oon ~ • r<ln eon PERPUSTAKAAN NEGARAMALAYSI A PENERBIT UNIVERSITI MALAYA KUALA LUMPUR 1976 CONTENTS ,, Acknowledgements List of Figures List of Tables Statistical Appendices Introduction VII , Xl .. , Xlll XV .. XVII 1 1 Diffusion of Rubber in South and Southeast Asia Collection of Rubber Plants in Tropical America Distribution of Plants from Kew The Role of Ceylon and Malaya as Seed Suppliers The Recipients of Rubber Plants 2 The Period of Experimentation Contest of the Species The Emergence of Hevea brasiliensis 14 3 Pioneer Plantings Prelude to Western Planting Genesis of Pioneer Plantings 2S 4 Capital Investment and the Rise of Western Plantations The Beginning of Corporate Organization 1895- 1904 The On-set of Western Capitalist Penetration 1905 - 1908 The Rubber Boom and Investment 1909- 1912 Financial Consolidation 1914- 1921 Sources and Directions of Investment The Role of Agency Houses and Investment Trusts 40 5 Growth of Plantations in Malaya The Spread of Planting 1906- 1908 The Rubber Boom 1909- 1911 The Post- Boom Recession 1912- 1921 Patterns of Distribution 68 , PERPUSTAKAAN NEGARAMALAYSI A 6 Growth of Plantations in Other Parts of Southeast Asia Java The East Coast of Sumatra and Outer Provinces of the Netherlands East Indies North Borneo Burma Indochina Siam The Philippines 7 Variations in the Regional Distribution of Plantations The Physical Environment The Role of Proprietary Planters Labour Supply Land Alienation Policies 89 129 8 Control and the Position of the Western Rubber Industry The Controlling Hodies Profits and Dividends Ownership Implications of Control 149 9 Conclusion 181 Statistical Appendices 183 Bibliography 185 Geographical Index 197 General Index 203 PERPUSTAKAAN NEGARAMALAYSI A CHAPTER I DIFFUSION OF RUBBER PLANTS IN SOUTH AND SOUTHEAST ASIA l Rubber was first mentioned by a European historian over 480 years ago, but its potentiality as an industrial raw material was not realized until Charles Goodyear discovered the process of vulcanization in 1839. Raw rubber became sticky when heated and hardened on exposure to extreme cold. Goodyear's discovery rendered rubber tough and durable, and by this process rubber was converted at 2 once into an essential industrial raw material. Consumption of rubber in England, for example, rose from 24 metric tons in 1830 to 7,727 metric tons in 1870. The rubber was the 'wild' rubber collected from tropical forests and the bulk of it came from Brazil. 3 Increasing demand for rubber resulted in suggestions being advanced for the domestication of rubber-yielding plants. In 1798 James Howison, a surgeon stationed at Penang, had advocated an experimental planting of Urceola elastica in the island preliminary to its cultivation in Bengal, "should it be deemed an object to attempt plantations of the elastic gum vine".4 His words went unheeded. In 1830, the proprietors of the freeholds Pamanukan en Tjiasemlanden or the 'p & T' Lands in Java drew the attention of the manager to the possibility 5 of cultivating rubber for the European market. Twenty-seven years later, Thomas Hancock, the founder of the world's first rubber factory, called for the cultivation of the best kinds of rubber plants in the East and West Indies. He foresaw "every probability of success" of this cultivation because of the 6 mounting demand for rubber. Very little seemed to have been done and in 1 See PERPUSTAKAAN NEGARAMALAYSI A James Collins, "On India· Rubber, Its History, Commerce, and Supply", Journal of the Society of Arts, Vol. 18, 1869, p. 8l. 2 8 .0 . Porritt, "The Rubber Industry - Past and Prescnt", Journal of the Royal Society of Arts, Vol. 67,1919, pp. 255- 256. 3J. Ferguson (compiler), All About Rubber and Gutta Percha, Colombo. 1899. p. ii. 4 James Howison. "Some Account of the Elastic Gum Vine of Prince of Wales rsland (PC'nang)". Asiatic Researches, Vol. 5, 1798, p. 165. 5Wilfred Hick Oaukes. The 'p & T' Lands: An Agricultural Romance of Anglo-Dutch Enterprise, London, 1943, p. 13. 