would be willing to assist the present Board. No director’s fees have been paid in the past. 0. Failing the election of other directors, the two remaining directors automatically remain in office, but it will be necessary for the meeting to pass the following resolution to enable them to conduct the affairs of the company. 0. Resolved. - that in accordance with Article No. 91 of the company’s memorandum and articles of association, the number of directors holding office having been reduced to two, such two directors are hereby authorized to conduct the affairs of the company with the same powers as if three or more directors remained in office. 0. Messrs. Evatt and Co. retire: but being eligible offer themselves for re- election.


1925
A visit to the factory.
5th Annual Report.
5th A.G.M.

The Straits Times, 5 March 1926, Page 10

Malayan Matches, Limited. The following circular, says yesterday's Malay Mail, has to-day been received from the offices of Malayan Matches, Ltd., in Kuala Lumpur “Dear Sirs, I beg to inform you that, under powers contained in the Debentures of the above Company, I have been appointed Receiver for the Debenture holders and entered into possession of the Company’s assets upon March 1, 1926. As from that date no orders placed by the Company should be executed unless countersigned by me in my capacity as Receiver for Debenture Holders. Yours faithfully, J. W. Fuller”. 0. Malayan Matches Ltd., was floated in 1919 with an authorized capital of one million dollars, of which 525,000 one dollar shares were issued. The Company erected a factory at Rawang near Malayan Collieries, and started manufacturing matches. Its activities were, however, frequently interrupted by machinery and other troubles, and attempts to reconstruct the company failed. Government was induced to impose a protective duty on matches to foster the local industry. Messrs. J. A. Russell and Co., were the Managing Agents and Secretaries of the company.


1926

The Straits Times 8 March 1926 page 10 and The Malay Mail 6th March 1926, page 9

MALAYAN MATCHES Directors’ Explanatory Circular to Shareholders The following circular has been issued by the Directors of Malayan Matches, Ltd., to the shareholders, reports the Malay Mail:- We regret to have to inform you of the action taken by the debenture holders of the company, who have given notice calling in the principal moneys due to them; and have also appointed a receiver to protect their interests. It has been made very clear in the last two reports circulated to shareholders that the company was carrying on under great financial embarrassment and only been able to continue trading owing to the financial assistance from time to time rendered by Mr. J. A. Russell and his firm. The recent prosperity throughout the F.M.S. has led to substantial increases in wages being demanded by all classes of workers, but no corresponding advance in the price of our product has been obtainable, owing to the keen competition from imported matches which has to be met. The consequence is that the company has been unable to meet the increased demands of labour, and a steady migration of the company’s skilled labour force has resulted in the factory’s capacity for production being seriously curtailed. The greater outputs which it was hoped would be achieved to enable the company to pay its way have subsequently not materialised, and further heavy trading losses are being incurred today. The position was reported to the trustees for the debenture holders, resulting in the appointment of a receiver, who has assumed possession of the whole of the company’s assets. Mr. J. A. Russell and his firm advanced the company some $115,000 in cash of which some $48,000 has been loaned without security of interest. Every effort will be made by the board (on which Mr. J. A. Russell and Co. are represented) to co-operate with the receiver for the debenture holders with a view to realizing the company’s assets to the best advantage.

The Singapore Free Press and Mercantile Advertiser, 9 March 1926, Page 8

Malayan Matches has gone into the hands of a receiver on the action of the debenture holders. Messrs. J. A. Russell has loaned some $115,000 in cash, $48 without security and free of interest. The company was carrying on under a great financial embarrassment and recently had been faced with the demand for substantial increase of wages, with no corresponding increase in the price obtainable for their wares. Perhaps the import tax placed on matches, one of those irritating little things which annoy traders, will now be removed, as it was imposed for the protection of the native industry.

