“The tobacco estates consist of grants of land taken out by individuals or companies, and are as a rule of such an extent that every year a new district can be cleared and used for the coming crop, and this state of things will continue for many years to come; indeed, hitherto only a small portion of the ground cultivated (not one-fifth) has borne two crops, although it is expected that, unless fresh ground is taken up by the planters, a time will arrive when use must be made of old fallow lands, and then guano will be required.
“The planters consist of three or four large companies, principally Dutch—such as the Deli Company, the Amsterdam Deli, and the Batavia Deli—as well as of individual planters of many nationalities, Germany and Switzerland being strongly represented, while there are also a good sprinkling of Englishmen, the principal English firm being the Langkat Plantations Company, with its headquarters in London.
“The grants of land are taken direct from the chiefs before mentioned, and are only valid after confirmation at Bengkalis. The term is for 75 years, and for such a grant a sum of money, by way of premium, amounting to from 1 dol. to 2 dol. per bouw (equal to an acre and two-thirds), is paid in cash, while an annual rent of 40 c. a bouw, payable at the expiration of the fifth year, is also reserved. Such at least are the terms of the last recognised agreements. The whole of the conveniently-situated land in the three districts before-mentioned has now been taken up, and it is only in the outlying regions that fresh ground can be obtained; but as in such outlying regions settled government is not so well established, the Dutch authorities are now very chary in confirming grants in places where the tobacco-growing community would be less under control.
“It is estimated that at least 2,000,000l. sterling is now invested in the tobacco industry in the Deli districts.
“The tobacco when ready for shipment is all sent to Clambia on the L angle at river, to the Deli river, or the Sirdang river (as the case may be), and is despatched thence viâ Penang or Singapore to Amsterdam, which is the tobacco mart for the continent of Europe. The United States have also bought the Deli tobacco in the Amsterdam market in late years. Very little of the tobacco goes to England. The leaf remains so moist that the English import duty would press it heavily in comparison with other tobaccos, and this circumstance operates as a check on the import of tobacco from Sumatra into England as compared with tobacco from Java. The principal purchasers are German manufacturers and Dutch middlemen. The latter retail the tobacco over the continent, and supply the several Régies, amongst others the Austrian, Italian, and French. The Americans confine their purchases to dark-leaved, heavy tobacco, requiring 100 leaves or less to the lb.
“It is worth remarking that the whole of the carrying trade in connection with the Deli tobaccos is in the hands of Messrs. Holt’s line, the rate of freight from Deli to Amsterdam being about 3l. 2s. 6d. per ton. The shipping season may be said to last from January to June.
“The tobacco crop of 1884 is estimated to yield about 20,000 bales in excess of that of 1883, but the crop in 1883 was a short one owing to unfavourable weather. The 1884 crop is the best one ever obtained, both as regards quantity and quality. Roughly speaking, the Deli tobacco in the Amsterdam market fetches 1s. 4d. per lb. English, and the profits realized may be judged from the dividends given by the most flourishing companies; the shares of the Deli Company being now quoted at 500 per cent. premium. Of course there are exceptions where unsuitable soils have been met with, and losses have been sustained of no inconsiderable amount. These losses have occurred principally on Sirdang lands, where the tobacco grown is reputed not equal to that produced in the other two districts. This comparative defect is disclosed in the burning, the Sirdang tobacco yielding a brown instead of a white ash, and being probably therefore lacking in potash.
“The forests when cleared for the tobacco plantations afford splendid timber, and this is utilized for constructing drying-sheds and coolies’ quarters, but a good deal of the wood which might be exported for building or fuel is wasted for want of conveyance and burnt on the ground. As a compensation there can be no doubt that this burnt timber, or rather the ashes of it, supply an excellent manure.
“The labour employed may be distributed under three classes. There are, firstly, Malays and Batak tribesmen, who fell heavy timber, do general clearance, and build sheds; then come the Klings from the Madras districts, who occupy themselves with drainage and road-making; and lastly, we have the Chinese for planting, sorting, and preparation of the weed. The planting is conducted on a co-operative system. Coolies have their fields allotted to them, and plant at their own risk under supervision. Their payment depends on the yield. Reckoning from the estimated out-turn of last year’s crop, and that one coolie will raise seven piculs of tobacco in the season, we arrive at the figure 23,000 as representing the total number of Chinese engaged at Deli in tobacco cultivation, to which number 7000 extra hands must be added, employed in pursuits incidental to the industry. 3000 additional Chinese coolies are reported to have been engaged for the coming year. The strength of the Kling community may be taken at about 3000. The Chinamen go into their clearings and begin work during January and February: those not actually in service on the tobacco estates earning money as shopkeepers, pedlars, or gardeners, many of the latter being old hands who, under advances, have taken to planting patches of tobacco on their own account, for which they find a ready sale in Penang. The Klings are also to be met with as drivers of carts and carriages.
“An industrious coolie would, on an average, net in the course of a year 100 to 150 Dutch florins, and on this sum he pays to the Dutch Government 2 per cent. by way of income tax. The coolie, however, arrives in the country with a debt of from 100 fl. to 150 fl., and thus as a rule is not clear and able to leave with a balance in hand till the end of the second year. The coolie is engaged for a year, but he generally re-engages, and takes his departure in the beginning of the third year.