Commodities and Colonialism - Nodrm PDF
Commodities and Colonialism - Nodrm PDF
Commodities and Colonialism - Nodrm PDF
Editorial Board
Michael Laffan
Princeton University
Adrian Vickers
Sydney University
Anna Tsing
University of California Santa Cruz
VOLUME 286
By
G. Roger Knight
LEIDEN • BOSTON
2013
Cover: samgobin.nl
The realization of this publication was made possible by the support of KITLV (Royal
Netherlands Institute of Southeast Asian and Caribbean Studies).
ISSN 1572-1892
ISBN 978-90-04-25051-2 (hardback)
ISBN 978-90-04-25109-0 (e-book)
All rights reserved. No part of this publication may be reproduced, translated, stored in
a retrieval system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording or otherwise, without prior written permission from the publisher.
abbreviations vii
preface ix
introduction
java sugar and the age of mass production 1
1 a new epoch
the asian connection 17
2 a precocious appetite
fertilizer, horticulture and agro-industry in the field 53
5 enmeshed in lilliput
constraints on growth 153
6 no escape
the hva and the djatiroto project 165
8 commercial nemesis
java, japan and the raj 211
| Contents
bibliography 251
index 285
vi
Abbreviations
BB Binnenlands Bestuur
BENISO Bond van Eigenaren van Nederlandsch-Indische
Suikerondernemingen
BOT Bank of Taiwan (Taiwan Ginko)
BPM Bataafsche Petroleum Maatschappij
CSR China Sugar Refinery
DJB De Javasche Bank
HVA Handelsvereeniging Amsterdam
IISG Internationaal Instituut voor Sociale Geschiedenis
JSS Papers of John Swire and Sons
KB Koloniale Bank
KHT Kwik Hoo Tong Trading Society
KIT Koninklijk Instituut voor de Tropen
KITLV Koninklijk Instituut voor de Taal-, Land- en
Volkenkunde
KNIL Koninklijk Nederlands-Indisch Leger
KNSM Koninklijke Nederlandsche Stoomboot Maatschappij
KPM Koninklijke Paketvaartmaatschappij
MT metric ton
NA Nationaal Archief
NEHA Nederlandsch Economisch-Historisch Archief
NHM Nederlandsche Handel-Maatschappij
NILM Nederlandsch-Indische Landbouw-Maatschappij
NIVAS Nederlandsch-Indische Vereeniging voor de Afzet van
Suiker
OTHC Oei Tiong Ham Concern
PFB Personeel Fabriek Bond
POJ Proefstation Oost-Java
VJSP Vereniging Verenigde Java-Suiker
ZA zwavelzure ammoniak
Preface
x
Preface |
in Indonesia took massive advantage), and ends some fifty or more years
later with the sudden collapse of the hegemony that the Indonesian sugar
industry had established in those markets over the intervening decades.
This book is one of the many outcomes over the years of my research
on this particular commodity and its place in the history of colonial-
ism in Asia and in the international sugar economy. Correspondingly,
it draws hugely on the work, assistance, advice and support of others.
Not being an American academic, I will not spend the next five pages
identifying them. They know who they are and they know my profound
gratitude. One person I will name, however, because he did not live to
see the completion of a work whose genesis he did so much to encourage.
This is Professor Frans Hüsken, late of the Universities of Amsterdam
and Nijmegen. Like all those scholars who had the extreme good fortune
to know Frans, I am for ever in his debt.
xi
Introduction
2
Introduction |
Above all else, the story of sugar in colonial Indonesia between 1830 and
1880 had been one of an industrial ‘project’ grounded in steam and steel
– contingent and, to an extent, unplanned, but a ‘project’ nonetheless.
The essential dynamic here was related to the nineteenth-century rein-
vention of the sugar industry, a reinvention resulting from the industry’s
position on the cutting edge of the ‘first’ steam-powered and metallurgy-
based industrial revolution. The connection had begun in the 1780s, with
the harnessing of steam engines to the mills that ground sugar cane for
its juice. Over time, steam power both sped up the process exponentially
and rendered it a great deal more efficient in terms of rates of extrac-
tion.4 Nonetheless, the crucial developments in the nineteenth-century
revolution in sugar manufacture related less to the crushing process per
se than to what happened to raw juice after it had been expressed from
the cane. It was here that advances in metallurgy, machine technology
and chemical science really came into their own. Together, they were
manifested in a series of inventions that enabled cane juice to be clari-
fied and condensed to near-solid state, using steam heat under reduced
air pressure in closed pans of an increasingly complex and sophisticated
kind. The two key devices were the vacuum pan and, subsequently, the
so-called multiple-effect apparatus. These did away with the old, ‘rule-
of-thumb’ uncertainty of the open-pan manufacture (in which sugar was
boiled into near-solid state over direct heat) that had previously reigned
supreme, in one form or another, in sugar manufacture worldwide. From
the 1820s onward, these new steam-and-vacuum methods were taken up
in metropolitan refineries (for which they were initially developed) and by
raw-sugar makers in the colonial periphery. They were also adopted by
an emergent European beet-sugar industry that was soon engaged with
its cane counterpart in a competition for markets.
Among the great global commodities, sugar is unique in that it came
to be produced in entirely disparate regions of the world from totally
different raw materials. In the form manufactured from cane, sugar has
a long history. Its origins were in south China and the Indian subconti-
nent, and its manufacture began in the West in, perhaps, the thirteenth
4 For the discussion in this and the following paragraphs, see Deerr 1949-50, II:534-95; Galloway
1989:120-42; Leidelmeijer 1997:39-68; Curry-Machado 2011:23-47; Bakker 1989:15-26, 135-63;
Munting and Perkins 2000.
3
| Commodities and colonialism
century (where it was taken up from the Arab civilizations of the Fertile
Crescent) and subsequently spread from the Mediterranean via the
Atlantic islands into the New World. Beet sugar is of very much more
recent origin. Promoted in France during the Napoleonic wars as a sub-
stitute for the sugar whose entry into Europe was impeded by the British
blockade, beet sugar really took off as a commercially viable product
several decades later. Beet was not simply a rival of cane, however. The
particular exigencies of its production – and the new industry’s location
relatively close to the hubs of Europe’s metallurgical revolution – had the
effect of forcing the pace of the industrial project worldwide.
These developments in the international sugar economy lay at the
heart of the nineteenth-century transformation of sugar manufacture
in colonial Indonesia. To be sure, the island of Java was not the only
place in Asia where the industrial project in sugar was essayed during
the course of the nineteenth century. It was, however, the only location
in which it was both launched and successfully carried through over a
period of more than half a century. Promising starts elsewhere ground to
a halt in the Indian subcontinent (only to be spectacularly revived in the
twentieth century);5 slowly sank into obsolescence in Mauritius, which
had once been an industry leader in the region;6 and failed to reach their
undoubted industrial potential, as in the Philippines, where an important
‘pioneer’ industry had (temporarily, as it turned out) literally and figura-
tively run out of steam by the century’s closing decades.7 Elsewhere in
5 For sugar production in the Indian subcontinent during the early and mid-nineteenth century, see,
for example, Amin 1984:32-80; Marshall 1987:5-22, 34-9; Ratledge 2009.
6 According to North Coombes (1937:124), in 1862 some 56 of the island’s 300 factories had installed
vacuum pans and most of these operated with centrifuges. Deerr (1949-50, II:561-2) says that the first
vacuum pan was installed there in 1844. Leon (1848), writing in the late 1840s, remarked that Mauritius
was the only British colonial plantation known to him ‘where the modern process of making sugar has
tolerably succeeded’. For Mauritius in general, see, for example, Allen 1981. By the 1870s, the Mauritius
industry had entered a long period of stagnation and had ceased to be a major producer in world terms
(though it continued to supply substantial quantities of the commodity to Indian markets). Indeed, by the
century’s end its factories were authoritatively described as antiquated museum pieces. See Noel Deerr,
as quoted in Prinsen Geerligs 1904:1328.
7 On developments in sugar production in general in the Philippines during the course of the nine-
teenth century, see, for example, Aguilar 1998; Larkin 1972; McCoy 1982. According to Deerr (1949-50,
II:562) a couple of vacuum pans were first installed in the Philippines in 1879. Other sources, while
indicating steam mills, have nothing to say about vacuum pans or multiple effect before the early twen-
tieth century. In 1890s the Negros industry’s foremost apologist lamented that a system of industrialized
centrals (that is, a system of production in which cane grown in a variety of locations is manufactured into
sugar in large central factories) had yet to appear, arguing that it was ‘because of his lack of capital’ that
the planter-manufacturer of Negros was forced to adopt ‘quick and simple methods’ which produced
only a low grade of muscovado sugar from the excellent raw material available to the mills (Echaúz
4
Introduction |
1978:61). ‘It is an astonishing fact’, remarked an early twentieth-century American investigator, ‘that so
little attention is paid in Negros to the importance of skill and care in the manufacture of sugar, even by
the present crude methods.’ He estimated that not more than one plantation-owner in twenty was fully
conversant with the sugar-manufacturing process (Walker 1910:111-2).
8 Hollen Lees 2007.
9 John Pitcairn (administrator of the P&T estate in West Java) to Van den Bosch, 14-8-1830, in:
Nationaal Archief (NA), The Hague, Collectie 115 J. van den Bosch, 1627-1914, toegangsnummer
2.21.028, inventarisnummer 426. ‘[…] I am anxious to inform your Excellency that a machine lately
invented in England for boiling sugar by steam has been sent out to me, which will likely arrive in the
course of this year. It possesses many advantages over the present mode of boiling sugar […].’
10 According to data collected by Leidelmeijer (1997:138), nearly 60% of the colony’s 96 contract
sugar factories (56 in all) were equipped with vacuum pans circa 1857. There were around 56 such fac-
tories equipped with vacuum pans of one kind or another, whereas in Cuba at around the same time 77
factories were similarly equipped. See Curry-Machado 2011:29, note 21, 208. He states that 32 of these
factories were equipped with De Rosne apparatus (from the great French-Belgian manufacturer) and
that 20 were equipped with ‘Rillieux [proto-type] Multiple Effet’. He also points out that the majority of
Cuba’s sugar factories were not equipped with vacuum pans at this date.
11 Initially designed, like the vacuum pan before it, for operation in refineries, the multiple-effect appa-
ratus was originally considered far too bulky and expensive for use in raw-sugar production. Nonetheless,
that is precisely where it began to appear, in rapidly increasing numbers, from circa 1870 onward. On
this point, see Deerr 1949-50, II:562-72; Soames 1872:58; Lock, Wigner and Harland 1882:269-73.
5
| Commodities and colonialism
6
Introduction |
ther did slavery, nor the indentured forms of labour that later (in part)
supplanted it in the New World and elsewhere. Instead, there existed in
Java under the Cultuurstelsel a different kind of servitude, imposed on a
settled peasantry whose land and labour was commandeered by the state.
Rather than ‘expropriating’ Java’s petty rural producers in pursuit of the
development of large-scale commodity production (in other crops as well
as sugar) the Cultuurstelsel sought to keep the peasantry ‘intact’ through a
system of crop rotation (Dutch: wisselbouw) that saw cane alternated on
existing village farmland with rice and other ‘peasant’ crops.13
In fact, it did not really work out that way. Although building on a
legacy of labour service and crop-levies inherited from the pre-colonial
state, mid-century developments saw the moulding of a specifically ‘colo-
nial’ peasantry out of an earlier, altogether more amorphous, rural social
and economic order. One of its features, very relevant to the expansion
of large-scale sugar production, was the increasing presence within
peasant society of a group with little or no land that was – notionally at
least – ‘available’ for the kind of seasonal workforce that the industry re-
quired, without the need to resort to outright coercion. In this important
sense, the ‘servitude’ imposed by the Cultuurstelsel was gradually being
transformed well before the system itself was phased out as far as cane
growing was concerned during the course of the 1880s. Nonetheless, the
essential feature of the sugar complex exploited by Indonesia’s colonial
sugar producers was – and remained – the fact that cane, far from being
a monoculture carried on (largely) in the absence of other significant
cultivations, was solidly located within the cycle of ‘peasant’ agriculture
that constituted the core of the much larger ‘peasant’ economy in which
sugar was located.
From some perspectives, of course, this was no bad thing. Above
all, it brought the industry into close proximity with labour, while hav-
ing the added bonus of making existing, irrigated farmland available to
Indonesia’s colonial sugar producers without the need for the time-con-
suming and expensive clearance of virgin soil. Undoubtedly, in tandem,
these were the key agrarian factors that had underpinned the industry’s
spectacular mid-nineteenth- century growth. Yet, the ostensibly favour-
13 This system of land usage, one that distinguished Java from virtually all other major sectors of the
international sugar economy, means that the term ‘sugar plantation’ as used throughout this book refers
not to enclave-style cultivation but, instead, to an entity created through the temporary amalgamation of
scores of peasant rice fields into a complex more suitable to the raising of cane.
7
| Commodities and colonialism
able situation had a serious downside. Above all, it threatened to put tight
limits on expansion. On an island that was becoming as closely packed as
Java, land was not an inexhaustible resource (as it appeared to be, for ex-
ample, in relatively lightly populated Cuba), so that in this sense at least
the sugar ‘frontier’ in much of Java appeared inexorably to be closing.
Moreover, even labour, notionally so abundant and becoming ever more
so, was far from being exclusively at the sugar industry’s disposal. Other,
competing demands existed for it, both within and without the ‘village
world’. The agrarian problem, however, was not the only one confront-
ing the industry’s bid to transform itself to meet the requirements of the
age of mass production; where the money would come from was another.
14 For a detailed argument on this score in this and the following paragraph, see Knight 2007.
8
Introduction |
9
| Commodities and colonialism
A successful transition into the age of mass production was also contin-
gent, it might be posited, on the existence of a state substantially in thrall
to Big Sugar, and on marketing arrangements underwritten by (quasi-)
colonial-imperial ties. Cuba’s place in an American sugar ‘empire’, in
which a client regime was dominated, however uneasily, by a sugar in-
16 Fasseur 1992:86-91.
17 Mintz 1985:127, 133-45.
10
Introduction |
Over the course of less than fifty years, the Southeast Asian outpost of
a small and economically backward European power had emerged, in
terms of technological advance and sheer output, onto the front rank of
the international sugar economy. Nonetheless, it did so within a context
11
| Commodities and colonialism
that left the future very uncertain. Any one of the factors just listed might
have sidelined Java as a major global producer. Combined, they ought to
have been fatal. Yet, they were not: instead, with the advent of the age of
mass production, late colonial Indonesia’s sugar producers consolidated
rather than surrendered their position as one of the world’s leading
sugar industries. Indeed, the period from circa 1880 up to the late 1920s
proved to be the time of considerable expansion. From a total production
just shy of 300,000 tonnes in the early 1880s, Java’s output increased ten-
fold to a peak of 3 million MT in 1931.18 Astonishingly, this represented
around one-fifth of the world’s recorded production of cane sugar and
(potentially, had they been able to sell it all) around one quarter of the
sugar (cane and beet combined) entering international trade.19
This book sets out to explain how this remarkable feat – the trans-
formation of an industry that developments threatened to consign to the
margins of the international sugar economy into one of its star perform-
ers – was brought about. Its analysis moves through several key stages.
First, it argues that Indonesia’s late colonial sugar industry ‘survived’
the onset of the age of mass production because new markets opened
elsewhere in Asia late in the nineteenth century. A second explanation
is of equal importance, however, in that the industry was only able to
take advantage of this situation because of radical developments in the
agricultural sphere of production in Java itself. The book goes on to
argue, nonetheless, that this latter development was far from plain sail-
ing. One factor was the industry’s long and ambivalent encounter with
the colonial state, while a second was the changing and (for Big Sugar)
challenging agrarian context to which the industry had to accommodate
itself. The two were interlinked. A third complicating factor was the
singular – even idiosyncratic – fashion in which the industry financed its
late colonial expansion.
18 The broad statistical picture of key aspects of the expansion of sugar production in Java from 1880
until 1940 – relating to quantities produced, area under cane, prices – appears in Appendix 1.
19 Based on data from Creutzberg 1975:Table 7; H. Prinsen Geerligs and R. Prinsen Geerligs 1938:51;
World sugar economy 1960: Table 6.
12
Introduction |
13
| Commodities and colonialism
One of the key factors complicating the narrative of the industry’s ex-
pansion in the age of mass production, and the agro-industry in the field
on which it was based, was Big Sugar’s nexus with the colonial state. In
the circumstances of late colonial Indonesia, and of Java in particular,
any idea that the state was little more than the ‘handmaiden’ of sugar
capital is seriously wide of the mark. Primarily, this was because the
‘colonial state’ (and, for that matter, sugar capital), was far from being a
homogenous entity. Big Sugar consequently found itself drawn into the
conflicting agendas of a heavily bureaucratic regime, sections of which
saw themselves committed to ‘the peasantry’ in ways that conflicted with
the industry’s interests. Nonetheless, the situation was very fluid.
enmeshed in lilliput
By the early 1910s, the outlook for Big Sugar in Java seemed increasingly
gloomy. In terms of field productivity, in particular, the industry had
arrived at a plateau and further attempts at expansion seemed likely to
14
Introduction |
During the course of the 1920s, the industry found solutions to what had
appeared intractable problems. Changing agrarian conditions, reinforced
by a new degree of commitment to Big Sugar on the part of the state,
combined with dramatic horticultural advance to ensure that during the
decade prior to the onset of the interwar depression of the 1930s the in-
dustry was able to resume an expansionary trajectory. By 1930, Java was
producing (much) more and cheaper sugar than it had ever done, as field
15
| Commodities and colonialism
costs (which had threatened to spiral out of control only a decade earlier)
were brought down substantially, and a new, exceptionally high-yielding
variety of cane, developed by the industry’s own researchers, took over in
the plantation. The upshot was that, by 1930, productivity had reached a
historic high and the industry was manufacturing almost twice as much
sugar as it had done ten years earlier. The only trouble was that (almost)
nobody wanted to buy it.
16
Chapter 1
A new epoch
In 1884, Taikoo sugar refinery opened its doors for business in the
British colony of Hong Kong, operated by the ubiquitous ‘China coast’
firm of Butterfield and Swire.1 They were following in the footsteps of
their longer-established rival, the firm of Jardine Matheson, who had
established a similar operation in Hong Kong almost a decade earlier.2
Taikoo, however, was a more ambitious project. Designed to outflank
Jardine’s China Sugar Refinery (CSR), it was a harbinger of the age of
mass production that was opening up in the international sugar econo-
my. Based, inter alia, on large-scale operation, continuous throughput
in the manufacturing process and a constant drive for technological-
scientific improvement, the new age was characterized not only by huge
new plants for making ‘raw’ sugar, but also by equally huge operations
for refining it. Taikoo, developed primarily to both supply and stimulate
a growing taste for refined white sugar in East Asia, was one of them.
For the Java industry in particular, it symbolized the beginning of that
‘Asian connection’ which was to determine its fortunes for decades to
come; for Taikoo took the bulk of its raw sugar, not from its own Chinese
hinterlands, but from the Dutch colony, some twenty-days’ sea voyage to
the south. It was a portent of much larger developments that led to Java’s
sugar producers being able to replace their rapidly depleting markets in
the West with new ones elsewhere in Asia itself.
The Java sugar industry had long enjoyed a connection with Asian
markets. Indeed, until the early nineteenth century, the bulk of Java’s
output of sugar had historically gone to other Asian (or Middle Eastern)
1 On Taikoo, see Marriner and Hyde 1967:98-112. For recent discussions of Taikoo in the context of
business organization, see Cox, Huang and Metcalfe 2003.
2 China sugar trade 1880; S. Brown 1979:195. On Jardines, see Blake 1999; on the firm’s early history,
see Le Pichon 2006:1-51.
| Commodities and colonialism
markets rather than to Europe. More than half a century later, and on a
far grander scale than in the past, the revival of this connection opened
up the prospect of salvation; indeed, not only the prospect but the real-
ity. Whereas in 1880 by far the greater part of Java’s exports had been
consumed in the West (at that stage predominantly in Europe), some
forty years later the vastly increased output of the island’s factories – it
had grown more than sixfold since the 1880s – went almost exclusively
to locations in Japan, China and the Indian subcontinent. The tipping
point, however, occurred at the end of 1880s, when, for the first time, the
greater part of Java’s sugar output went to markets outside of Europe.3
On the face of it, the commercial position of the Java producers
at the onset of the age of mass production was indeed a parlous one.
Above all, they lacked any secure market. The Netherlands itself was
a small country, and although the per capita intake of sugar by Dutch
consumers doubled in the first two decades of the twentieth century, it
remained woefully lower than that of their European counterparts across
the North Sea. As late as the 1920s, the British consumed twice as much
sugar per head as the Dutch.4 Worse still: not only did the Dutch not eat
enough sugar, but the sugar that they did eat was of the ‘wrong’ kind.
During the second half of the nineteenth century, Holland’s own beet
sugar producers had taken over the Dutch domestic market for the com-
modity, virtually to the exclusion of cane.5 A similar situation prevailed
in the Netherland’s commercial hinterland in Central Europe, where
beet sugar likewise reigned supreme. Worse still, the beet sugar manu-
facturers of Wilhelmine Germany, in particular, had conquered much of
the huge British sugar market that Java had once lavishly supplied. By
1900 successful cane sugar producers generally had either a substantial
‘home’ market to rely on, or else sufficient imperial clout to secure one
elsewhere. Java sugar had neither. In these ostensibly far from propitious
circumstances, the Java manufacturers somehow had to dispose of what
one contemporary calculated was, by the 1920s, enough sugar to fill a
freight train that extended from Amsterdam as far as Naples.6
18
Chapter 1 A new epoch |
The somewhat belated Dutch rediscovery of Asia – they had, after all,
been among the first northern Europeans to go there – was reflected in a
book published in Amsterdam at the very end of the nineteenth century.
Ernst Heldring, already well known in Dutch business circles, had just
become directeur (CEO) of one of the Netherlands’ biggest shipping lines,
the Koninklijke Nederlandsche Stoomvaart Maatschappij (KNSM), and
was to go on to become a major figure in his country’s finance and
commerce. His views no doubt reflected a wider appreciation, in both
metropolis and colony, of a transformation of the commercial nexus
between the Indies and Holland that had begun a decade or so earlier.7
Central to this transformation was a significant revival of Dutch interest
in the commodity trade between the colony and East Asian ports that
had been somewhat in abeyance during the mid-century decades. In par-
ticular, Heldring saw in a renewal of the ‘Asian connection’ (not a phrase
he himself used) a chance for Java’s colonial sugar industry to find new
markets to replace those that it was rapidly losing elsewhere.
The critical development here had to do with the crisis that shook
the international sugar economy in the mid-1880s. During the course
of 1884 the world price for industrially manufactured sugar effectively
collapsed. The going rate on the international market fell by as much
as 50 per cent in the course of a few months. A long period of secular
decline in prices and a worldwide crisis of ‘overproduction’ (exacerbated
by a singularly heavy sugar beet harvest in north-central Europe) created
turmoil in the international sugar economy. Many manufacturers, and a
good number of sugar traders, were faced with ruin. The situation of the
Java industry was no exception. Yet, all was not lost. Although the crisis
appeared set to destroy the island’s colonial sugar industry, it eventually
proved its salvation.
It is here that the orthodox chronology of the late colonial industry’s
history needs some revision. It has often been assumed that the ‘turning
point’ in the Java industry’s fortunes was the Brussels Sugar Convention
of 1903, which notionally brought an end to a situation in which beet
7 Heldring 1899. Part travelogue and part scenario for a revived trading connection in ‘the East’, the
book devoted an entire chapter (pp. 167-81) to the Java sugar industry. Ernst Heldring (1871-1954) was
directeur of the KNSM from 1899 to 1937, and subsequently CEO of the NHM (1939-1948).
19
| Commodities and colonialism
8 For a succinct, ‘revisionist’ discussion of the convention and its background, see Chalmin 1984. For
a discussion of the broader context of the Convention, see Crespo 2006.
9 See, for example, Korthals Altes 1991:17; Bakker 1989:58-9; Tio Poo Tjiang 1923:24-31.
10 Dickhoff 1912. The facts are solidly on his side: Java sugar exports stood at 359,036 MT in 1884
(up from 310,218 in 1883) and had risen to 863,802 in 1902. Production over the same period rose from
401,000 to 897,000. Following that, between 1902-1914 exports rose from 863,802 to 1,488,169 and
production rose from 897,000 to 1,405,000 (Creutzberg 1975:74-5).
20
Chapter 1 A new epoch |
prices turned out to be permanent – they would be able to enter new and
expanding markets. For reasons that will be discussed shortly, this indeed
turned out to be the case in Java. Prior to 1884, the island’s factory-made
sugar was simply too expensive for most Asian consumers – and for in-
dustrial refineries, like Taikoo, that were beginning to appear in Asia. It
could not compete successfully with the huge local output of ‘traditional’
handicraft sugar. Following the crisis, however, the situation was very dif-
ferent. Developments on the Hong Kong sugar market from the 1880s
onward are a prime case in point.
11 For a summary of sugar production in southern China and Formosa in the nineteenth century, see
Mazumdar 1998:338.
21
| Commodities and colonialism
raw sugar not only from China but also from the Philippine Islands,
Cochin China, the Straits Settlements and even from Java’.12
The sharp fall in the world price of centrifugal sugar in 1884-1885
changed all this. In Java, the immediate effect, as elsewhere, was to throw
the industry into a degree of financial chaos. Commercially, however, it
proved a real advantage, in so far as it made the product of the colony’s
industrialized factory sugar factories much more competitive on the
Hong Kong market. Exports from Java to Hong Kong, which had been
negligible before 1884, rose steeply. By the end of the 1880s, they ranged
between 62,000 and 87,400 MT, and by the middle of the next decade
they regularly amounted to 127,000 MT or more annually. In 1900 some
190,000 MT, or well over one quarter (27.4%) of Java’s total exports,
went to Hong Kong, then virtually the sole direct market in East Asia
for Java sugar.13
This growing import from Java quickly began to undercut local
handcrafted sugar on the Hong Kong market. Indeed, between 1884
and the end of the century, Shantou sugar was virtually squeezed out
of Hong Kong, and left to find what sales it could in Shanghai and the
Yangzi ports of the interior. The amount of Shantou sugar reaching
Hong Kong, which appears to have peaked in 1884 at some 25,700
MT, had fallen by the middle of the following decade to 600 MT or
less. Contemporaneously, Jardine’s closed down its refinery at Shantou
and concentrated its operations in Hong Kong.14 The difficulties of the
Shantou producers were compounded, moreover, by the very expansion
of sugar production in Java that the opening of the Hong Kong market
made possible.
The problem related to the escalating cost of fertilizer for their cane
fields, something to which the Java industry almost certainly made a
pronounced (albeit unquantifiable) contribution. Cane field fertilizer in
Shantou predominantly took the form of bean-cake (the residue left af-
ter the pressing of soya and other beans for oil) and was imported from
northern China. Bean cake, however, was also in increasing demand
for Java’s expanding cane fields, and growing trade in raw sugar from
the Netherlands Indies to Hong Kong meant that imports of Chinese
22
Chapter 1 A new epoch |
bean-cake into Java could benefit from relatively cheap freight on steam-
ers that would otherwise return with cargo space to spare. The price of
bean-cake in Shantou more than doubled in the decade after 1887, and
proportionally less of it was used, leading inevitably to declining yields.15
In short, the collapse in the world price for factory-made, centrifugal
sugar in the mid-1880s was something with ‘global’ reverberations: in the
case of southern China it impacted not only on the market for artisan
sugar, but also on the very conditions in which cane itself was produced.
Sugar refineries are places where raw sugar is reprocessed into a gener-
ally whiter, purer and more crystalline form of the commodity.16 This
involves it being melted down in hot water, and then subject to further
cleansing and bleaching before being returned to solid form. As such,
refining was central to the entire international sugar economy. In the
West, the emergence of refineries – in Amsterdam, London, and in the
proximity of other major ports in Northern Europe – had been virtually
contemporary with the arrival of raw brown sugars from the Caribbean
and elsewhere in the New World in the sixteenth and seventeen centuries.
Refining also had a long history in Asia, in the Indian subcontinent in
particular, as a way of transforming local supplies of crudely produced,
peasant-made sugar into a more palatable and commercially viable form.
Butterfield and Swire’s Taikoo refinery nonetheless represented a new (or
almost new) departure in the Asian context, not simply because of the
overseas source of its raw material but also – indeed primarily – because
of the scale and scope of its operations and the industrial character of its
methods. It was, quite simply, the largest of a new breed of large-scale,
15 On the importance of the trade in oil cake in China itself, where it was likewise heavily used on
cane fields in the south, see S. Brown 1981, inter alia, for the importance of the trade in oil cake from
soy beans from North China/Manchuria to South China where it is used primarily as a fertilizer on
cane fields. The main firms that imported Java sugar into China during this period, Butterfield & Swire
and Jardine Matheson, were both deeply involved in this trade, and in soybean pressing at factories on
the China Coast. They were presumably the channel through which the Java industry tapped into this
manufacture and trade in oil cake in East Asia, and it must have been the boats that took Java sugar to
Hong Kong that came back with oil-cake.
16 For a detailed description of sugar refining in the second half of the nineteenth century, see, for
example, Chalmin 1990:48.
23
| Commodities and colonialism
24
Chapter 1 A new epoch |
25
| Commodities and colonialism
said that in the 1880s, for instance, the cost of setting up there was ‘at
least 50,000 pounds sterling’.21 Not for the first time in the international
sugar economy, developments on the so-called ‘periphery’ outflanked
those at the ‘core’.
In return for their investment, Butterfield & Swire became the pos-
sessors of a state-of-the-art operation at Quarry Bay, on the then out-
skirts of the British colony. It was operated by a workforce of Chinese
‘coolies’ several thousand strong (the Havemeyer & Elder refinery in
Brooklyn employed around 2,000 people in the 1890s).22 Details as to
how this workforce was raised in the refinery’s early days are lacking. By
the early 1920s, however, Taikoo was provisioned by a Chinese labour-
contractor, one Jack A. Tai, and it may be assumed that some such ar-
rangement was also in force in the late nineteenth century.23 The great
refinery’s successful functioning, however, was also dependent on a staff
of around one hundred skilled Chinese technicians – fitters, mechanics
and the like24 – and on a group of largely expatriate Europeans, num-
bering about thirty at the beginning of the 1920s.25 When Taikoo had
begun operations some forty years earlier, a number of these expatriates
had been Germans – as indeed was the general manager and former
chief chemist, Dr Ferdinand Korn. The refinery’s owners, however,
were ‘inclined not to go in for too many Germans if we can secure really
reliable Britishers’.26 Not that such ‘Britishers’ were without fault: ‘I am
satisfied’, remarked one of the senior partners in 1889, ‘[that] Brown…
owes his inefficiency to self-indulgence in overeating and still more, I fear,
from overdrinking’, while commenting that another British expatriate
21 Chalmin 1990:51.
22 Precise information on the number of workers employed at Taikoo is currently lacking. The Have-
meyer figure for the 1890s is from Hertzfeld and Bartz 1893:364-5. Circa 1919, the New York refinery
was said to have 4,500 workers on the payroll (Postal 2007:9).
23 Butterfield & Swire Hong Kong (hereafter BSHK) to Butterfield & Swire London (hereafter Swire),
23-6-1922, ‘Refinery Letters 1922’, in: Papers of John Swire and Sons (hereafter JSS + relevant identify-
ing numbers from Elizabeth Hook, A guide to the papers of John Swire and Sons Ltd. London: The Library,
School of Oriental and African Studies, University of London, 1997) JSSI 1/1.
24 BSHK to Swire, 21-4-1922, ‘Refinery Letters 1922’, in: JSSI 1/1. The Chinese engineers formed
a guild at Taikoo, and early in 1922, had successfully threatened a walk-off in support of a sacked col-
league.
25 See, for example, Swire to BSHK, 9-11-1922 and BSHK to Swire 22-9-1922, ‘Refinery Letters
1922’, in: JSSI 1/1.
26 Scott to Mackintosh, 17-10-1890, in: JSSI 1/9.
26
Chapter 1 A new epoch |
was ‘a gambler without much principle, and with still less head, but may
be a smart clerk’.27
The enterprise over which these men had charge was powered by
a mighty set of steam boilers, whose consumption of coal – much of
it brought from Japan – amounted to nearly 2,000 MT per week at the
height of its late nineteenth-century operation.28 At its heavily indus-
trialized heart, Taikoo boasted a complex of machinery consisting of
filters and clarifiers, pressurized condensers, no less than five vacuum
pans (Havemeyer and Elder had six – one contemporary account speaks
of them as ‘kolossale’)29 and an extensive array of centrifuges. None of
its machinery was made locally and, as was also the case with Jardine’s
China Sugar Refinery, virtually everything was imported from leading
manufacturers in the United Kingdom.30 The tallest part of the refinery
was the filter house, built in brick, and at least nine stories high,31 making
it by far the highest building in late nineteenth-century Hong Kong. The
boiler house chimney was higher still. Havemeyer and Elder’s Brooklyn
refinery, rebuilt in brick and steel after a disastrous fire in 1882, ran to 13
stories, with a chimney that rose to over a 155 feet.32
Beyond bricks and mortar, of course, what counted in a refinery was
its ‘melt capacity’ (rather than sheer output which, given the nature of
the international sugar economy into which refineries fed, fluctuated
considerably). Taikoo began in the mid-1880s with a weekly capacity said
to be around 700 MT, but by the end of the century this had climbed to a
reported 4,500 MT, or some 640 MT per day.33 There is some evidence
that Havemeyer and Elder’s refinery had a daily melt capacity almost
27
| Commodities and colonialism
double that.34 Again, however, in some ways the more telling compari-
son is with metropolitan Europe: Taikoo’s late nineteenth-century melt
capacity appears to have been well over twice that of a large Parisian re-
finery of the day, and around six times greater than the average capacity
(760 MT per week) of contemporary Scottish refineries on the Clyde.35
Java’s colonial sugar factories had, of course, long been associated with
overseas refiners. Indeed, the refining of their sugar in Holland and sub-
sequently in the UK had been the mainstay of their business during the
middle decades of the nineteenth century. Until the 1880s, the bulk of
Java’s exports had gone to markets in the West. Initially, they went largely
to Amsterdam, where they fed refineries financed in part by the NHM,
the quasi-governmental corporation that played a big part in Java’s
mid-century sugar trade, and latterly to London.36 The appearance of
major sugar refineries in Hong Kong – and of Taikoo in particular – of-
fered important new possibilities. From soon after its inception, Taikoo
generally took the bulk of its raw sugar from the Java factories. Yet, the
consequence of this nexus between Java and Hong Kong was not what
might be supposed.
Notoriously, by the late nineteenth century colonial, or quasi-colonial,
producers of raw sugar found themselves in thrall to metropolitan or
other overseas refining interests. This was certainly the case in relation to
the great North American sugar refineries (with Havemeyer and Elders
very much to the fore) and the sugar producers of the (informal) United
States’ ‘sugar empire’ in the Caribbean.37 Java, however, was different.
Indeed, the island’s sugar business developed along quite unique lines
as far as the refining of its raw product was concerned. Although the
34 New colossal refinery 1883. Citing the local newspaper account in the Brooklyn Eagle for 30 July 1883,
however, Postal (2007:8) says ‘daily [melt] capacity was estimated to be 1,200 tons’.