THE MALAY MAIL. WEDNESDAY MAY 12TH 1926. (Same case covered byThe Straits Times, 12 May 1926, Page 10)


PORT SWETTENHAM MATCH FACTORY Proprietor Sued by Ex-Manager HALF PROFITS CLAIMED Before Mr. Justice Farrer-Manby, the acting Chief Justice, was begun yesterday, in the Kuala Lumpur Supreme Court, an action by Mr. J.D. Simons, formerly manager of the Elkayes Match Manufactory at Port Swettenham, against Mr. Lee Kim Soo, of Singapore, the proprietor, for the recovery of a half share of the profits made during the period that the plaintiff was in the defendant’s employ at Port Swettenham. Mr. Hopson Walker appeared for the plaintiff, and Mr. V.D. Knowles, with Mr. Hastings, for the defendant. A bundle of correspondence which had passed between the plaintiff and his solicitors, and the defendant’s solicitors, leading up to the filing of the action, was put in by consent. Mr. Hopson Walker opened the case by reading the pleadings and the correspondence, and briefly outlined the nature of the relations which had existed between the parties until the plaintiff was practically dismissed by the defendants by tendering to him a month’s salary in lieu of notice. The Plaintiff’s Story Mr. D.J. Simons, the plaintiff, said that he was an expert in match making, and was in the service of well-known manufacturers in South Africa before the Boer War. During the Great War he went to England in 1916 and offered his services to the Imperial Government. He was directed to the Woolwich Arsenal where he was employed in making gauges for shells. He had been connected with the manufacturing business since he was 15 years old. In 1921 he accepted a position with Malayan Matches, Ltd., who gave him three months’ notice in May, 1923, but he left them before the expiry of that notice, by arrangement, with the idea of starting match manufacturing on his own. He produced the letter of Malayan Matches, Ltd., in which he was given notice, and in which the company referred to certain tools which he had brought with him. Mr. Knowles objected to the letter being put in unless the writer was called. His lordship over-ruled the objection. Continuing, the witness said that these tools were his private property, and he had used them in connection with the operation of the defendant’s factory at Port Swettenham. He claimed to know a formula for making match-heads. He had acquired that knowledge during his long acquaintance with the match industry, and also by experimenting. He admitted that a certain formula could be obtained from the manufacturers of chemicals, but it would take a good deal of experimenting to find out one which would suit the climatic conditions in this country. By analysing the composition it was impossible to secure a formula. It was agreed between him and the defendant that the witness should use his formula in the manufacture of matches in the defendant’s Singapore factory. The defendant was satisfied with the formula and said so. Nobody else but the witness knew his formula, because he guarded it carefully. The defendant asked him for the formula but he did not get it. The defendant also tried to ascertain it by other means. On one occasion he was sick and had to go to Singapore and when he returned his clerk told him- Mr Knowles objected to the evidence. Mr Hopson Walker told the witness not to repeat what the clerk told him as he was not going to call the clerk. For Friendship’s Sake Continuing, the witness said that the defendant also asked him to send to him a statement of the exact amount of chemicals, etc., which he bought. He sent to the defendant an account of the things which he had to pay for but he did not send him an invoice from day to day. On Aug. 22, 1925, the defendant stepped into his office with some Chinese and wanted him to go to Singapore immediately. He enquired the reason for his sudden decision and the defendant told him not to ask questions but to go to Singapore as he was doing it for the sake of friendship. The defendant also said that owing to the noise of the machinery he could not speak in the factory and wanted the plaintiff to accompany him to the boat to talk matters over. The defendant also told him that he had brought back a man from China who would take charge of the Port Swettenham factory and if the witness did not want to go to Singapore he could consider himself dismissed. If the formula had been in the factory the witness would not then have been able to take it with him. Witness continuing said that he first met defendant in the Malayan Matches factory which he was then visiting. The defendant there extended to witness a pressing invitation to go and see his factory in Singapore. When witness left Malayan Matches Ltd., he went to Singapore and saw defendant and discussed with him a proposal to start a match factory in the F.M.S. The defendant was then arranging to visit China and the matter was left in abeyance. When he returned from China witness saw him in Singapore and discussed the matter thoroughly. Later on defendant himself came to Kuala Lumpur and on going more fully into the question it was found that defendant had sufficient equipment in his factory at Singapore to spare for the proposed new factory. They inspected several sites for the factory one of which was in Padu. It was found to be unsuitable. After the terms had been settled witness went to Singapore on Oct. 10, 1923, which he remembered because it was a Chinese festival day. He was met at the station by the defendant and they went together to the defendant’s office. There defendant told him that he had dismissed the manager of the Singapore factory and wanted witness to take temporary charge of the factory. Witness asked him what was to happen to the F.M.S. project and defendant assured him that it would be all right. He was on temporary engagement in Singapore on $300 a month until the case brought by defendant’s former manager was over. That was finished in March, 1924. After that witness began to sort out the machinery and send it on to the F.M.S. Defendant’s Profits Witness then went on to speak about the profits made by the Port Swettenham factory, and said that he was once shown a draft balance sheet drawn up in pencil on a sheet of foolscap paper. Mr. Hopson Walker wanted this balance sheet produced. Mr. Knowles said that the balance sheet need not be produced unless an accounting was found to be necessary. At