6 Thomas Hancock, Personal Narrative of the Origin and Progress of the Caoutchouc or India-Rubber Manufacture in England, London, 1857, quoted by O.F. Cook, "The Beginning of Rubber Culture", 1.R.)., Vol. 85, 1933, p. 450; Ralph F. Wolf, "Scventy-Five Year Stretch", Rubber World, Vol. 1 51, 1964, p. 68. WESTERN RUBBER PLANTING 2 • 1868, Gustav Mann, Conservator of Forests of Assam, was moved by the possible exhaustion of wild rubber supply from Assam to declare the desirability of starting "some plantations" to ensure future supplies of this "valuable commodity.'" These suggestions of rubber cultivation implied the domestication of indig<;.n ous species. It was only in 1870 that Clements Markham conceived the idea of introducing rubber from South America to India for commercial cultivation. This venture with rubber was a natural sequel to his successful intro8 duction of cinchona from Peru to India in 1859. James Collins was commissioned to undertake the investigation on rubber plants and in 1872, he advocated the immediate cultivation of Ficus elastica in Assam, and the intro9 duction of the Hevea and CastiIloa species into India. COLLECTION OF RUBBER PLANTS IN TROPICAL AMERICA Several attempts were made to collect rubber seeds and plants from tropical America for despatch to England. The India Office of Great Britain initiated the first attempt in 1873 and it soon enlisted the participation of the Royal Botanic Gardens at Kew. The first consignment of 2,000 Hevea seeds obtained at Cameta by a Mr. Farris was forwarded by Markham to Kew in mid-1873. Only a dozen seeds germinated, indicating the difficulty involved in the trans-continental l dispersal of this valuable but fragile plant. 0 In 1875, an organized attempt at collection was undertaken by Robert Cross, one of the quinine explorers, under commissi9n by Markham. The species Castilloa was to be collected on account • of its greater latitudinal spread than the Hevea and also because it belongs to the family Artocarpaceae which was well represented in India. It was argued that the Castilloa might thus acclimatize successfully in India. Cross brought back to Kew 7,000 Castilloa seeds and numerous cuttings from the vicinity of the Chagres l river in Central America. 1 It was Sir Joseph Hooker, Director of Kew, who had determined botanically the tree producing 'Para' rubber as Hevea brasiliensis in 1873, who initiated the introduction of what was believed to be the "true 'Para' of commerce". With the backing of the India Office, Sir Joseph Hooker commissioned Henry Wickham to PERPUSTAKAAN NEGARAMALAYSI A 'G. Mann, Progress Report of Forest Administration in Bengal for the Year 1868-69, in George Watt, Dictionary of the Economic Products of India, London, 1890, Vol. 4, p. 348. 8Clements R. Markham, "The Cultivation of Caoutchouc·yielding Trees in British India". Journal of the Royal Society of Arts, Vol. 24, 1876, p. 276. 9 James Collins, Report on the Caoutchouc of Commerce, London, 1872, pp. 44- 45. The generic name Castilla was changed to Castilloa in an English publication in 1805 and Castilloa now occurs much more widely in literature than the correct See Loren G. Polhamus, Rubber: Botany, Production, and Utilization , London and New York, 1962, p. 93. lOT. Petch, "Notes on the History of the Plantation Rubber Industry of the East", Annals of the Royal Botanic Gardens, Peradeniya, Vol. 5, 1911 - 14, p. 438. U lbid., p. 515. DIFFUSION OF RUBBER PLANTS IN SOUTH AND SOUTHEAST ASIA 3 12 collect rubber seeds in Brazil in 1876. Wickham secured 70,000 Hevea seeds from the highlands between the Tapajos and Madeira rivers, where '''the true forests" of Hevea rubber were found. The collection was loaded on the ss.Amazonas, which was returning to England just when the seeds which were "prone to quickly lose its vitality" were ripe. Wickham's successful accomplishment of his mission has been variously described as one of "resource, initiative, and