35 For comparisons, see Chalmin 1990:49, 727 note 4.
36 In the mid-nineteenth century, Java sugar was sold primarily in Amsterdam to Dutch sugar refiners
(extensively financed by NHM), whose main markets were in the Mediterranean countries and England.
As late as 1873, some 90% of Java sugar was still shipped to Amsterdam for refining or re-export. By
1880 only 10% reached Amsterdam (Mansvelt 1924-26, II:198-9, 310-2).
37 See, for example, Ayala 1999.
28
Chapter 1 A new epoch |
29
| Commodities and colonialism
1989). According to Schmiedell (1924:9), Erdmann’s London correspondents were from 1876-1904 the
firm of Carl Schutze at 29 Mincing Lane; in 1918 Carl Schutze’s long-term partner A.J. Fuller set up
as A.J. Fuller & Co, and continued as Erdmann’s London Representatives. All these people were closely
connected at one time or another to Maclaine Watson.
40 BHSK to Maclaine Watson, Batavia, 15-7-1898, in: JSSI 2/8. Both Jardine’s Indo-China Steam
Ship Company and Swire’s China Navigation Company had steamers plying the route from Surabaya
to East Asia around the turn of the century, but only as part of a larger network of ad hoc, irregular sail-
ings. By 1910, however, most of the shipping was done by the Amsterdam-based Java-China-Japan line
(founded 1902), operating on contract to the two Hong Kong refineries (Brugmans 1952:40, 58, 80; À
Campo 2002:264-74). Within the course of the following decade, however, it were the newly established
Japanese shipping lines that came to dominate the trade.
41 See, for example, BSHK to Maclaine Watson, Batavia, 15-7-1898 and BSHK to Swire, 2-6-1897,
in: JSSI 2/8.
42 Korthals Altes 2004:201.
30
Chapter 1 A new epoch |
OTHC and its Kian Gwan affiliate were to be a major force in the
sugar business in Southeast and East Asia for decades to come. During
the first decade of the twentieth century, much of Kian Gwan’s sugar
export to East Asia was shipped on its own vessels, but in 1913 it sold
them to a Japanese concern and concentrated its maritime activities
within the Indonesian archipelago. At a slightly later date, moreover, the
Semarang-based KHT also came to play a major part in Java’s sugar
trade to Hong Kong and other East Asian ports. In short, by the second
decade of the twentieth century Java sugar’s position in East Asian com-
mercial circuits was dependent to a marked degree on the involvement
of a number of big Indies-Chinese as well as colonial European firms. As
we shall see, it was the colony’s Chinese firms, pre-eminently OTHC and
KHT, rather than European firms, that played the key role in the crucial
43 On the history of these firms, and their Japanese links discussed in the following paragraphs, see
Post 1995, 2002; Liem Tjwan Ling 1989; Dick 1993; Claver 2006:292-350; Man-Houng Lin 2001.
44 For details of the Indies-Chinese stake in sugar manufacturing, see Chapter 4.
31
| Commodities and colonialism
nexus between Java’s sugar industry and the big Japanese refineries that
cemented Java’s Asian connection.
32
Chapter 1 A new epoch |
Early versions of factory white were apt to look and taste rather nasty,
and hence were most widely used by the manufacturers of jam (conserves)
and confectionary, where their shortcomings could easily be disguised.
New or perfected techniques, notably the so-called carbonation process,
improved both its taste and appearance,47 and by the 1870s, particularly
in Imperial Germany and Austria-Hungary, the beet industry’s ‘“white
sugar mills” were producing granulated and cube forms of the product
which were [in contemporary parlance] well received by consumers’.48
By the close of the nineteenth century, large quantities of factory white
produced by the carbonation method in European beet factories were
finding their way into world trade – and onto Asian markets in particular.
Factory white, however, took many forms, and it was another version
pioneered, it would seem, by Indian Ocean producers on the island of
Mauritius, that played an important part in its development as a com-
modity that found a large market in Asia, particularly in the Indian
subcontinent. Anxious to sustain and expand their sales in the Indian
subcontinent (European markets had by this time been largely lost to
them), around the middle of the century, Mauritian sugar manufactur-
ers had created or perfected a version of factory white designed to allay
the (often well-founded) fears of Hindu Indians that bone charcoal and
other by-products of the killing of cattle were used overseas in whiten-
ing sugar.49 The Mauritian version was based on various permutations
of a long-understood principle of using sulphurous acid to bleach raw
sugar during the course of its production, and became the basis for large
exports to the Indian subcontinent and (initially) Australia.50 By the clos-
ing decades of the century, however, it experienced strong competition
in its main Asian market from factory white imported, initially, from the
beet sugar industries of Central Europe – where circa 1900 many facto-
ries were given over, largely or entirely, to the production of this Weisse
Waare.51 Nonetheless, there can be little doubt that, over the preceding
decades, Mauritian output of factory white had been the crucial factor
47 For a brief description of the technique and its origins, see Martineau 1910:56-62.
48 Perkins and Munting 1999:163.
49 There existed a ‘common notion of a sugar factory “as a place of horror [...] where unspeakable
orgies were celebrated with the blood and bone of the sacred cow”’ (Amin 1984:104).
50 On this process, see Deerr 1949-50, II:579-80; North Coombes 1937:129-33; Warnford Lock,
Wigner and Harland 1882:218-23.
51 Around 1900 some 43 of the Austro-Hungarian factories are already fitted up to produce factory
white (Prinsen Geerligs 1904a:1328).
33
| Commodities and colonialism
52 Sugar from Mauritius continued to find its way to the Indian market in significant quantities, but its
market share was declining. By 1920 it accounted for less than 16% (Prinsen Geerligs 1924:94).
53 On China in particular, see Mazumdar 1998:13-59; on early Asian sugar production in general, see,
for example, Galloway 1989:11-27.
34
Chapter 1 A new epoch |
35
| Commodities and colonialism
36
Chapter 1 A new epoch |
century source expressed the matter: ‘the poorer classes are exceedingly
fond of it, and with wages rising steadily as they are doing, the Cooly can
afford to treat himself and his family to more and more of the mawkish
decoctions and confections in which gur plays a leading part’.61 Factory
white does, however, appear to have eventually made big inroads into
the market for khand. It looks as if, initially at least, some of the various
forms of factory white encountered cultural taboos on account of the
suspicion, probably justified, that bone charcoal was used in its prepara-
tion (which is why the Mauritius producers, as we have seen, strove to
produce a form of the commodity than did not suffer from this taint).
Possibly because of this, factory white apparently found an important
market among the urban deracinated – people who may have had fewer
qualms about the extent to which the new product potentially came into
conflict with cultural taboos. One report from Bombay in the 1890s,
for example, identified a prime market for factory white among the mill
hands and other industrial workers, who consumed it in tea and coffee
on a daily basis. More generally, however, cultural taboos did not pre-
vent the use by confectioners of ‘suspect’ foreign sugar to adulterate the
‘clean’ indigenous product. All in all, it was no accident that, as imported
factory white began to take a firm hold on the subcontinent, khand pro-
duction went into a pronounced decline. Inter alia, its producers had to
struggle against cheap imports.62
In the wake of the crisis of 1884 and the steep decline in the price of
industrially manufactured sugar that it heralded, the subcontinent’s
markets became a magnet for industrially manufactured sugar from
producers worldwide: according to one authority, in these circumstances,
‘imports of foreign sugar, especially beet sugar, registered a phenomenal
increase’.63 Initially, as we have seen, this sugar came from Mauritius. By
the closing decades of the century, however, a different kind of factory
37
| Commodities and colonialism
38
Chapter 1 A new epoch |
of Java’,64 and between that date and 1905, on average some 47 per cent
of Java’s sugar exports went to the United States.65
The situation was, of course, too good to last. One close observer had
predicted back in 1899 that Cuba would soon oust Java from its share of
the North American market, and had recommended that Dutch capital-
ists set up a sugar refinery in Shanghai to process Java’s output on site
in what he assumed would be its major market.66 The prediction proved
to be correct. Once re-investment and preferential duties in the United
States got Cuba’s industry re-started after 1900, Java’s temporary ad-
vantage evaporated. By 1908, Cuba was again out-producing the Dutch
colony and a combination of discriminatory tariffs and competition from
beet sugar meant that by the eve of the First World War, Java had been
largely excluded from markets throughout the West – and not just those
in Europe. It was also well on the way to losing its previous, substantial
market share in the Australian colonies to its south. Instead, the industry
had come to rely pre-eminently on the Asian connection, in what sugar
company executives were coming increasingly to refer to as ‘ons natuurlijke
afzetgebied’ (our natural outlet).67
64 See the anonymous correspondent quoted in The International Sugar Journal 1 (1898), p. 435.
65 See Appendix 2. Main export destinations Java sugar, circa 1880-1940.
66 Heldring 1899:70.
67 For a late instance of this usage, see for example, Jaarverslag NIVAS 1935-1936 (4), p. 23, in: NA,
NIVAS, 2.20.09.03, inv. nr. 10.
68 Wellenstein (1932:18) refers to some kind of factory white having been manufactured at the Ka-
dipaten and Djatiwangi sugar factories in Cirebon Residency, West Java, sometime in the 1890s, and
bought by Indies-Chinese dealers who sold it in both Java and the ‘Outer Islands’. Some confirmation
of this comes from the Kadipaten factory’s own surviving archive, where there is a specific reference
(1894) to the making of ‘Witte Suiker’ [White Sugar] there, in the context of the hope that other sugar
factories will not follow suit. See T. van der Ben to J. de Vogel, 20-11-1894 (fragment), in: NA, Cultuur
39
| Commodities and colonialism
40
Chapter 1 A new epoch |
41
| Commodities and colonialism
Initially, as we have seen, Java’s raw sugar found its prime Asian outlet in
the refineries of Hong Kong. By the end of the century, however, the is-
land’s colonial sugar factories had also begun to supply newly established
refineries in Japan, in a development that was destined to dominate the
industry’s late colonial history. Until the last quarter of the nineteenth
century, Japan figured somewhere near the margins of the intra-Asian
commodity trade in sugar. From the 1880s onward, this situation changed
dramatically. There had been a notable growth in imports of primitively
manufactured, pre-industrial sugar into Japan, circa 1870, initially from
southern China, but subsequently from Formosa. Imported refined
sugar, increasingly derived from industrially manufactured raw material
from Java itself, started to penetrate this market during the 1880s.
Japanese imports of sugar, which had quadrupled in little over ten
years, peaked around the end of the century, and were supplied pri-
marily by the Hong Kong refineries and (largely as factory white) by
the beet sugar industries of Imperial Germany and Austria-Hungary.79
Predominantly, these imports were consumed by Japan’s new urban
77 Jaarverslag Factorij 1911, pp. 22-3 and Jaarverslag Factorij 1912, p. 32, in: NA, NHM, 2.20.01, inv.
nr. 4555.
78 Albert and Graves 1984:6.
79 See the trade statistics reproduced in Kraaij 1903:3. Total Japanese imports of sugar rose from
1,207,217 picul in 1889 to 4,928,075 picul in 1901. In the latter year, some 1,473,612 picul was supplied
from Hong Kong, 1,192,828 picul from Germany and 560,850 picul from Austria-Hungary.
42
Chapter 1 A new epoch |
middle classes, a reflection of the fact that this type of sugar was sig-
nificantly more expensive than the crude, non-refined sugar imported
from either Formosa or the Philippines.80 By 1897, Japanese per capita
consumption of sugar had doubled, within less than a decade, to a little
less than 5 kilo per capita, and continued to rise thereafter.81 It comes
as no surprise, therefore, to find that Japan was viewed as a highly im-
portant, and certainly potentially most lucrative, market in East Asia at
the end of the nineteenth century. In the early 1890s, the Hong Kong
refineries provided around 50 per cent of Japan’s imports, and supplying
the Japanese market had become the main business of both Swire’s and
Jardine’s refineries. Unrefined sugar also came in from Formosa, and
certain varieties of its raw, brown sugar (there was no industrial produc-
tion in Formosa at this time) was much prized on the Japanese market.82
From the 1880s onward, moreover, Japan’s burgeoning sugar con-
sumption had come to attract the attention of the zaibatsu, the big indus-
trial-financial-commercial conglomerates that were indelibly associated
with Japan’s late nineteenth-century advance in economic ‘modernity’.
As early as 1896, it was reported from Hong Kong that a Japanese syndi-
cate ‘has already sent its emissaries to Europe to study the best methods
for plant etc’.83 A couple of refineries were quickly established, one at
Osaka and the other in Tokyo, with more to follow.84 The Osaka refinery
had German-built equipment and was said to be capable of producing
100 MT of refined sugar per day.85 These refineries quickly came to be
designated as ‘a troublesome competitor’ by their British counterparts
in Hong Kong,86 who previously had the East Asian market for refined
sugar very largely to themselves. Indeed, plans were mooted (though
43
| Commodities and colonialism
44
Chapter 1 A new epoch |
45
| Commodities and colonialism
46
Chapter 1 A new epoch |
Throughout the 1920s, the great bulk of Java’s sugar sales, representing
about 90 per cent of the colony’s total export production, were carried
out through the Vereenigde Javasuiker Producenten (VJSP, United Java
Sugar Producers Association), a cartel of manufacturers established
in 1918.101 On the basis of the VJSP’s extensive surviving data, it can
be shown that, on average, in the ten-year period prior to the sud-
den termination of large Japanese purchases of Java sugar in 1928,
around one-third of the cartel’s sales were made direct to Japanese buy-
ers, particularly Suzuki and Mitsui.102 During these years, on average
Japanese purchases of Java sugar fell only a little short of those made by
the colony’s long-established European ‘sugar’ firms, principally Fraser
100 For this section of the chapter, I have drawn heavily on the analysis provided by Post 1991, 1993.
101 The VJSP cartel embraced 160 of a total of 186 Java factories operating circa 1919, and purchases
made through its agency under-represent total Java sales by around 10%. On the VJSP, see Taselaar
1998:107; Tio Poo Tjiang 1923:50.
102 Together, the sugar purchased by Suzuki and Mitsui amounted in 1921 to 258,485 MT, worth
61,791,301 guilders, or more than 16% of the total value of sugar sold by VJSP in 1921. The relevant
data are to be found in the Annual Reports (Jaarverslagen) of the VJSP for the years 1918-1932, in: NA,
Vereniging Verenigde Java-Suiker Producenten (VJSP), 1918-1938, toegangsnummer 2.20.09.02, inv.
nrs. 5-18.
47
| Commodities and colonialism
Eaton (part of the Maclaine Watson group), Erdmann & Sielcken, and
Wellenstein Krause.103 Indeed, in some few years – 1922-1923 and
1926-1927 – Japanese firms bought substantially more sugar than their
colonial-based European counterparts.
Yet, the importance of Japan to the Java sugar industry was not sim-
ply that it bought large quantities of sugar. Japanese interests were also
prominent in the financing of the sugar trade over and above the direct
purchase of the commodity.104 In 1921, for example, just over half of
the sugar sold by the VJSP, to the value of nearly 178,600,000 guilders,
was disposed of against guarantees (that is, under arrangements ‘waar-
voor zekerheid moest worden verlangd’) provided by banks and other financial
institutions. In all, ten such businesses were involved, but six of them led
the field by a wide margin.
Ranked in order of importance – measured in terms of guilder value
of their investment – the foremost of these six key financiers was the
Indies’ own premier financial provider, the Batavia-based De Javasche
Bank (DJB), closely followed by the Bank voor Indië, established in
Rotterdam only a year earlier.105 Next, however, were two Japanese
businesses. One was the Taiwan Ginko (Bank of Taiwan, BOT), the
quasi-official, central bank of the Japanese colony. Founded at the very
end of the nineteenth century to facilitate the penetration of Japanese
capital into mainland China and Southeast Asia, by the early twentieth
century it had several branches in the Netherlands Indies. The other was
the Yokohama Specie Bank, the institution that in the early twentieth
century financed the bulk of Japan’s foreign trade.106 The remaining
European member of the ‘big six’, the Batavia Branch Office (the Factorij)
of the Amsterdam-based NHM, the biggest investment and banking
concern operating in the Indies, ranked at number five, only slightly
103 Something of the history of these firms can be gleaned from their respective ‘commemorative
volumes’: Wellenstein 1932; Schmiedell 1924; First hundred years 1927.
104 The data on which this and the following paragraph are based come from Jaarverslag VJSP 1921,
p. 27, in:
NA, VJSP, 2.20.09.02, inv. nr. 7, and from Jaarverslag VJSP 1925: [nota] ‘Aan de Commissie van Ver-
tegenwoordigers der VJSP’, 27-2-1925, in: NA, VJSP, 2.20.09.02, inv. nr. 11. The notable absentee
from the ranks of guarantors in 1925-1926 (given the earlier collapse of the Bank voor Indië) was DJB.
105 On DJB, see Claver 2006. On the Bank voor Indië, see Taselaar 1998:57. The Bank had been set
up in 1920 by the Rotterdamsche Bankvereeniging (Robaver) and was liquidated with the collapse of the
Robaver in 1924 – victim of a more general banking crisis in the Netherlands in the first half of the 1920s.
106 On the Bank of Taiwan and, more generally, the role of Formosa in the development of Japanese
financial and commercial ties with Southeast Asia, see Schneider 1998:170-2.
48
Chapter 1 A new epoch |
In assessing the full extent of Japan’s position in the trade in Java sugar,
the large sugar purchases of Java’s Indies-Chinese firms also have to be
taken into account.107 Along with the Japanese and colonial European
firms engaged in the trade in Java sugar in the 1920s, Indies-Chinese
business concerns also played a significant role, presaging their larger
and later role as Asian ‘multinationals’. From the point of view of the
present analysis, however, the immediate point is the extent to which, in
the 1920s and earlier, they drew on Japanese capital to underpin their
ventures in the Java sugar business. In total, Indonesian-Chinese pur-
chasers of Java sugar accounted for a little less than one-third of all the
sugar sold by the VJSP in 1921, and many small dealers were involved,
most of whom appear to have been engaged in the speculative re-sale of
sugar in Java itself. Though there were a plethora of such firms, only two
stood out as consistent and large-scale participants.
It was KHT and Kian Gwan (see above), however, which bought the
bulk of the sugar sold by the VJSP to Indies-Chinese buyers. Both firms
had long-term links with Japanese capital. Kwik Djoen Eng, who master-
107 Already circa 1900 it was reported that most Java sugar was imported into China (as distinct from
Hong Kong) by two Hong Kong-based Chinese firms with branches in Java at Surabaya and Semarang
respectively, and that the two firms worked closely together. See Corsten (1900:339), who identifies the
firms as Kwong Sing Chang and Kwong Hop. The firms’ offices were, respectively, in Hillier St and Bon-
ham St, Hong Kong. It is not clear from this source who their Java connections were, but Kian and Gwan
and Ho Bin seem the most likely candidates. For confirmation that in Hong Kong, ‘Chineese importeurs
sedert vele jaren in relatie met Chineezen in Semarang en Soerabaia zijn’, see also Jaarverslag NHM
Agentschap Shanghai 1906, pp. 3-4, in: NA, NHM, 2.20.01, inv. nr. 5168. They were said to ship Java
sugar to ‘Chinese ports’ and to Japan, and also to sell to the refineries there. At this date, there was almost
no Java sugar imported directly to Shanghai, the gateway not only to the Yangtze valley but also to the
whole of north China. When direct trade did begin a few years later, it was again quickly dominated by
‘Chinese’ firms with strong Java connections.
49
| Commodities and colonialism
minded KHT from the 1910s until its collapse in the 1930s, had major
interests on Formosa, where he owned a tea-export company – and had
close links with the Bank of Taiwan that dated back to the period of
its foundation in the early years of the century. Indeed, it was in what
was then Formosa that he died in 1935. Kian Gwan’s commercial pro-
file showed some similar traits. Early in the twentieth century, the firm
had opened a branch in Kobe, in addition to those in Hong Kong and
Shanghai. Oei Tiong Ham, the head of the conglomerate of which Kian
Gwan was a part, had close contacts with Japanese capital. He worked
hard to promote collaboration between Chinese and Japanese traders
and to mitigate the impact in the Netherlands Indies of anti-Japanese
commercial boycotts. Close and early ties to the Bank of Taiwan were
also part of his business profile, and like Kwik Djoen Eng, he had a
Japanese passport (and hence dual citizenship in the Netherlands Indies),
in consideration of his standing in East Asia in general and Formosa in
particular.
The extent to which KHT’s and Kian Gwan’s operations were fi-
nanced by Japanese capital is difficult to say, and other sources were also
involved. It rather looks, for example, as if DJB was the major creditor
of KHT.108 Nonetheless, this hardly detracts from the conclusion that
for the better part of a decade, prior to 1927, Japanese capital, either
directly or indirectly, through Japanese businesses and banks and through
their links with the colony’s Indies-Chinese ‘multinationals’, accounted
for the greater part of Java’s export trade in sugar.
Between 1907 and 1914 the recorded output of sugar produced world-
wide increased by more than one-third. As far as the international
sugar economy was concerned, the age of mass production had indeed
arrived. Java had advanced into the new era as the prime supplier of
industrially manufactured, ‘centrifugal’ sugar to expanding Asian mar-
kets, and by the eve of the First World War, Java’s sales elsewhere in Asia
had become the bedrock of the industry. The context, however, was one
in which (in 1908) the revived Cuba industry had overtaken the Dutch
50
Chapter 1 A new epoch |
colony in terms of gross output, and resumed the position of the world’s
largest single producer of cane sugar from which it had been temporar-
ily dislodged by war and revolution during the previous decade. Java,
meanwhile (1907-1914), was ousted from its markets in ‘the West’, so
that – albeit exceptionally – it could be remarked that in 1913 ‘not a sack’
of its output penetrated ‘west of Suez’.109 Despite an interlude during
the War itself, when large quantities of Java sugar went to the United
Kingdom to make up for the deficit in its supplies of the commodity con-
sequent on the severing of commercial ties with Imperial Germany (its
biggest supplier in 1914), this continued to be the case through until the
early 1930s. Around 1890, despite significant increases in recent years,
only 25 per cent of Java’s sugar exports went to Asian destinations. By
1900 some 38 per cent of its output was sold in Asia, and a decade later
this figure had risen to more than 72 per cent, the main customers being
British India (38.5% of total exports), Hong Kong (17.6%) and Japan
(10.5%).110 The trend continued into the 1920s, by which time 85 per
cent or more of Java’s sugar – both in its raw state and as factory white
– to Asian markets. Prior to 1914, Java’s position in Asian markets had
been under challenge from the beet sugar producers of Central Europe.
This challenge collapsed, however, once the war had broken out, and
was not resumed thereafter.
The upshot was that, until late in the 1920s, Java sugar enjoyed an
unprecedented degree of hegemony in both South and East Asia – and
at various points in between. Then, rather suddenly, the bedrock on
which the industry’s Asian connection stood was rent asunder, most im-
mediately and quite literally by an earthquake. The subsequent collapse
of the Asian connection, and its ramifications for the history of sugar
production in late colonial and postcolonial Java, will be discussed later
in the book. What we will now turn to is how the Java sugar factories
of the late nineteenth and early twentieth centuries succeeded in ramp-
ing up production to meet the requirements of newly opened markets
elsewhere in Asia – and the difficulties that they encountered in doing so.
51
Chapter 2
A precocious appetite
A few years before the outbreak of the First World War, the newly es-
tablished International Institute for Agriculture in Rome (the precursor
of the present-day Food and Agriculture Organization of the United
Nations) began collecting data on the production and use worldwide of
chemical fertilizers. Its findings still have the power to astonish. They
reveal that ‘little’ Java, with an area of no more than 125,500 square
kilometres, considerable tracts of which are volcanic slopes inhospitable
to most forms of agriculture, was nonetheless the seventh in rank among
international consumers of sulphate of ammonia.1 The great bulk of
this nitrogenous fertilizer was consumed in the West, where its main
producers were almost exclusively located. In this context, Java’s con-
sumption of some 68,000 MT, or around one-twentieth of the world’s
total, was phenomenal in global terms. Indeed, outside the West only
Japan (115,000 MT) had a higher recorded consumption than Java.2 In
Java, unlike Japan (where it appears to have been expended on a variety
of agricultural pursuits), such consumption had everything to do with
sugar and the island’s role as one of the world’s greatest producers of
the industrially manufactured form of that commodity. It reflected the
development in Java sugar of an agro-industry in the field of a unique
and remarkable kind. Inter alia, it was characterized by a quite extraor-
dinary degree of attention given to the agriculture of cane, manifested in
1 On the international production of, and trade in, sulphate of ammonia between 1907 and 1916,
see Statistique agricole 1917:790-1, 822-3. For a contemporary discussion of this evidence and its relation
to Java, see Milo 1911; Wereldproductie kunstmeststoffen 1913; Van de Leemkolk 1915.
2 Total recorded world consumption in 1913 amounted to 1,286,757 MT. Germany accounted for
nearly 36% (460,000), the United States for nearly 21% (266,850) and France for 7.5% (97,000). Else-
where in the ‘Third World’, Egypt accounted for a very modest 1,650 MT and the Indian Ocean island
of Mauritius was importing 5,000 MT annually by 1913 (Van de Leemkolk 1915:111; Statistique agricole
1917:829).
| Commodities and colonialism
By the early twentieth century, the two island-producers, Java and Cuba,
shared a position at the apex of the international sugar economy as the
world’s two largest exporters of cane sugar. However, the differences
between the two – and between Java and most other major sectors of
the international sugar economy – were considerable. This was reflected
most obviously in the contrast in scale: Java’s units of production (or, at
least, the great majority of them) were and remained small in compari-
son to those of its Caribbean counterpart. They were, on average, less
54
Chapter 2 A precocious appetite |
than half the size – measured in terms of annual output per unit – of
those of Cuba (though roughly on a par with those in the much smaller
industries of the Philippines, Taiwan and Hawaii).3 Comparisons be-
tween Java and other industries in the Asia-Pacific region hardly mat-
tered: they supplied almost exclusively protected metropolitan markets
and in no way rivalled the Dutch colony. Comparisons with Cuba, on the
other hand, mattered a great deal: both islands were heavily reliant on
international sales, Java virtually exclusively so, and although Cuba was
advantaged by a favourable tariff in the United States, its sugar factories
still saw themselves as competing with Java on a ‘world’ market.
Of course, part of the explanation for the differences in the sheer
size of their operations lay in differences in the agricultural-agrarian set-
ting. Unlike Cuba, in Java there was simply not enough land available,
on so densely populated an island, for the creation of massive units of
production. Even so, it is possible to make too much of this point. Along
with the enhancement of soil fertility, and the securing thereby of greatly
increased per hectare yields, went a determination by Java’s sugar com-
panies to engross ever more land.4
Against a variety of odds, and assisted not a little by vast irrigation
and drainage schemes inaugurated by the Indies government late in
the nineteenth century with a view to alleviating Java’s deficit of arable
land, between 1880 and 1930 the sugar industry was able to achieve
something approaching a six-fold increase in the area covered by their
operations. Overall, the total amount of land brought annually under
cane in Java rose from 34,500 hectares in 1880 to 147,500 hectares in
1914.5 By the end of the 1920s, at the height of the industry’s expansion,
it was nearly 200,000 hectares.
55
| Commodities and colonialism
6 See, for example, the technological progress (mostly installation of ‘multiple effect’) made in the
major ‘sugar belt’ along the north coast of Central Java prior to 1884, as listed in Koloniaal verslag 1875-
1882; this listing stops in 1882 and in any event is demonstrably incomplete prior to that date. Addition-
ally, see Jaarverslag Nederlandsch-Indische Handelsbank 1882, p. 10, in: NA, Nederlandsch-Indische
Handelsbank/Nationale Handelsbank, nummer toegang 2.20.68, inv. nr. 263; Jaarverslag NHM Factorij
Batavia 1882 [57], p. 49; 1883 [58], pp. 51-2, in: NA, NHM, 2.20.01, inv. nr. 4552; ‘Overzicht van de
installatie van Wonopringgo’, circa 1905, in: NA, NHM, 2.20.01, inv. nr. 7999, file 593 Wonopringgo;
Deerr 1949-50, II:571.
7 See [S.C. Musschenbroek], ‘Schema tot een combinatie der ondernemingen Tjomal, Bandjardawa
en Sragie tot een naamlooze vennootschap’, 20-7-1894, in: NA, NV Maatschappij tot Exploitatie van
de Suikeronderneming Tjomal, 1872-1971, toegangsnummer 2.20.39, inv. nr. 60. One of the great
advantages mentioned was that ‘men zal in de geheele streek een veel grotere macht gaan uitoefenen, en
zoo noodig met meer success de loonstandard kunnen verlagen tot het laagste mogelijk peil, waarvoor de
bevolking zou kunnen en willen werken’.
56
Chapter 2 A precocious appetite |
57
| Commodities and colonialism
The key to developments in the cane field was the direct farming of cane.
In essence, this was a set of arrangements whereby the sugar factories
themselves took charge of even the smallest detail of how their raw
material was cultivated, and did so through close supervision carried
out by their own employees. Direct farming had not been typical of the
foundational stages of the industry’s history in the middle decades of the
nineteenth century. Previously – during the era of the Cultuurstelsel – the
‘plantation’ had consisted of assemblages of fields where peasant cultiva-
tors grew cane under the supervision of village headmen and state of-
ficials. Notionally, at least, the factory had no involvement until the cane
was ripe and ready to be harvested. Famously, the Cultuurstelsel had been
based on an organizational dichotomy that left local-level state officials,
working in tandem with village headmen, in charge of the agricultural
sector. Though some mid-century manufacturers did indeed contrive to
influence what went on in the cane field, well in advance of the cam-
paign itself, the formal arrangement prevailing under the Cultuurstelsel
created what many came to argue was a disabling divide between factory
and plantation.
Late in the nineteenth century, however, all this changed, and direct
farming became the order of the day. Developments associated with the
58
Chapter 2 A precocious appetite |
10 Creutzberg 1975:74.
11 The classic account is in Selosoemardjan 1962:258. For a rather more nuanced (and richly docu-
mented) version of the relations of production prevailing on the European-held ‘estates’ in the Vorsten-
landen, see Margana 2007.
59
| Commodities and colonialism
Direct farming brought the sugar companies and their local manag-
ers into contact with the landholding peasantry as never before. There
evolved in the countryside a web of often nefarious practices for ensuring
that the factories obtained the land they needed. From the end of the
1890s, government regulation determined precisely how much land any
given factory could acquire for cane at any given time, and set a minimal
rental for the land that was acquired in this way. Beyond that, the sugar
companies played fast and loose to get access to land for rental and to the
irrigation water during the dry season on which the success of cane ag-
riculture depended. It was also the industry’s good fortune – a stroke of
luck, so it would seem – that in the late 1880s and 1890s the ‘stubbornly
low price of rice’,12 as one leading historian has referred to it, acted to
12 Elson 1984:140. Creutzberg (1978:44) shows (July) rice prices at Batavia ranged between about 10.6
to 13.5 guilders per quintal in the period 1872-1882 (inclusive), whereas between 1883 and 1910 they
ranged as low as 6.3 guilders, and on only four occasions (marginally) exceeded 10 guilders per quintal.
In terms of what was going on in rural Java in the 1880s and 1890s, however, explanations of this kind
are not quite as straightforward as they might seem. In particular, the price of rice remains a contentious
issue. The most immediate objection is that the ‘price’ of rice as we know it for the closing decades of the
nineteenth century is seriously defective, in so far as it is based on the bulk purchase of rice in quantities
– and qualities – which differed greatly from those in which it was normally traded in Java’s often still iso-
lated localities. Rice was so various a crop, moreover, that, in late nineteenth-century conditions at least,
it should not be given a homogenized price: there were just too many different varieties and markets.
Furthermore, it can be argued that the amount of Java’s vast rice production that was actually traded,
at least for cash, was so miniscule as to invalidate assumptions about economic conditions predicated on
the ‘price’ of rice. This is essentially Creutzberg’s point (1978:19) when he remarks that, ‘Compared with
total home production, imports of rice covered only a small part of total consumption. The influence
of foreign rice on the market in Indonesia can therefore rightly be questioned.’ At the same time, how-
ever, it also can be argued that just because the amount of traded rice was so small relative to Java’s total
production, its price was susceptible to the impact of ‘cheap’ rice from overseas. Given these problems, it
60
Chapter 2 A precocious appetite |
hold down, or to drive down, the cost of rentals to levels that matched
the industry’s need to produce a far cheaper product than had been the
case in the halcyon days before the crisis of 1884.
The Wonopringgo sugar factory in the Pekalongan Residency on
the north coast of Central Java is a case in point. Wonopringgo was a
medium to large factory, well equipped, and owned and managed by
the NHM, still the colony’s largest Western enterprise at the end of the
nineteenth century and possessed of considerable holdings in sugar.
Reasonably detailed breakdowns of the costs of production exist for
Wonopringgo from the mid-1880s onward.13 They show that for much
of the 1880s and 1890s, the factory’s gross production costs per hectare
of plantation remained fairly constant, except for a significant dip in
the late 1890s that was subsequently ‘rectified’ early in the new century.
What did not remain at all constant, however, was the output of sugar-
cane per hectare. Leaving aside one or two ‘poor’ years (almost certainly
accounted for by climatic factors), plantation yields appear almost to
have doubled in the twenty-five years between 1880 and 1905. Given
some difficulty with the data for the beginning of that period, this cal-
culation may be on the high side. Nonetheless, the considerable increase
that undoubtedly took place was all the more remarkable because it oc-
curred at a time when the factory was expanding its operation into areas
that would not earlier have been judged as best suited to cane.
Since these greatly improved plantation yields were adequately re-
flected in Wonopringgo’s output of sugar, they provide the key explana-
tion of why, despite the much reduced world price of the commodity,
Wonopringgo remained (except in some very few years) a profitable ven-
ture for the NHM. In attempting to explain this substantially increased
productivity in the field, two explanations stand out. The first – already
well rehearsed earlier in this chapter – relates to the significantly in-
creased use of (chemical) fertiliser. The second relates to the ready avail-
ability of labour at a cost low enough to make its employment feasible.
The two are complimentary and, indeed, closely associated. Low wages
were the sine qua non of a fertiliser programme predicated on massive
amounts of manual labour. The per hectare cost of labour as a percent-
might be wise to eschew any too enthusiastic a connection between the low ‘price’ of rice and the sugar
industry’s capacity for subordinating Java’s rural resources. At the same time, however, some connection
seems inescapable. The argument is about how much explanatory weight it will bear.
13 NA, NHM, 2.20.01, inv. nrs 7945, 7999 dossier 593.
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| Commodities and colonialism
62
Chapter 2 A precocious appetite |
From the 1880s onward Java sugar participated, well ahead of most of
its international counterparts, in a wave of agricultural innovation that
transformed agriculture into a manufacturing industry in its own right.
Commercially manufactured inputs, principally of chemical fertilizer
and feedstuffs, came to play an essential role in securing what became
in consequence a manufactured (rather than simply extractive) output.
Although usually dated in Western Europe and North America from the
mid-nineteenth century, it also had a global reach.14 It was central to
developments in Java sugar.