that stage of the case he submitted it was no evidence of fact. His lordship enquired whether the defendant admitted showing the plaintiff any balance sheet. Mr. Knowles said he denied it entirely. His lordship asked Mr. Hopson Walker to go on with the examination. Witness said that a balance sheet was shown him. He remembered that one item in it was $6,000 which was put down as a loss in respect of the Singapore factory. Witness pointed out then to the defendant that the Singapore factory had nothing to do with the Port Swettenham factory and that the loss should not be included in the Port Swettenham accounts. There was another item admitted from the balance sheet referring to a profit made on the sale of a lorry, which too he pointed out to the defendant. The latter promised to correct the balance sheet, put it in his bag and carried it away and since then he had not seen it. He supplied to the factory at Port Swettenham certain spare parts which he himself had made and the prices charged for these were reasonable. When he left Malayan Matches Ltd., he was given a passage to England and he had actually received the tickets which he did not use because of the better prospects which he then appeared to have. A Verbal Agreement Replying to Mr. Knowles in cross-examination, witness said that he did not insist on having this agreement regarding the 50 per cent. profit in writing because he trusted the defendant. He admitted that when he took over temporarily the management of the Singapore factory he exchanged letters with the defendant with regard to terms. The reason why the terms regarding the Port Swettenham factory were not put into writing was because the defendant told him, that the plaintiff’s agreement with Malayan Matches Ltd., did not turn out to be quite a success but that he could take his word as his bond. Witness admitted giving evidence in the case which was brought by Mr. Evans against the defendant, which Mr. Evans lost. It was not true that as a result of that case the plaintiff suggested writing down the terms of service. The reason why witness left Malayan Matches was because he asked for a Sunday off to play a game of cricket. He got his Sunday off and went away taking with him the keys of the box in which his tools were kept. While he was away the automatic machine broke down, and when he returned he was told that the machine had been held up the whole of Sunday afternoon owing to the want of tools. Mr. Robins and he had some words over this as a result of which Mr. Robins went to Kuala Lumpur and sent him the notice. Malayan Matches asked him to accept one month’s salary in lieu of three months’ notice which he refused. Eventually he was paid three months’ salary and left in two months. Mr. Knowles: Why did you not sue Mr. Kim Soo for wrongful dismissal, as Mr. Evans? Witness: Because the terms are entirely different. In this case we entered into a verbal agreement to divide the profits on a 50 per cent basis. It was also understood that he could dispense with my services at any moment, and that I could leave his service in similar circumstances. Mr. Knowles: Then why did you claim salary up to Dec. 31? Witness: Because the balance sheet would carry on till that date. Witness, continuing, said that he was now staying with Commander Mills. He knew Mr. E.L. Watson who came to see him in the factory, and he showed him round the factory. Commander Mills and he were starting a match factory and that was a project he had in mind when he left Malayan Matches Ltd. He was in communication with a Australian firm which manufactured plant for match making. The defendant knew he was trying to secure certain agencies, any profits made by which would have gone into the profits of the defendant’s Port Swettenham factory. The defendant knew that plaintiff was attempting to start another match factory. Mr. Knowles: Do you mean to suggest that Mr. Kim Soo paid you $300 a month, found you accommodation and was prepared to give you 50 per cent. of the profits knowing that you were going to start a rival factory? Witness: Yes. Mr Knowles: I put it to you that you made every effort to wreck Mr. Kim Soo’s business with the object of starting your own business with Commander Mills? ---No. Witness continuing said that he had not passed either a chemical examination or an engineering examination. His knowledge had been acquired in various factories. The mixture which he had prepared, which was described as his formula, might be slightly better or slightly worse than any other similar mixture. Mr. Knowles: Can you explain to me what is meant by chemical reaction. Witness: It is good or bad effect caused by chemicals. I do not want to go into details. Mr Knowles: I say you are no more a machinery expert than any other man who had worked at Bryant and May’s. Witness: I claim to be above the average. Witness admitted ordering his own letter heads from a printing office in Klang before he left the employ of the defendant. His object in doing that was to use his own notepaper in writing to firms abroad whose agencies he was trying to get. If he got the agencies he would have obtained all the machinery which the defendant wanted at very low prices. He did not write to the Australian firm whose agency he had secured that he was manager of the defendant’s match factory because it would not have mattered very much to them. His lordship: By getting these agencies you were trying to sell this match making machinery in Malaya. Were you not throwing away means for the shadow? If you destroyed your own business where would your 50 per cent. of the profits be? Witness replied that he was in fact trying to help his business by getting machinery cheaply. Mr. Knowles here put before the plaintiff a whole bundle of letters which had passed between him and the defendant, and asked him whether he could point to one letter in which the arrangement regarding 50 per cent. of the profits was mentioned. Witness said that the matter was a private one and the defendant did not include it in any of the letters. Action Dismissed After reviewing the circumstances of the case, his lordship to-day delivered a lengthy judgement in favour of the defendant, with costs. He, however, allowed the plaintiff a sum of $464, being one month’s salary and costs of material supplied, and costs up to the date on which the defendant paid this sum into court.