organizing capacity" and an example of "colossal 'nerve' ", implying a shade of illegality in the operation. Although Wickham himself was certain that the Brazilian authorities would detain the ship if they "guessed the purpose of what I had on board" and later writers have tended to view the feat as "smuggling" and Wickham as "Ie prince des contrebandiers",t 3 the operation was not illegal. Indeed, there was then no formal prohibition on the export of Hevea seeds from Brazil. Wickham's anxiety was due more to his fear that the delays that might conceivably be caused by the port authorities would reduce the germinating 1 power of the seeds. 4 Wickham's seeds were sown at Kew Gardens on the 4th of June, 1876. Only ·2,700 seeds germinated, or 4 per cent of the total, confirming an earlier experience that securing planting materials from Hevea seeds was difficult. Yet that this eventually became the parent stock of the rubber industry in Asia underlines 1 the significance of the quantity of Wickham's original collection. 5 Although 2,700 plants were not a large stock for the needs of British India, they ensured a fair chance of success for the perpetuation of the supplies of seeds and plants from this stock. Besides Wickham, success of the mission must partly be attributed to the skilful guidance and devotion of Sir Joseph Hooker and the Kew Gardens, and the support and foresight of Markham and the India Office. The fourth attempt to introduce rubber plants from South America, like the second one, was made by Robert Cross, again engaged by Markham. Cross left for South America three days after Wickham arrived with his collection. Having gathered 1,080 Hevea seeds around Para, he proceeded to Ceara province and collected 700 seeds and plants of Manihot glaziovii (commonly known as Ceara). The plant materials arrived at England in late 1876; about 3 per cent of the Hevea 1 and 55 Ceara plants were raised. 6 PERPUSTAKAAN NEGARAMALAYSI A • 12Wickham was then resident at Santarem, Brazil, and had working experience with wild rubber since the 1860s. It was from his drawings and specimens of Revea brasiliensis which he sent to Kew in 1873 that enabled Sir Joseph Hooker to determine the species of the plant. Petch, op. cit., p. 439; H.A. Wickham, On the Plantation, Cultivation, and Curing of Para Indian Rubber (Rewa brasiliensis) with an account of its introduction from the west to the eastern tropics, London, 1908, pp. 46- 47. 13 Wickham, ibid., p. 53; Sir Lc:ybourne Davidson, "The Rubber Plantation Industry: Pioneer Rubber Planting in Ceylon and the Straits", Bull. R.C.A., Vol. 9, 1927, p. 676; L. Ph. Lc: Cosquino de , .. Lc: Caoutchouc aux Indies Neerlandaises", Bull. Agricole du Congo Beige, Vol. 18, 1927, p. 5. 14 Herbert Ashplant, "Wickham Not a Smuggler", I.R.W. , Vol. 99,1940, p . 434. 1 SThis large collection was probably induced by monetary reward. Wickham's commission was "a straight offer to do it; pay to follow result", Wickham, op. cit., p. 47. 16petch,op. cit., pp. 441 and 505 . • 4 WESTERN RUBBER PLANTING The four British attempts to collect rubber plants, in retrospect, were unnecessary duplicatons, for sufficient subsequent planting materials were able to be derived from Wickham's collection alone. Although the India Office was financially involved in all four attempts, those by Cross and Wickham were apparently not related, at least by design. The strong association between Hooker and Wickham on the one hand and Markham and Cross on the other points to the execution of independent projects by these pairs. These introductions resulted in the collection of 73,000 Hevea seeds, 7,000 seeds and some cuttings of Castilloa, and 760 Ceara seeds and plants. There were subsequent attempts at seed collection in South America, such as Hevea seeds bought to Pasir Utjing estate in Java. A trade in Hevea and Ceara seeds was started by Scott Blacklaw in England in 1881 to supply demand from private or official sources. However, they had minimal effects on development of the rubber industry in Asia, where virtually all planting materials were derived 1 from the first few generations of Wickham's original collection. 