Industrially manufactured, chemical fertilizers began to be a signifi-
cant force in agriculture in Western Europe and the United States from
around the mid-nineteenth century onward. Initially, many of them were
of dubious quality and of doubtful efficacy. From the 1870s onward,
however, and in tandem with falls in international freight rates, consis-
tent, reputable chemical fertilizers with a predominantly phosphate or
nitrogen base began to be developed by major producers in the West.15
These producers had an eye on both their own and specifically colonial
markets. Characteristically, a pamphlet of the 1890s advertising Cross’s
Celebrated Fertilisers – the firm’s Port Dundas works in Glasgow was
claimed to be ‘among the most extensive in the world’ – made specific
reference to their products for ‘Sugar-cane, Tobacco, Coffee etc’ and
their widespread ‘Agencies in the Colonies’.16
The Java sugar industry’s fertilizer of choice, sulphate of ammonia
– zwavelzure ammoniak, or ZA, to use its standard Dutch acronym – was a
rather special case. Originally a by-product of the gas works and coke-
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| Commodities and colonialism
17 Smil 2001:48-50.
18 Thompson 2000:1035; Perkins 1981.
19 See Boengkil 1917. Boengkil (1917) specifically mentions kacang bungkil, kaliki bungkil and kapokpitten
bungkil, the first of which has the highest nitrogen content.
20 The late nineteenth-century Indies’ agricultural expert K.W. van Gorkom (1879) cited late eigh-
teenth-century sources on the considerable quantities of animal manure and kacang koeken then used on
sugar cane in the Batavia Ommelanden.
21 For a pointed critique of simple diffusionist notions in relation to cane propagation in nineteenth-
and twentieth-century Mauritius, see Storey 1997:1-3.
22 McCook 2002:4-6.
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Chapter 2 A precocious appetite |
From the 1880s onward, the use of fertilizer of all kinds is widely
evidenced in the Java industry.23 Imported guano, perhaps the richest
single source of organic nitrogen, was one possibility, but a sharp and
permanent rise in its price a couple of decades earlier (together with
doubts about its efficacy on cane) limited its use.24 Nonetheless, it would
probably have been among the constituents of proprietary fertilizers
such as ‘Salomonson’s suikermest [Sugar manure]’, exported to Java by the
Netherlands firm of that name.25 Salomonson’s was the fertilizer touted,
for instance, by the aggressively ‘modern’ entrepreneur – he evidently
saw himself in precisely those terms – D.J. Jut, who was the owner of the
new Soeko Dhono sugar factory in East Java.
Hailed within industry circles as a pioneer, Jut neatly bridged the
potential gap between metropolitan big business and Indies-based enter-
prises. As well as being co-owner of Soeko Dhono, he was employed from
1881 as inspecteur van suikerondernemingen (inspector of sugar enterprises) by
the Batavia factorij of the NHM. It was in partnership with the NHM’s
Batavia branch – and hence with the local representatives of a major met-
ropolitan-based firm – that Jut had launched Soeko Dhono in the 1870s.
As model of what the industry should be like when freed from the ‘tram-
mels’ of the state-run Cultuurstelsel, it attracted the attention of economic
liberals, evidently racists, who (inter alia) lauded Soeko Dhono for having
a personnel largely made up of ‘full-blood’ expatriates: such people, it
was implied, were better managers than their Indies-born counterparts.26
Nonsense of this kind may have found an appreciative audience in
Holland, but in the Indies it were locally born Dutchmen, most of them
Eurasian, who continued to form the mainstay of the industry’s staff
throughout the late colonial era. Moreover, at Soeko Dhono, the kind
of ‘free enterprise’ espoused by economic liberals clearly had its limits as
far as individual initiative was concerned. By the end of the 1880s, Jut
23 For example, the Koloniaal verslag (1883:182), remarked on ‘the annually increasing use of fertilizer
on the cane fields’, though without further specification. The fullest colonial-era overview of the increase
in fertilizer use in Java from the 1890s to 1914 is Van Deventer 1915:405. This was the fifth volume in a
series of handbooks prepared by industry experts and used in the training – in both the Netherlands and
Java – of industry personnel.
24 Mathew 1970.
25 In 1904, the same firm was advertising ‘Ohlendorff ’s Soluble Peru Guano [...] Special Fertilizers
for Sugar Cane, Tobacco…and all other Fertilizers for Tropical Crops’, and their availability in Java
through agents in Surabaya, Yogyakarta and Semarang (see the advertisement pages of Handboek 1904).
For Salomonson, see Sluyterman 2005:33.
26 Lisse 1883.
65
| Commodities and colonialism
had been bought out by the NHM, and his factory became part of one
of the colony’s largest sugar-manufacturing conglomerates.
Meanwhile, Jut himself had also been something of an industry activ-
ist. In the late 1880s he was chairman of the newly formed Vereeniging
van Soerabaiasche Suikerfabrikanten (Association of Surabaya Sugar
Manufacturers), precursor of what were to become increasingly effective
industry pressure groups. On the business side, as well as Soeko Dhono,
he also had a stake in a number of other enterprises in the colony, in-
cluding a share in two more East Java sugar factories (Peterongan and
Sroenie), as well as in a timber concession (Gondang) that was presum-
ably intended to produce firewood for the furnaces of the sugar factories
that lay to its south in the hinterland of Surabaya. In addition, he forged
financial links with the Koloniale Bank, one of the new metropolitan
financiers of the sugar industry that emerged around 1880. It was this
bank that provided capital, to the tune of nearly 700,000 guilders, for
the new Seloredjo sugar factory (likewise in East Java), in which Jut was
a partner. All in all, it was a substantial portfolio of interests and invest-
ments, and hence it is hardly surprising to find him described by a latter-
day industry executive as a man who ‘took a prominent place among the
sugar men of his day’.27
Jut’s pioneering efforts at Soeko Dhono and elsewhere in East Java
belonged, nonetheless, to the relatively early days of the fertilizer revolu-
tion. At that time, imported suikermest was still sufficiently expensive for
it to be confined to ratooned cane (that is, cane grown from the stumps
of the previous season’s crop), where the outlay on fertilizer could be set
against the savings on labour costs contingent on not having to replant
cane annually.28 Indeed, Jut was at one with his contemporaries in the
1880s in using bungkil as his main source of manure. Initially an exclu-
sively local product, during the closing decades of the nineteenth century
it also began to be imported in substantial quantities from the Indian
subcontinent, from China and from Holland (probably as a re-export
from West Africa): between 1880 and 1900 oil cake imports soared from
27 Jaarverslag NHM Factorij Batavia, 54 (1878-79), pp. 48-9, 56 (1881), p. 22, in: NA, NHM, 2.20.01,
inv. nr. 4552; Inspectierapport Soeko Dhono, 1887, in: NA, NHM, 2.20.01, inv. nr. 7937; ‘Gedenkboek
Koloniale Bank’, p. 27, in: NA, Cultuur-, Handel- en Industriebank; Koloniale Bank; Cultuurbank NV
(Cultuur-, Handel- en Industriebank), 1881-1969, toegangsnummer 2.20.04, inv. nr. 883.
28 D.J. Jut, ‘Nota over de grondbewerking en bemesting van suikerriettuinen, zoo als die worden uitge-
voerd voor de vrije suikerfabriek Soeko Dhono, gelegen te Modjo Agoong, afdeeling Modjo Kerto, Res.
Soerabaia op Java’, 31-12-1881, in: NA, 2.20.01, NHM, inv. nr. 9209.
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Chapter 2 A precocious appetite |
29 S. Brown 1981.
30 Bradbury & Hirsh’s review of the market for sulphate of ammonia during 1890 (London, [1891]).
There is a copy of this pamphlet in the file ‘Diverse Bemesting’, in: NA, NHM, 2.20.01, inv. nr. 7964.
For subsequent prices, see Partington and Parker 1922:125, 129-31.
31 Leidelmeijer 1997:232; Handboek 1903:778, 1925:1469; First hundred years 1927:11-2.
32 Between 1880 and 1900, fertilizer imports increased nearly tenfold in value from less than 500,000
guilders per year to somewhat under 5 million guilders per year. Already by 1901, ZA were worth around
67
| Commodities and colonialism
railways, light railways and tramways was sufficiently evolved by 1900 for
chemical fertilizer to be distributed conveniently and cheaply to virtually
any part of the island. While sugar remained their single most valu-
able item of bulk haulage, fertilizer (in its organic and chemical forms)
became an important item of freight for such railway companies as the
Semarang-Cheribon Stoomtram Maatschappij, whose lines by 1900
serviced the great majority of the sugar factories located along the north
coast of Central Java. The Stoomtram Maatschappij had been carrying
increasing quantities of oil cake along its lines since its records began
early in the 1890s. During the first decade of the new century ZA largely
took its place, such that by 1908 the company was carrying around 7,000
MT of the fertilizer annually on its lines along the north coast of Central
Java. By 1913 it was carrying around 11,000 MT.33
By this date, ZA had established itself as the quintessential fertilizer
for Java’s cane fields.34 Hailed in industry circles as ‘of indispensable
importance for the agriculture of sugar’, it was lauded as ‘the most
used and the foremost among the nitrogen combinations consumed in
the Indies’.35 Application rates per hectare rose sharply during the first
decade of the century. Indeed, at many factories, they registered a 100
per cent increase over the decade prior to 1914, by which time the Java
average was nearly four quintals (that is, 400 kilo) for every hectare of
cane. ZA use peaked a decade later at over five quintals.36
eight times as much in value as was oil cake (4,230,882 guilders as opposed to 651,000 guilders). For the
period 1880-1908, these figures are taken from Statistiek van den Handel, de Scheepvaart en de In- en Uitvoer-
rechten in Nederlandsch Indië over het jaar … Samengesteld bij het Departement van Financiën. For the period 1909-
1914, the figures are from this publication’s successor, Statistiek van den Handel en de In- en Uitvoerrechten in
Nederlandsch-Indië over het Jaar… Samengesteld bij het Hoofdbureau der In- en Uitvoerrechten. I am grateful to Jasper
van der Kerkhof for locating and processing these data.
33 Jaarverslagen van de Chef der Exploitatie, 1895-1914, in: NA, Semarang-Cheribon Stoomtram
Maatschappij, 1893-1946, toegangsnummer 2.20.17, inv. nrs. 8, 9.
34 Van Houwelingen 1904. England was identified as the biggest single supplier: 19,280 MT in 1903
(or 3,110,000 picul) at a cost of 16 guilders per quintal or 10 guilders per picul.
35 Van de Leemkolk 1915:99.
36 Van Deventer 1915:408; Booberg 1927.
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Chapter 2 A precocious appetite |
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| Commodities and colonialism
40 See Moreno Fraginals 1976:91-3, for a description of the system and a reproduction of the fron-
tispiece of the Dutch version of the book (Verhandeling van Don Alvaro Reynoso over de cultuur van suikerriet),
translated by Servaas de Bruin ‘en voor het wetenschappelijke en praktische nagezien’ by ‘J.E. de Vrij &
J. Millard’, Rotterdam: Nijgh, 1865. During the 1870s, ‘Reynoso’ was widely taken up in Central Java,
both along the north coast and in the interior, as well as in West Java (Cirebon).
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Chapter 2 A precocious appetite |
‘Reynoso’ – was and remained a very real option where soil and climatic
conditions made it a viable (and cheaper) alternative. Indeed, the popu-
larity of ‘Reynoso’ among manufacturers varied considerably over time:
for instance, there was said to have been a reaction against it (in favour
of ploughing) during the 1880s, followed by a later swing back. As one
authoritative writer remarked in the 1920s, ‘this constant alternation
between one method of working and the other shows quite clearly that
there is no great difference in the results that can be obtained’.41 In short,
while Reynoso certainly played a role in the emergence of agro-industry
in Java sugar, it was only one among several factors that included an ex-
tensive programme of R&D and a recourse to chemical fertilizer to an
41 See Van Deventer 1927:188-9. Van Deventer’s work was issued with the ‘imprimateur’ of the sugar
syndicate and this updated edition of the original book (according to its frontispiece) was ‘herzien en
bijgewerkt door het Proefstation voor de Java Suikerindustrie’. In reaching this conclusion, Van Deventer
drew on the published research of Van der Zijl 1922. The section of Van der Zijl’s report on which Van
Deventer drew his conclusion that ‘[u]it de samenvatting der proeven over dit ontwerp door van der Zijl,
blijkt, dat van een voordeel van ploegen over Reynoso niets blijkt; eerder is een gering voordeel in de
omgekeerde richting te zien’, is Van der Zijl’s discussion of ‘Ploegen tegen Reynoso’, pp. 160-6.
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Chapter 2 A precocious appetite |
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| Commodities and colonialism
The sugar industry’s control over labour had evolved considerably since
the middle decades of the nineteenth century, when a great deal of work
in the industry had been ‘compulsory’ in the sense of being carried out
on the basis of the peasantry’s (presumed) obligations to perform corvee.
From the 1860s onward, what was designated in colonial terminology as
‘free labour’ became increasingly characteristic of the industry’s opera-
tions. By the late nineteenth century, a key element in the evolution of
‘free labour’ was informal arrangements for bonding of various kinds.
Designed to secure a regular turnout and to circumvent the enticements
of other employers, the usual arrangement was for the factories them-
selves – or their Javanese ‘foremen’ (mandur) – to recruit workers on the
basis of cash advances. During the opening decades of the twentieth
47 For a description of the mid-twentieth-century situation regarding worker housing around the
sugar factories of East Java, see Sulistyo 1997:112.
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Chapter 2 A precocious appetite |
From the late nineteenth century onward, the labour of women (and
children) became a feature of Java’s cane fields on a historically unprec-
edented and vital scale. Indeed, a radical shift in the gender composition
of the workforce was central to the evolution of that agro-industry that
was so critical to Java sugar’s ability to re-invent itself in the context of
the age of mass production. The immediate background was to be found,
so it would appear, in the deflationary economic conditions in rural Java
48 I have derived the information in this paragraph from a letter from Han Bing Siong (grandson
of the Pekalongan labour contractor Hoo Tjien Siong, aka Bah Sin Song), Rijswijk, the Netherlands,
3 April 1995 (in the possession of the author). Han Bin Siong kindly wrote to me that while attending
his brother’s funeral in Java in 1987, ‘I was surprised to hear Indonesians saying to each other: he is the
grandson of Bah Sin Song. That after 57 years they still knew my grandfather’s name moved me deeply.’
75
| Commodities and colonialism
which, as we have already seen, impacted on the price of rice in the final
two decades of the nineteenth century. It was this same phenomenon
that also enabled the industry to depress wages to near-subsistence levels.
The industry was now able to recruit women, adolescents and children
into the workforce; they were obliged to seek wages ‘outside’ the village
to an extent, and with a consistency, that was apparently quite novel.49
The success of the agro-industrial project was dependent, in short, not
only on the availability of labour but on what kind of labour was avail-
able. Women and children began to enter the formal workforce as never
before. Largely unknown (so it would seem) in the cane fields prior to the
1880s, fifty years later they constituted a little under half (44%) of the
people employed there.50
Most immediately, the availability of the cheap labour of women
and children enabled elaborate routines of fertilizer application to be
put in place at minimal cost. Women, together with children, were also
heavily involved in the planting of cane (indeed, so much so as to make it
impossible to provide discrete numbers for those involved in the fertilizer
programme alone).51 In total, they came to form a substantial part of
the industry’s workforce: at one reasonably typical factory on the north
coast of Central Java in June 1908 for instance – June was a peak month
of activity – there was a daily average of 1,119 women and 899 children
working in the plantation, together with over 3,000 men.52 The success
of the agro-industrial transformation of the cane field was largely predi-
cated on them. Commensurate with the influx of women and children
into the sugar workforce, as keen-eyed colonials were quick to note, was
49 See the local-level reports on rural conditions collected by Dutch officials around the turn of the
century (see, for instance, Mindere welvaart Banjoemas 1908:46; Mindere welvaart Kediri 1908:57). In dealing
with prostitution, in particular, the compilers of Onderzoek naar de mindere welvaart der inlandsche bevolking op
Java en Madoera picked up information about social and economic trends in the countryside that went far
beyond the immediate issue on hand. ‘Informal’ (the usual term was ‘clandestine’) or casual prostitution
was judged to be much on the increase in some areas, the proffered explanation for which was the novel
situation of men and women working alongside each other in sugar field and factory (see, for example,
Mindere welvaart Pasoeroean 1908:34; Mindere welvaart Soerabaja 1909:24).
50 For an introduction to the issue of women in the workforce in nineteenth-century Java, see
Boomgaard 1981. For general data on of the participation of women and children in the industry’s early
twentieth-century field and factory workforce, see Levert 1934:119-21, 125-7.
51 At many factories, such as Soeko Dhono in the early 1880s, cane planting was quite explicitly
women and children’s work, see D.J. Jut, ‘Nota over de grondbewerking en bemesting van suikerriettui-
nen, zoo als die worden uitgevoerd voor de vrije suikerfabriek Soeko Dhono, gelegen te Modjo Agoong,
afdeeling Modjo Kerto, Res. Soerabaia op Java’, 31-12-1881, in: NA, 2.20.01, NHM, inv. nr. 9209.
52 Jaarverslag Sf. Ketanggoengan-West, 1908, pp. 3-4; 1911, p. 11; 1913, p. 10, in: NA, NHM,
2.20.01, inv. nr. 9372.
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Chapter 2 A precocious appetite |
Even so, there appear to have been limits to how low payments could
get. In 1886, at a time when the industry was desperately casting around
53 For the north coast of Central Java, see, for instance, Mindere welvaart Pekalongan 1908:46. For a broad
overview and selected data on wages in the Netherlands Indies, see Dros 1992.
54 See the comments, circa 1904, of an elderly Christian missionary teacher (‘zendelingsleeraar’) who had
been based in East Java for some fifty years, printed as Appendix 8 in Mindere welvaart Soerabaja 1909:161.
77
| Commodities and colonialism
for ways of cutting costs in the wake of the collapse of the world price
for factory sugar two years earlier, the NHM’s superintendent of sugar
factories, Steven Everts, sounded a note of caution. In confidential re-
sponse to suggestions emanating from company directors in Amsterdam
that wages in the Java sugar industry could be drastically reduced – they
were reputed to have been cut by 50 per cent in Cuba – he warned that
if wages were cut on that scale in Java, then the industry might as well
shut down. No workers would turn out for wages as low as that. Everts,
who had been in sugar for a decade or more, and was later to become a
leading industry executive, could hardly be suspected of being a bleeding
heart. What concerned him was that although the industry did indeed
provide employment for a great many people, ‘if we cut wages by 50%,
employment in the industry is not so indispensable to these people that
they will not be able to find a livelihood by other means’. He was cer-
tainly keen to reduce payments over a range of tasks – and indeed had
already done so – but he also recognized the importance of increasing
the productivity of labour. In this context, he was evidently acutely con-
scious of the fact that attempts to cut wages were met with a fall-off in
the amount of work actually done.55
This said, industry wages were low, and one aspect of the sugar fac-
tories’ ability to attract workers undoubtedly had to do with their general
mode of payment. As one north-coast manufacturer observed in the
1890s, the reason why people worked for ‘such low wages’ was that they
got paid in coin at the end of the day, something which he implied could
not be relied upon if they worked instead for fellow villagers.56 Indeed,
from elsewhere in the colony during the same decade, there is testimony
that the establishment of sugar factories was viewed with dismay by the
more substantial (landholding) peasants, not least because of the threat
that the factories posed to their control over labour.57 What the factories
could also offer, moreover, was ready access to consumables. Early in the
twentieth century, for example, the management of a factory that was
located at some distance from the nearest town was very much alive to
55 Everts to NHM Factorij Batavia, 9-11-1886, in: NA, NHM, 2.20.01, inv. nr. 7936.
56 See, for example, the comments of the administrateur of Sf Kemantran (Tegal) circa 1894 ‘dat de
bevolking met deze lage verdiensten werken wil, volgt hoofdzakelijk uit contante betaling’, NA, NHM,
2.20.01, inv. nr. 7963.
57 See, for example, Schmalhausen 1909:12.
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Chapter 2 A precocious appetite |
the advantages of having pasar (markets) and toko (shops and stalls) estab-
lished in its vicinity.58
There were, of course, other forms of consumption, and although
drugs, gambling and prostitution are ill-documented in relation to the
sugar industry’s operation, there can be little doubt that they played a
significant role in attracting and retaining workers. It was entirely typi-
cal, for instance, that in seeking to explain the upsurge of opium sales in
the sugar-rich residency of Pasuruan in the late 1910s, the government
officials in charge of the state’s opium monopoly confidently ascribed
it to the fact that the sugar factories were back working at full capacity,
and hence there was a great influx of labourers from other areas: use
of the drug was widespread among the ‘coolies’ who serviced the sugar
industry and other Western estates.59 Indeed, there were outlets for the
sale of opium – in the minute quantities that the workers could hope to
afford – at many sugar factories, particularly the ones not located close
to a town.60 Gambling was also presumably endemic.
So, too, was prostitution, though evidence is somewhat scant. A de-
gree of ‘license’ in the relations between the sexes among factory employ-
ees was certainly in evidence. One affronted company inspector reported
to his superiors – the year was 1885 – on the way in which ‘coolies’ had
not only smoked cigars while answering his questions, but also openly
engaged in what he described as a ‘romp’ (‘al stoeijende’) with a woman of
their number, who was half stripped and plastered with wet clay.61 Sex
as a commodity, of course, was nothing that even the most strait-laced
inspector could do anything about, even had he wanted to. Heterosexual
prostitution per se was little commented upon in industry sources, but
given the substantial presence of young males in the workforce, and
the unusual degree of their concentration in specific localities, it must
inevitably have constituted one of the attractions of industry work. The
tip of this particular iceberg is readily discernable, for instance, in the
local-level reports on rural conditions published during the opening
58 Jaarverslag Sf. Ketanggoengan-West, 1906, (unpaginated); 1907, p. 35, in: NA, NHM, 2.20.01, inv.
nr. 9376.
59 Verslag Dienst Opiumregie 1920:12, 1921:14. For an extended discussion of opium consumption in
early twentieth-century Netherlands India, see Chandra 2000.
60 In 1930, for example, there are opium sales outlets at the following ‘isolated’ sugar factories in the
residency of Pekalongan: Wonopringgo, Sragie, Tjomal and Petaroekan; see J.J.M.A. Popelier, ‘Memorie
van Overgave van de residentie Pekalongan’, 1931, pp. 65-6, in: NA, Memories van Overgave, 1852-
1962, toegangsnummer 2.10.39, inv. nr. 46.
61 D.J. Jut to Factorij NHM Batavia, 4-11-1885, in: NA, NHM, 2.20.01, inv. nr. 7944.
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| Commodities and colonialism
62 For example, Mindere welvaart Pasoeroean 1908:34; Mindere welvaart Be ̌soeki 1909:33; Mindere welvaart
Banjoemas 1908:24; Mindere welvaart Madioen 1908:26; Mindere welvaart Kediri
̌ 1908:30.
63 For instance, Mindere welvaart Ke ̌diri 1908:30.
64 For example, Jaarverslag Sf. Wonopringgo (Central Java), 1913, p. 4, in: NA, NHM, 2.20.01, inv.
nr. 9402; Jaarverslag Sf. Gending (East Java), 1927, p. 35, in: NA, Cultuur-, Handel- en Industriebank,
2.20.04, inv. nr. 1150.
65 For a detailed discussion, see Knight 1994.
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Chapter 2 A precocious appetite |
which a ‘coolie’ (Jut’s term), following behind, worked the fertilizer into
the ground with a pacul (a kind of spade-cum-hoe indigenous to Java).66
According to an account published in 1901 – and evidently intended
both as description and guide to those who might be new to the use of
ZA – at many factories the fertilizer was first mixed with water in a bam-
boo container or box. Subsequently, women worked their way through
the rows, delivering a fixed measure of the liquid fertilizer to each clump
of cane. The writer thought that it might pay, at least on heavier soils, to
first make a hole near the plant, into which the liquid might be poured.67
Subsequent reportage was of routines that involved two, three or even
four successive doses of fertilizer during the course of the season. At
some factories dosage was standardized in the form of tablets of com-
pressed ZA, for which purpose a Dutch firm invented a small machine
to enable them to be fabricated on the spot.68
66 D.J. Jut, ‘Nota over de grondbewerking en bemesting van suikerriettuinen, zoo als die worden uitge-
voerd voor de vrije suikerfabriek Soeko Dhono, gelegen te Modjo Agoong, afdeeling Modjo Kerto, Res.
Soerabaia op Java’, 31-12-1881, in: NA, 2.20.01, NHM, inv. nr. 9209.
67 Bruyn 1901; Jaarverslag Poerwodadi, 1910, p. 4, in: NA, NHM, 2.20.01, inv. nr. 9391.
68 Van Deventer 1915:417.
69 For an elaborated discussion of the role of supervision in capitalist industrialization, see Chakrabarty
1989:68-9.
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82
Chapter 2 A precocious appetite |
eye open’, as one informed and experienced writer remarked, and ‘to
take a firm line to make sure that they don’t get away with anything’.76
83
| Commodities and colonialism
era in Java. To give but one example: at one particular factory in East
Java in the 1920s, a total of 634 hectares of plantation, divided into three
major subdivisions, embraced a total of some fifty-six ‘cane gardens’ or
tuinen. For each of the latter, records were kept not only of cane yields,
planting (aanplant) costs, cane varieties used and other similarly ‘agricul-
tural’ matters, but also of the amount of sugar each ‘garden’ yielded,
cane-harvesting costs, transport costs and the precise rendement that came
from that particular area of cane (which, itself, was of course accurately
measured).78 All in all, record keeping demonstrated a fine ‘Germanic’
zeal on the part of the Dutch that might have been even more at home
further up the Rhine…
Ultimately, nonetheless, supervision was a Dutch enterprise only
in part. Indeed, in the final analysis it was the presence of ‘native’,
Indonesian field staff – rather than their European superiors per se –
that made possible this kind of near-obsessive, in-depth attention to
the plantation. It was, for example, on the information gathering of
scores of so-called Javanese ‘aanplant schrijvers’ – ‘field record keepers’,
in an approximate translation – that the entire edifice of record keep-
ing depended. The industry itself actively promoted the formation of
suitable personnel: there is evidence, for example, that local-level Dutch
managers saw the point of ensuing that young people whose Indonesian
families were already ‘part’ of the industry obtained the requisite train-
ing, part-academic, part-experiential, to fill a useful future role in the
agro-industrial enterprise. As the archive relating, for instance, to one
medium-sized factory on the north coast of Central Java makes clear,
circa 1910 the administrateur had organized for the running of what he
called a ‘fabrieksschool’, or factory school, for about seventy boys – which
was also attended, in the afternoon, by about forty girls.79
They were the offspring of the factory’s tukang (skilled factory work-
ers) and mandur, and the boys received instruction in the morning from
one of the factory’s many Indonesian (field) record-keepers or clerks
(Dutch: schrijvers), while the girls were instructed in the afternoons by one
of the Indonesian staff – presumably a woman – of the factory’s labora-
tory. During the campaign, when an attitude of ‘all hands on deck’ pre-
78 For the information in this paragraph, see Jaarverslag Sf. Wonolangan 1927, pp. 13-27, in: NA,
Cultuurmij. Wonolangan, 2.20.02.03, inv. nr. 115.
79 For the information in this and the following paragraph, see Jaarverslag Kemantran, 1911, p. 6;
1912, p. 22; 1914, p. 23; 1920, p. 23, in: NA, NHM, 2.20.01, inv. nr. 9374.
84
Laboratory staff, Java sugar factory (unknown), circa
1920 (KITLV 30193, KITLV 18274)
| Commodities and colonialism
vailed, the students worked in the factory – above all in the laboratory, in
the taking of samples and the like – while the more promising ones were
enabled to take advanced courses of a kind that the lower-level labora-
tory staff themselves were not able to provide in the fabrieksschool itself.
Some of the older boys got further experiential training as assistant field
record-keepers (hulp-schrijvers) and student-draftsmen (leerling-tekenaar).
80 In 1930 there were 12,753 tuinmandoers (plantation foremen) and 10,308 hulptuinmandoers (assistant
plantation foremen) employed in the colonial-Java sugar industry, that is, a total of 23,061 Indonesian su-
pervisory field staff. In the same year, the (harvested) area under cane amounted to nearly 200,000 hect-
ares. See http://www.kitlv.nl/documents/library/Metamorfoze/Indisch%20Verslag/MMKITLV01_
PDF_TS2711_1934.pdf, p. 192 (accessed 20-8-2012).
86
Chapter 2 A precocious appetite |
81 Creutzberg 1975:74-5.
82 The point is discussed and documented in Ayala 1995.
83 Ayala 1995:104-6.
84 On Java’s unique position with respect to plantation yields, and a discussion of global comparisons,
see Maxwell 1927:50-8. The Hawaiian industry has sometimes been cited (erroneously) as approaching,
or even exceeding, Java in terms of plantation yields. This is based on a misunderstanding. Cane yields
in Hawaii were indeed high, but to achieve this outcome, cane remained in the ground for much longer
than was the case in Java. A detailed account from the late 1920s makes the real position quite clear:
Koningsberger (1929) points out that at the Hawaii factories only 50-60% of the cane planted is har-
vested in any one year, since the cane stays in the ground for around 20-22 months (as opposed to Java’s
12-15 months).
87
| Commodities and colonialism
itself was a very respectable figure indeed – while a decade and a half
later (1908) the figure stood at a spectacular 105 MT per hectare.85 The
result was perhaps even more remarkable than it looked. As one factory
administrateur in Central Java reported early in the new century, ‘sugar
production has increased substantially in recent years, despite the cir-
cumstance that the plantation has been expanded into what was formerly
considered to be unsuitable soil’.86
85 Dickhoff 1914:613-4.
86 Jaarverslag Poerwodadi, 1906, (unpaginated), in: NA, NHM, 2.20.01, inv. nr. 9391. The administra-
teur claimed that this had been achieved even despite the fact that the Indies government had made the
factory surrender some of its best land for permanent rice production by the peasantry (‘de afname van de
beste gronden (Tegallans) door de regeering’).
87 For general discussions, see Goss 2009; Moon 2007; Maat 2001:53-67; Boomgaard 2006.
88 For this and what follows, AS, ‘Jubileumnummer 1 Mei 1918’; Leidelmeijer 1997:231-48; Van der
Schoor 1996; Handojo et al. 1987.
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Chapter 2 A precocious appetite |
89
| Commodities and colonialism
The heart of the industry’s operations that merited such high praise
was the Proefstation Oost-Java (POJ, East Java Sugar Research Institute,
hereafter ‘the research institute’) at Pasuruan, in East Java. Staffed by
Dutch and German experts, and funded by the sugar syndicate, it repre-
sented the culmination – and centralization – of several industry initia-
tives geared to experimental work on the agriculture and horticulture of
cane that had begun at various locations during the course of the 1880s.
The upshot of these pioneering efforts was an industry characterized
by a meticulous attention to R&D in the field, which singled it out from
virtually all of its global counterparts. Indeed, prior to the 1920s only
the much smaller American industry on Hawaii even approached Java
in this respect. In Cuba, by way of contrast, field science was famously
neglected, and elsewhere in the New World (Louisiana was a possible
exception) it was generally only in the 1920s that concerted and consis-
tent attention was paid to the production of cane. In Asia itself, only on
the Indian Ocean island of Mauritius was serious effort devoted to the
field science of sugar, and that effort had largely collapsed by 1914.92 In
Taiwan, a Sugar Experiment Station appears only to have been set up as
late as 1932, under government auspices.93 In the case of the Philippines,
where a research institute most certainly existed in the late 1920s,94 mod-
ernization in the factory was paired with a plantation sector in which
agricultural development similar to the Java model was stymied by the
fragmentation (tenancy and sub-tenancy) of holdings in the agricultural
sector.95 Outside the immediate region, the sugar industry of north-
eastern Australia established a strong record in agricultural science from
the late nineteenth century onward, but in terms of size it was dwarfed
by the Java industry.96
92 For Cuba, see Dye 1998:241-4 (where it is remarked that this neglect was economically quite ratio-
nal); on science and sugar cane in the ‘Spanish’ Caribbean, see McCook 2002, where the overwhelming
impression is given that until the 1920s, effort was largely or exclusively directed to crops other than sugar
– that is, tobacco, bananas and coffee. Louisiana is a more equivocal case; for a discussion of experimenta-
tion with fertilizer in Louisiana in the 1870s, see Heitman 1987:62. On Mauritius, see Storey 1997:69-96.
93 According, at least, to the unsigned article Taiwan’s sugar industry 1968.
94 Perk 1931.
95 As a leading industry figure in the Philippines industry observed in the late 1920s, the prevailing ar-
rangements for growing cane ‘has the disadvantage that the entities involved in the production of sugar
in the large central districts aggregate from 1000 to 2000 individuals’. The need to somehow cajole or
coerce all these people to see the potential of new techniques and new varieties of cane meant that ‘there
is [...] an enormous slippage between the obtaining of research results and their application in practice’
(Fairchild 1928:53).
96 Griggs 2004.
90
The dissemination of knowledge: Title page of the Archief
voor de Suikerindustrie in Nederlandsch-Indië, 1921
| Commodities and colonialism
97 Voorwoord 1895.
92
Chapter 2 A precocious appetite |
however, and already comprising ‘no less than forty massive volumes’, it
was being hailed as a testimony to the ‘gigantic work which has been car-
ried out’ and to ‘the energetic way in which the industry is carried on’.98
By the 1920s, when the industry was at its peak, the Pasuruan research
institute boasted an on-site staff of around twenty Dutch professionals,
divided among its agricultural, technical and chemical divisions, and sev-
eral hundred Indonesian support staff. Virtually ignored in the research
institute’s official reports, the latter only rarely emerged from their ano-
nymity, as when, in 1928, one ‘Ngasinoh’, identified as Hoofdlabatorium
Mandoer der Cultuurafdeeling, was given a medal to commemorate thir-
ty-seven years of service. It must he assumed, however, that the availabil-
ity of such people was essential to the successful implementation of the
institute’s programmes – not least because they were so much cheaper to
hire than their European bosses. Outside the immediate confines of its
Pasuruan headquarters, the institute also employed another twenty or so
individuals as consultants (groep adviseurs), attached to one or other of the
regional groupings of factories into which the industry was organized.99
Housed at Pasuruan in a rather grand building behind a pillared portico,
the research institute was funded in the mid-1920s, when industry for-
tunes were at their zenith, to the tune of more than 1.25 million guilders
annually by manufacturers who were keenly aware of its central role in
the development of the agro-industrial programme in the cane field and
in the never-ending technological advance in the factory itself.100 It was a
role, it must be presumed, with which the radical nationalist activists who
fought the Dutch in the mid-1940s were also conversant. In July 1947,
faced with Dutch military assault on their nascent Republic, they burnt
the research institute to the ground.101
98 Wright 1909:359-62.
99 See Verslag van de Vereeniging het Proefstation voor de Java Suikerindustrie over het jaar 1928. Data on the In-
donesian employees (personeel) do not appear in the Proefstation’s Annual Reports (where there is simply
passing mention in the accounts of ‘lagere personeel’). Handojo et al. (1987:26) state that early in the 1940s
there were 236 such employees at Pasuruan. It seems likely that the number would have been signifi-
cantly higher in the 1920s, when the industry was substantially larger.
100 ‘Proefstation Oost-Java: Rekening en verantwoording over het jaar 1925’, p. 12, in: Koninklijk
Instituut voor de Tropen (hereafter KIT), 1773, shows that the research institute’s income that year was
1,269,230 guilders. The funding all came from the sugar factories, and was based on a levy of 5.50 guil-
ders for each bau (.7 of a hectare) of cane. At this time most sugar factories themselves would be worth
something between 3 and 6 million guilders, though some large ones would have been worth very much
more than that.