The Straits Times, 28 October 1926, Page 10

Malayan Matches. Cessation of Production Reported. (From Our Own Correspondent). Kuala Lumpur, October 27. The annual meeting of Malayan Matches, Ltd., was held at 11 a.m. today in the offices of the Secretaries, Messrs. J. A. Russell and Co., Kuala Lumpur. The Chairman, Mr. R. C. Russell, presided and in moving the adoption of the report and accounts, said:- 0. Gentlemen, the report and accounts have been in your hands for the prescribed period, and with your permission I will take then as read. It is greatly to be regretted a further loss falls to be recorded, the amount being $49,986.26 for eleven months working. 0. Of this amount $13,766.88 is an actual loss incurred in the manufacture and sale of the company’s product, the balance of $36,219.38 being accounted for by depreciation, debenture interest and loss on jelutong workings of $28,913.09, $6.187.50 and $1.118.79 respectively. 0. Match Production. 0. The production of matches during the eleven months, 103, 268 and 8/12 gross, shows a considerable decrease as compared with that during the preceding financial year. The financial position of the company has not permitted of any additions to the existing plant, and for the same reason it has been impossible to carry out the extensive repairs and replacement of parts which were necessary to enable the machinery to produce at its maximum capacity. 0. Further, the rubber boom which occurred during the period under review resulted in a migration of the skilled labour force as a result of the company’s inability to meet the demands for increased wages. 0. Finance. 0. In a circular letter, dated March 5, 1926, the shareholders were informed of the action taken by the debenture holders, who appointed a Receiver, after their demand for repayment of principal monies secured had remained unsatisfied. 0. The receiver, under powers contained in the debenture deed and in the document making the appointment, carried on the business for seven months, during which time several attempts were made to dispose of same as a going concern, but without success. 0. I regret to report that in September the Receiver informed your directors that, under existing circumstances, the manufacture of the company’s product could not be carried on except at a further loss, and that the supply of raw materials being exhausted, it was his intention to close down the factory and cease manufacture on September 30, 1926. 0. The factory is now closed down and the Receiver has further informed the Board that he has sold the whole of the match making machinery. 0. It is greatly regretted that that it is most improbable that the claims of the debenture holders will be fully satisfied form the company’s assets; if this should be the case, there will be no surplus available with which to satisfy the company’s creditors, or with which to make any return to the shareholders. 0. I think that the Chairman at the last meeting made it quite clear that the scheme for reorganization having failed to receive the support of the shareholders, the position which has arisen would ultimately be an accomplished fact. 0. As in the past, you managing agents have personally guaranteed payment of all bills of exchange drawn upon the company for supplies of chemicals, etc., and as will be seen from the accounts, have actually advanced free of interest the sum of $46,548.59 and are liable on bills of exchange to the extent of $3,444.50 0. Accounts. 0. The capital accounts have been increased by small additions amounting to $1.083.66 and have been reduced by depreciations amounting to $28,913.09. The decrease in sundry debtors and creditors is accounted for by the decrease in production with the corresponding decrease in sales and local purchase of supplies. 0. There has been a slight alteration in the amounts due to the three principal creditors. 0. Mr. E Mudispacher continued in charge of the factory, and the directors wish to express their appreciation of his services during the very trying period that has been experienced. 0. Before formally moving the adoption of the report and accounts, I will endeavor to the best of my ability to answer any questions form shareholders. 0. The Chairman formally moved the adoption of the report and accounts. Mr. J. Davidson seconded and the motion was carried. 0. Messrs. Evatt and Co., were reappointed auditors.