7 DISTRIBUTION OF PLANTS FROM KEW Hevea rubber first arrived in Asia in 1873 when six plants raised from the Farris collection were taken to the Calcutta Botanic Gardens. The choice of Calcutta was probably influenced by the fact that the plants were taken out by the Superintendent of the Gardens himself, and that Calcutta possessed the major botanic gardens in India. Cuttings were subsequently sent from Calcutta to Sikkim, showing a complete lack of understanding of the climatic requirement of Hevea. These plants, together with a further consignment to Calcutta in 1875, did not survive the cold. Henceforth, Calcutta ceased to be the depot for Hevea in India and Sir Joseph Hooker and Markham agreed to Wickham's recommendation of sending the seedlings to Tenasserim, Burma;1 8 but the depreciation of the rupee and retrenchment of expenditure by the Indian Government killed the scheme. The choice then fell on Ceylon which possessed a botanic gardens sufficiently well equipped to serve as a depot for the propagation and distribution of Hevea plants to India and Southeast Asia. It is left to speculate whether the history of rubber development might have been different had Burma in fact served as the depot. Ceylon received its first consignment of 1,919 Hevea seedlings from Kew in August, 1876 in excellent condition. Two days later, some 50 to 100 seedlings landed in Singapore, but delays in freight payment by the India Office resulted in a serious 10ss.19 In the same year a small number of plants was sent to Buitenzorg, Java; 50 to Burma; and 100 to Saharumpore, India. In 1877, four despatches were made, consisting of 22 plants to Singapore, 100 to Ceylon, 50 PERPUSTAKAAN NEGARAMALAYSI A 17Whether or not, or to what extent, Cross's plants were distributed was not defmitely known, for no distinction was made betv.een the plants collected by Wickham and Cross. No one, however, alleged that Cross's plants '.~ere never distributed. Petch, ibid., p. 442; P.J.S. Cramer, "Wild Rubber and Selection," Rubber Recueil, Batavia, 1914, p. 24. 18 pe; ch, ibid., p. 438; Wickham, op. cit., p. 55. 19 H . N . Ridley, "Historical Notes on the Rubber Industry," T.A., Vol. 34, 1910, p. 94. " 5 DIFFUSION OF RUBBER PLANTS IN SOUTH AND SOUTHEAST ASIA COLLECTIONS oI 600 I . . ClMETlaES (A) FARRIS (8) wtCKHAM (C) uw'.Q<H"4/CAOSS ...... CALCUTTA INOlA \ con c tJ"z.... o • - - - ----_. \8 ) - • -- - ./' -- ---' ) - - - - - RE-OIRECTEO DISTRIBUTION OF SEEDS AND PLANTS OF HEVEA BRASILIENSIS KEW GARDENS TO SOUTH AND SOUTHEAST ASIA, 1873- 1877. Seedlings re-directed from Colombo, Calcutta and Singapore are not quantitatively represented. 20 to Calcutta, and four to Buitenzorg (Fig. 2). FIG 2. I I L I; Of the 2,300 Hevea seedlings consigned to the East, Ceylon was by far the largest recipient, though some of the seedlings were re-directed to other territories. In contrast, Singapore received less than 122 plants, of which only the second consignment of 22 survived. Nine of these were taken to Kuala Kangsar in 1877 by Murton, Director of Gardens, Singapore. Of the Calcutta plants, one-third was sent to Assam and 16 to Burma. At Mergui, eight of the 2 plants survived and were planted in the Forest Office compound. 1 At Buitenzorg, only two plants survived to produce seeds; more than a dozen plants in the Cultuurtuin and several in various estates were off-springs of these trees. 2 2 By and large, seedlings distributed by Kew were almost entirely forwarded to British colonial territories and British initiative from the start thus directly influenced PERPUSTAKAAN NEGARAMALAYSI A 20 Ibid., p. 94; I.H.B., "The Treatment to which The Para Rubber Trees of the Botanic Gardens, Singapore, have been subjected, " T h e Garde ns Bulle tin, Singapore, Vol. 1, 1915, p. 252. 