101 Handojo et al. 1987:16.
93
| Commodities and colonialism
The Proefstation at war: The destruction of July 1947 (Handojo et al. 1987:28
94
Chapter 2 A precocious appetite |
102 The locus classicus here is the work done in the 1930s and 1940s by the Dutch agricultural expert
G.H. van der Kolff (1953:193). Van der Kolff ’s ideas were subsequently taken up and popularized by the
American cultural anthropologist Clifford Geertz (1963). For a cool re-assessment of the impact of sugar
cultivation, see Van der Eng 1996:208-30.
95
Chapter 3
The contrast could hardly be greater. Early in the twentieth century, the
Dutch aristocrat Jonkheer C.H.A. Van der Wijck could be found – inter
alia – on the board of one of the major combines or ‘agricultural banks’
(cultuurbanken) that dominated the late colonial sugar industry. A recently
retired Governor General, he was evidently a man for whom a revolv-
ing door between big business and colonial administration became, late
in life, one of the charms of high office. Within much the same time
frame, it was likewise possible to find a leading figure in his successor’s
advisory council (the Raad van Indië) being excoriated in colonial busi-
ness circles as a notorious ‘enemy of private enterprise’ (een vijand der
particuliere industrie).1 The fact that these two men, Governor General Van
der Wijck and Raadslid C.J. de Jaager, held office virtually contempora-
neously, speaks eloquently of the complexity as well as the centrality of
the relationship between the sugar industry and the late colonial state in
the Netherlands Indies.
That relationship was one that did much to promote the interests of
sugar capital. The industry could look back on a close association with
the Indies government dating from its foundational period (in its modern
form) during the middle decades of the nineteenth century. As a result,
as has been widely recognized, Java sugar hence enjoyed an intimacy
with the Indies government and its bureaucracy (and their counterparts
in Holland) to a far greater degree that was ever the case with the other
major commodity producers in the late colonial Netherlands Indies.
Nonetheless, that intimacy can easily be misread. Sugar may well
have had its hands on the reins of power, but this did not mean it had a
free rein. The legacy of state support was ambiguous, not least because
1 For the comments (by the NHM’s Factorij) on De Jaager, see ‘Rapport Van Geyt’, 23-10-1905,
(unpaginated), in: NA, NHM, 2.20.01, inv. nr. 7938.
| Commodities and colonialism
Jonkheer Carl Herman Aart van der Wijck (1840-1914) knew the Indies
very well.2 Indeed, he had been born there, on the island of Amboina,
where his father had been the Dutch resident. As was commonplace for
the male (and, quite often, female) offspring of the colonial elites of nine-
teenth-century Java, the young Van der Wijck was educated in Holland,
where he had extensive family connections, before returning to the
Indies at the age of twenty-three. He spent the next twenty-eight years of
his life working in the emergent and increasingly formidable colonial bu-
reaucracy that was the hallmark of the Dutch regime in the Indies from
the mid-nineteenth onward. Beginning in the lowly rank of tweede com-
mies (junior trainee-assistant) in the Office of the Algemeene Secretarie
98
Chapter 3 Bureaucracy versus plantocracy |
99
A firm supporter of Big Sugar: Governor General Van der Wijck (KITLV 4653)
Chapter 3 Bureaucracy versus plantocracy |
the families that owned the factory. Although Van Musschenbroek was
of metropolitan birth and upbringing, his own family – a patrician one
from Olst in the eastern part of the Netherlands – was no stranger to
the Indies. The young man’s uncle, C.J.W. van Musschenbroek, had
preceded him there by several decades and pursued a successful, if
hardly spectacular, career in the state bureaucracy, ending up as resident
in Menado, on the island of Sulawesi (1875-1876). Perhaps wisely, after
he and his family had narrowly escaped assassination there, he retired
to the Netherlands and settled in the university town of Leiden, where
interpersonal violence was generally presumed to be of a more intel-
lectual kind.7
His young nephew, meanwhile, cemented his ties in the colonial elites
by marrying the Indies-born Maria Christine von Balluseck, daughter
of a high-ranking German officer in the Koninklijk Nederlands-Indisch
Leger (KNIL, Royal Netherlands Indies Army). Indeed, in his choice of
marriage partner, Van Musschenbroek had located himself firmly within
what has aptly been described as ‘the Old Indies world’, in which wealth
and status, rather than ‘race’ or colour, were the key determinants of
‘being Dutch in the Indies’.8 His newly acquired mother-in-law, Maria
von Balluseck (1843-1908), was herself the daughter of (in the parlance
of the day) the ‘native woman Biba’, the offspring of whose cohabitation
with the high-ranking Indies civil servant D.W.J.C. van Lijnden in Java
in the 1840s had been legitimated in accordance with Indies law and
custom.9
Van Musschenbroek’s career was based, nonetheless, not only on
whom he knew but on what he knew. Prior to his marriage, he had trav-
elled back to Europe and undergone training in the beet sugar industry
of Imperial Germany. But technical knowledge was only part of it.
While there, he also grasped the importance of the way in which the
sugar industry had organized itself as a powerful business lobby within
the Wilhelmine state. What he learnt in Germany, he put into practice in
Java. Returning to the Indies early in the 1880s, he rapidly made a name
for himself as the colony’s leading ‘sugar-man’, and was instrumental
7 Musschenbroek 1914.
8 Bosma and Raben 2008.
9 Christiaans 1997. Dirk W.J.C. van Lijnden (1813-1852), scion of a prominent Dutch aristocratic
family, ended his career in the Indies as a member of the Raad van Justitie at Batavia and subsequently
as resident of Timor (Lijnden 1927).
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10 For the information on Van Musschenbroek in this and subsequent paragraphs, see Wichers Hoeth
1929:176-85; ‘Samuel Cornelis van Musschenbroek’, Archief voor de Suikerindustrie, Jubileumnumer
1893-1918, Mei 1918.
11 S. Everts to Factorij Batavia, 9-11-1886, in: NA, NHM, 2.20.01, inv. nr. 7936.
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Chapter 3 Bureaucracy versus plantocracy |
12 For the information in this and the following paragraph, see Ramaer 1926; Huldebetoon Ramaer 1926;
Obituary Ramaer 1932. His father was Nicholas Ramaer (one of the founders of the Nederlandsche Ver-
eeniging voor Psychiatrie en Neurologie) and his elder brother, J.C. Ramaer, was inspecteur-generaal van
den waterstaat. He studied at the gymnasium at Zutphen and subsequently took law at Leiden, where he
graduated in 1880.
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Thereafter his rise was rapid. Before long he got on the board of a locally
based sugar company, subsequently took over as its CEO and retained
a financial stake in the industry for the rest of his life. Early in the new
century he took leave in Europe, no doubt to consolidate his connections
in the metropolis as well as to reinforce his own personal status as a totok
– one of the minority among the Dutch in the Indies who were both
born overseas and looked on the colony as merely a temporary place of
work and residence.
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13 Jacob Christiaan Koningsberger (1867-1951) had pursued a distinguished career, inter alia, as an
agricultural scientist in the Indies. As Minister of Colonies (1926-1929), he was responsible for appoint-
ing the last ‘progressive’ Governor General, A.C.D. de Graeff (Van den Doel 2002).
14 Elson 1984:187-8.
105
Civil servant turned industry lobbyist: G.J.P. de la Valette as
resident of Pasuruan – and freemason – at the beginning
of the twentieth century (KITLV 503063)
The literary wife with a taste for theatricals: Trudy de la Valette-
Couperus, circa 1900 (KITLV 503062)
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Chapter 3 Bureaucracy versus plantocracy |
new century, both men were to become once again associates. Indeed,
for a time at least, both had houses in the town of Baarn, an agreeable
buitenplaats for Amsterdam’s patricians and aristocrats – and businessmen
and their families – well removed from the summer stench and noise of
the city itself, but only a short train ride away.17
Van der Wijck stepped down as Governor General in 1899. Not
without raising a number of eyebrows among contemporaries, he had
moved quickly from high office into the boardroom. His direct links into
the burgeoning ‘Indies’ business world of the late nineteenth-century
Netherlands dated from the brief hiatus in his official career immediately
prior to becoming Governor General in 1893, when he had worked in
both Holland and Java with the newly established inter-Indies Dutch
shipping line, the Koninklijke Paketvaartmaatschappij (KPM). A the be-
ginning of the new century, however, he made the move from shipping
into oil, and rapidly found a convivial position as chairman of the board
(commissaris-president) of the biggest of the new Dutch oil companies, the
so-called ‘Koninklijke’: it later became (1907) part of the commercial
alliance known as Royal Dutch Shell. Van der Wijck also kept up his
long-standing connection with the sugar industry, notably through his
position on the board of the Cultuurmaatschappij der Vorstenlanden
(CMV, Principalities Agricultural Company), one of the colony’s half a
dozen leading sugar financiers and owners.18
Van Musschenbroek, meanwhile, had also returned to the
Netherlands, a country which, like many of his contemporaries among
the Indies bourgeoisie, he had never actually left, in so far as his years
at Tjomal had been punctuated by more or less annual visits to Europe
during the industry’s off season.19 Settling permanently back in Holland
with his family in 1907, he shed none of the traits for which he had
become famous in Java. Still scarcely fifty and clearly incapable of retir-
ing, Van Musschenbroek in effect took over the running of the old-es-
tablished Amsterdam management and finance house of Van Heekeren
17 The ‘Prospectus…Poerworedjo…November 1908’ (file ‘Poerworedjo’, in: NA, NHM, 2.20.01, inv.
nr. 7968) describes Van Musschenbroek as ‘wonende te Baarn’; Van der Wijck had died there on 8 July 1914
(Fasseur 1979).
18 The CMV managed, owned or part-owned some twenty or more factories in Central and East Java.
Van der Wijck was on its board from 1903 until his death in 1914 (Jaarverslag Cultuurmaatschappij der
Vorstenlanden, 1903, p. 1, in: Internationaal Instituut voor Sociale Geschiedenis (IISG), Amsterdam,
ZK 58574).
19 See Ramaer (1926:987), where Ramaer is quoted as remarking that Van Musschenbroek ‘tusschen de
maaltijden altijd in Europa vertoefde’.
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& Co. Very much the tuan besar, who looks as if he brought a great deal
of Indies money into the business, he turned the old firm upside down.
He rebuilt the office, introduced its startled denizens to electric lighting
and the typewriter – and to the idea of tea being served at their desks in
mid-afternoon – and shifted his headquarters to a prestigious mansion
at 670 Keizersgracht, one the city’s three ‘grand canals’. Conveniently,
it backed on the narrow Kerkstraat, where the company’s actual of-
fice remained located at number 257 (the building is still there today).
Needless to say, he also greatly expanded Van Heekeren’s involvement in
the Indies plantation sector.20 In addition to all this, Van Musschenbroek
was on the board of the Rotterdam-based Internatio, one of the biggest
trading and plantation investment firms in the Indies, and kept up his
connection with Tjomal as managing director of its metropolitan Dutch
holding company, located in smart offices on the appropriately named
Javastraat in The Hague (Internatio managed its affairs in the Indies).
For a short while, one of the great man’s cousins was the administrateur at
Tjomal itself.
It was in cahoots with Van Musschenbroek (and in conjunction
with the Van Heekeren concern) that Van der Wijck now became
involved in establishing a new sugar factory in Central Java’s Kedu
Residency. Named, after the nearby town (some forty kilometres west of
Yogyakarta), Poerworedjo. It was no small enterprise: indeed, within a
decade of its establishment it had become the largest such operation in
Central Java and among the half-dozen largest in the entire colony. In to-
tal, the two men and their associates succeeded in raising some 5 million
guilders in equity capital for the new venture, and spent well over 3.5 mil-
lion of this on building and equipping the factory.21 Van Musschenbroek
himself twice sailed back to Java to superintend its construction and the
arrangements with the Indies government that were a necessary part of
20 For Van Musschenbroek’s involvement with Van Heekeren & Co, of which he became co-manager
(his son, Gijsberto Felix Willem Arthur Karel van Musschenbroek, succeeded his father in the manage-
ment of the firm), see Wichers Hoeth 1929:176-85. The firm of Van Heekeren also managed and/or
(part) financed extensive investments in tobacco, rubber and coffee in the Indies.
21 See Jaarverslag Suikeronderneming Poerworedjo (Kadoe), 1913 etc, in: Stadsarchief Amsterdam,
Archief Handels- en Cultuurmaatschappij Van Heekeren & Co, toegangsnummer 584, inv. nr. 1166.
Van Musschenbroek was the managing director (directeur) of the Amsterdam-based company, and Van
der Wijck was chairman of the board. His fellow directors (commissarissen) were F.M. Delfos, Ph. von
Helmert (bankier te Parijs), Abraham Muller, J.W. Ramaer and A.R. Schuurbeque Boeije (directeur, De-
posito- en Administratie Bank). The company was represented in the Indies by the NHM. Muller (mur-
dered at Sobibor in 1943) was inter alia an NHM directeur.
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Chapter 3 Bureaucracy versus plantocracy |
any such speculation. Its plantations quickly came to engross some 1,750
hectares of peasant farmland; its Javanese workforce numbered in the
thousands at the height of seasonal activity, and by 1920 its European
personeel (staff) counted some thirty-seven individuals (and, in many cases,
their families). Neither of the company’s founders, however, had long
survived Poerworedjo’s establishment: felled by a stroke in Amsterdam in
December 1914, Van Musschenbroek had outlived his substantially older
business partner by a matter of months.
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Chapter 3 Bureaucracy versus plantocracy |
a respectable but far from ostentatious quarter of the city. His widow,
around eleven years younger than her husband, outlived him by some
sixteen years, dying there in 1943, during the German occupation.
De Jaager’s Java career, which had begun at the end 1872 when he
sailed to the Indies for the first time, was fairly orthodox. The young
man started on the lowest rank, as a controleur (district officer), and had
progressed by 1886 to a decade-long sequence of positions as assistant
resident in various parts of East Java. His career culminated in 1897 in
his appointment as resident of Kediri, then still something of a frontier
region astride the Brantas river, populated in part by new immigrants
from the densely peopled northern littoral of Central Java. Even then,
however, Kediri was home to an increasing number of sugar factories,
and it was probably no accident that it was with the sugar industry that
De Jaager became embroiled in the closing stages of his career in the
early 1900s.
For the background to what happened, however, we probably need
to look back twenty years or more, to the mid-1880s, when De Jaager
served for a couple of years under the Indies government’s chief inspec-
tor of sugar and rice cultivation, J.H.F. Sollewijn Gelpke (1840-1890).
Among his many publications, Sollewijn Gelpke had made a compara-
tive study of rice cultivation in Java and Italy, and was regarded as an
expert on matters relating to sawah (rice field) irrigation and on the
socio-economy of rural Java in general.25 His ‘pupil’ obviously learnt his
lessons well. During his tenure as resident of Kediri, De Jaager produced
a report on the future prospects for large-scale ‘technical irrigation’ in
sections of the Solo river valley where he had previously been posted. In
it, he showed himself deeply sceptical of claims in industry circles that
peasant farmers drew any direct financial benefit from renting their fields
to the sugar factories. Indeed, he remarked that, ‘sugar cultivation had
a predominantly adverse effect on indigenous agriculture […] the most
prosperous villages therefore are those that do not rent their land [to the
sugar industry]’. He contended that the way in which the sugar indus-
try manipulated the supply of irrigation water seriously disadvantaged
peasant farmers. He denied, however, that such a critique meant that he
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Chapter 3 Bureaucracy versus plantocracy |
29 Van den Doel 1994:201-3. This was despite the attempts of the central government to outlaw such
‘feudal’ practices.
30 Schulte Nordholt 1997.
31 See, for example, McCoy 1994.
32 For the Umbgrove Commission, see Fasseur 1977; Knight 2005.
33 Elson 1984:259-60, lists more than a dozen official reports relating to aspects of the sugar industry’s
interaction with the peasantry, dating from 1895 to 1917. These represented investigations other than
those of the ‘mindere welvaart’ inquiries discussed below.
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of rural Java. With this fear in mind, from quite early on in their rela-
tionship with the sugar industry, sectors of Indies officialdom developed
perspectives on the industry’s access to land and water that brought
them potentially into conflict with sugar factories, their managers and
owners. Such perspectives were by no means universally shared within
the bureaucracy. Nonetheless, few officials had much sympathy for the
industry’s apparent view that the conversion of large swathes of Java’s
rural population into something akin to a proletariat was both inevitable
and probably desirable (at least, that is, until they started behaving like
proletarians and took industrial action against their employers). In con-
sequence, well schooled by their mentors in the Netherlands, from the
late nineteenth century onward, government officials sought to preserve
Java’s peasant communities from the inroads of ‘capitalism’.34
Protecting farmers and village communities meant, on this reading,
restricting and regulating the sugar industry’s access to land and to the
irrigation water that gave it value. As we have seen, it was the latter
that lay at the heart of De Jaager’s reservations about the industry’s
operations. But there were many more mundane issues of contention
between state officials and Big Sugar. By no means the least of them
related to the prevalence of cane fires. Cane fires, particularly common
in the Java industry during the 1910s, played havoc with the campaign
schedule and – rather frequently – resulted in significant sugar loss. Van
Musschenbroek and Van der Wijck’s newly established Poerworedjo
factory in Central Java, for instance, was no more immune from such
events than any of its counterparts, so that when a steep decline in fires
was recorded during the 1917 campaign, the manager was at pains to
attempt to explain why. The first two his explanations were standard: one
was improved security in the cane fields (‘verbeterde controle op de bewaking der
riettuinen’) and the other alluded to the increased capacity of his factory’s
grinding machinery, which resulted in a shorter campaign and hence
reduced the likelihood that farmers would fire the cane in an attempt to
speed up the return of the rented fields. His third explanation, however,
alluded to something else: the antagonism that might well exist between
the sugar factories and the local-level officials of the Indies government,
for he contended that cane fires had also decreased dramatically since
34 For an extended discussion of this and related points, see Breman 1983; Knight and Van Schaik
2001.
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Chapter 3 Bureaucracy versus plantocracy |
the departure of the Dutch controleur Van Leeuwen, who had a purport-
edly hostile stance to the industry.35
Yet, more was involved than the strictures of one high-ranking bu-
reaucrat in the final stages of a long official career, or the angst of a
young controleur at the beginning of his. The larger framework was that
of the so-called Ethical Policy (Ethische Politiek). Difficult to pin down
with any precision or consistency – the policy was a very broad church
indeed – the resultant ‘ethical trend’ saw the coming into circulation in
government circles in The Hague and among colonial administrators in
the Indies, albeit in a heterogeneous and ambiguous fashion, of ideas
that placed a premium on the state’s role in promoting the betterment of
‘the native’. Inter alia, it proposed that profit taking should be tempered
by a degree of responsibility for the development of the native people’s
of the Indies. Politically, it found some oddly assorted bedfellows in the
Netherlands, on the ‘anti-revolutionary’ right and socialist left, and was
accordingly perhaps an altogether more nebulous concept that has some-
times been imagined.36 Be that as it may, it was widely thought within
the industry that the resultant bureaucratic climate in Batavia (and The
Hague) was such that officials looking for advancement were, per se,
likely to be hostile to sugar capital.
The upshot was that for the better part of two decades the fraught rela-
tions between the colonial state and Big Sugar were articulated through
a series of official investigations that drew on a long tradition – given
a new legitimization by the ‘ethical trend’ – of attempts to bring the
industry firmly within the orbit of the bureaucracy. Within industry
circles (though perhaps mistakenly) the most threatening of these in-
vestigations was considered to be the so-called Onderzoek naar de mindere
welvaart (Inquiry into diminished welfare).37 The investigation did not
35 See Jaarverslag Poerworedjo 1917, p. 4, in: Stadsarchief Amsterdam, Archief Van Heekeren & Co,
no. 1167.
36 For a recent, dispassionate summary, see Van den Doel 1994:165-76.
37 For a succinct introduction, see Hüsken 1994:213-7. The verb minderen has two connected meanings in
Dutch: diminish or decline. Despite the title given to his essay, Hüsken (1994:216) appears to have opted for
‘diminished’ welfare as the rendering that best conveys the situation into which investigators were inquiring.
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have the sugar industry uniquely in its sights. Indeed, its overall pur-
pose, in line with the proclivities of ethically minded bureaucrats, ‘was
to provide a broad analysis of the stagnating rural economy and the
structural weaknesses that were held responsible for the disastrous effects
of the periodic famines of the preceding decades’.38 Nonetheless, it was
widely viewed by Big Sugar as so potentially damaging to their interests,
especially in relation to their multifarious (not to say, nefarious) arrange-
ments for renting peasant farmland, that several counter-factual investi-
gations were launched by the syndicate.39 In the event, the ‘Diminished
Welfare’ investigation (and extensive subsequent publication of its find-
ings) turned out to be a drawn-out – and finally inconclusive – affair
from which the industry had little to fear. Its report, as one contemporary
noted, ‘was “a stew-pot of surmise” from which everyone could choose
morsels to his taste’.40
Notionally at least, a further investigation, specifically focused on the
industry’s exploitation of rural resources, had a much greater potential
to cause problems for sugar capital.41 This was the investigation done by
the Suiker-Enquête Commissie (Sugar Inquiry Commission) which was
instituted in 1918 and which reported three years later.42 Toward the
end of the First World War, a major problem for the government was
criticism of the sugar industry voiced in the newly created Volksraad. At
the same time, it was placed in a position of having to defend a policy
of allowing the sugar industry to continue with the rental of large areas
of high-quality farmland, thereby diverting resources away from rice
production despite an apparent threat of starvation in the countryside.
An official inquiry, with both state officials and sugar-men on board,
offered a possible way out from what had become an awkward situation
for both industry and bureaucracy. But it threatened to be rather more
than that. Tjokroaminoto, the leading figure in the nationalist movement
– and head of the Sarekat Islam (Islamic Union), which had been highly
critical of the industry in the past – was also appointed to the commissie,
while its initial chair was none other than G.Th. Stibbe, a resident who
38 Hüsken 1994:216.
39 Hüsken 2001.
40 Hüsken 1994:216.
41 A further, much more localized and specific inquiry into industry land-rental practices, the so-called
braakhuur, or fallow-hire, system is discussed extensively in Knight and Van Schaik 2001.
42 For the information and documentation in this and the following paragraph, see Knight and Van
Schaik 2001.
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Chapter 3 Bureaucracy versus plantocracy |
had long been viewed in sugar industry circles as hostile to their inter-
ests. It looked as if it might turn into the culmination of a decades-long
project in (some) official circles in the Indies to curb the industry’s hold
over Java’s agrarian resources.
In reality, however, the investigation was to be a turning point of a
very different kind. As we shall see in a subsequent chapter, the period
from 1918 to 1920 showed an unprecedented level of industrial and
agrarian unrest within the sugar industry, which put the sugar companies
more overtly on the offensive than had ever been the case before. Even
while the Suiker-Enquête Commissie was convening, the sugar owners’
organizations, both in the Indies and in the Netherlands, positioned
themselves to take a hard line against what they characterized as the ‘in-
citement’ (opstokerij) affecting their industry. In a meeting at the Ministry
of Colonies in The Hague in March 1920, industry representatives evi-
dently brought pressure to bear on those officials who had attempted to
focus the discussion on the impoverished state of rural Java, low wages
and the need to ameliorate local condition. For lobbyists such as this, the
problem was not one of defusing unrest, but of suppressing it. The threat
of ‘Communism’ was much bandied around; ‘native’ labour organiza-
tions were depicted as either revolutionary in intent or, at best, ‘political’
in purpose.
Resident Stibbe, meanwhile, returned to the Netherlands, his place as
chair of the enquête taken by a less hostile official, while Tjokroaminoto,
from whom much had been hoped, was distracted by a crisis between
Sarekat Islam and the Indies government, and took no real part in its
investigations. Hardly surprisingly, given the rapidly changing circum-
stances in which it had taken place, the outcome of the enquête was a
public and widely circulated report that rebutted most of the charges
levelled against the industry. Industry sources evidently regarded it,
somewhat smugly, as a complete vindication: for the NHM, at that time
owner or financier of more factories than any other of the colony’s
‘sugar’ companies (and with its widespread banking and commercial
interests, very much more than that) it represented ‘a glorious refutation
of many accusations against the sugar industry’.
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43 For developments within the Indies state during the interwar decades, see Van den Doel 1994:373-
442, 1996; Cribb 1994.
44 The very notion of a ‘corporatist’ or ‘corporate’ state remains, of course, problematic, not least
because it tends to occlude the dynamics of the relationship between the parties concerned. See, for
example, McVey 1992:13-4.
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Chapter 3 Bureaucracy versus plantocracy |
Indies Association for the Sale of Sugar)45 was able to dispose of most
of the huge stockpile of sugar – around 3 million MT or more – under
the weight of which Java threatened to capsize. Yet, it did far more than
that, since NIVAS was also mandated to set annual production quotas for
the industry as a whole, and formed the crucial agency in the corporate
state’s determination to set Java sugar ‘back on its feet’.
45 Taselaar (1998:151-6) gives a detailed account. See also Boomgaard 1988:162-3; H. Prinsen Geer-
ligs and R. Prinsen Geerligs 1938:80-1. For a resumé of the 1932 regulations (and their reiteration
in perpetuum) in 1936, see http://www.kitlv.nl/documents/library/Metamorfoze/Indisch%20Verslag/
MMKITLV01_PDF_TS2710_1935.pdf, p. 45; http://www.kitlv.nl/documents/library/Metamorfoze/
Indisch%20Verslag/MMKITLV01_PDF_TS2710_1936.pdf, pp. 53-4.
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122
Chapter 4
The story begins in the 1880s, when Java’s hitherto largely self-reliant
sugar producers suddenly found themselves in deep financial trouble.
During the course of 1884, the sudden development of what would
now be called a ‘bear market’ hit the international sugar economy.
Precipitated by a crisis in overproduction – itself a consequence of the
struggle for hegemony in world markets between cane and beet sugar –
and by stagnating demand, it saw the industrially manufactured form of
| Commodities and colonialism
the commodity (‘centrifugal’ sugar) loose between one third and one half
of its value in the course of a few months.1
The drastic fall in sugar prices had mixed results for the Java pro-
ducers. The long-term upside (as we saw in a previous chapter) was
that it opened up a potentially vast market elsewhere in Asia for ‘cheap’
industrially manufactured sugar. The immediate downside, however,
was that it meant that producers and their financiers were faced with
bankruptcy. By 1885, several locally based firms with a big stake in the
industry had gone bankrupt, while others teetered on the verge of col-
lapse, leading to a situation in which many of the colony’s sugar factories
came increasingly into the orbit of Netherlands-based financiers. Under
their aegis, metropolitan capital played an important role in resurrecting
and expanding a wide variety of plantation enterprises, sugar included.
Thanks, in part at least, to a substantial reconstruction on the basis
of which the industry was capitalized, Java sugar survived the crisis.
Nonetheless, this reconstruction was more complex than has sometimes
been appreciated. It certainly involved considerable injections of met-
ropolitan capital, together with a major reinforcement of metropolitan
control. On the other hand, it did not guarantee a continued flow of
such capital once the immediate crisis was over.
From the late nineteenth century onward, the ownership and manage-
ment of Java sugar came to form an integral part of what its foremost
historian, Arjen Taselaar, has described as an ‘Indies business commu-
nity’ or ‘het Indische bedrijfsleven’, based in the Netherlands itself. Its leading
figures were prominent among a ‘core elite’ of merchants, bankers and
investors, located predominately (though not exclusively) in Amsterdam.
Their interests, in addition to sugar, included a variety of other planta-
tion crops, oil and mining, and shipping and finance. The sugar industry
as a whole participated, that is to say, in an interlocking network of direc-
1 The most richly detailed, modern account of the crisis of 1884 and its aftermath is (on which I
gratefully draw in what follows) is to be found in Claver 2006:109-48. See also Korthals Altes 2004:118-
30; De Bree 1928-30, II:232-58.
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Chapter 4 No business like sugar business |
torships and board memberships that embraced all these spheres – and
extended into the heart of Dutch metropolitan business.2
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strings of the Amsterdam financial and business world (‘de touwtjes van het
Amsterdamse financiële en zakenleven in handen hielden’). Yet, ‘Meneer S.P.’ and
his associates’ commanding presence in the ‘Indies business community’
was also symptomatic of a wider trend that had begun before the sugar
crisis of 1884 and was to extend long after it. This was the degree of
interconnectedness, even fusion, between a notionally ‘colonial’ bour-
geoisie and its metropolitan counterpart. In turn, this was in part the
outcome of the multi-generational existence of ‘empire families’ with
deep roots in both colony and metropolis. Though Van Eeghen himself
apparently had no family ties with Java, his firm most certainly did: from
the mid-nineteenth century onward, its extensive trade with the colony
included a long-standing relationship with one of Java’s major sugar ex-
porters, the Batavia firm of Maclaine Watson & Co, and their business
associates in Semarang and Surabaya.4
In the wake of the crisis of 1884, connections such as these – both
personal and commercial – were to have two major implications for the
sugar industry with respect to its financing, ownership and management.
The first was that the people in the Netherlands who stepped in to re-
finance the industry after 1884 were far from being strangers to it: on
the contrary, their association with it was a long one. The young S.P. van
Eeghen himself had spent a year or more in the Indies (before returning
to Holland in 1877) and his experience was a common one among his
late nineteenth-century contemporaries in the ‘Indies business commu-
nity’. The second implication was that the industry’s history after 1884
was not one of sweeping away or submerging the ‘colonial’ bourgeoisie
and their affiliates, who had been the driving force behind Java sugar in
the preceding decades. Rather, it was a history of their continuing pres-
ence. New men and new money were only part of a story characterized
by a greater degree of continuity than has sometimes been recognized.
This fact exerted a vital influence in sustaining the industry through the
crisis of the mid-1880s, and on the re-financing of the entire enterprise
that took place in its wake. Conversely, it also more or less guaranteed
that the industry would remain in the hands of a (largely) closed circle
of investors and owners, something which was to have important conse-
quences for the industry’s subsequent financing.
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Chapter 4 No business like sugar business |
The age of mass production saw the (re-)emergence of two major cane
sugar exporters in the world market: Cuba and Indonesia. There were
substantial and significant differences between them, however, in the
way in which the expansion of production was financed. Cuba at the
beginning of the twentieth century was just emerging from a decade of
civil war, foreign invasion and ‘pacification’ at the hands of the United
States that had massively disrupted sugar production. Thereafter, United
States’ capital invested in Cuba – an estimated 60 per cent of which went
to the sugar industry in the form of loans – in 1906 already amounted
to 200 million US dollars, and had reached one billion dollars by 1927.5
Java experienced nothing like this. At the end of the 1920s, the
notional capital value of the entire Java sugar industry was reckoned
to amount to around 800 million guilders (approximately 320 million
dollars at 1929 values), less than one-third of that invested in Cuba by
American financiers.6 Moreover, the sheer quantity of capital involved
was only one aspect of the contrast; finance of expanding production in
Java also took place on quite different lines than in Cuba. To be sure,
despite the post-1900 surge of American investment, a certain amount
of Creole Cuban-Spanish capital and entrepreneurship persisted on the
Caribbean island.7 Nonetheless, it was overseas banks and their share-
holders that provided the bulk of the finance available to the Cuba in-
dustry. In Java, however, the industry’s situation vis-à-vis overseas capital
was altogether more complex.
5 Pollitt 1984:7-9. In 1913, United States’ capital owned 39 major sugar factories in Cuba and con-
trolled 37% of total sugar production. By 1924 they accounted for 60% of the total and owned 74
factories (Ayala 1999:95).
6 Figure calculated on the basis of $US 1 = 2.5 guilders. Estimates for Java for 1929 are taken from
Keller 1940:13-4. Keller’s estimates are quoted in Callis 1942:26-8.
7 Speck (2005) has advanced the important argument that in the early stages of the reconstruction of
the Cuba industry after the war of independence, ‘Creole’ Cuban-Spanish capital and entrepreneurship
played a significant role, and that hence 1898 was less of a watershed than has sometimes been supposed.
The parallels with the argument about the Java industry advanced in the following paragraphs are obvi-
ous enough to need no further elaboration.
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130
Chapter 4 No business like sugar business |
12 This was consistent with the extent to which, in metropolitan Holland, the family firm ‘persisted’
well into the twentieth century as a form of industrial capitalism when elsewhere in Europe (notably in
Germany) and in North America it was increasingly supplanted by large companies with ‘impersonal’
managerial hierarchies. Moreover, as was said also to be the case in Holland, even in big corporations,
‘family links played an important role’ (Sluyterman and Winkelman 1993).
13 For Everts in Hilversum, see Engel, Van der Schuyt et al. 2005:167, 227.
14 Knight 1999.
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Chapter 4 No business like sugar business |
Internatio. More important in the long term, however, was the fact that
the great Rotterdam firm owned no shares in Tjomal, which remained
firmly in the hands of the interrelated Van der Wijck and Teding van
Berkhout families. Indeed, in the 1930s the largest single shareholder in
the Tjomal sugar company was the countess (jonkvrouw) Alphreda Louisa
Teding van Berkhout,18 a niece of the man who had bought Tjomal at
auction from the Indies government in 1872. A ripe example of the colo-
nial rentier, Countess Alphreda spent much of the latter part of her long
life – she had been born in Batavia in 1863 and died 1959 – in northern
Italy, surrounded by the elegance and comfort of the Villa Planta in the
celebrated sub-alpine resort town of Merano.19
The Teding van Berkhout clan was by no means exceptional in keep-
ing ownership firmly in the family. A vignette played out in The Hague
in the mid-1880s shows how it might be done: how old-established firms
might hold out against the new wave of big financiers. The recently
widowed Anna Hoevenaar (1823-1905) had been born to Otto Carel
Holmberg de Beckfelt and his wife Henriette Smissaert in Java, where
her father subsequently became a pioneer sugar manufacturer. In 1886,
following the death of her husband Hubertus, a rich, retired Java sugar
manufacturer who had taken over and greatly extended his father-in-
law’s interests in the industry, she might have appeared vulnerable to
metropolitan take-over. Working capital for her Java factories was sup-
plied by the NILM (as we have seen, one of the handful of the newly
established cultuurbanken set up in the wake of the crisis of 1884) which
had inherited a decade-long financial arrangement with the ‘Hoevenaar
Concerns’ from its ailing sister-company, the Nederlandsch-Indische
Handelsbank (Netherlands Indies Trading Bank).
However, if the NILM thought that this was the moment to wrest
control of the enterprise from this evidently formidable old lady (she
clearly inherited qualities from her mother, a woman of spirit, who
had separated from her father some five or so years after she had been
born) they were sorely mistaken. Mevrouw Hoevenaar née Holmberg de
Beckvelt (she evidently liked the touch of aristocracy that this reminder
18 Nederlands Adelsboek 79 (1988): 489; Jonkvrouw Teding van Berkhout-Senfft von Pilsach, living in
Merano, held 136 of the 400 shares in Tjomal (‘alle aandeelhouders zijn niet-jood’ was how the com-
pany was described to the Nazis during the war), see the List of Shareholders as of 31-12-1938, in:
NA, NV Maatschappij tot Exploitatie van de Suikeronderneming Tjomal, 1872-1971, toegangsnummer
2.20.39, inv. nr. 66.
19 C. Schmidt 1986:156.
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20 ‘Geschiedenis NILM’, circa 1942, p. 56, in: NA, NV Nederlands-Indische Handelsbank; Nationale
Handelsbank NV, 1863-1966, toegangsnummer 2.20.03, inv. nr. 329; Handboek 1899:618.