The company goes to receivers.
The last A.G.M.

The Singapore Free Press and Mercantile Advertiser, 26 November 1926, Page 15


MALAYAN MATCHES. This ill-fated undertaking has now finally collapsed, the machinery has been sold, and the factory closed down on September 30th. the loss notified in the report being just under $50,000.

Mr. Simons sues Mr. Lee Kim Soo of the Elkayes Match Manufactory at Port Swettenham.

FROM PROCEEDINGS OF THE FEDERAL COUNCIL OF THE FEDERATED MALAY STATES. VOL 1-1926

Mr. Wong Yick Tong: Sir, I wish to refer to the subject of the import duty on matches. This was a duty which was originally introduced as a war tax. On the termination of the Great War it was kept on for the purpose of helping the local industry, especially the Malayan Matches, ltd. Although this duty brings into Government a revenue of over $300,000 yearly, yet I think Government should consider its removal. As is well known the primary object of the imposition of this duty has not been achieved. Matches are articles that are consumed by all, rich and poor alike. They are a necessity of life and fall within the category of things which it is the well-established fundamental policy of the British Government to exempt from taxation. Sir, I ask and I hope that Government will withdraw this duty regardless of the fact of the revenue it produces. The President: With regard to Mr. Wong Yick Tong’s remarks on the duty on matches, I have to go further into that matter with the Customs. He did not state that any hardship had resulted or that there had been any increase in the price on that account. The position is that it was not a war proposal. It was a post-war proposal. I think it started in 1919. The result of it has been that, in order to escape the import duty, match manufacturers have opened factories here, but they cannot claim to be entirely a local industry because they import the whole of the wooden timber used to make matches. The object of the notification, which I announced the day before yesterday would be withdrawn, was to meet this. It was on a graded scale so as to give preferential treatment to the genuine local manufacturer. It started with seventy cents per ten thousand cases as against a dollar import duty and came down to 40 and 20 cents according to the proportion of local timber used. That, I think, is a fair basis. But, as I said, I am quite ready to consider the matter further. Mr. F.G. Harvey: With regard to the tax on matches, I wish to do away with any impression that the tax is for the purpose of increasing the profits of a company that has recently been started or any other companies. It was merely asked for as a protection against dumping. I wish to explain that in case a wrong impression might have been formed.


1927-1938

The Singapore Free Press and Mercantile Advertiser , 25 February 1928, Page 10 


DEATH OF MR. E. MUDISPACHER. (From Our Own Correspondent Kuala Lumpur. Feb. 24. The funeral took place at Cheras yesterday evening of Mr. F. Mudispacher, a Swiss subject, manager of Malayan Plywood Veneers Limited at Batu Arang. He was 51 years of age and leaves a young widow. Deceased had been for twenty years in Malaya and was formerly manager of Malayan Matches and assumed management of the Plywood Company on its inception in March last. 