21 Col. W.J . Seaton, "Note on the Cultivation of Hevea brasiliensis in the Tenasserim Forest Circle, 1888", in Ferguson, op. cit. , pp. cc- ccii. 22Department of Agriculture, Industry and Commerce, N. E .l. , Produ cts of the East-In dies : Estate Rubber, Buitenzorg, 1926, p. 1. • 6 WESTERN RUBBER PLANTING subsequent British domination in the rubber industry and the patterns of location of rubber development in Southeast Asia. The Castilloa seeds collected by Cross in 1875 failed to germinate at Kew, but plants were raised from cuttings. In 1876, 31 plants were sent to Ceylon, and six to Buitenzorg. In the following year, 24 more plants were sent to Ceylon, and small consignments were also made to Singapore, Liberia and the Mauritius. In 23 1878 Burma and Calcutta received two plants each from Ceylon. The first Ceara seedlings were sent to Singapore from Kew in 1877, involving four plants. Ceylon and Calcutta obtained 50 plants each later in the same year. Meanwhile 400 more plants were raised at Kew and these were distributed to Madras, Calcu tta, Java and elsewhere in Oceania, Africa, and the West Indies? 4 A fairly large number of plants of the three major species of rubber was despatched to ensure successful propagation of future supplies in the various botanic gardens and by 1877, the function of Kew Gardens in distributing rubber plants to South and Southeast Asia might be considered to be at an en4. The; total cost of introducing the plants had amounted to £300, which, together with payments of £700 to Wickham and £505 to Cross, totalled £1,505,25 a small initial sum which eventually led to the development of an important agricultural industry in Southeast Asia. THE ROLE OF CEYLON AND MALAYA AS SEED SUPPUERS The diffusion of rubber plants from Kew to Asia occurred in several successive 'waves' , each reaching further and wider areas than the previous one. Standing at the apex of the hierarchy of seed suppliers, Kew initiated the first 'wave' of diffusion to the botanic gardens in Ceylon and British Malaya, which in turn disseminated seeds to botanic gardens and experimental stations in the other territories of Southeast Asia. The various local gardens completed the last phase of seed diffusion by supplying seeds and plants to increasing numbers of planters. Ceylon sent substantial numbers of seeds and plants to India and Southeast Asia (Fig. 3A). In 1878, 516 plants, almost certainly from the original stock received from Kew, were consigned to Burma and a few cases to Nilambur, India. By 1880, 1,211 plants were disseminated from Ceylon to various botanic gardens as well as private planters. In ] 881 the Andaman Islands and J ohore 26 were the recipients, and a Mr. Davidson in Singapore obtained 12 plants. In the early 1880s, some of the trees in botanic gardens in Ceylon and Malaya began to yield seeds for distribution. The first Hevea tree to flower in Asia was one planted at Kuala Kangsar in 1877. It flowered in 1880, followed closely by PERPUSTAKAAN NEGARAMALAYSI A 23 p etc h , op. . p. 515 ; Netherlands East-India San Francisco Committc:c:, Rubber in Netherlands East India, Semarang-Surabaya-Dc:n Haag, 1914, p. 7. Cit. , 24petch, ibid., p. 505; Ridley, op. cit., p. 95; W. Wicherley, Tbe Whole Art of Rubber Growing, London, 1911, p. 47. 25 Pc:tch , ibid. , p. 442. 26 Ibid , pp . 459, 461 and 464. ,• 7 DIFFUSION OF RUBBER PLANTS IN SOUTH AND SOUTHEAST ASIA A CALCUTTA INDIA ~ - N- ...... - ---- --- -- - \8&3" lP~Sl .,r -- J" / ... - -- I' I .... 'L ..... - SEEDS AND PLANTS BELOW 2!1 1 J I 200 Km. I , • PERPUSTAKAAN NEGARAMALAYS--I A NORTH I' I - - - - I / INTERNATlONAL BOUNDARY 0, 10<X) ~·--~KruIL~OMiUE~I~RE~S;---~' :......_ _ JAIIA I FIG 3. DISTRIBUTION OF SEEDS AND PLANTS OF HEVEA BRASILIENSIS FROM CEYLON TO INDIA AND SOUTHEAST ASIA. A. FROM THE ORIGINAL STOCK, 1878- 1883 AND B. FROM STOCK RAISED IN CEYLON,1882 - 1897. B
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