21 ‘Geschiedenis NILM’, circa 1942, p. 64, in: NA, Ned.-Ind. Handelsbank, 2.20.03, inv. nr. 329.
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The salvation of the Java sugar industry in the wake of the collapse of
world sugar prices in 1884 was hence an altogether more complex devel-
opment than has sometimes been assumed. To be sure, the commercial
and financial crisis that hit the Java sugar industry in the mid-1880s cer-
tainly gave rise to a number of major rescue operations mounted in the
capital markets of Amsterdam and Rotterdam. Nonetheless, once the
immediate crisis had been dealt with, and the heroic days in smoke-filled
rooms along the Heerengracht and Keizersgracht, in what was then the
commercial heart of Amsterdam, had passed into the corporate mem-
ory, enthusiasm for pumping money into Java sugar declined markedly.
In financial terms, the ‘rescue’ of 1884-1886 was essentially a short-term
22 See Nederlands Patriciaat, 9 (1918), pp. 346 ff; obituary notices filed in: NA, NHM, 2.20.01, inv.
nr. 8994; NV Suikercultuur Mij filed in NA, NHM, 2.20.01, inv. nr. 8300; entries for ‘Hoevenaar’ Sugar
Factories (Pangka, Karang Soewoeng, Adiwerna and Djatibarang) in Handboek 1888-1939.
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23 À Campo 1996:74.
24 Sluyterman (2005:105) observes that ‘[b]etween 1914 and 1938, Dutch direct investment in the
Dutch East Indies more than doubled. However, the share of the colony in the total Dutch foreign direct
investment diminished. While in 1914 the estimated stock of accumulated Dutch direct investment in
the Dutch East Indies was 75% of total Dutch FDI, in 1938 it amounted to no more than 60%.’ For a
recent general discussion of overseas investment in late colonial Indonesia, see Lindblad 1998:11-94.
25 Estimates for 1929 from Keller 1940:13-4.
26 Sluyterman and Winkelman 1993:153; Lindblad 1994.
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Chapter 4 No business like sugar business |
27 Writing more than a quarter of a century ago, Creutzberg (1977:27-8) drew attention to the pro-
pensity among Western enterprises in late colonial Java toward ‘a basic reliance on own (non-borrowed)
financial resources; the financing of expansion out of internal sources, mostly by ploughing back oper-
ating surpluses’. Van der Eng (1993:21, note 16) draws attention to the fact that ‘not much is actually
known about retained profits’, and cites a ‘guess’ by W.L. Korthals Altes in Changing economy in Indonesia,
vol. 7, that, in general, something over one-third (36.5%) of profits were retained for local investment
and a contemporary figure of 32.8% for the period 1925-30 (from Prange 1935:91-2). For a discussion
of the importance of retained earnings in financing the expansion of colonial commodity production
in general in the Netherlands Indies as a whole between circa 1880 and 1940, see Booth 1998:253-60
and the references therein. Around 1913, there were said to be some 198 sugar factories operating in the
colony.
28 Jonker and Luiten van Zanden 2007:33.
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It is difficult to achieve our ends other than through the transfer of profits
into a reserve fund and to invest this in new enterprises. It is difficult to
raise funds on the open market for new business on account of the de-
layed returns and because the risks are too great. The result of this policy
is that cash pay-outs, that is to say dividends, have to be restricted.29
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van Koophandel en Nijverheid there. At the time of his death, in 1913, he was the chairman of the
Koloniale Bank’s ‘Raad van Toezicht’ in the Indies (Jaarverslag Koloniale Bank, 1913, p. 1, in: IISG,
http://hdl.handle.net/10622/6F6C905E-2B19-4B48-95C5-608CC2D1EE96). His article in the Archief
was designed (Paets tot Gansoyen 1913:1473-4) to provide the industry with propaganda with which to
combat current proposals, emanating from within the Indies government, to compel the sugar factories
to pay more for land rental, labour and water, on the grounds that they could well afford to do so. I am
not convinced, however, that this invalidates the general thrust of his data. Profits (and dividends) hung
very closely on the international price for industrially manufactured sugar. In 1911-1912 – as Paets tot
Gansoyen (1913:1404, 1471) readily conceded – prices were indeed relatively high, with a consequent
flow-on to dividends.
32 Data from Bosch 1948:681-4.
33 Jonker and Luiten van Zanden 2007:217.
34 Handboek 1888-1939. Data for the relevant years for the Mij Exploitatie Karang Soewong, Adiw-
erna en Djatibrang (also known as the Hoevenaar Concerns): the dividend paid for 1914 was 10% and
that for 1915 was 17%. By 1917, the industry was nearly crippled by a shortage of freight room and no
dividend was paid. For 1918 the dividend was 29.75%.
35 For a discussion of the differing policies on this score among Indies companies, see Lindblad 1994.
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years between 1919 and 1929 – but this included an astronomical 237
per cent in 1920.36 This was the year of the celebrated ‘dance of the
millions’, when the price of sugar on the New York market hit a high of
22.5 cents per pound and a low of 3.63 cents (a year earlier it had stood
at 6.65 cents).37 There were other, similarly ‘fabulous’ dividends: the lo-
cally based company that owned the Tjoekir sugar factory in Surabaya
Residency, for example, paid an average dividend of 65 per cent in the
period 1920-1929.38
Nonetheless, these remained exceptional cases. Some enterprises had
a financial history that bordered on the dismal. The Poerworedjo fac-
tory established with such splendid credentials by Van Musschenbroek
and Van der Wijck shortly before the First World War was a case in
point. Despite being one of the most ambitious enterprises in the colony
(or, possibly, because of this), the profits were slow to materialize – even
though Van Musschenbroek and his immediate associates seem to have
done quite nicely out of setting it up.39 For the general run of its share-
holders, however, Poerworedjo was scarcely a road to riches. Dividends
over the life of the factory (it closed for good in 1933, after having been
in operation for scarcely two decades) averaged at well below 4 per cent
per annum. Even in 1920, the annus mirabilis for the Java industry, when
world prices skyrocketed, the factory only paid a modest 20 per cent.40
If this was the best that an ex-Governor General and a high-powered
businessman could do for investors, a certain lack of enthusiasm on the
latter’s part was fully understandable.
Of course, Poerworedjo may have had its own particular problems.
Nonetheless, what emerges from the records of the big cultuurbanken is
36 For the dividends paid by the Hoevenaar Concerns over the period 1896-1929, see Handboek 1888-
1939, for the years concerned.
37 See, for instance, Pollitt 1984.
38 Bosch 1948:682.
39 One disgruntled shareholder alleged that what he described as the ‘Ramaer Kongsi’ (that is, Ramaer,
Van Musschenbroek, et alia) had made a handsome profit out of selling on to the Poerworedjo company
the four concessions for the planting of cane that they had earlier bought up in Kedu (and which formed
the basis of the factory’s operations). He also alleged that Van Musschenbroek’s nephew, H.H. Patijn,
had done very nicely indeed out of commissions earned on the initial share issue (W. Bosch, ‘Brief
aan Aandeelhouders der Suikerfabriek Poerworedjo’, Djogja, 3-3-1910, in: NA, NHM, 2.20.01, inv. nr.
7968).
40 Between 1910 and 1932, Poerworedjo paid a dividend on only nine occasions. The average over
twenty-two years was 3.6%. Even then, dividends (4%) were only paid in 1910 and 1911 because of the
return guaranteed to shareholders by the NHM, an early stakeholder in the project. For the financial
history of the company, see the Jaarverslagen Suikeronderneming Poerworedjo, 1910-1932, in: KIT, L
2867.
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also a cautionary tale – the more so when the payouts of the ‘roaring
twenties’ are placed in their proper context. Between 1910 and 1929,
the year in which prices started to collapse, the average annual dividend
paid by the four big enterprises just cited – the KB, the NILM, the HVA
and the Cultuurmaatschappij der Vorstenlanden – amounted to slightly
more than 22 per cent, a figure that was significantly inflated by the
short-lived ‘bull market’ of 1920. 41 Nor does it reflect the fact that two
of these big companies did very much better than the other two, and
that the dividends of the best-paying of them – the HVA – were inflated
by non-sugar income.42 The essential point, however, is that the 1920s
formed a unique episode in the industry’s dividend history: unmatched
before then, and never repeated afterwards.
Moreover, even the most generous dividends paid out during the
1920s (they stopped abruptly at the end of the decade) were not all they
seemed. Any impression of a shareholders’ bonanza needs to take into
account the very substantial understating throughout the industry of the
equity capital on which profits were distributed. Dividends looked better
– in some cases considerably better – than they were, because they were
paid on a ‘notional’ equity capital that was quite unrealistic in terms of
the actual sums invested in the enterprise.
For instance, the NILM had eight large sugar factories operational in
the 1920s. A realistic valuation – based on a rough assumption that each
factory was worth some 3 to 4 million guilders – was that the company’s
assets were worth somewhere between 24 and 32 million guilders.43
Nonetheless, the company went through the decade with an equity
capital of 15 million guilders – and it is on this equity, of course, that
its dividends were paid. In the already-cited case of the Tjoekir factory,
for example, not only was the average dividend paid during the 1920s
41 The average dividend for the period 1910-1930 paid by the HVA (which reflected its investments in
other plantation crops in Java and elsewhere in the Indies) was 27.85%; the average paid by the NILM
was 24.63%. In contrast, the average dividend paid by the Cultuurmij der Vorstenlanden was 12.88%,
while the Koloniale Bank paid 11.07%. See for the relevant data: Jaarverslag Koloniale Bank, in: NA,
Cultuur-, Handel- en Industriebank, 2.20.04; Jaarverslag Handelsvereeniging ‘Amsterdam’, in: NA,
Handelsvereniging Amsterdam, 1870-1959, toegangsnummer 2.20.32; Jaarverslag Cultuurmaatschap-
pij der Vorstenlanden, in: KIT, L 1486; Jaarverslag Nederlandsch-Indische Landbouw Maatschappij, in:
KIT, L 2803.
42 By the late 1920s, the HVA’s plantation interests in both Java and Sumatra (where it pushed through
a number of big developments from circa 1918 onward), embraced not only sugar but also the produc-
tion of tea, rubber, tapioca, palm oil and sisal (vezel), and covered nearly 90,000 hectares (Aangeboden door
HVA 1929).
43 Jaarverslag NILM, 1920-1930, in: KIT, L 2803.
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| Commodities and colonialism
The key trends in the way the industry was predominantly financed were
already strongly in evidence during the closing decades of the nineteenth
century and early in the twentieth; for example, the compiler of an elab-
44 Tjoekir, somewhat unusually, was owned by a limited company registered in Surabaya rather than
in the Netherlands; circa 1920 it was farming cane on around 806 hectares of peasant ricefields, produc-
ing 70.4 quintals of top quality sugar (SHS) per hectare (Jaarverslag NV Suiker Fabriek Tjoekir, 1907-
1923, in: KIT, L 2958).
45 For contemporary confirmation of the gross undervaluation of industry assets, and observations
that (notional) equity capital bore little relation to actual capital invested, see, for example, Paets tot
Gansoyen 1913:1458-9.
46 Korthals Altes 2004:323.
47 HVA equity capital in 1930 amounted to 40 million guilders. In addition, the company held 20
million guilders in statutory and extraordinary reserves (Jaarverslag HVA, 1930, in: KIT, LD 106).
48 Prinsen Geerligs 1927.
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orate analysis of industry profits made shortly before the outbreak of the
First World War (cited above) remarked on how, since the 1880s, many
sugar companies had salted away much of their profits into reserves,
which had then been used to buy the requisite new machinery and, more
generally, to finance the expansion of their enterprises.49 In this respect,
the record of the Tjomal company – with which Van Musschenbroek
was for so long associated – is worth citing. Between 1915 and 1928 (the
last ‘good’ year before the interwar depression), the company recorded
profits of more than 20 million guilders, of which over one-third was
spent on machinery and buildings for an entirely new factory at Tjomal
itself.50
Moreover, Tjomal was by no means an isolated example of the extent
to which retained profits were used to finance expansion. In the case
of the four big sugar companies already named – with between them
around forty factories by the 1920s – the pay-out ratio (that is, the ratio of
dividends to net earnings) was just over 74 per cent over the period from
1910 to 1930.51 That is to say, something a little over 25 per cent of profits
was held back to build up reserves or to fund expansion. In fact, this was
almost certainly a conservative estimate of actual retained earnings, since
it is not always apparent precisely what capital charges were deducted
before net profit was declared. Indeed, as we shall see, in the case of one
major company it is obvious that very substantial capital expenditures
were placed on the debit side of the ledger before net profit was declared.
This may have been a somewhat exceptional situation, but the strategy
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52 HVA equity capital in 1930 amounted to 40 million guilders. In addition, the company held 20 mil-
lion guilders in statutory and extraordinary reserves (Jaarverslag HVA, 1930, in: KIT, LD 106). ‘Voor de
financiering der exploitatie werd door uitgifte van obligatieleeningen [that is, debentures] eenige malen
een beroep op de geldmarkt gedaan: per 31 December 1928 is het uitstaand bedrag aan obligatiën rond
f. 20,700,000’ (Aangeboden door HVA 1929:11-2). The HVA’s recourse to debentures was not typical, how-
ever, of the industry as a whole, where debenture capital only played a minor role. Debenture capital was
indeed significant in the colony, but was mostly tied up, for instance in infrastructural developments and
in perennial plantation crops (Manschot 1939).
53 Notulen bestuursvergaderingen, 29-6-1921/624, in: NA, HVA, 2.20.32, inv. nr. 3.
54 Notulen bestuursvergaderingen, 24-6-1923/649, in: NA, HVA, 2.20.32, inv. nr. 3. Reineke also
cited the Dutch government’s hoofddirecteur van financiën’s (chief director of financial affairs) 1919
valuation of the HVA at 97,399,542 guilders.
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of the decade, it must certainly have been in the region of 150 million
(and possibly substantially more). The sums just kept on mounting up.
Prior to 1920, the HVA had invested well in excess of 10 million guilders
in its vast sugar-making operation in the south-east of Java – by far the
largest factory in the colony – and it subsequently invested at least anoth-
er 40 million guilders there during the course of the following decade.55
In addition, at the very end of the 1920s, there was the state-of-the-art
Koenir factory in East Java’s Brantas valley. This was the last of its kind
to be built in colonial Java, which cost the HVA more than 7 million
guilders.56 None of these calculations takes any account, moreover, of
the sums spent in the 1920s on HVA plantations in Sumatra (and on Java
itself),57 or on expanding and renovating the other sugar factories that
the HVA already owned in and around the Brantas valley. There were
around a dozen of the latter, and an educated guess would be that, over
the course of the twenties, they would have absorbed perhaps a further
10 million guilders of investment. In total – and it is a fairly conserva-
tive total – the HVA’s investments between 1910 and 1930 can hardly
have amounted to less than 150 million guilders, set against no more
than 40 million guilders raised (in one form or another) from financial
markets. That is to say, the HVA disbursed in two decades of expansion
something in excess of 100 million guilders over and above the capital
it borrowed. At most, its retained earnings – in the form of the differ-
ence between net profit and what was paid out in dividends – between
1910 and 1930 amounted to only 37.5 million guilders.58 It has to be
assumed (if these calculations are indeed correct) that the ‘missing’ 60
million or so guilders was accounted for by capital outlays deducted from
55 In 1927, the well-informed and highly sympathetic Indies journalist H.C. Zentgraaff quoted a
figure of 60 million guilders as the total sum invested in the HVA’s sugar-manufacturing complex in
and adjacent to Djatiroto in the far south-east of Java (Z. 1927:11; see also, ‘Enkele notities inzake
der suikerondernemingen Djatiroto, Semboro, Goenoengsari en Bedadoeng’, [1939], in: Internationaal
Instituut voor Sociale Geschiedenis (IISG), Amsterdam, Nederlandsch Economisch-Historisch Archief
(NEHA), Bijzondere Collecties 640/A 3 (a); Prinsen Geerligs 1927. Zentgraaff ’s 60 million is largely
substantiated in the company’s annual reports. Goenoengsari and Semboro had cost together some 20
million by 1926 (Jaarverslag HVA, 1926, p. 11, in: KIT, LD 106) and the projected cost of Bedadoeng
was already 11 million by 1926 (Jaarverslag HVA, 1926, p. 11, in: KIT, LD 106) – which would leave
the two Djatiroto factories costing together around 29 million, which may be a bit high. For an extended
discussion of Djatiroto and the HVA’s operations in south-eastern Java, see the following chapter.
56 Jaarverslag HVA, 1927, p. 11-2, in: KIT, LD 106.
57 By 1919, 10 million guilders had already been invested in plantations in Sumatra; see Notulen
bestuursvergaderingen, 4-4-1919/595, in: NA, HVA, 2.20.32, inv. nr. 2.
58 Between 1910 and 1930, the HVA’s net profits amounted in total to 171,312,177 guilders; the
company disbursed 133,750,000 in dividends (Jaarverslag HVA, 1910-1930, in: KIT, LD 106).
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| Commodities and colonialism
gross profits before the net profit was declared. In whichever way the
accounting is done, the conclusion has to be that even the HVA, despite
being the most highly geared of Java’s Big Sugar companies, nonetheless
funded the bulk of expansion by ploughing back profits.
Even so, the amount of the HVA’s borrowings was unusual (and
reflected its uniquely expansionist character) in the industry as a whole.
Instead, retained earnings were the rule. To be sure, the Koloniale Bank
– which shortly before the First World War either owned or part-owned
thirteen sugar factories and financed the operation of nine more – had
increased its equity capital by 50 per cent (from 10 to 15 million guilders)
in 1911, probably in connection with the outlays on its big, state-of-the-
art factory at Bandjaratma, on the north coast of Central Java. This
was, however, an exceptional move for the company. At the beginning
of the 1920s, in a further expansion of its operations, it bought a string
of four factories in the Yogyakarta area, built a new factory to partially
replace them and incorporated the remainder in a greatly expanded and
renovated existing operation – all without any increase in equity capital
or borrowings.59 Subsequently, the company’s directors were authorized
to make a significant expansion in equity capital – but largely neglected
to do so.60 Instead, reinvested profits continued to play the key role in
sustaining the process of almost continuous technological renovation
common to all the leading sectors of the Java industry throughout the
twenties. Only when faced with crisis conditions in 1930 (the selling price
of the company’s sugar had fallen below its cost price) did the Koloniale
Bank resort to a debenture issue – which, oddly enough, given the cir-
cumstances, was rapidly fully subscribed.61
In the case of the CMV, enlargement of equity capital, when it came,
was occasioned by matters other than the expansion of productive ca-
pacity. In 1918, the company doubled its equity (which had remained
constant since its establishment thirty years earlier) from 10 million to
20 million guilders in response to the exigencies of the commercial dif-
ficulties facing Java sugar toward the end of the First World War. Above
all, a serious shortage of shipping potentially left the industry with huge
quantities of sugar on its hands. For this particular company, the upshot
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Chapter 4 No business like sugar business |
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| Commodities and colonialism
a closed shop
that these sums for ‘uitbreiding en vernieuwing’ were booked against the recorded profits (meaning that the
‘winstsaldo’ in the balance sheet of this company does not represent profits per se, but profits minus what
had been ploughed back). Developments within the Cultuurmij der Vostenlanden ran on a parallel track.
While significantly increasing their ownership stake in the twenty or so factories to which they provided
finance, between 1904 and 1908, the company built two new factories (Demakidjo and Wonotjatoer) for
around 3 million guilders, totally financed out of the profits. Indeed, the company went out of its way
to emphasize the point: ‘zonder genoodzaakt te zijn, daartoe van creditmiddelen gebruik te maken’ (Demakidjo) and
‘geheel uit eigen middelen’ (Wonotjatoer) (Jaarverslag Cultuurmij der Vorstenlanden, 1905, p. 3; 1907, p. 8;
1910, p. 9, in: IISG, ZK 58574). By 1915, the company directly owned four sugar factories and financed
the operations of some twenty more, though by the mid-1920s it had scaled down its operations some-
what, having closed one of its factories (but greatly expanded another) and reduced to eleven the number
that it financed (Jaarverslag Cultuurmij der Vorstenlanden, 1915, p. 10; 1924, pp. 8-11, in: IISG, ZK
58574). The company’s Soedhono factory in Madiun Residency was extensively rebuilt in the mid-1920s
and its plantation area was increased by around 70%. The whole operation was revalued from 900,000
to 3,200,000 guilders, with the whole project paid for out of the profits (Jaarverslag Cultuurmij der
Vorstenlanden, 1924, p. 8; 1925, p. 6, in: IISG, ZK 58574).
69 Prospectus Poerworedjo, November 1908, file ‘Poerworedjo’, in: NA, NHM, 2.20.01, inv. nr. 7968.
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Chapter 4 No business like sugar business |
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| Commodities and colonialism
is to say, the industry was and remained the preserve of Dutch capital.
British capital had almost no presence,75 even less that of the United
States, while the Japanese, despite their massive commercial importance
to the industry by the early 1920s, never established more than a tiny
bridgehead (scarcely a handful of factories) in Java sugar’s production
sector. Whatever the ambitions of Japanese capital in this respect – and
there is some indication that during the First World War they were in-
deed keen to buy substantially into an industry that was currently the
major supplier of Japanese refineries – they encountered considerable
resistance from the Dutch side. The HVA, who were presumably not
alone in this, were firmly against the sale of factories to Japanese inter-
ests, and believed that their stand had the backing of the government in
The Hague, for whom Japanese penetration of the industry was said to
be ‘onaangenaam’ (unpleasant).76
Nor was Indies-Chinese capital overly in evidence in the industry.
There has been a tendency to exaggerate its presence, consequent, per-
haps, on the dominance of ‘Chinese’ entrepreneurs in the late twentieth-
century Indonesian economy as a whole.77 By the opening decades of the
twentieth century only a small minority of Java’s big industrialized sugar
factories (the ones that catered to the export trade in the commodity)
were in the hands of Indies-Chinese owners. The largest Chinese sugar
concern, the Oei Tiong Ham Concern (OTHC), had only five factories,
despite its very substantial presence in the commercial life of the colo-
75 The Maclaine Watson combine’s ownership of several major factories and its financial ties to a
number of others may technically have represented ‘British’ capital investment. In reality, the firms con-
cerned were old-established enterprises whose roots were essentially (Dutch) colonial rather than (British)
metropolitan.
76 Notulen bestuursvergaderingen, 7-9-1917/474, in: NA, HVA, 2.20.32, inv. nr. 2.
77 Lindblad (1998:75) cites the work of Howard Dick (1993) to suggest that circa 1924, ‘the sugar con-
cern’ left behind when Oei Tiong Ham died ‘had an equity of f. 40,000,000’, a figure apparently equal-
ling the nominal equity of the HVA. This figure is repeated in Post 2011:183-4. The figures which Post
supplies for the stated equity of the OTHC’s sugar factories does not, however support this ‘40 million’
figure. Indeed, the stated equity (from the Handboek 1888-1939, apparently) for the OTHC’s five sugar
factories (Redjo Agoeng, Tangoelangin, Pakkis, Poenen and Krebet) amounts in total to only 3,400,000.
Of course, throughout the sugar industry, the actual value of factories was habitually grossly understat-
ed. OTHC’s Redjo Agoeng, for example, is assigned an equity value of 600,000 guilders. In fact, it was
one of Java’s largest sugar factories, with a plantation area (1930) of well over 2000. At a guess, it must
have been ‘worth’ at least 6 million guilders on 1930 valuations (the other OTHC enterprises were not
in that league). Be that as it may, the stated equity (book value) of the OTHC’s sugar factories remains at
less than 3.5 million guilders and that figure (rather than the fanciful ‘40 million’) is the value that has to
be compared with other (Dutch) sugar companies, whose ‘real’ assets were likewise grossly undervalued
in the equity capital data listed in Handboek 1888-1939.
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152
Chapter 5
Enmeshed in Lilliput
Constraints on growth
During the middle months of 1911, a small delegation from the Java
sugar syndicate paid a visit to their counterparts in Hawaii, where
an American-run industry, although relatively small by international
standards, was one of the most advanced in the world. To be sure, its
manufacturers lacked the immense field-labour force of their colonial
Indonesian contemporaries, and likewise lacked the resources to fully
replicate the kind of R&D in which Java had become world leader.
With evident satisfaction the visitors found not only that their Hawaiian
counterparts employed a woman well-versed in the Dutch language in
their own research station, but also that copies of the publications of
H.C. Prinsen Geerligs, the Java industry’s leading savant, were located
in the laboratories of many Hawaiian factories.1 Nonetheless, the three
men who formed the delegation – a top executive of the syndicate
(J.W. Ramaer),2 an agricultural expert (J.E. van der Stok)3 and an
1 Ramaer 1913:1-27.
2 For Ramaer, see Chapter 3.
3 Johan E. van der Stok (1880-1958), like the majority of his Dutch counterparts in the Indies, had
been born in the colony. His father was director of the Indies’ Meteorologisch Instituut, and like similarly
well-off colonial contemporaries, the young Van der Stok was largely educated in Holland. Returning
thereafter to the Indies, his trajectory was an idiosyncratic one. At the time of the visit to Hawaii, he
was the director of the industry’s research institute (Proefstation) at Pasuruan in East Java. Subsequently,
however, after working as an agricultural advisor to the Indies government, he moved in 1925 to a profes-
sorship at the Landbouw Hoogeschool (later Universiteit) at Wageningen in the east of the Netherlands.
But there was another side to Van der Stok. He was much influenced throughout his life by theosophical
ideas. What one recent historian has referred to as ‘the genteel idiosyncrasy of Theosophy, combining
supposed ancient wisdom of the East with the modernity of the West’, was attractive to many among the
Javanese elites of the Indies, as well as to colonial Europeans (Ricklefs 2007:162). In Van der Stok’s case,
it led him toward schismatic, mystical Christianity, and during the final decades of his life he became a
leading figure in a breakaway, ‘charismatic’ sect (the Vrij-Katholieke Kerk, which he had joined in 1919
while still in Java), in which he was revered as a noted clairvoyant (helderziende) (see www.kingsgarden.org/
nederlands/organisaties/lcc.nl/VKIS/Geschriften/Liberaal/vdS, accessed 28-4-2009).
| Commodities and colonialism
4 After attending the HBS in his home city of Utrecht, F.W. Bolk (1875-1926) subsequently gradu-
ated in 1887 as an engineer (werktuigkundig ingenieur) from the Delft Polytechnische School – the foremost
institution for technical training in the Netherlands. Like many young Dutchmen similarly qualified,
he sought employment overseas – but in South Africa rather than the Indies. However, the subsequent
outbreak of the Boer War – the bitter and brutal affirmation of the British Raj in southern Africa that
ended the autonomy of the Dutch settler states there – nipped in the bud a prospective career in the
Transvaal railways. It forced Bolk to return to Holland, where he found work with Stork, the country’s
leading engineering firm and great fabricators of sugar-manufacturing machinery. It was this latter con-
nection that took him to the Indies, where he arrived in 1903 as Stork’s agent at Salatiga, in Central Java.
Two years later he took up employment in the sugar syndicate’s research institute at Kagok (Pekalongan)
on the north coast of Central Java, where he initially worked under Prinsen Geerligs. At the time of the
visit to Hawaii, Bolk was directeur of Kagok’s technical division. Subsequently, he left the employ of the
syndicate, and at the time of his death in Surabaya in 1926 – following an unsuccessful operation on
his kidneys – he was the technical advisor to a group of East Java sugar factories (Langgruth Steurwald
1926).
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Chapter 5 Enmeshed in Lilliput |
straints that called into question the whole agro-industrial project in the
field on which the industry had staked its future.
enmeshed in lilliput
For all three men, no doubt, the visit to Hawaii had its pleasurable side.
They sailed there via Yokohama on the Tenyo Maru, a Japanese ship of
the Toyo Kisen Kaisha line. A company of ‘cheerful and companionable’
Americans introduced them to the joys of baseball and, once arrived at
their destination, they were fêted by their Hawaiian counterparts. They
had introductions from the American consul in Surabaya, ‘but our best
introduction was the fact that we came as representatives of the Java
sugar industry’. Nonetheless, there was much to ponder on.
Indeed, undoubtedly the most poignant lessons drawn from the visit
concerned the contrasts to be drawn between the agrarian and agricul-
tural context of sugar production in Hawaii and that of contemporary
Java. Famously, the Java sugar complex was embedded in the Lilliputian
world of Javanese peasant agriculture. Lilliput in this case meant an
absence of big landholdings; a countryside dotted with tiny, fragmented
farms (whose minute scale was reflected in an immensely intricate web of
relations of production); the organization of those farms into village and
sub-village units; and a complex network of irrigation, scaled equally
minutely at the village level to the requirements of peasant agriculture.
In the past, arrangements for implanting the cultivation of cane within
the existing and reconstructed parameters of peasant agriculture had
served the industry well enough. It secured the sugar factories’ access to
existing farmland, and hence precluded any time-consuming and expen-
sive need to open up virgin soils. Even more importantly – perhaps even
crucially – it brought in its wake a ready-made workforce comprised of
those sectors of the locally settled peasantry who would otherwise have
tilled the fields (as farmers or as labourers) that wisselbouw brought under
cane. By the early twentieth century, however, the drawbacks were start-
ing to become apparent.
Most obviously, the notionally finite amount of land available for
cane production in a relatively small, and already densely populated,
island placed physical obstacles in the way of the industry’s further ex-
pansion. By 1900 some twenty-five million or more people were already
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5 Ramaer 1913:2.
6 For the data in this paragraph – together with the author’s mordant commentary – see Dickhoff
1914. Dickhoff was the long-time editor of the Archief and a well-respected figure in the industry.
7 Cane yields arrived at a plateau of a little over 1,000 quintals per hectare (1,200 picul per bau) in
1908, with no significant increase discernable thereafter. Rendement stood at 10.36% in 1894 and at
10% in 1908. Between times it had fluctuated between a low of 9.57% (1900) and a high of 10.77%
(1902); between 1909 and 1913, it had averaged just under 10% (Dickhoff 1914:613-4).
156
Chapter 5 Enmeshed in Lilliput |
157
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158
Chapter 5 Enmeshed in Lilliput |
around 1910, the engrossing of land by the sugar companies reached new
heights. In part, this development was fuelled by an internecine struggle
for comparative advantage among the industry’s main players. An equally
important (and associated) factor, however, was a common need to in-
crease the throughput of manufacturing plants whose financial results
were far from encouraging: the industry as a whole sought an answer to
its problems by expanding the volume of its output in an effort to reduce
the unit costs of production. Its efforts in this direction were further stimu-
lated, moreover, by the contemporaneous introduction – worldwide – of
new techniques and machinery for achieving a multiple milling of cane
that promised significantly improved manufacturing yields – but which
also implied the possibility of increased throughput.11
The upshot was very apparent in the years immediately before the
outbreak of the First World War, when the industry’s usually healthy
appetite for land temporarily reached gargantuan proportions. In Java
as a whole, between 1905 and 1916 there had taken place a 50 per
cent increase in the area under cane (105,000 to 157,000 ha), with the
biggest increase (11,000 ha) taking place between 1911 and 1914. In a
specific number of key production areas on the north coast of Central
Java, moreover, the increase in the amount of land taken by cane was
much greater.12 Even so, this is to greatly oversimplify the dynamics of
the situation. Cane was not the only ‘commercial’ use to which land was
being put. Quite the contrary: apart from ‘subsistence’ rice production,
peasants also grew many ‘market’ crops on this part of the north coast.
Hence, Big Sugar’s appetite for yet more land represented a very signifi-
cant degree of foreclosure on ‘peasant’ economic activity, especially that
of the ‘big peasants’ – and their financiers among Indies-Chinese busi-
ness interests in nearby towns.13
All in all, there were many signs that by opting for all-out expansion,
the industry had overreached itself. The forward movement initiated
by the sugar companies at the beginning of the 1910s would appear
to have threatened the whole system of coercion-accommodation on
which they had hitherto relied for their successful operation. The rapid
engrossing of far more farmland than had ever previously been the case
11 On the development – and significance – of multiple milling, see, for example, Dye 1998:110-3.
12 Data from Creutzberg 1975:75, line 38.
13 For a detailed account of the situation in this part of Java during the early years of the twentieth
century, see Knight 1993.
159
| Commodities and colonialism
risked alarming those state civil servants who already thought that sugar
capital was pressing too hard on the peasantry. It also risked alienating
those elements within the peasantry itself on whose ‘understanding’ the
industry relied to ensure the effectiveness of the system of land rental.
Other factors acted to exacerbate an already difficult situation for Big
Sugar. A fairly steep rise in rice prices in the years immediately before
and, especially, after the First World War caused farmers to demand
more for their land and further upset the always somewhat tenuous rela-
tions between the sugar factories and peasant landholders. The upshot
was that the industry found itself in largely unprecedented difficulties
over the rental of their fields for cane. Extensive firing of cane fields –
ostensibly by disgruntled farmers – was a possible index to the degree of
discontent with which the factories had to contend.14
Nor was land rental the only problem besetting the industry. At vari-
ous times during the 1910s, labour was also at a premium. Java’s fabled
‘cheap’ labour was not quite the limitless bonanza that it sometimes ap-
peared to be. Indeed, in at least some of the most densely populated (and
hence potentially labour-rich) parts of the island, the insufficient supply
of workers, especially for the preparation of ground for the planting of
cane, was a constantly reiterated complaint in the industry’s own inter-
nal reportage. Alternative forms of employment were readily available
for those peasants who relied on wages for their subsistence, or needed
to supplement the income from their meagre holdings. Inter alia, work
was to be had in railway construction, in large-scale irrigation projects
and in the increasingly commercialized agricultural activities of other,
better-off peasants.15
Against this general background, the demand for labour caused by
the industry’s own rapid expansion between 1905 and 1914 was prob-
ably the prime factor in transforming a ‘difficult’ situation into one of
outright crisis. Workers were often in short supply and hence better
placed to dispute the terms and conditions of labour than had been the
case for a generation or more. In turn, this situation was exacerbated at
various times during the 1910s, when industry wages were significantly
14 For example, Elson 1984:187-9. As Elson (1979) points out, however, the firing of cane, though
sometimes directed against the factory (inter alia, its effect of forcing the immediate harvesting of cane
might result in its early return to peasant cropping) might also reflect quarrels among the peasantry
themselves.
15 For an extended discussion, see Knight 1994.
160
Chapter 5 Enmeshed in Lilliput |
out of kilter with rising food prices in the countryside. It was no accident,
therefore, that the decade was one of ongoing disputes between the in-
dustry and its various workforces in both field and factory. These culmi-
nated in 1919-1920 in an almost unprecedented wave of strikes, which
affected around 40 per cent of the Java factories and involved thousands
of workers. Inter alia, a worker’s trade union – the Personeel Fabriek
Bond (PFB, Union of Factory Personnel) – was called into existence, and
Sarekat Islam activity in the countryside rose to a new peak.16
Nonetheless, there is a danger of overstating the role played by
peasant and labour activism – and the closely associated role of the
Sarekat Islam in particular – in the agrarian problems that confronted
the sugar industry during the decade of crisis. At various times, and
particularly in the years immediately before the First World War, there
were indeed signs of panic in industry circles. A famously cited case
dating from 1913 has one sugar company, ‘with an eye to the rising un-
rest among the native populace’ advertising for ‘a capable Netherlands
Indies military officer, willing to advise the management of several
large enterprises concerning the preparation of the enterprises against
attack’.17 Others, however, saw matters rather differently. In this same
year, for example, one factory manager reported to his employers in
Holland that the Sarekat Islam had caused few problems in his part of
Central Java. Inter alia, the fact that its local leader had just absconded
with the organization’s funds (around ninety guilders) had damped
down enthusiasm somewhat.18 Of course, too much should not be read
into sardonic comments of this kind, but they do serve as a corrective
to more inflated accounts of the role of activism in the crisis facing the
industry. Indeed, in the crisis years at the end of the First World War, a
greater immediate threat was posed to the sugar industry by the terrible
depredations of the influenza epidemic of those years than by national-
ist agitation.