The Straits Times, 30 January 1932, Page 6
A JOURNAL IN THE FEDERAL CAPITAL.

Local match factories. F.M.S. people have noted with interest the decision of the Jahore Government to impose a scale of excise duties on matches manufactured within its territory, this scale being framed so as to encourage the use of local timbers in the industry. Mr. Lee Kim Soo is operating a match factory in Jahore and is using local timbers. It is interesting to recall that in 1919 an import duty of a frankly protective character was imposed by the F.M.S. Government for a period of five years to help a European syndicate called Malayan Matches Ltd., which feared that dumping by other countries would nullify its efforts to start. As a result of this protection two match factories were founded in Selangor, but in 1926 the Chief Secretary stated in the Federal Council that” they cannot claim to be an entirely local industry because they import the whole of the timber used to make matches”. Subsequently the European factory closed down but Lee Kim Soo’s factory at Port Swettenham is still operating. There is now in force in the Federated Malay States both an import duty on matches and excise duties on locally produced matches, the later being framed with the same object as the duties adopted in Jahore.

SELANGOR ANNUAL REPORT 1937 10439/4 ANNUAL REPORT ON THE SOCIAL AND ECONOMIC PROGRESS OF THE PEOPLE OF SELANGOR FOR THE YEAR 1938.

Match Factories-the Elkayes Match Factory at Port Swettenham, the only one in Selangor, is situated on the Port Swettenham- Klang road, one and a half miles from Port Swettenham, and has been in operation for fourteen years. This factory paid a sum of $93,454.40 in excise duty as compared with $108,356.80 in 1936. This decrease of $9.902.40 (is) attributable to the strike during which period the factory was closed down for a month. The timber used is all Malayan and is obtained from local contractors who operate within the district. NOTE-a general description of the processes of manufacture in the above factories was given in the report for 1936.


The Straits Times, 24 April 1933, Page 10


NOTES OF THE DAY. MALAYAN MATCHES. Although Kelantan is isolated from the rest of Malaya and might be expected to rest content with comfortable stagnation, it is the home of a number of new and promising developments, especially where the Malays are concerned. The latest of these is a match factory which was opened in February this year at Kota Baru and is reported to be making rapid progress. There is no reason at all why this factory should not succeed, given sufficient technical skill in its management. Two match factories are already operating in the Malay States, one in Selangor and one in Jahore. Both are using Malayan timbers, providing employment for local labour and putting a cheap and quite satisfactory product on the market. The enterprising Chinese proprietors of these factories have succeeded where Europeans with larger financial and technical resources failed, and all who have the interests of the unfederated States at heart will wish the promoter of the Kota Baru venture similar success.

"The reason why Mr Simons left Malayan Matches was because he asked for a Sunday off to play a game of cricket. He got his Sunday off and went away taking with him the keys of the box in which his tools were kept. While he was away the automatic machine broke down, and when he returned he was told that the machine had been held up the whole of Sunday afternoon owing to the want of tools. Mr. Robins and he had some words over this as a result of which Mr. Robins went to Kuala Lumpur and sent him the notice. Malayan Matches asked him to accept one month’s salary in lieu of three months’ notice which he refused. Eventually he was paid three months’ salary and left in two months"

THE MALAY MAIL. WEDNESDAY MAY 12TH 1926

“ He ( Mr. Evance) was employed by Malayan Matches Ltd. while he was in India to send machinery across to them in Kuala Lumpur. He did this under the direction of a representative of Malayan Matches Ltd. He knew that this firm had some difficulty erecting the machinery. He did not tell Mr. Symons that if he (Mr. Symons) erected the machinery himself he was a very clever man, and that in order to have a hold over Malayan Matches Ltd. he packed the machinery in such a jumbled manner that no one but himself could erect it. He did tell Mr. Symons that the machinery was all jumbled together, and that this was done at the suggestion of the firm’s representative in India in order to save space in transport. He subsequently left the employment of Malayan Matches Ltd. in consequence of a disagreement with them.”

The Straits Times, 22 February 1924, Page 9

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