The ‘Spanish’ influenza (it most probably originated in North
America) first appeared in the Indies in the middle months of 1918. It
was a second wave of the disease, however, beginning in October of that
16 The authoritative treatment of the subject remains Ingleson 1986:169; for the Oosthoek in particular,
see Elson 1984:195-204.
17 Quoted in McVey 1965:13.
18 J.H. Westenenk to S.C. van Musschenbroek, 24-5-1913, in: Stadsarchief Amsterdam, Archief
Handels- en Cultuurmaatschappij Van Heekeren & Co, toegangsnummer 584, inv. nr. 1166.
161
| Commodities and colonialism
same year, that resulted in by far the greater mortality and morbidity.
In total, at least one and a half million people died in the Indies as a
whole. In Java itself, the worst-affected areas were in the eastern parts
of the island, particularly the Kediri and Madiun residencies south and
west of Surabaya, and in the Oosthoek districts to the east of the city.19
These were among the most heavily ‘sugared’ parts of Java, and the
ramifications of the disease were quite clear to factory managers there,
who noted that mortality and sickness was so bad in the surrounding
villages in late 1918 that preparations for the main rice crop were seri-
ously retarded. At one big East Java factory, for example, it was reported
that the harvesting of rice, when it finally took place in the following
year, occurred very much later than usual. In conjunction with the need
to get to work on planting second crops, this late harvest played havoc
with the industry’s own recruitment from an already denuded pool of
labour. In so doing, as will be discussed shortly, it forced up costs sub-
stantially.
But the agro-industrial project in the field was beset during the 1910s by
other than purely agrarian difficulties. Fertilizer was perhaps the most
obvious case in point. As we have already seen, sulphate of ammonia
(or ZA in its Dutch abbreviation) was the nitrogenous fertilizer of choice
in Java sugar from the late nineteenth century onward. As such, it was
the object of great enthusiasm in an industry in which the female labour
used to apply it was singularly cheap – and its advantages apparently so
manifest. Indeed, that very enthusiasm for ZA as a ‘magic’ ingredient
was part of the problem. Studies done elsewhere (and at a later date)
have demonstrated unequivocally what some contemporaries already
suspected: namely, that there was a point beyond which the application
of ZA ceased to produce commensurate returns in higher yields of cane;
indeed, it might even become counter-productive. Over the long term,
the use of sulphate of ammonia in large quantities leads to a quite sig-
19 C. Brown 1987. For a succinct global survey, see Killingray 2003. Killingray (2003:31) remarks that
globally ‘the group most universally at risk were the young and the fit, whereas C. Brown (1987:242-3) is
cautiously inclined to accept the (very limited) findings for Indonesia that mortality was highest among
the very young and among the old.
162
Chapter 5 Enmeshed in Lilliput |
nificant acidification of the soil, and highly acid soil is not conducive to
the production of good quality cane.20 Achieving optimum dosage was
hence of the utmost importance, not simply because exceeding it wasted
money, but because excess dosage of nitrogen resulted in a situation in
which the full potential of fertilizer application – which was to achieve
both higher yields of cane and cane with a high sucrose content – was
not being reached.
There was a wider context, moreover, in which the system of wis-
selbouw that dominated the industry came to be seen as standing in the
way of those developments in agricultural technology that needed to be
implemented in Java if the potential of the field sector was to be fully
exploited. Again, it was the industry’s early contact with Hawaii – es-
tablished a decade or so prior to the visit by Ramaer and his colleagues
in 1911 – that pointed to Java’s deficiencies. In particular, the excellence
of the arrangements for irrigating (in some cases) the permanent cane
plantations of the Hawaii islands provoked invidious comparison with
Java, where the shifting nature of cane cultivation, determined by an-
nual exchange of fields with peasants, precluded such possibilities. At
the very beginning of the new century, for example, the HVA had sent
one of their factory managers to Hawaii, where he had observed the
effectiveness of the irrigation systems installed on the island group’s
permanent plantations. He noted that ‘irrigation water is to be had at
all times’, and compared the situation very favourably with that of Java:
‘how many cane fields either fail or do not produce what they ought
to produce, because the necessary irrigation water is not available’.21
Taking as an example, the important north-coast sugar belt (Cirebon
eastwards up to and including Semarang), there were at least four years
in the second decade of the twentieth century when ‘drought’ – mean-
ing either an exceptionally rainless dry monsoon or a particularly short
wet one – was recorded as having adverse effects on the cane crop.22
The limitations on irrigation imposed by the exigencies of wisselbouw
were one factor in checking the industrial-agricultural transformation
of the cane field; drainage was another. Sugar cane, much as it likes
20 Humbert 1968:157, 178-90, 213.
21 Castens 1902:83. Castens was administrateur of the HVA-owned Tegowangi sugar factory in Kediri.
22 See, for instance, the report from the NHM’s recently established Soemberhardjo factory on the
north coast of Central Java that (1913) ‘de aanplant heeft door een korten Westmoesson, gevolgd door
een lange droogte, sterk geleden’ (Jaarverslag Soemberhardjo, 1914, p. 3, in: NA, NHM, 2.20.01, inv. nr.
9395). Similar reports were rife throughout the 1910s.
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| Commodities and colonialism
moisture, does not like wet feet. As one authority has remarked, ‘the
removal of excess water from soils growing sugar cane in the tropics is as
important a negative factor in the rainy season as the lack of moisture is
in the dry season’.23 Deficient aeration of the soil, consequent on excess
moisture, adversely affects both root growth and the functioning of the
roots. The problem was that while the Dutch had particular claims to
know rather a lot about drainage (and about associated issues of salinity,
et cetera), they were not in a good position to put that knowledge into
practice in the cane fields of early twentieth-century Java. As early as the
1890s, industry experts had visited Hawaii and come back full of admi-
ration for the deep drainage practised there – and equally full of regret
that wisselbouw made it practically impossible in Java.24 It was, however,
but one of the factors that contributed to an apparently gathering crisis.
That crisis, as we have just seen, had multiple dimensions. Some
of them were primarily agrarian in character, while others had a pre-
dominantly agricultural complexion. In tandem, during the course
of the 1910s they had the potential to force Big Sugar to its knees by
undermining the very basis of the agro-industry in the field on which
it had come to rely for its international comparative advantage. In the
event, however, things in turned out differently. During the course of
the decade that followed, Java sugar was able either to circumvent or
overcome most of the key difficulties that it faced in the agricultural
sector of production. It did so, moreover, largely within the confines of
Lilliput. This was just as well, because attempts to ‘escape’ from Lilliput
by moving production into areas of the island where ‘village Java’ had
only a vestigial existence proved both very expensive and doubtfully ef-
ficacious. It is to these attempts that we can now turn, before resuming
the narrative of developments within the industry as a whole during
the ‘roaring twenties’ and the period of Big Sugar’s greatest prosperity.
23 Humbert 1968:399.
24 See, for example, Kramers 1896.
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Chapter 6
No escape
In July 1908, a staunch ally of the Java sugar syndicate took the train to
Lumajang, in the ‘remote’ south-east of Java. The individual concerned
was Mozes van Geuns, the editor-in-chief of the Soerabaiasch Handelsblad,
one of Java’s leading colonial newspapers. Van Geuns was enthusiastic
about the expansion of the imperial frontier. Two years earlier he had
reported from Bali, in the immediate wake of the bloody Dutch conquest
of the petty kingdoms on the southern tip of the island.1 Now he was
reporting on empire building of a different, but equally crucial, kind.
He was on his way down to swampland some 150 kilometres from his
base to view a unique development in the island’s sugar industry: the
construction of a factory complex far bigger than anything seen in Java
hitherto, and built well away from the densely settled countryside that
formed the industry’s classic location. Van Geuns’ purpose in going there
accurately reflected the close ties between the Handelsblad and Big Sugar,
and, in particular, his own reputation in the Indies as ‘quite unreservedly
a pillar of support […] for European entrepreneurship’. Indeed, defence
of the ‘sturdy Indies planter [cultuurman]’ was something of an obsession
for him, as was his conviction that ‘the wellbeing of the Indies was solely
dependent on the success of Western enterprise’.2 Big Sugar found in
him an ‘ideal spokesman’.3 It was no coincidence, therefore, that the
reportage of this trip to Lumajang was centred on an enthusiastic advo-
cacy for changes to the colony’s labour laws that would (inter alia) assist
1 Mozes van Geuns (1870-1918) born in the Netherlands, where he attended the Kweekschool (Teacher
Training College), arrived in the Indies in 1897. After a short spell as a school teacher, he moved into
journalism. He became hoofdredacteur (editor-in-chief) of the Handelsblad in 1900, and remained in that
position (apart from a leave spent in Holland, September 1908-January 1910) until his retirement in
1915. For an account of his career as a journalist, see Termorshuizen 2001:267-77.
2 Bosma 1997:64; Termorshuizen 2001:270.
3 Termorshuizen 2001:270-1.
| Commodities and colonialism
4 Van Geuns 1908. A copy of this pamphlet is in the library of the KITLV, Leiden.
5 Lindblad 1998:77.
166
Propagandist for the sugar industry: Mozes van Geuns, editor-in-chief of
the Soerabaiasch Handelsblad, 1909 (De Hollandsche Revue 14, 1909, p. 350)
| Commodities and colonialism
Djatiroto was nothing less than Java sugar’s attempt to emulate Cuba.
Early in the twentieth century, reconstructed with substantial inputs
of capital from the United States as well as from domestic sources, the
Caribbean island became a paradigm of the industrialized manufacture
and corporate management of sugar production. Indeed, by the 1920s,
the industry there boasted the largest and technologically most advanced
manufacturing units in the world.7 These Cuban super-factories were
vast manufacturing plants working with cane drawn from landholdings
covering more than 40,000 or even, in a few cases, 80,000 hectares.8
The prospect of the HVA ‘doing a Cuba’ in southeast Java was clear
from the series of articles that Van Geuns wrote for the Handelsblad.
Indeed, the parallel was quite explicit: ‘everything you encounter at
Djatiroto is conceived on an American scale. There is no trace to be
found here of Dutch small-mindedness’.9 A later admirer, rather more
flattering to his fellow countrymen, viewed the whole enterprise as ‘a
monument to some of the best qualities of Dutch big business: spirit of
enterprise, energy, and a determination to see things through bordering
on stubbornness’.10 Moreover, the New World parallel drawn in Geuns’
account was no mere journalistic flourish. Immediately prior to the estab-
lishment of Djatiroto, the HVA had sent two of their key people to Cuba
to inspect developments there at first hand, while contemporaneously one
6 The information in this and the following paragraphs on the HVA comes from the company’s
published annual reports (that is, ‘Jaarverslagen HVA’ – hereafter JV HVA) and from the minutes of the
company’s board meetings (NHVA). Together, they constitute the bulk of the remaining HVA archief
(after what appears to have been the willful destruction of much of it at the hands of the then directors
sometime in the 1970s) in the Nationaal Archief (NA), Collectie Handelsvereeninging ‘Amsterdam’,
2.20.32, inv. nrs. 6-15. For published accounts of the HVA and its sugar operations in particular (in
addition to Van Geuns 1908), see Z. 1927:8-41; Claver 2006:262-6; Goedkoop 1990. The ‘company
histories’ are: Aangeboden door HVA 1929; Brand, Van den Broek and Goedhart 1979 (a depressingly
self-serving and somewhat unreliable volume); and, and by far the most interesting of them, Goedhart
1999:32-49. Goedhart may well have been the director responsible for salvaging some fragments of
HVA documentation, now located in Internationaal Insituut voor Sociale Geschiedenis, Amsterdam,
Nederlandsch Economisch-Historisch Archief, Bijzondere Collecties 640.
7 On the Cuba industry, in addition to Dye 1998:24-66, see, for example, Moreno Fraginals 1986,
and the many contributions to books and learned journals of Brian H. Pollitt; notably in this context, see
Pollitt 1984, 1988.
8 Dye 1998:19.
9 Van Geuns 1908:16.
10 Z. 1927:9.
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Chapter 6 No escape |
of the company’s Java factory managers had visited the American sugar
producers in Hawaii.11 The crucial factor, however, was that the compa-
ny’s CEO, Pieter Reineke, had himself visited Cuba (and Louisiana) and
published a short account of his experiences there. Even though in Cuba
the twentieth-century regeneration of the industry had scarcely begun
at the time of his visit, Reineke had evidently seen enough, both there
and in the United States, to set him thinking about how the Java industry
might best adapt itself to meet the challenges of the new age of mass pro-
duction.12 The solution he came up with was both radical and ambitious.
Something of Reineke’s personality can probably be gauged from
photographs of him. In both relative youth and advanced old age he
sported a close-cropped hairstyle that signified a self-conscious adherence
to aggressive notions of ‘modernity’ that perhaps looked to Germany for
their inspiration. In Reineke’s case, it may have been a style adopted dur-
ing his student days at the Handelsschule in Osnabruck. Not for nothing
was his motto ‘to stand still is to regress’ (stilstaan is achteruitgaan).13 He was
the son of one of the HVA’s founders, and was well acquainted with Java.
Born in Surabaya, where his expatriate father was in business, the young
Reineke was subsequently educated in Europe. Scarcely out of his teens,
he returned to the colony in 1891 in the employ of his father’s company.
After that, his rise was rapid. Parental influence presumably helped ac-
count for his promotion to the post of the HVA’s Surabaya-based chief
representative in the Indies, but it must have been his personal dynamism
and abilities that explained the board’s decision to appoint him, while
still in his mid-twenties, to the position of managing director of the com-
pany following the sudden death of his father in August 1895.14
11 Notulen bestuursvergaderingen, 1-8-1907/335, in: NA, HVA, 2.20.32, inv. nr. 1.
12 Goedhart 1999:33, 37. Reineke outlined his experiences in Reineke 1901.
13 According to the voorzitter of the HVA board (on the occasion of the firm’s 75th anniversary); see
Notulen bestuursvergaderingen, 8-1-1954/986, in: NA, HVA, 2.20.32, inv. nr. 8.
14 Pieter Reineke was born in Java (17-7-1869) and died in Holland (17-2-1948). For an informative
biographical sketch, see Goedhart 1999:336-8. His father, Hendrik Reineke (1843-1895), was involved
in business in both Surabaya and Amsterdam, inter alia in the firm of Van Beek, Reineke & Co, which
was one of the businesses dissolved into the HVA at its foundation in 1879. For Reineke père and the
establishment of the HVA in 1879, see Claver 2006:82-9. Ill health forced him off the board at the end
of 1933, but he had returned by 1938, and finally stepped down in 1947. See Jaarverslag HVA 1933,
1938; Goedhart 1999:337. Goedhart’s is the only book – one that has enjoyed a rather small circulation
– to give Reineke any close attention. He was one of the company’s lesser ‘large’ shareholders: in 1916
he held 100 of the 2,054 shares in the company held by the HVA’s management and board – this meant
that (at 500 guilders per share) his stake in the HVA’s equity capital of 15 million guilders amounted to
a relatively modest 50,000 guilders (‘Afschrift proces-verbaal der buitengewone algemeene vergadering
van aandeelhouders’, 28-6-1916, in: NA, HVA, 2.20.32, inv. nr. 13).
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15 See the remarks of the chairman of the board, C.H. van Tienhoven, on the occasion of Reineke’s
retirement from the position of directeur in November 1913 (‘Afschrift proces-verbaal der buitengewone
algemeene vergadering van aandeelhouders’, 1-11-1913, [unpaginated], in: NA, HVA, 2.20.32, inv.
nr. 13).
16 See ‘Djatiroto’ in ‘Klapper op de Notulen HVA’, Lett D., in: NA, HVA, 2.20.32, inv. nr. 10.
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they had transformed desolate swamp and jungle – and the habitat of
tigers – into one of the most up-to-date and extensive agro-industrial
installations anywhere in Asia.19
An interwar map of the enterprise makes the point quite unam-
biguously. It shows an industrial complex of factory and plantation that
existed in almost complete isolation from the pattern of dense rural
settlement that constituted the normal milieu of the Java sugar factory.
Within this context, Reineke and his associates even mooted plans to
exploit the unique agrarian environment around their new factory to
secure a radical departure from existing cane-growing practices in Java.
They projected (though did not achieve) a near-continuous, all-year-
round planting of cane, and a consequent expansion of the manufactur-
ing campaign to ten months each year – rather than the usual six. They
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Chapter 6 No escape |
a narrative of modernity
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| Commodities and colonialism
23 Van Geuns 1908:1-6; Notulen bestuursvergadering, 1-8-1913/418, in: NA, HVA, 2.20.32, inv. nr.
2; ‘Enkele notities inzake der suikerondernemingen Djatiroto, Semboro, Goenoengsari en Bedadoeng’,
[1939], in: IISG, NEHA, Bijzondere Collecties 640/A 3 (a).
24 Bashford 2004:2-4.
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Chapter 6 No escape |
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‘airy and hygienic’, built on brick pillars ‘from a sanitary point of view’.
Mindful, no doubt, of the danger of disease in this former swamp land,
the HVA were also at pains to bring clean drinking water – indeed, not
just clean but ‘pure’ (zuiver) – to the entire complex.28 Imperial water was
presumably matched by imperial plumbing, and although reference to
the latter is surprisingly absent in descriptions of Djatiroto, there can be
little doubt that, more generally, notions of bodily and personal hygiene
extended from concern about life-threatening contagions to the most de-
tailed enquiries into toilet habits. It has been reported, for example, that
roughly contemporaneously one keen American missionary of hygiene
in neighbouring Luzon was so concerned on this score that he firmly
instructed ‘the local Rockefeller emissary […] to modify the [toilet] bowl
design to make it impossible to sit on except in the desired position’.29
The HVA likewise made a point of emphasizing that expert medi-
cal attention was on hand. In the industry at large, the pioneering
initiative had been taken a decade earlier by the indefatigable Van
Musschenbroek, administrateur extraordinaire of the Tjomal sugar factory,
who had created a medical centre for a group of factories in ‘his’ part
of the sugar belt that ran along Java’s north coast. At remote Djatiroto,
the HVA trumpeted the existence of a hospital on site with a European
doctor to care for the ‘natives’ as well as for the forty to fifty European
personnel.30 Rather less publicity was given to the fact that around 40
per cent of its running costs were met by the Indies government, and
that when the company doctor re-located he was not replaced; instead,
the local European medical man from the nearby town of Lumajang was
placed on a retainer. Nonetheless, albeit somewhat compromised, the as-
sociation of modernity with health and hygiene remained a potent one.
It was not only in terms of hygiene, however, that the Djatiroto
compound existed in isolation from its eastern surroundings. Indeed, in
his series of articles in the Handelsblad, Geuns professed himself struck
by the Dutch-ness of it all. The European residential quarter reminded
28 Van Geuns 1908:5-12; [Anon], ‘De suikeronderneming Djatiroto’, Bijvoegsel behoorende bij De
Indische Mercuur, 20-6-1909, no. 26 [unpaginated]. A copy of this short article is to be found in the library
of the KITLV in Leiden.
29 Anderson 1995:641, 2002:687; Dutton, Seth and Gandhi 2002.
30 The hospital was reckoned to cost around 20,000 guilders a year to run, and the Indies Government
provided a subsidy of around 8,000 guilders (Notulen bestuursvergaderingen, 5-9-1913/419, in: NA,
HVA, 2.20.32, inv. nr. 2). For Van Musschenbroek’s pioneering work on the north coast of Central Java
circa 1900, see Van Moll and Lugten 1916:12.
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him of a ‘friendly Dutch village street’, and even the humbler quarters
for several thousand ‘native’ workers (initially they were no more than
sheds, or loodsen) were not immune from such comparisons. They were
complete with their own ‘warong straat’, and of an evening, the writer sug-
gested, it might be thought of (in homage to the main shopping street of
Amsterdam) as the ‘Kalverstraat of Djatiroto’. Unlike its metropolitan
counterpart, however, its shopkeepers included ‘John Chinaman’ and his
‘energetic counterpart from Bombay’.31
At the heart of Djatiroto’s claim to modernity, nonetheless, was
the technological superiority of the factory itself. No expense had
been spared. According to Reineke, by 1910 some 10 million guilders
had been spent on the entire operation, a sum that amounted to ap-
proximately one-third of the HVA’s total investment in the Indies at that
date.32 By way of comparison, at around the same time a new ‘state-of-
the-art’ factory, built by rival NHM on the north coast of Central Java,
had cost less than 3 million guilders.33 Djatiroto’s inventory of machin-
ery was imported from some of the best addresses in Europe: Germany
(Hallsche Machine Fabriek), Holland (Stork) and Scotland (the Glasgow
firms Mirrlees Watson and Pott, Cassels & Williamson).34
In line with this, the factory was the first in the colony to employ elec-
tricity throughout (except in the grinding mills and centrifuges). Indeed,
Java had seen nothing quite like it: it was, to adopt a later description of
the HVA’s entire production complex in and around Djatiroto, ‘the most
modern and most rationally set-up sugar enterprise’ in the entire colony.35
This in itself was potent language; but ‘rationality’ was only part of
it. Viewing the whole enterprise in its fully expanded form almost two de-
cades later, the neo-fascist Indies journalist H.C. Zentgraaff lauded it less
for its economic rationality than for its heroic ‘pioneering’ character of
what it represented. Djatiroto, he exulted, was a ‘fantastic and captivat-
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A cane crusher from one of the best addresses in Europe (KITLV 18321)
ing display of iron and steel that seems to have taken on the qualities of
a living, pulsing organism’ (wonderlijk en boeiend spel van ijzer en staal
dat leven schijnt te hebben gekregen als de onderdeelen van een zwoeg-
end organisme).36 Such modernity, loudly trumpeted, had a curious and
more than merely incidental consequence. The photographs of the new
installation – and there were many such – were almost totally devoid
of people. Even the photographs of European-staff housing are devoid
of any sign of actual habitation, and the thousands of ‘native’ workers
make scarcely any appearance at all.37 As the Dutch sociologist Frans
Hüsken remarked in the kindred context of celebrations of technology
in the realm of late colonial irrigation schemes: ‘the human component
is virtually absent […]. It seems as if the modern colony consisted only
of concrete and machinery […].’38
36 Z. 1927:38; Drooglever 1999.
37 See the contemporary photographs illustrating [Anon], ‘De Suikeronderneming Djatiroto’. The
many illustrations in Aangeboden door HVA (1929) have similar characteristics.
38 Ravesteijn and Kop 2007:456. The absence of people was not invariable, of course. In a stimulat-
ing essay on the inner life of the Java sugar factory, for instance, John Pemberton (2009) bases his argu-
ment on many photographs that do indeed show human beings (in this case Javanese workers) alongside
the machines that they operated. It is noteworthy, however, that these images are from a (rare) factory
owned by a Javanese aristocrat, were preserved as part of an album in his family’s private archives and
were clearly not intended for the kind of ‘colonial’ circulation enjoyed by the great bulk of the photo-
graphs alluded to in the present text.
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Chapter 6 No escape |
39 The company claimed that the reports from its own medical doctor at Djatiroto demonstrated that
the allegation was ‘unjust’ (Notulen bestuursvergaderingen, 5-11-1909/157, in: NA, HVA, 2.20.32, inv.
nr. 1).
40 Van Geuns 1908:26-7.
41 Notulen bestuursvergaderingen, 4-11-1910/382, in: NA, HVA, 2.20.32, inv. nr. 1.
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| Commodities and colonialism
These setbacks at Djatiroto may help account for the angry tone of
the HVA’s annual reports. For a decade or more, the HVA foamed at its
corporate mouth about ‘weak government’ and about ‘taxes that had
overstepped the bounds of the economically viable’. By 1918, indeed,
the company had taken to denouncing ‘revolutionary’ elements in the
government’s newly established – and, in reality, fairly tame – consulta-
tive assembly, the Volksraad. Inter alia, it was said to be forcing a ‘totally
unnecessary’ official investigation of industry practices in relation to
land rental and labour relations.43 Even before this, there had been
suggestions that laxity on the part of local officials had resulted in the
repeated burning of cane by ‘disaffected’ elements among the peasantry
– it sounds as if the company’s contention that this was ‘wasteland’ was
being actively contested by the local population – and consequent dis-
42 Idenburg’s visit took place on the 28 June 1912 (Notulen bestuursvergaderingen, 9-8-1912/405, in:
NA, HVA, 2.20.32, inv. nr. 2).
43 JV HVA 1918:11-2; Notulen bestuursvergaderingen, 7-2-1919/493, in: NA, HVA, 2.20.32,
inv. nr. 2.
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Chapter 6 No escape |
ruption to the campaign schedule.44 This was fairly standard stuff. More
surprising were dark hints about ‘bad faith’ on the part of key govern-
ment officials in the Indies. Antipathy was reciprocated. Indeed, matters
had reached such a pass by 1919 that the Governor General J.P. van
Limburg Stirum (Idenburg’s successor) refused even to grant an audience
to Reineke when the latter made his first post-war appearance in the
Indies.45 In consequence, Van Limburg Stirum was viewed by the HVA
board as ‘an example of the danger that a weak government generates
under the present circumstances’. Nonetheless, even he was judged to
show signs of promise by apparently dispensing with an adviser whom
the HVA considered particularly obnoxious.46
Nothing daunted, in the following year (1920) the company took
advantage of the arrival on the scene of a new and conservative-minded
Minister of Colonies, Simon de Graaff, to shift their lobbying to The
Hague. Board members also ‘spoke’ with De Graaff ’s nominee, the
newly appointed Governor General Dirk Fock, before the latter sailed for
Java near the end of that same year.47 Even so, from the HVA’a stand-
point, there was no immediate happy outcome. Two years later, directors
were still complaining that ‘the government listens too much to the few
radical members in the Volksraad, and fails to seek sufficient support
among the other parties’.48
It meant something, in this context, that one of the hard men of the
Dutch political right, Hendrik Colijn, was on the board of the HVA for
44 JV HVA 1911:8. In that year, there were 134 cane fires at Djatiroto, effecting over 500 hectares
of cane, of which some 66 hectares. were a total write-off. The company claimed that ‘kan de oorzaak
der branden alleen worden toegeschreven aan baldadigheid, moedwil, welke het Bestuur [...] niet heeft
kunnen bedwingen’. The BB appointed 120 oppassers paid for by the HVA, but the HVA reckoned that
the burnings would only stop ‘indien het Bestuur de bevolking weet te doen begrijpen, dat het zijn vaste
wil is, dat aan de rietbranden […] een eind komt’.
45 For example, Notulen bestuursvergaderingen, 5-11-1920/615, in: NA, HVA, 2.20.32, inv. nr. 3.
46 Notulen bestuursvergaderingen, 5-1-1920/605, in: NA, Handelsvereniging Amsterdam, 2.20.32,
inv. nr. 3. The official concerned was G.A.J. Hazeu, the Indies government’s advisor for native affairs.
Hazeu resigned his position and returned to Holland as a result of the impact of a torrent of criticism
and abuse from both European civil servants and the Indies press regarding the ‘revelations’ about ‘ter-
rorist’ cells within the Sarekat Islam movement, of which he had been an enthusiastic supporter (Van
den Doel 1994:379-82; De Graaff and Locher-Scholten 2007:243-6). Van Limburg Stirum had incurred
the enmity of the sugar industry in March 1918, with a proposal for a compulsory reduction in the area
planted to sugar throughout Java, so as to increase the production of rice, which was in short supply (De
Graaff and Locher-Scholten 2007:238-9). Significantly, however, the authors observe that ‘Van Limburg
Stirum was veel minder “rood” dan zijn Europese tegenstanders onder ondernemers en BB-ambtenaren
meenden of vreesden’ (De Graaff and Locher-Scholten 2007:226).
47 JV HVA 1919:12 and 1920:12.
48 Notulen bestuursvergaderingen, 1-9-1922/628, in: NA, HVA, 2.20.32, inv. nr. 3.
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| Commodities and colonialism
much of the 1920s. Colijn was the man whose cropped hair underlined
a mental outlook – as well as physical appearance – that had distinct
affinities with that of Pieter Reineke. A former officer in the Dutch
army fighting in Aceh, a one-time Minister of War, directeur of the major
Dutch oil company Bataafsche Petroleum Maatschappij and later associ-
ated with Royal Dutch Shell, Colijn subsequently enjoyed a prominent
political career. During the interwar decades, he was several times Prime
Minister (for the first time in 1925-1926) and a notoriously reactionary
Minister of Colonies. As a (potential) Dutch ‘strongman’, he became
hopelessly compromised with the Nazis after the fall of Holland in May
1940, and was perhaps fortunate to have died – in Germany – before
the war ended.49
It was entirely characteristic of Colijn’s presence at HVA board meet-
ings that he was to be found fulminating about ‘the real problem’ facing
the company in the Indies: it was the silly ideas with which the heads
of young aspirants to posts in the colonial bureaucracy were filled by
(unnamed) professors at the University of Leiden. He clearly regretted
that the individuals concerned could not be dismissed, and suggested
that the solution was to be found in the establishment of an alternative
institution for training Indies civil servants. With a little help from oil
company interests in particular (unlike their sugar counterparts, they had
money to burn), this is exactly what happened – at the rival University
of Utrecht.50
Yet, despite this finger pointing, the company’s board minutes – if
not their published annual reports – tell a somewhat different story.
Difficulties in getting and keeping workers were certainly a problem for
the company, as was the reluctance of officials in Java to dance to their
every tune. Even so, ‘modernity’ as represented at Djatiroto had its own,
inherent problems. For one thing, the project was a gamble in purely ag-
ricultural and horticultural terms. It apparently took a visit in 1911 from
the director of the industry’s Pasuruan Research Institute – the leading
such institute in the world – to alert the company to the purely agricul-
tural constraints on growing cane in a former swamp. The HVA was
49 For a brief (and sympathetic) outline of his career, see Puchinger 1985. For Colijn’s early career
in oil (and a candid assessment of his deeply unpleasant character), see Jonker and Luiten van Zanden
2007:154.
50 Notulen bestuursvergaderingen,13-9-1923/650, in: NA, HVA, 2.20.32, inv. nr. 3. In the 1930s,
Colijn was also close to the management of the NHM (Taselaar 1998:379), which might help account for
the extreme anti-nationalist polemic that characterized the company’s annual reports from that period.
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Chapter 6 No escape |
warned against having too high expectations, at least in the early years
of the enterprise, and advised to restrict the area under cane to around
50 per cent of their projected estate if they wanted to ensure reason-
able plantation yields. The company’s experience with cane agriculture
in Kediri, where the bulk of their factories were located, was not to be
equated (the HVA was reminded) with the very different agricultural
conditions prevailing in Lumajang.
It was typical perhaps of Reineke’s style that he countered with the
blunt assertion that nobody had ever told them this before.51 Whoever
or whatever was to blame, it took some time for cane yields per hectare
to reach acceptable levels. Nor was it simply that cane yields were low:
the cane that Djatiroto’s plantations did manage to yield also proved to
have a low sugar content. Crucially, it was not until 1917-1918, almost a
decade after the factory has opened, that the rendement at Djatiroto began
to stand comparison with the Java average.52 All this was, of course, bad
for both productivity and profits.
Men (and soil) had indeed failed the machine – but the machine itself
had also failed. Reluctant as they were to admit it, by 1913 the HVA
board had finally to concede that the high-tech apparatus, installed with
such fanfare at the end of the previous decade, was simply not up to the
job. In particular, Djatiroto was badly underpowered: the boiler house
turbines did not generate enough energy to run the mills – and there
was a catalogue of other deficiencies that likewise needed to be recti-
fied. It looks very much as if the basic problem was with the American-
Cuban model of which Reineke had been such a staunch advocate.
The ‘American’ system of manufacture focused on efficiencies in the
grinding of cane, through the use of heavy and super-large mills. The
Java producers, on the other hand, were greatly influenced by practice in
the German beet sugar industry, where the very different requirements
of the raw material had led to a concentration on the chemistry and
technology by which juice was converted into sugar.53 In attempting to
fuse the American and German systems of manufacture, it appears that
Reineke and his German technical advisor, Georg Fr. Hausbrand, had
51 For this and the report of the visit to Djatiroto of Ph. van Harreveld, in the company of the Indies
government’s Directeur van Landbouw (Director of Agriculture), H.J. Lovink (Notulen bestuursverga-
deringen, 4-4-1913/413, in: NA, HVA, 2.20.32, inv. nr. 2).
52 The relevant data are in Z. 1927:12.
53 See Goedhart (1999:45-6), who also notes that the HVA never again attempted to build a factory as
massive as Djatiroto (1).
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54 Notulen bestuursvergaderingen, 2-2-1912/398 and 3-1-1913/410, in: NA, HVA, 2.20.32, inv. nr. 2.
55 Claver 2006:265. Losses amounted to an estimated 1,100,000 guilders in 1910 (NHVA 30-12-
1910/384), 1,038,000 guilders in 1911 (Notulen bestuursvergaderingen, 1-12-1911/396, in: NA, HVA,
2.20.32, inv. nr. 1) and 1,100,000 guilders in 1912 (Notulen bestuursvergaderingen, 7-2-1913/411, in:
NA, HVA, 2.20.32, inv. nr. 2). Only in 1913 did they drop to around 500,000 guilders (Notulen bestuurs-
vergaderingen, 3-1-1914/426, in: NA, HVA, 2.20.32, inv. nr. 2).
56 Notulen bestuursvergaderingen, 24-2-1916/455, in: NA, HVA, 2.20.32, inv. nr. 2.
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Chapter 6 No escape |
57 Data in this paragraph from Z. 1927:11; ‘Enkele notities inzake der suikerondernemingen Djatiro-
to, Semboro, Goenoengsari en Bedadoeng’, [1939], in: IISG, NEHA, Bijzondere Collecties 640/A 3 (a);
Prinsen Geerligs 1927:1189-91. Output from the whole complex in 1931, the last year in which all five
factories operated, was 150,000 MT.
58 Data from Table 3, ‘Overzicht der suikerfabrieken… Oogstjaar 1930’, AS 38 (1930) 1, pp. 191-2.
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186
Chapter 6 No escape |
reasonably clear that the HVA was kept afloat, and Reineke, Colijn and
their associates saved from bankruptcy, by its score of conventional sugar
factories in Kediri’s Brantas valley further to the west – ‘conventional’ in
so far as cane cultivation there remained enmeshed with peasant agri-
culture – and its extensive, non-sugar plantation investments elsewhere,
both on Java and on Sumatra.60 The significance of this dismal outcome
for the HVA’s ambitious – not to say magnificent – schemes was far-
reaching for Java sugar as a whole. Only late in the twentieth century,
when large sectors of the industry ‘migrated’ to Sumatra and elsewhere
in the Outer Islands of the Indonesian Republic, did the ideas so eagerly
embraced by Reineke and his colleagues come into their own: sugar pro-
duction divorced from the context of peasant agriculture.
‘We assume that big business enterprises are rational and that ratio-
nality entails awareness’, wrote the American historian David S. Landes,
before going on to debunk that notion and to argue that ‘much decision-
making is guesswork and improvisation. Otherwise, how do these enter-
prises manage to dig themselves so deep a hole?’61 As it transpired, the
HVA’s massive investment took place at the wrong time and in the wrong
place. For in 1931, the bottom fell out of the world sugar market, and
nearly took the HVA – and the rest of the Java industry – with it. The
HVA’s massive expansion of its sugar interests in Java had been predi-
cated on highly optimistic assumptions about the further, and potentially
limitless, development of markets in East and South Asia – above all in
China and India – which had become the mainstay of the entire Java
industry in the aftermath of the First World War. By the beginning of
the 1930s, however, these assumptions were in tatters. Java sugar’s main
markets were progressively lost to it, primarily because the economic au-
tarchy associated with government responses to the onset of the interwar
depression. It is to this that we can now turn.
60 Claver 2006:266. For a brief account of the HVA in Kediri, see Goedhart 1999:32-5.
61 Landes 1998:148.
187
Chapter 7
As we have seen, for much of the 1910s colonial Indonesia’s sugar in-
dustry experienced major obstacles to sustained growth on a number
of fronts, both agrarian and agricultural. Taken together, these had the
potential to derail the industry through undermining the agro-industry
in the field on which it derived its comparative edge in world markets. In
fact, developments in the decade that followed took a quite different tra-
jectory: the 1920s saw the industry flourish as never before. After a global
hiatus during the First World War, world sugar consumption was again
on the rise during the decade that followed and – somewhat surprisingly
perhaps – the Indonesian industry was well positioned to take advantage
of it. In particular, this was the decade when Java’s Big Sugar came to
dominate the markets of both East Asia and the Indian subcontinent to
an extent that had eluded it earlier in the century.
There were several reasons for this. In the short term, developments on
the commercial front were critical. A spectacular but brief bull market
in sugar at the very beginning of the decade (as detailed in an earlier
chapter) gave the industry a much-needed breathing space. The massive
injection of cash consequent on this undoubtedly saved the industry
from imminent disaster. It also made possible an ambitious building pro-
gramme that included, as well as the HVA’s Djatiroto complex described
earlier in this book, the Tjomal Baroe (New Comal) factory on Central
Java’s north coast.
Nonetheless, the underlying factors in the situation had nothing to
do with the commercial bonanza of 1920. Indeed, the international
The new wave of expansion: The Tjomal Baroe
sugar factory from the air, 1920s
price of sugar was thereafter in steady decline. Instead, the crucial de-
velopments took place in the sphere of production, where the secular
trend was for costs in the industry’s agricultural (and manufacturing)
sector to fall significantly. Virtually simultaneously plantation yields
improved exponentially, after a hiatus of a decade or more, as a result
of a veritable revolution in the horticulture of cane. In tandem, these
two developments enabled Java sugar to contain or circumvent many
of the agricultural and agrarian problems that had beset it during the
previous decade. Both took place, however, in a context in which the
‘agricultural’ obstacles to agro-industry in the field encountered during
the previous decade were largely overcome. We can best deal with these
first.
1 The factories were assisted in this by the industry’s research institute, which carried out extensive,
systematic field tests to gauge the optimal application rates of sulphate of ammonia, in the context of the
key variables of soil and climate, that were fundamental to the whole project. In 1914 alone, there were
223 such tests recorded, and by the 1920s this figure had doubled or even trebled (Booberg 1927:434-5).
2 The Great War brought some disruption of supplies, but imports had resumed toward the end of
the war. In 1917 around half of the quantity imported (41,430 MT) came from Japan (15,000 MT) and
Australia (5,000 MT) with the balance coming primarily from the United Kingdom (16,000 MT) (Invoer
zwavelzuur ammonia 1920).
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| Commodities and colonialism
3 On the basis of data in Jaarverslagen Modjo-Agoeng, in: NA, NHM, 2.20.01, inv. nrs 9383 and
9384, and from the files on Modjo-Agoeng, in: NA, NHM, 2.20.01, inv. nr. 9212.
4 Meijers 1911.
5 For an extended discussion of irrigation in late colonial Java, see Metzelaar 1946; Ravesteijn 1997.
For the linkages between the sugar industry and irrigation, see also J. Alexander and P. Alexander 1978.
6 On waduk in general, see Metzelaar 1946:218-27; for a brief discussion of the sugar industry’s own
waduk, see Metzelaar 1946:225-6.
192
Solving the problems of getting water to the growing cane:
Elaborate irrigation works in the sugar belt along the north coast
of Central Java, 1920s (KITLV 18384, 18376, 18385)
| Commodities and colonialism
194
Chapter 7 Making the best of it |
the 1920s, now owned by one of Java’s biggest combines, the NHM, it
had evolved into a middle-sized undertaking with around 770 hectares
of peasant farmland rented for cane each year, centred on a factory
that had been substantially and recently re-equipped. As such, Modjo-
Agoeng was a reasonably typical enterprise, and its history in the 1920s
likewise reasonably typical of developments in the industry as a whole.
To begin with, the 1920 sugar price-hike was indeed providential for
Modjo-Agoeng. Profits in 1920 amounted to a massive 1,771,000 guil-
ders, up from a ten-year low of a trifling 292 guilders two years earlier
in 1918. Nonetheless, its longer-term salvation was dependent on factors
of a quite different order. Above all, these related to the increasing avail-
ability and consequent cheapness of labour. Throughout the late colonial
era (indeed, the situation was only reversed after Independence, in the
1950s) it was labour rather than land that constituted the single-most
costly input in Java sugar’s agricultural sector. This did not mean that
labour was ‘expensive’ – famously, indeed, this was not the case. Rather,
it reflected the huge number of workers employed in the highly elaborate
preparation of land and the planting and fertilizing of cane. Any varia-
tions in the cost of field labour were therefore of the greatest importance
to the viability and profitability of the entire enterprise. It is possible to
reconstruct the relevant data from circa 1906 to the onset of the interwar
depression using surviving industry reportage.
The overall picture that emerges for the industry as a whole is that
of an arc of rising and falling plantation labour costs, anchored at one
end around 1910, and at the other at the beginning of the 1930s. To
be sure, within that arc, there were substantial local variations, due to
there not being one Java but many. At some factories, at least, the years
1913-1914 witnessed a significant but short-term rise in field costs, prob-
ably associated with the period of agrarian ‘unrest’ detailed earlier in
this book. Likewise, at some factories the cost of fieldwork remained
relatively high until the mid-1920s – or had a temporary spike around
that time – whereas at others it began to decline fairly consistently from
1922 onward. Virtually universally, however, the industry experienced
an unprecedented – and, in some cases, massive increase – in fieldwork
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costs around 1920. Equally universally, toward the close of the twenties
these costs had returned to something approaching the levels recorded
around 1910.
In the specific case of Modjo-Agoeng, the story begins on the eve
of the First World War.10 At this point, the factory’s management found
itself paying significantly more for piecework in its cane fields than had
been the case for a decade or more (at other NHM factories, the trend
appears to have begun somewhat earlier).11 Indeed, by 1914 per hectare
‘bewerkingskosten’ (that is, the expenses incurred in field work) stood at
nearly 200 guilders, up from 160 guilders four years earlier. The increase
was sufficient to prompt the administrateur into offering some explanation;
he alluded in particular to the need to increase piecework rates to match
those of nearby factories who were competing for ‘scarce’ labour (in cir-
cumstances, though he did not say so, in which the industry throughout
the Surabaya region was pushing hard to increase the area under cane).
By 1916 and 1917, however, what appeared to have been only a tem-
porary ‘difficulty’ had apparently subsided, and the rates paid for land
preparation (the single-largest labour expense in the agricultural sector)
could be lowered because of an increased ‘werklust’ (zest for work) in the
countryside around Modjo-Agoeng.
As this suggests, the dynamics of the industry’s labour supply, both at
Modjo-Agoeng and elsewhere, were fairly complex. During the opening
decades of the twentieth century, there had prevailed in the industry as
a whole a system of informally bonded field labour, recruited, in part
at least, by mandur employed by the sugar factories. This could prove
expensive. One middle- ranking NHM executive, for instance, opined
that ‘excessive’ payments to mandur for the fieldwork performed by their
recruits was one of the prime reasons why labour costs in the industry
had escalated in the years immediately prior to the First World War. It
was the mandur – people whom he described as in charge of overseeing
fieldwork (and presumably bringing the men onto the field) and negotiat-
ing eenheidsprijzen (piecework rates) with the factory – who benefited from
escalating costs, he asserted, rather than the workers. The workers them-
10 The information that follows in this paragraph (unless otherwise stated) is drawn from the Jaarver-
slag Modjo-Agoeng, 1906-1932, in: NA, NHM, 2.20.01, inv. nr. 9383.
11 A calculation made by the NHM’s head office circa 1913 showed that for the eleven sugar factories
then owned or closely associated with the firm, ‘bewerking’ costs in the agricultural sector had risen from
127 guilders per bau to more than 149 guilders per bau between 1907 and 1912, with by far the biggest
rise taking place in 1912. See ‘Bijlage IV …Bewerking 1907-1912’, in: NA, NHM, 2.20.01, inv. nr. 9213.
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Chapter 7 Making the best of it |
selves did not gain from the high prices paid for fieldwork, and (he ar-
gued) would therefore not be aggrieved (and hence work less effectively)
if these were cut back. In the circumstances, he was quite confident that
a subsequent reduction in piecework rates in the cane fields had been
achieved without any fall in labour productivity.12 This was 1917, and
the congratulatory note turned out to be somewhat premature.
Not least, this resulted from the depredations of the ‘Spanish’ in-
fluenza, which both decimated the workforce available to the industry
and distorted the cycle of peasant cropping in ways that further reduced
the turnout of sugar labour. By 1918, plantation-sector costs at Modjo-
Agoeng were ‘considerably higher’; in particular, ‘very much more had
to be paid’ for the heavy work involved in breaking up the ground and
digging the trenches in which the cane would later be planted. In the fol-
lowing year, wages had to be raised yet further. Inter alia this was because
of competition from neighbouring sugar factories, one of which was
said to be paying ‘huge prices’ (enorme prijzen) for fieldwork, and another
of which was reported to pay the same rates as Modjo-Agoeng but to
require less work in return. In the circumstances, Modjo-Agoeng had re-
course to expensive labour brought in from outside its immediate locality
(importvolk). This was a Java-wide phenomenon; indeed, by the end of the
decade, sugar factories throughout Java appear to have been faced with
widespread shortages of field labour. Labour scarcity was sufficiently
pronounced for mandur to be sent hither and thither in search of workers,
at the factories’ behest and with the factories’ cash.13 The system proved
distinctly efficacious, if not trouble-free: it was said by industry sources
that ‘providing loans gave rise to all sorts of underhand business between
the mandurs and the [work] people’, and that the factories sometimes did
not get their money back.14 Nonetheless, managers congratulated them-
selves on obtaining the services of ‘very good coolie-mandurs’, who proved
adept at bonding large numbers of workers from even some considerable
distance away.15
12 [Superintendant] O.T. Muller von Czernicky, ‘Eenige aanteekeningen op het Jaarverslag 1917 van
de suikeronderneming Poerworedjo’, in: NHM, NA, 2.20.01, inv. nr. 8099.
13 On the need to employ hulpmandoers (assistant foremen) without whose efforts it would have been
impossible to assemble an adequate workforce for field preparation, see, for example, Jaarverslag
Kemantran, 1921, p. 23, in: NA, NHM, 2.20.01, inv. nr. 9209.
14 Jaarverslag Soemberhardjo, 1922, p. 34, in: NA, NHM, 2.20.01, inv. nr. 9228.
15 Jaarverslag Ketanggoengan-West, 1921, p. 17, in: NA, NHM, 2.20.01, inv. nr. 9210.
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| Commodities and colonialism
Even so, by 1920 there were clearly other factors impacting on the
dynamics of labour recruitment. Some of this had to do with the evolv-
ing political economy of the peasant Java in which the industry was
enmeshed. According to one of the major sugar companies, for instance,
in some parts of the island ‘big peasants’ (groot sawah bezitters, in the termi-
nology of the time), in view of the very high price of rice, had adopted
the practice of paying their labourers in cash (klinkende of papieren munt)
instead of making payments in kind, which had been customary. Since
these cash payments failed to keep up with the escalating cost of subsis-
tence foodstuffs, however, the effect was to propel the landless population
in the villages in the direction of the factories.16
At Modjo-Agoeng itself, by 1922 things were beginning to return to
‘normal’ and wages started to go down. The secular trend was for field
costs to fall because the factory was able to pay less for the performance
of the elaborately differentiated sequence of tasks that characterized the
industrial work routines of its plantation regime. Not least, as Modjo-
Agoeng’s management noted with a degree of satisfaction, this was
because all the factories in the area had stuck to an agreement to fix a
common price for the trench digging that lay at the heart of fieldwork
in this part of Java. In the following year, it was a similar story, in so far
as ‘greater keenness to find employment’ (grootere werkwilligheid) among
the potential workforce enabled further cuts to be made in piecework
rates. To be sure, two years later, in 1925, there was an interruption to
this happy story when a good rice harvest combined with the debilitat-
ing prevalence of malaria in the locality of Modjo-Agoeng to reduce
the turnout of labour. Nonetheless, the interruption proved short-lived,
so that, by 1931, at this particular factory, the unit costs of field labour
(calculated in terms of each hectare of land brought under cane) had
returned to levels last seen almost a quarter of a century earlier.17
By the close of the 1920s, in short, Java was finally living up to its rep-
utation for cheap and abundant labour. At Modjo-Agoeng as elsewhere
throughout the sugar industry, managers had been able to cut labour
costs to the bone across all sectors of production.18 The brute repression
16 Factorij NHM to Amsterdam, 5-5-1920/230, in: NA, NHM, 2.20.01, inv. nr. 8101.
17 NA, NHM, 2.20.01, inv. nrs 4945, 7999 file 593.
18 This fall in the unit costs of labour was also in evidence in the manufacturing sector, where it is,
of course, important to be able to establish that they were already underway before the big increase in
throughput contingent on the arrival of ultra-high-yielding cane took place late in the 1920s. For ex-
ample, at Modjo-Agoeng, a steady decline in labour costs per quintal of cane in the manufacturing sector
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Chapter 7 Making the best of it |
(which included both factory labour per se and the labour involved in cane cutting and cane haulage) set
in early in the 1920s and continued through to the end of the decade, during which period per quintal
labour costs fell from 1.61 guilders (1922) to 1.03 guilders (1931). The same company’s Poerwodadi
factory in Madiun Residency exhibited largely similar traits: labour costs in the manufacturing sector
likewise began to fall fairly steadily from 1923 onward (1.32 guilders per quintal) to 1930 (0.94 guilders per
quintal). At neither factory was there a sudden drop in the per quintal costs of labour contemporaneous
with – and hence potentially ascribable to – the rapid uptake of POJ 2878 and consequent substantial
increase in factory throughput in 1928-1929. See the relevant data in Jaarverslag Modjo-Agoeng, 1920-
1931, in: NA, NHM, 2.20.01, inv. nr. 9383; Jaarverslag Poerwodadi, 1920-1931, in: NA, NHM, 2.20.01,
inv. nr. 9392. These data and similar data for other NHM factories during the 1930s are also to be found
(often in draft form) in: NA, NHM, 2.20.01, inv. nr. 9212.
19 Politie 1927, 1932.
20 Jaarverslag Doekoewringin, 1927, p. 36, in: NA, NHM, 2.20.01, inv. nr. 7212.
21 Ingleson 1986:266.
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| Commodities and colonialism
cost of field labour, largely by cutting piecework rates. Far from deterring
the flow of labour into the agricultural sector, however, the reduction in
wages was paralleled by a greater flow than before of workers who came
(from the industry’s perspective, at least) of their own accord, rather than
as a result of bonding arrangements initiated by industry-paid mandur.
Many factories were able to cease earlier practices of informally bonding
large numbers of their workers, in tandem with the dispatch of recruiting
agents into neighbouring districts, or even further afield. Instead, they
were increasingly able to rely on a purely ‘voluntary’ turnout of workers,
who – as far as the factory comprehended the dynamics involved – made
their own way to the sugar fields and factories. Those whom factory man-
agement described as ‘free workers’ (vrijwilligers) now made up the bulk of
the field workforce. In 1928, for example, according to the administrateur of
one large factory on the north coast of Central Java, the workers required
for the heavy work of field preparation had turned up ‘entirely of their
own accord and in droves’ (geheel uit eigen beweging en in massa).22
Several explanations for what was happening – plenty of ‘free work-
ers’ combined with cuts to piecework rates – might seem at variance
with each other. In fact, however, far from being mutually exclusive, they
were the consequence of depression conditions in rural Java that set in
late in the 1920s. The bare bones of the situation emerge fairly clearly,
for example, from the records of the colony’s light-railway companies.
Dependent for their income not only on freight (much of it, sugar) but
also on large numbers of third-class ‘native’ passengers, they were espe-
cially sensitive to fluctuations in the welfare of the Indonesian communi-
ties that they serviced. In the heavily ‘sugared’ region extending west-
wards along the north coast of Java between Semarang and Cirebon,
the company whose lines ran through the area reported on seriously
deteriorating rural conditions in the second half of 1929, caused in part
by severe drought in the dry season and exacerbated, as far as labour
was concerned, by the scaling down of employment on public works.23
The following year (1930) was significantly worse – and railway business
correspondingly terrible. The decline in ‘native welfare’ had become
very pronounced indeed by the year’s end. A population that, accord-
ing to one railway executive, never did more than just keep its head
22 Jaarverslag Ketanggoengan-West, 1928, p. 34, in: NA, NHM, 2.20.01, inv. nr. 9212.
23 Jaarverslag Semarang-Cheribon Stroomtram Mij, 1929, pp. 10-1, in: NA, Semarang-Cheribon
Stroomtram Maatschappij, 1893-1946, toegangsnummer 2.20.17, inv. nr. 12.
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Chapter 7 Making the best of it |
above water, was rapidly going under.24 The situation was subsequently
made worse (as sugar industry sources make quite clear) by the evident
determination of the Indies government to collect its ‘rightful’ revenues,
regardless of the extent of rural distress. In 1932, for example, a factory
manager reported to his company, from his vantage point on the north
coast of Central Java, that taxes were becoming very oppressive, and
that a notional reduction of the government’s land tax by 10 to 20 per
cent had been totally vitiated by a revaluation of land that had left many
peasants having to pay more than they had done in the previous year.25
Embedded in this gathering economic crisis in the countryside – one
that began well in advance of the hard times more commonly associated
with the impact of the worldwide interwar depression of the 1930s –
were issues related to the price of rice. In so far as locally prevailing rice
prices can indeed be gauged from national-level figures, the price of this
key subsistence commodity fell fairly steeply toward the very end of the
1920s, something which presumably hurt peasant landholders (who had
a surplus to sell), but which ought to have benefited wage labourers (who
needed to purchase it). Indeed, some calculations show that because
of the falling price of rice, ‘real’ wages in the countryside were either
constant during the decade or were actually rather higher at the end of
the decade than they were at its beginning.26 Be that as it may, it seems
24 Standard factory wages were said to have fallen from 35 to 25 duit per day (Jaarverslag Semarang-
Cheribon Stroomtram Mij, 1930, pp. 11-2, in: NA, Semarang-Cheribon Stroomtram Mij, 2.20.17, inv.
nr. 12). The implication that falling prices for foodstuffs reflected a crisis that involved farmers as well as
labourers is my own.
25 Jaarverslag Bandjaratma, 1932, p. 34, in: NA, Cultuur-, Handel- en Industriebank; Koloniale Bank;
Cultuurbank NV, 1881-1969, toegangsnummer 2.20.04, inv. nr. 943.
26 One authority (Van der Eng 1996:216) suggests that in rice equivalents, the average wages at sugar
factories remained fairly constant throughout the 1920s. This does not necessarily conflict, of course,
with the demonstrable fact that the factories were able to reduce significantly the cost of labour inputs
into the plantation sector (guilders per hectare) during the second half of the 1920s, and that this trend
was even more pronounced in 1930-1931. For some basic data on ‘real wages’ in the 1920s, see Dros
1992:30. Dros’ calculation (1992:30, Table P) was that the ‘index real wage’ (taking 1913=100) fluctu-
ated between a low of 87.9 in 1921 and 1926, and a (short-lived) high of 122.9 in 1931 – that is, those
sugar workers still in employment in 1931 notionally enjoyed a better ‘real’ wage than they had done
for some years. As Dros’ data make clear, however, this applied to factory workers only (and by 1931 the
industry had cut back drastically on cane planting for the following year’s campaign, so that if the same
high ‘real wage’ prevailed in the agricultural sector, only a much reduced workforce would have been
there to ‘enjoy’ it.) The most authoritative of the problematic calculations of ‘global’ rice prices in the
Indies is to be found in Creutzberg 1978:39, Table 1. Taking 1913=100, the index figure stood at 228.2
in 1921, 145.2 in 1930 and 92.7 in 1931. Creutzberg’s data do not reveal, however, a steady drop in rice
prices between 1922 and the end of the decade; rather, they suggest that prices dropped rather swiftly
early in the decade and remained roughly at that level (with some fluctuations) until the big drop of 1931.
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202
Chapter 7 Making the best of it |
occupied Holland during the Second World War, one of the top manag-
ers of the NILM, the once-resplendent Indies plantation company, had
time enough on his hands to begin to construct a history of the firm for
which he had worked for more than three decades. What he had to say
about the issue of access to peasant land for cane growing, both before
and after the interwar depression, is highly instructive. His story con-
cerned events at one particular medium-sized sugar factory – Pagongan,
near the city of Tegal – on the north coast of Central Java, but there
is no reason to suppose that it was in any way exceptional. Sugar pro-
duction at Pagongan had a long history. Indeed, it dated from sugar-
manufacturing ventures established there by Indies-Chinese interests
in the 1840s (or earlier), though it had subsequently passed into Dutch
hands. The people who ran it, therefore, were hardly newcomers in the
area, and were presumably fully conversant with the often unwritten
intricacies of industry land-rental in this part of the colony’s northern
littoral. Yet, if the compiler of the wartime history is to be relied upon,
the NILM’s local managers found the going anything but easy.
Like many other such factories, Pagongan in the opening two decades
of the twentieth century had been successful in lobbying the Indies gov-
ernment to be allowed to extend considerably the area that it rented from
the local peasantry for the planting of cane. It did so largely thanks to
the way in which, as elsewhere in the region, the government’s ‘technical’
irrigation in the adjacent countryside had brought into existence great
swathes of new sawah, which Pagongan could also hope to exploit for
its own purposes. But that exploitation was far from assured. Although
there was notionally enough sawah in the area to enable the factory to
rent its ‘allowance’ of 700 hectares, reality was somewhat different: ‘the
circumstances in which land rental took place cannot be described as
favourable […] the enterprise was compelled repeatedly to rent less
suitable land […]. The rental of some really good blocks of sawah was
always very difficult.’29
As was the case with the Java industry as a whole, Pagongan was
caught up in what can most conveniently be called the ‘squeeze on cane’.
Notionally, the squeeze and, closely bound up with it, the opportunity-
cost issue (meaning the relative comparative economic advantage ac-
cruing from the various uses to which farmland might be put), was a
29 ‘Pagongan’ in ‘Geschiedenis NILM’, circa 1942, in: NA, NV Nederlands-Indische Handelsbank;
Nationale Handelsbank NV, 1863-1966, toegangsnummer 2.20.03, inv. nr. 331.
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| Commodities and colonialism
Aerial view of the Pagongan sugar factory north coast Central Java, circa 1925
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Chapter 7 Making the best of it |
205
| Commodities and colonialism
its own consumption.32 The upshot was that while the price of labour
declined during the course of the 1920s, the price of land climbed.
At the Modjo-Agoeng factory discussed earlier in this chapter – as
was the case throughout the industry – the secular trend between 1900
and 1930 was for rental costs to increase by around 100 per cent.33 The
actual history of rentals at this particular factory during the course of the
1920s was subject to some fluctuation, nonetheless, in that they started
rather high at the beginning of the decade at sixty-nine guilders per
hectare, peaked at ninety-four guilders in 1924 and finished the decade
somewhat lower at just over ninety guilders. Presumably, this modest fall
had to do with the onset of the same rural recession that (as we have
already seen) enabled the factories to cut their labour costs at around
the same time. The cost of land rental was to fall very much further
during the early-to-mid 1930s. Nonetheless, the long-term trend toward
increased land-rentals remained a determining factor in the industry’s
mid-twentieth-century history.
32 See, for example, J.J.M.A. Popelier, ‘Memorie van Overgave van de residentie Pekalongan’, 1931,
pp. 32-8, in: NA, Memories van Overgave, 1852-1962, toegangsnummer 2.10.39, inv. nr. 46, which lists,
inter alia, maize, cassava, tobacco and kapok as crops regularly grown for the market on a significant
scale in parts of this densely populated part of north Central Java.
33 Jaarverslag NHM Factorij Batavia, 1930, p. 273, in: NA, NHM, 2.20.01, inv. nr. 4564. For a de-
tailed analysis of sugar industry rentals in the late nineteenth and early twentieth century, see Van der
Eng 1996:217-24.
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Chapter 7 Making the best of it |
207
| Commodities and colonialism
Proefstation Oost-Java in which it had been created. The new cane had
the potential to increase yields per hectare by as much as one third, and
in many respects, it was to prove the salvation of the industry.
The speed of its take-up was impressive, reflecting, inter alia, the high
level of organization in the agro-industry into which it was introduced.
Indeed, by 1929 – a mere four years after its first extensive trials – POJ
2878 accounted for around 95 per cent of all ‘factory’ cane planted in
Java.36 Much higher plantation yields were not the only advantage ac-
cruing to the industry from POJ 2878. Moreover, because it was largely
disease-free, the new variety obviated the need for the spatially separate
preparation of cane cuttings, or bibit, that had come to characterize the
Java industry late in the nineteenth century. This resulted in a significant
saving in production costs. Whereas at Modjo-Agoeng the provision of
bibit had generally accounted for 20 per cent or more of total production
costs in the agricultural sector, by 1930 it had fallen to as little as 5 per
cent.37
salvation at a price
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Chapter 7 Making the best of it |
38 Arthur H. Rosenfeld’s report on the Taiwan sugar industry (Rosenfeld was ‘Advisor to the American
Sugar Cane League’), originally in The International Sugar Journal (31 September 1929), appeared in trans-
lation as ‘Een en ander omtrent de suiker-industrie in Formosa’ (Rosenfeld 1929). At the same time POJ
2878 was also being taken up in the Philippines (Perk 1931:245-6), though with consequences a good
deal less dire, since virtually all centrifugal sugar from the Philippines went to the USA, whose sugar
market had been effectively closed to the Java producers for two decades or more.
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Chapter 8
Commercial nemesis
H.C.Prinsen Geerligs was the doyen of the Java sugar industry’s scien-
tific advisors. Born in the Netherlands, he had spent most of his adult
life in the Indies, much of it – as will be apparent from earlier chapters
of this book – in the employ of the sugar syndicate at one or other of
their research institutes.1 The industry thought so well of his services as
a researcher and publicist that it had given him the considerable sum of
50,000 guilders to mark the occasion of his jubilee in 1916.2
In April 1932, by then in comfortable semi-retirement in Amsterdam’s
well-heeled ‘Old South’, he received a letter from India. The writer
wanted Prinsen Geerligs’ advice. He ‘had been informed that some
good 2nd hand cane crushing and sugar manufacturing plants are now
for sale in your Java’, and he was hoping that his correspondent would
oblige him with specifications and price. The old man evidently wrote
back, promising to send the addresses of companies in Java that special-
ized in dismantling sugar factories – and passed the letter on to the head
office of the mighty NHM in Amsterdam with a request that they would
forward the necessary details.3
By early 1932, there was indeed a plethora of sugar-manufacturing
equipment for sale in Java, and during the following two years there
would be a great deal more. Between 1931 and 1936, the industry
permanently lost around 50 per cent of its productive capacity in the
1 Hendrik Coenraad Prinsen Geerligs, born (Haarlem) 24 November 1864, died (Amsterdam?) 31
July 1953. The son of a school principal, he graduated in 1883 from the Handelsschool in Amsterdam,
and for the next six years studied chemistry at the University of Amsterdam. Following a period working
in the ‘technisch-chemisch’ office of the Amsterdam firm of Wynhoff & Gulpen, he went to Java in 1891
as an assistant chemist at the Kagok Sugar Research Station (subsequently merged into the celebrated
Pasuruan Research Station). He was the author of innumerable books and articles on the Java sugar
industry and world sugar production. For details of his career, see Jubileum Prinsen Geerligs 1916.
2 Notulen bestuursvergaderingen, 4-8-1916/460, in: NA, HVA, 2.20.32, inv. nr. 2.
3 The correspondence is in NA, NHM, 2.20.01, inv. nr. 5131.
A doyen in retirement: H.C. Prinsen Geerligs and his wife, Mevrouw Prinsen
Geerligs, on the occasion of their fortieth wedding anniversary, Amsterdam,
1931 (Stadsarchief Amsterdam, 010003032768) http://beeldbank.
amsterdam.nl/beeldbank/indeling/detail?q_searchfield=1931%20huwelijk
Chapter 8 Commercial nemesis |
wake of the dramatic decline of the Asian sales for Java sugar that had
sustained it for almost two decades. Nor was it a mere coincidence that
Prinsen Geerligs’ correspondent hailed from Bhagalpur, in the northern
Indian state of Bihar. The Indian subcontinent had, up till then, been
the largest single market for Java sugar – and the prime reason for the
loss of that market was the rapid development there of the industrialized
manufacture of sugar. In 1930 Java had exported more than a million
MT of sugar to Indian ports, primarily Calcutta and Bombay. Six years
later India was taking scarcely a tenth of that amount. The collapse of
the Indian market for Java’s output, however, was only one aspect of
the globalization of the international sugar economy that had brought
Indonesia’s Big Sugar to its knees.
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| Commodities and colonialism
4 H.C. Prinsen Geerligs and R.J. Prinsen Geerligs 1938:81-2. For a general overview of the history of
Java sugar prices, 1880-1940, see Appendix 1.
5 Cuba’s output peaked at an exceptional 5 million MT in 1929, and hit a low of under 2 million MT
some four years later in 1933. After that, however, its production rapidly returned to over 50% or more
of its pre-Depression peak. Not least, this was because it was able to maintain – from 1934 onward – a
level of exports to its main United States’ market that, in most years, amounted to nearly two-thirds of
its average sales during the previous decade (Pollitt 1984:4-7).
6 World consumption, calculated at 13.3 million MT in 1920/21, had risen to a peak of 24.4 million
a decade later, and declined to a low of 22.1 million in 1932/2 (H.C. Prinsen Geerligs and R.J. Prinsen
Geerligs 1938:50-1).
7 H.C. Prinsen Geerligs and R.J. Prinsen Geerligs 1938:70. The secular trend over less than two de-
cades was for an increase in consumption of more than 100%, from 485,427 MT in 1919 to 1,114,000
MT in 1937.
8 Jaarverslag NHM Agentschap Shanghai, 1933, p. 49; 1934, p. 38, in: NA, NHM, 2.20.01, inv. nrs.
5171, 5172.
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Chapter 8 Commercial nemesis |
Java’s relations with the emergent Japanese sugar empire had been a
critical element in sustaining its position in the age of mass production.
As we saw in an earlier chapter, the Java industry had long-standing and
ongoing connections to the great British-owned refineries in Hong Kong,
which dated back to the 1880s. However, when the latter experienced
9 Myers 1989.
215
| Commodities and colonialism
increasing difficulties after the Great War, the Dutch colony’s produc-
ers became increasingly dependent on the Japanese refineries – and on
Japanese sugar traders – with which they had first opened relations at
the very beginning of the twentieth century. In effect, by the early 1920s
(though it also maintained a huge stake in the Indian sugar market), Java
had become a crucial part of a Japanese-controlled network of produc-
ers of raw sugar, sugar shippers and traders, refineries and consumers
that extended throughout East Asia and the Pacific. Although Japanese
interests owned only a miniscule part of Java’s productive capacity, in
tandem with several big Indies-Chinese commercial combines they had
come to play a key role in the Dutch colony’s sugar trade with East
Asia, as financiers, buyers and shippers. Then, quite suddenly, and – as
contemporaries saw it – quite unexpectedly, toward the end of the 1920s
the situation changed dramatically. The most ambitious of the Japanese
sugar traders went under, in a development that threatened to take with
it the entire Japan-Java nexus in sugar.
In 1927, the Suzuki zaibatsu, one of the largest (though not the old-
est) of Japan’s commercial, financial and industrial conglomerates, sud-
denly collapsed, undermining a sizeable swathe of key Japanese financial
institutions, both in Japan itself (where the prime minister and cabinet
also fell victim to the crisis), and in Formosa. With close financial ties
to the failed zaibatsu, the Bank of Taiwan (BOT) had to close its doors
temporarily, and to curtail its subsequent operations.10 Suzuki had been
very big in Java’s trade in sugar to Japan over the previous decade, and
in some years had been the largest single Japanese buyer. Its collapse,
in tandem with the economic consequences of the contemporaneous
Tokyo earthquake, precipitated a crisis in Japan’s sugar empire that
signalled the unravelling of Java’s key role. The crisis also took its toll
on those Indies-Chinese multinationals that were heavily dependent on
Japanese or (in so far as it could be distinguished) Japanese-Formosan
capital. In particular, it may be presumed to have curbed the activities
of Kian Gwan, the commercial arm of the great Indies-Chinese OTHC
conglomerate,11 and probably contributed to the gradual collapse, from
216
Chapter 8 Commercial nemesis |
the end of the 1920s, of KHT, the most commercially aggressive of the
Indies firms trading with East Asia. 12 All this was bad news for the Java
sugar industry. Moreover, there was worse to come. Driving the evolving
situation – one that saw Java sugar fairly rapidly marginalized in the
Japanese market – were two underlying factors that spelled very serious,
long-term trouble. One was the impact on the market for sugar in East
Asia of the growing political turbulence in China; the second was the
emergence of Formosa as the new heart of the Japanese sugar empire.
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| Commodities and colonialism
that the anti-Japanese boycott had its greatest impact: so much so indeed
that, by the middle of 1929, Japanese sugar dealers were resorting to
repacking their sugar into the gunny sacks typical of Netherlands Indies’
production and attempting to sell it as ‘crushed Java’.16 Roughly con-
temporaneously, moreover, the British refineries in Hong Kong – Taikoo
and the CSR – also experienced difficulties. Beginning in 1925, boycotts,
strikes and political turmoil in their southern China hinterland made
for a disastrous period for business. Taikoo survived after a temporary
shutdown, but the CSR closed down for good.
218
Chapter 8 Commercial nemesis |
19 Jaarverslag NIVAS, 1933-1934, p. 52, in: NA, NIVAS, 1932-1958, 2.20.09.03, inv. nr. 8. At the end
of 1930, the Nationalist government in Nanjing used its newly regained tariff autonomy to impose a
duty of 35% on imported sugar. The real blow to importers, however, came in May 1932, when the duty
was raised to around 80% (Kubo 2005:147-8). The actual figure may have been considerably higher. In
the mid-1930s, for example, Dutch commercial agents in Shanghai claimed that the tariff equated, in
the case of Java’s factory white (the most expensive quality of Java sugar), to 200% or more of its value
(Jaarverslag NHM Shanghai, 1934, p. 46; 1935, p. 48, in: NA, NHM, 2.20.01, inv. nr. 5172).
219
| Commodities and colonialism
gling, the chief beneficiaries of which were rival Japanese sugar interests,
who – by now – drew increasing amounts of their raw material from
sources other than the Netherlands Indies. In combination, these two
developments had serious consequences for the Java industry’s hopes of
retaining its hold over the East Asian market.
220
Chapter 8 Commercial nemesis |
Java sugar’s problems in the East Asian market by the 1930s were multi-
ple.27 Fundamentally, however, what sunk Java sugar’s hopes of contin-
ued sales in China and Japan was the emergence of Formosa as a major
producer of industrially manufactured sugar. Developments on the
island from circa 1910 onward (the Japanese had forced its transfer from
China some fifteen years earlier) reflected the determination of Japan’s
leading zaibatsu to create a Japanese sugar empire that would supply not
only the rapidly expanding requirements of the modernizing Japanese
metropolis, but also the East Asian mainland which was coming increas-
ingly under Japanese sway from the mid-1920s onward. As we have seen,
Java had initially been a key supplier of raw material to the Japanese
refineries, but in the late 1920s Formosa had started to replace it.
The sugar industry that the Japanese took over after gaining con-
trol of Formosa was an antiquated one. Subsequently, however, and
with strong government backing, Japanese companies began pouring in
24 In 1937 a Straits Chinese consortium (PAN) was reported to be involved in negotiations to run the
‘civilian’ factories (that is, those not currently run by Kian Gwan) (Wierink to NIVAS, 8-4-1937, in: NA,
NIVAS, 2.20.09.03, inv. nr. 383.
25 By the middle of 1938, Kian Gwan’s connection had ceased and its staff had been withdrawn
(Wierink to NIVAS, 12-8-1938; 1-9-1938, in: NA, NIVAS, 2.20.09.03, inv. nr. 383).
26 BSHK to Swires, 2-7-1937, JSSV 1/9.
27 Knight 2010.
221
| Commodities and colonialism
222
Chapter 8 Commercial nemesis |
223
| Commodities and colonialism
Indies. In pursuit of this, they appear to have been prepared, had they
been able to, to sacrifice the interests of the Japanese-Formosa sugar
producers as part of a deal that would have allowed Java sugar into
Japan in return for reduced tariffs on Japanese cotton goods imported
into the Indies. Understandably, any such proposal met with fierce resis-
tance from Japan’s ‘sugar barons’, represented by the country’s leading
zaibatsu (just to complicate matters further, the latter also had a stake in
the cotton goods industry).
On the Dutch side, meanwhile, there were likewise tensions be-
tween the interests of metropolitan cotton-goods manufacturers, who
wanted to keep cheap Japanese cotton goods out of the Indies, and the
metropolitan-colonial sugar interest that was prepared to accept this as
the necessary trade-off for the entry of substantial amounts of Java sugar
into the Japanese arena. The situation was further confused, moreover,
by the determination of the Indies government to promote cotton goods
manufacture in the colony itself, as part of a larger programme of indus-
trialization in the archipelago. The eventual outcome, over a period of
years, went against Java sugar. Japanese cotton goods were (largely) kept
out of the Indies and Java sugar lost a (possible) opportunity of finding
a secure market in Japan. On the Dutch side, Java sugar was thereby
sacrificed to a mixture of competing metropolitan interests. In short,
by the late 1930s Big Sugar lacked the heft to prevent the state cutting
the industry loose when the demands of a larger colonial-metropolitan
economic strategy appeared to require it.34
It was not a total defeat. When a separate sugar agreement was fi-
nally reached between Netherlands Indies’ and Japanese sugar interests,
at the end of 1936, it contained provisions for minimizing competition
in the China market, in return for which the Japanese refineries under-
took to increase, as far as possible, their imports of raw Java sugar into
has virtually no information on Ensuiko, likewise one of the top firms involved, with links to Mitsubishi).
The article shows that circa 1930 some 30% of all Formosa sugar came from what was, in effect, Mitsui’s
Formosa Sugar Co (Formosa Seito Kabushiki Kaisha). Mitsui was by far the largest single shareholder
in the firm, followed by the Japanese royal family. The company had two metropolitan refineries, one
in Kobe and the other on Kyushu at Kurume. Mitsui was followed (in almost equal importance) by the
Mitsubishi-linked Meiji Sugar Co, with three refineries in Japan and one in Shanghai (Meika), opened
in 1924. The Dai Nihon Sugar Manufacturing Co, circa 1930, appears to have had the largest refining
capacity – with three in Japan and one in Korea. For a brief reference to Mitsubishi’s long-standing inter-
est in Ensuiko, already in place in the 1920s, see, for example, BSHK to Swires, 25-10-1929, JSSV 1/2.
34 For an overview of the long-term economic nexus between the Indies and its metropolis, see Lind-
blad 1996.
224
Chapter 8 Commercial nemesis |
The largest single market for the Java industry for much of the 1920s
was not in East Asia, but in the Indian subcontinent. Java sugar, much
of it ready for direct consumption without the need for further refining,
had made big inroads there since the turn of the century. Factory white,
as we have seen, was manufactured on a very large scale in Java, where
by the 1920s around half of the island’s colonial manufacturers turned
out a product that came straight off the production line in a form that
exhibited an acceptable degree of whiteness and granulation. In conse-
quence, and in contrast to the situation in East Asia, the market for Java
sugar in the subcontinent was not serviced by refineries, but by importers
of a directly consumable form of the commodity.
The bulk of this export business, predominantly in factory white,
was handled by Java-based firms, though Mitsui Bussan Kaisha (Mitsui
Trading Company), part of the eponymous Japanese zaibatsu, was also
engaged in the trade. Indeed, they already had an office in Bombay as
early as 1910.37 To be sure, a number of Indian firms also participated.
35 Sugar agreement 1937.
36 H.C. Prinsen Geerligs and R.J. Prinsen Geerligs 1938:83-4.
37 See Suikermarkt Bombay 1911, where the writer remarks that nine-tenths of the Java sugar imported
into Bombay circa 1911 is in the hands of five firms: Bombay Sugar Co, Ralli Bros, David Sassoon &
Co, Mitsui Bushen Kaischa, and Patna and Sons. For confirmation of Ralli Bros’ continuing role in the
late 1920s, see B.M. Talati to BSHK, 23-5-1929 in Sugar Refinery Letters 1929 JSSV 1/2. The writer
remarked that the bulk of India’s supply came from Java, and that the business was ‘mostly in the hands
of wealthy merchants of Bombay province, and almost all of them have branches or at least agencies in
Java. Messers Ralli Bros stand prominent among the foreign firms importing Java sugar’.
225
| Commodities and colonialism
David Sassoon & Co,38 Patna and Sons, M.V. Patel and Abdul Rahim
Oosman & Co were among those operating in the 1910s and 1920s.39
The quantities of sugar which they handled, however, tended to be
relatively small in relation to Java’s total export to the subcontinent. In
1927, for example, when total shipping of the commodity to Indian
ports amounted to over 800,000 MT, Indian buyers accounted for less
than 6 per cent of it (47,650 MT).40 Rather than Indian firms, the main
participants would appear (apart from Mitsui) to have been the ‘usual
suspects’ among the big trading concerns operating outside of Java.
Kian Gwan was among them – though by the 1930s it was said that
their agent in Calcutta had not so much gone ‘native’ as gone British in
his ways, much to the detriment of his contacts in the bazaar, and that
Kian Gwan’s provisioning of the market there was erratic.41 The others
were (presumably) Wellenstein Krause & Co, Erdmann & Sielcken and
(most certainly) the Maclaine Watson ‘group’, in particular Fraser Eaton
& Co in Surabaya.
In the subcontinent itself, Maclaine Watson (in its various permuta-
tions) worked closely with the India-based Ralli brothers, with whom
(in both London and Java) the firm and its metropolitan associates were
said to have enjoyed a quite exceptionally close and confidential business
relationship.42 Established in the mid-nineteenth century as the Indian
offshoot of a company founded in London by members of the Greek
diaspora in the 1820s, Ralli was a key player in the Indian sugar market
until well into the 1930s (by which time exports from Java had dropped
off dramatically).43 Indeed, from around 1930 until 1937 – when it ap-
pears to have broken up – Maclaine Watson and Ralli formed a partner-
226
Chapter 8 Commercial nemesis |
ship known as the Maclaine Sugar Company.44 During the 1930s, the
Indian operations of the Swiss-based firm of Volkart45 were said to be
giving Ralli Brothers a run for their money – but in respect to the sugar
trade specifically, the latter appear to have retained their predominance,
until the trade itself dried up toward the close of the decade.46
At the peak of the trade at the end of the 1920s, the Indian subconti-
nent took around 45 per cent of Java’s total exports of sugar, amounting
to well over one million MT (up from around half a million early in the
decade). Thereafter, however, the market contracted sharply, compound-
ing the problems that the Java industry was experiencing in East Asia.
By 1931-1932, Java’s exports to South Asia had fallen by about 50 per
cent from their peak two years earlier, and during the remainder of
the decade (there were violent fluctuations in the trade, consequent on
the state of the cane harvest in northern India) averaged at a little over
250,000 MT annually – less than a quarter of the amount exported in
the boom years.47 Setbacks in this market related to a different set of
circumstances, however, than those prevailing in East Asia. In part, they
stemmed from the competition from other overseas suppliers that Java
sugar had always had to fend off on the Indian market. The problem was
less the sheer volume of such rival imports than the fact they acted to
depress prices. By the 1930s, the inflow into the subcontinent of ‘British
refined’, and of sugar dumped by a number of continental European
producers, kept the price of Java sugar so low in India as to mean that it
was regularly sold below cost.
The Java industry was not holding its own. In 1932 the NHM’s agent
calculated that at Bombay alone, imports of Java sugar and European
beet sugar were roughly on par: 67,000 MT as against 61,000 MT.48
In the subcontinent as a whole in that year, imports from elsewhere
exceeded those of Java by a margin of nearly 30 per cent (Java 366,800
MT as against other imports of 516,000 MT). Suppliers of the South
44 This was an arrangement between Maclaine Watson, MacNeill & Co and Fraser Eaton with Ralli
Brothers, London. See the various letters relating to ‘Maclaine Sugar Company’ et cetera in: NA, NI-
VAS, 2.20.09.03, inv. nr. 518.
45 On Volkart, founded in 1851 in Winterthur and Bombay simultaneously, see Rambousek, Vogt and
Volkart 1991; Dejung 2007.
46 In 1934, it was said that the firm ‘nu het leeuwenaandeel in de Javasuiker business in handen heeft
gekregen’ (Schuitemaker, ‘Reisverslag’, 1934, p. 65, in: NA, NIVAS, 2.20.09.03, inv. nr. 382).
47 See Appendix 2. Main export destinations Java sugar, circa 1880-1940.
48 For imports of sugar from Russia, see, for example, Jaarverslag NHM Bombay 1931, p. 42; 1932,
pp. 46-7, in: NA, NHM, 2.20.01, inv. nr. 5065.
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| Commodities and colonialism
49 Jaarverslag NHM Calcutta 1932, pp. 27-8, in: NA, NHM, 2.20.01, inv. nr. 5069.
50 Schuitemaker, ‘Reisverslag’, 1934, pp. 60-2, in: NA, NIVAS, 2.20.09.03, inv. nr. 382.
51 Jaarverslag NHM Calcutta, 1932, p. 27, in: NA, NHM, 2.20.01, inv. nr. 5069.
52 Ratledge 2009.
53 India 1901; Sugar Bihar 1902.
228
Chapter 8 Commercial nemesis |
as 1931, there were only twenty-nine such factories in the whole sub-
continent. Five years later, however, there were more than four times
that number,54 and the NHM’s Bombay agent was reporting dolefully
on the large amount of machinery being imported (to the value of 55
lakhs of rupees), reckoning that most of it, largely from the UK and the
Netherlands, was destined for the sugar industry.55 During the course of
the 1930s, India’s output of sugar produced by industrial methods in-
creased more than tenfold, from less than 100,000 MT at the beginning
of the decade to well over a million MT at its close.56
In consequence of this bourgeoning of India’s own centrifugal sugar
industry, exports of Java sugar to Calcutta and Bombay were gradually
eroded, so that, toward the end of the decade, only a tiny fraction of
Java’s output serviced what had only ten years earlier been its largest
single market. Nonetheless, the pre-war Java industry did not give up
easily on the Indian market. Not least, it might be suspected, because
they did not really believe that anybody – at least in Asia – could make
sugar as well or as cheaply as they did. On this last point they were prob-
ably right. Indeed, it was one of the marketing ironies of the interwar
depression that the world’s cheapest producers of sugar (Java and Cuba)
were left with mountains of it on their hands. As to Indian ‘incapacity’
as manufacturers, on the other hand, the Java sugar interests plainly de-
ceived themselves, in so far as they gave credence to some of the bleaker
prognoses.
One such report, dating from 1933 and penned by a Java technician
who had relocated to India, dwelt on purported Indian mismanagement
and stubborn lack of know-how. Why, he wrote in shocked disbelief,
Indian subordinates even argued with him! He predicted that the current
expansion of industrial sugar production in the subcontinent would be
a short-lived phenomenon. 57 A more considered analysis made scarcely
a year later, however, came to a very different conclusion. Its author
was perfectly ready to concede that, whatever the early difficulties may
have been, the industry in the subcontinent could match Java in quality
229
| Commodities and colonialism
230
Chapter 8 Commercial nemesis |
61 Schuitemaker, ‘Reisverslag’, 1934, pp. 34-5, 78-9, in: NA, NIVAS, 2.20.09.03, inv. nr. 382.
231
| Commodities and colonialism
graph of the staff quarters at one of the new Indian factories points to
the ‘two Dutch children’ standing out front.62 European personnel from
Java were joined by numerous Indies-Chinese sugar ‘boilers’, the people,
that is, who formed the mainstay of the skilled staff who ran the multiple
effects and vacuum pans that lay at the heart of the industrialized sugar
factory. ‘Totally senang [contented] they were not’, so it was reported, but
the upside was that they found it cheap and easy to travel back and to
between India and Java to meet the seasonal needs of their new employ-
ers and maintain contact with their families.63
In this context of globalizing tendencies, it was of special significance
that Kian Gwan, the Java-based Indies ‘multinational’, was to be found
in the 1930s projecting at least one sugar factory in the subcontinent (as
we have seen, the firm was also involved in the nascent sugar industry
of southern China).64 At around the same time, plans were afoot on the
part of Fraser Eaton & Co, Java’s biggest firm of European sugar traders
(and part of the Maclaine Watson group), to shift one or other of their
Java factories to the subcontinent, in conjunction with Ralli Bros, who
were their long-time associates in the business of exporting Java sugar to
India.65 Another face of globalization was apparent, moreover, in Ralli’s
simultaneous import into the subcontinent of British sugar, which was
currently cheaper than its Java counterpart. ‘Sentiment’ and ‘loyalty’ had
no part in this game.66
Of course, it would be possible to over-emphasize the overall impor-
tance of this shift from Java to India. It took place, as might be imagined,
in the larger context of the growth of a corps of well-trained South
Asian sugar operatives, supervisors and managers (for whom a major
62 Schuitemaker, ‘Reisverslag’, 1934, p. 78, in: NA, NIVAS, 2.20.09.03, inv. nr. 382.
63 Schuitemaker, ‘Reisverslag’, 1934, p. 79, in: NA, NIVAS, 2.20.09.03, inv. nr. 382.
64 For the report of a projected deal by Kian Gwan to build a factory in Rampur State, circa 1935, see
Schuitemaker, ‘Reisverslag’, 1934, p. 2, in: NA, NIVAS, 2.20.09.03, inv. nr. 382. According to this source,
the deal fell through when Kian Gwan asked for a substantial deposit of some 300,000 rupees from the
state authorities in Rampur, and relations declined to the point where Kian Gwan’s representative was
told not to show his face in the state again.
65 Schuitemaker, ‘Reisverslag’, 1934, pp. 34-5, in: NA, NIVAS, 2.20.09.03, inv. nr. 382. Schuitemaker
reported that although he had been told by Ralli executives that they were exclusively interested in
importing sugar, he subsequently discovered that Fraser Eaton had sent one of their people (a Mr. Law-
rence) to India (in 1933?) to discuss the relocation of manufacture from Java to the subcontinent.
66 For the dispute between NIVAS and Maclaine Watson (Ralli’s associates in the sugar trade) over
the alleged overpricing of Java sugar, see the exchange of letters in early 1933 between N. McNeill of
Maclaine’s London Office and the NHM’s A.A. Pauw, in Amsterdam, in: NA, NHM, 2.20.01, inv. nr.
2919.
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Chapter 8 Commercial nemesis |
sugar school and research station had been established) and a plethora
of domestic Indian sugar capital. Likewise, it occurred in a context in
which a great deal of new equipment was supplied by manufacturers
in the UK, Germany, Belgium, France and the Netherlands – with the
leading Dutch firm of Stork-Werkspoor well to the fore!67 Nonetheless,
the shift of personnel and machinery from Java to India – and the reloca-
tion plans of several major operators – was indicative. At the very least, it
was a harbinger of post-colonial developments in the international sugar
economy that began, as did many postcolonial trends, in the interwar
decades rather than, as has often been thought to be the case, in the
post-Second World War era.
67 Schuitemaker, ‘Reisverslag’, 1934, p. 78, in: NA, NIVAS, 2.20.09.03, inv. nr. 382.
233
| Commodities and colonialism
234
Conclusion and postscript
in the colony during the late colonial era were forced to find markets for
the commodity in territories where Holland exerted little or no imperial
clout. For much of the period concerned, moreover, they had to do so in
competition not only (until 1914) with European beet sugar producers,
but also with Caribbean cane sugar manufacturers and newly emerged
Japanese sugar interests. In this situation, price was obviously impor-
tant, and although there is some argument that Cuban sugar was even
cheaper,1 Indonesia’s colonial producers were successful over time in
making their output very cheap indeed. Proximity to their Asian market
also gave them a freight advantage. But in the circumstances in which the
industry found itself in the 1930s, price was hardly the key issue.
By the 1920s, colonial Indonesian suppliers had come to dominate
the market for imported sugar throughout Asia, and virtually all their
output went there. Toward the end of the decade, however, this com-
mercial strategy began to unravel, in circumstances greatly exacerbated
by economic autarchy elsewhere in Asia, encouraged by the onset of the
interwar depression. Colonial Indonesia was pushed to the margins of a
Japanese sugar empire whose main supplier it had previously been, and,
in the Indian subcontinent, locally produced, industrially manufactured
sugar rapidly ousted it from what had been its largest single market.
These two developments ought to have signalled the end of large-scale
commodity production in Java, yet they did not do so. After a brief hiatus
in the mid-1930s, production in Java resumed again on a considerable
scale, albeit one much reduced from the industry’s pre-depression peak
of activity. By 1940, colonial Indonesia was again producing sugar on a
significant scale by world standards. There were several reasons for this.
In part, they related to the industry’s history in the decade prior to the
interwar depression. During the course of the 1920s, the industry had
succeeded in overcoming a variety of major obstacles to the further ex-
pansion, or even the maintenance of existing levels, of production. In so
doing, it had rationalized its fertilizer use (and been blessed with a sharp
fall in its import price after a potentially disastrous peak around 1920),
improved its irrigation systems and – in a rather different arena – had
begun to forge a rather better understanding with the state bureaucracy
than had been the case earlier in the century. In turn, this latter develop-
ment enabled Big Sugar to benefit from the increasingly hard line taken
1 Dye 1998:4. The comparative costing of sugar production nonetheless remains something of a
morass, heavily influenced by different systems of accountancy, and the like.
236
Conclusion and postscript |
237
| Commodities and colonialism
most sugar companies were not only ‘cashed-up’, but had huge reserves
at their disposal. In short, the depression had created an unprecedented
opportunity for rationalizing the industry’s operations, while not bank-
rupting most of the major producers.
Above all else, however, depressed conditions in the countryside,
compounded by the extent to which factory closures had themselves
diminished rural employment opportunities, brought down wages and
led to a (temporary) abatement in the secular trend for land rentals to
rise. Production costs in Java during the late 1930s, as the industry ‘got
back on its feet’, were lower than they had been for fifty years or more,
enabling Indonesia’s colonial producers to manufacture sugar cheaply
enough for them to take advantage of ‘spot markets’ – wherever they
arose worldwide. This was just as well, since the newly ‘corporate’
state proved an unreliable ally for Big Sugar on the commercial front.
Indonesia’s colonial sugar companies did not hold sway over other sec-
tors of capital to the extent that had once been the case, and when it
came to the crunch – in relation to a potential trade-off between imports
of Japanese cotton and exports of Indonesian sugar – it was these other
sectors of capital (located, like sugar, as much in the metropolis as in the
colony) that won the day. Attempts to reintegrate Java in the Japanese
sugar empire were thereby stymied. Even so, this was far from the end
of the story.
Most histories of Indonesia’s colonial-era sugar industry have taken
the onset of the interwar depression, the consequently large-scale clo-
sure of Java’s factories and the associated plummeting of production
as signalling the industry’s effective demise. In fact, this was far from
being the case. By the time that the Second World War engulfed the
erstwhile Netherlands Indies in the form of a Japanese invasion in the
early months of 1942, Big Sugar had resumed operations in colonial
Indonesia in no uncertain fashion. Some eighty of the pre-depression
factories had reopened, around 50 per cent of the industry’s productive
capacity had been restored, and output in 1941 stood at around 1,700
MT, or approximately 60 per cent of what it had been in 1930. Records
from a number of major sugar companies suggest that they were operat-
ing at a modest level of profitability (given their huge prior investment
in infrastructure, this was undoubtedly better than letting their ‘capital’
lay idle).
238
Conclusion and postscript |
239
Appendix 1
0
0
2
4
6
8
10
12
14
16
18
20
18
0
10
20
30
40
50
60
70
80
80
1880 1880
0
500000
1000000
1500000
2000000
2500000
3000000
18
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
80 18
1882 1882 82
18 18 1880
1884 1884 82 84
1886 18 18 1882
1886 84 86
1888 18 1884
1888 86 18
1890 18
88 1886
1890 88 18
1892 90
1892 18 1888
1894 90 18
1894 1896 18 92 1890
92 18
1896 1898 18 94 1892
1900 94 18
1898 18 96 1894
1900 1902 96 18
18 98 1896
1904 98
1902 19 1898
1906 19 00
1904 00
1900
1908 19 19
02
1906 1910 02
19 1902
1908 1912 19 04
04
19 1904
1910 1914 19
06 06
1916 1906
1912 19 19
08
08 1908
1914 1918
19 19
1920 10 10 1910
1916
1922 19 19
12
1918 12 1912
1924 19
16
1930 19
1924 18 19
18 1918
1926 1932 19
20 19
20 1920
1928 1934 19
1936 22 19
22 1922
1930 19
1938 24 19 1924
1932 19 24
1940 26 19 1926
1934 19 26
28 19 1928
1936 28
19 1930
1938 30 19
19 30 1932
1940 32
19
19 32 1934
34
19 19
36 34 1936
19 1938
Java cane yields per hectare (with estimates of areas not recorded based on yield of 1894)
19 36
38
19 19 1940
40 38
Market
19
Sources: H.C. Prinsen Geerligs 1912:140-1; H.C. Prinsen Geerligs and R.J. Prinsen Geerligs 1938:83-4;
Jaarverslagen 1938-1939 – 1940-1941, in: NA, NIVAS, 2.20.09.03, inv. nrs 13-15.
Appendix 3
1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 1920 1921 1922
staff 0.16 0.14 0.16 0.17 0.16 0.15 0.17 0.17 0.23 0.28 0.23 0.24 0.26 0.38 1.4 0.91 0.75
wages 0.03 0.03 0.02 0.01 0.01 0.01 0.01 0.03 0.01 0.01 0.19 0.22 0.36 0.34 0.38
cane
cutters
trans- 0.57 0.53 0.58 0.61 0.55 0.53 0.54 0.56 0.58 0.65 0.61 0.63 0.36 0.45 1.1 1.08 1.23
port of
cane
wages 0.09 0.08 0.1 0.11 0.09 0.09 0.1 0.12 0.13 0.1 0.09 0.1 0.1 0.12 0.42 0.28 0.24
of
coolies
fuel 0 0 0 0.01 0 0.01 0.01 0.01 0.03 0.06 0.09 0.13 0.14 0.21 0.84 1.59 0.8
Total 2.34 2.15 2.28 2.45 2.2 2.22 2.3 2.43 2.9 3.16 2.96 3.38 3.22 3.98 6.67 6.85 5.36
1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940
0.8 0.66 0.59 0.66 0.69 0.55 0.58 0.44 0.5 0.36 0.33 0.25 0.24
1.05 0.81 0.75 0.75 0.73 0.98 0.97 0.98 0.93 0.79
0.18 0.14 0.14 0.13 0.14 0.13 0.12 0.1 0.1 0.08
0.19 0.17 0.06 0.22 0.28 0.27 0.18 0.05 0.04 0.01 0.07 0.01 0.02
4.48 4 3.9 4.14 4.29 3.87 3.71 3.36 3.35 2.68 1.63 1.5 1.52
This set of data relate to production costs - calculated per quintal (100 kilo)
of sugar - at the factory during the campaign or manufacturing season.
These costs are listed under the main heads of (a) payment to European and
Indonesian staff; (b) wages cane-cutters; (c) wage to cane haulers (from 1928
onward lines (b) and (c) are combined in the factory accounts); (d) wages of
the coolies employed in the factory; (e) fuel costs in the factory; (f) total costs
per quintal of sugar including lesser expenses not listed under (a) to (e)
248
Appendix 3 |
1906 1907 1908 1909 1910 1911 1912 1913 1914 1915 1916
staff 41.37 40.84 42.51 43.22 42.7 40.04 39.1 38.55 39.39 43.37 41.84
land rent 50.02 52.96 50.86 50.43 52.78 54.84 58 59.35 58.31 59.78 59.61
field work 188.35 159.9 156.22 160.65 160.02 164.37 175.53 185.29 199.71 193.9 181.84
fertilizing 81.45 93.06 84.88 74.47 76.61 79.67 93.51 107.88 99.1 89.51 80.84
Total 474.63 442.88 404.98 407.84 408.98 396.92 459.88 475.53 520.61 493.8 469.88
1917 1918 1919 1920 1921 1922 1923 1924 1925 1926 1927 1928
48.59 46.98 56.45 55.37 90.32 105.13 86.86 86.75 93.51 96.12 102.41 107.24
67.8 66.84 65.1 69.16 76.32 77.89 90.37 94.3 84.42 77.27 76.33 78.11
152.73 200.98 170.49 233.94 253.56 297.89 259.56 242.88 229.34 203.79 205.91 211.38
80.59 101.65 80.12 159.49 184.18 222.92 141.74 130.06 134.74 113.07 115.03 106.27
473.55 542.14 503.16 678.35 907.33 1018.8 917.59 765.36 912.74 799.47 687.12 639.45
1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940
This set of data relate to the field costs of production at Modjo Agoeng
up to but not including the cutting of cane, and are calculated per
hectare of cane planted. These costs are listed under the main heads of
(a) payments to European and Indonesian field staff; (b) rent paid to the
peasantry for hire of their fields; (c) wages paid to field workers; (d) the
costs involved in the purchase and application of fertilizer; (e) total cost
per hectare, including lesser expenses not included in line (a) to (d)
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284
Index
Abdul Rahim Oosman & Co 226 Bank of Taiwan (BOT) 48, 50, 216
adolescents and children (workers) Bank voor Indië 48
72-3, 75-7, 80 Bataafsche Petroleum Maatschappij
agro-industry 13-4, 53, 58, 63, 69, (BPM) 166
71-2, 75, 83, 94-5, 123, 153, 155, Batavia 29-30, 48, 65, 67, 99, 105,
186, 189, 191, 205, 208 108, 114, 117, 126, 133-5, 241
Algemeen Syndicaat van bean cake 22-3 see also bungkil
Suikerfabrikanten in Nederlandsch- Bedadoeng 185
Indië 102 see also sugar syndicate beet sugar 1, 3-4, 6, 10, 13, 18, 29,
American Sugar Empire 28-9, 233 32-3, 37-9, 42, 45, 51, 89, 101, 123,
Amsterdam 15, 18-9, 23, 28, 48, 78, 132, 183, 213, 227, 235-6
109, 111-2, 114, 124-6, 128-9, Bengal 34
134-5, 137, 144, 166, 177, 186, Big Sugar ix-x, 2, 10-2, 14-5, 97,
211-2 99-100, 103-5, 112, 114, 117, 120,
Archief voor de Suikerindustrie in 123, 128, 143-4, 146, 152, 154-6,
Nederlandsch-Indië 91-2 158-9, 165, 180, 189, 213, 224,
Asian connection 13, 17, 19, 32, 39, 235-8
46, 51 Bihar 34, 213, 228
Australia 33, 39, 90, 191, 244-6 Binnenlands Bestuur (BB) 112, 114
Austria-Hungary 1, 20, 33, 38, 41-2, Bolk, F.W. 154
213 Bombay 37, 41, 177, 213, 225, 227,
Austro-Hungarian Empire see 229
Austria-Hungary Brantas (river) 113, 145, 184, 187,
194
Baarn 109 British India see India
Bali 165 Brooklyn 25-7
Balluseck, Maria Christine von 101 brown sugar(s) 11, 23, 32, 43, 219
Bandjaratma 146 Brussels (Sugar) Convention 19
| Index
286
Index |
287
| Index
Kian Gwan 30-1, 49-50, 216, 220-1, Maclaine Watson & Co 29-30, 48,
226, 232 67, 126, 226-7, 232
Kobe 44, 46, 50 Madiun 151, 162
Koenir 145, 184 Madras 34
Koloniale Bank (KB) 66, 128, 130, Malay Pensinsula 5
141, 146 Manchuria 45, 218
Koningsberger, J.C. 105 mandur 74, 84, 87, 196-7, 200
Koninklijke Nederlandsche Marianas (Micronesia) 45
Stoomboot Maatschappij (KNSM) Mauritius 4, 9, 33, 37, 90
19-20 McNeill & Co 29
Koninklijke Paketvaartmaatschappij McOnie Harvey 228
(KPM) 109 Merano 133
Kooy & Co 148 Mestfabriek Java (Java Fertilizer
Korea 45, 234 Factory) 67
Korn, Ferdinand 26 Mirrlees Watson 177, 228
Kwik Hoo Tong Trading Society Mitsubishi 44
(KHT) 31, 47, 49-50, 217 Mitsui 44, 46-7, 49, 225-6
Kyushu 34 Mitsui Bussan Kaisha 49, 225
modernity 15, 35, 43, 45, 169
laboratory staff 84-6 Modjo-Agoeng 192, 194-8, 206, 208,
labour recruitment 74, 198 250 see also Soeko Dhono
labour-intensive (agriculture) 62, 72 Mozambique 228
Leeuwen, van 117 Mullemeister, J. 99
Lichtenburg (Notary) 134 Muller, Abram 148
Limburg Stirum, J.P. van 108, 181 multiple effect 3, 5, 6, 24, 56, 62, 232
Lippman, E.O. von 89 Musschenbroek, C.J.W. van 101
London 2, 23-4, 28-30, 41, 226, 228, Musschenbroek, S.C. van 98-111,
242 115, 116, 132, 140, 143, 148, 176
Loon, W.H. van 125
Louisiana 90, 169 Nanjing 220
Lucassen (family) 132 Nanyo Yusen KK Java-line 46
Lumajang 165-6, 176, 179, 183 Nederland Lloyd 135
Luzon 21, 176 Nederlandsch-Indische Handelsbank
Lijnden, D.W.J.C. van 101 133, 147
Nederlandsch-Indische Landbouw-
M.V. Patel 226 Maatschappij (NILM) 128, 133-4,
Maclaine Sugar Company 227 141-2, 147, 203
288
Index |
289
| Index
Sarekat Islam 118-9, 157, 160-1 Surabaya 29, 46, 66-7, 103-5, 108,
Second World War ix, 16, 44, 203, 112, 140, 155, 162, 169, 174, 194,
233, 238-9 226, 250
Semarang 29, 31, 67-8, 112, 163, Surakarta 59
200 Suzuki 44, 46-7, 216
Semarang-Cheribon Stoomtram
Maatschappij 68 Taikoo 17, 21, 23-30, 32, 34-6, 218,
Semboro 185-6 221, 234
sereh (cane disease) 88, 207 Taiwan see Formosa
Shanghai 22, 39, 45, 50, 217-9 Taiwan Ginko see Bank of Taiwan
Shantou (Swatow) 21-3 tea 37, 50, 149, 186
Singapore 244-6 Teding van Berkhout, Alphreda
Skoda 220 Louisa 133
Smissaert, Henriette 133 Teding van Berkhout, Maria 99, 133
smokeless sugar 217 The Hague 99, 103, 105, 110, 112,
Soeko Dhono 65-6, 80, 194 see also 117, 119, 133-4, 150, 181
Modjo-Agoeng Tjoekir 140-1
Soerabaiasch Handelsblad 165, Tjokroaminoto 118-9
167-8, 173, 176, 179 Tjomal 83, 86, 99, 103, 109-10,
Soeriadi, Raden Adipati Ario 122 132-3, 143, 176, 189, 190, 202
Sollewijn Gelpke, J.H.F. 113 tobacco 63, 179, 186
Solo (river) 113 Tokyo 43, 216
South Asia 36, 41, 187, 219, 227, tramways 68
231-2 234-5 see also India
Spanish Influenza 15, 161, 197 Uithoorn 112
Stibbe, G.Th. 118-9 Umbgrove Commission 115
Stok, J.E. van der 153 United States 11, 28-9, 38-9, 46, 55,
Stork-Werkspoor 233 63, 127, 150, 168-9, 192, 214, 220,
Straits Chinese 221 233
Straits Settlements 22
sugar syndicate 90, 98-9, 102-5, 108, vacuum pan 3, 5, 24, 27, 232
118, 148, 153, 155, 165, 192, 211 Valette, G.J.P. de la, 105-8
Suiker-Enquête Commissie (Sugar veldpolitie (field police) 199
Inquiry Commission) 118-9 Vereenigde Javasuiker Producenten
sulphate of ammonia see zwavelzure (VJSP, United Java Sugar Producers
ammoniak Association) 47-9
Sumatra 99, 137, 145, 179, 187 Vereeniging van Soerabaiasche
supervision 58, 72-3, 81-4 Suikerfabrikanten 66
290
Index |
Vogel, Henriette Caroline de 131 Wijck, C.H.A. van der 97-100, 103,
Volkart 227 108-10, 112, 115-6, 132-3, 140, 148
Volksraad 75, 108, 118, 180-1
Vorstenlanden 59, 132 Yangtze 217
Vreede, Davina Alida Sophie 112 Yen Block 230
Yogyakarta 59, 110, 146
waduk 192, 194 Yokohama Specie Bank 48
wages 37, 61-2, 69, 72-3, 76-8, 119,
160, 197-202, 237-8, 248 zaibatsu 42-4, 216
Wellenstein Krause 29, 48, 226 Zentgraaff, H.C. 177
wisselbouw 7, 59-60, 155, 162-3 zwavelzure ammoniak (ZA) 53, 63-4,
women (workers) see female labour 67-8, 81, 162, 191-2
Wonopringgo 61-2, 75
291