U. S. DEPARTMENT OF COMMERCE R. P. LAMONT, Secretary BUREAU .OF FOREIGN AND DOMESTIC COMMERCE WILLIAM L. COOPER. Director THE «LECTRICAL EQUIF.{ENT MARKET OF THE NETHERLAND EAST INDIES 7 WT OF Sin Ex & & . a Q Cl I. on WEE) Je c\ fies x NR es I$ “ares of Trade Information Bulletin No. 727 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1930 For sale by the Superintendent of Documents, Washington, D.C. = « = Price 10 cents FOREWORD For the American electrical manufacturer who is prepared to spend promotional money, opportunity is waiting in the Netherland East Indies. Within the memory of many now living these islands have been reputed a lingering stronghold of savagery, but that is not their status to-day. Rubber, coffee, and sugar, the principal prod- ucts, have been made the bases for high industrialization. © Wealth is being produced, almost wholly upon staples. - Furthermore, the industries are of such recent origin that they are thoroughly modern in equipment and management, American exporters can not be said to have overlooked this region, but it is true that they have not prized it to its full deserts. There has not been failure in trying for the market, but in lack of study of its requirements. This report advances two necessary rules for selling electrical equipment in the islands. They are more than rules, they are inflexible laws: (1) A factory representative on the spot working with agencies and with facilities for repair service, is the absolute minimum for successful selling; (2) the climate is humid and hot (the Equator bisects the group) and all metals, insulation, and protective coverings of every electrical item must be capable of standing up under extreme conditions. The electrical imports of the islands during 1926 amounted to $4,781,000, in 1927 $6,570,000, and in 1928 (the last year for which figures are available) $8,157,000. The Netherlands supplied ap- proximately half and Germany about 40 per cent. The United States supplied, respectively, $300,504, $389,834, and $560,342; or 6.4, 5.9, and 6.8 per cent. American export figures show for these years and for 1929, respectively, $607,841, $599,995, $790,923, and $1,448,802. The discrepancy between the American and Nether- land figures is principally accounted for by difference in classification of commodities. American manufacturers who are equipped to enter this market will find suitable products in demand. There appears to be no preferences or prejudices except as to Dutch goods. Although en- gineers are preponderantly German trained, this has no exceptional effect on the market. The Bureau of Foreign and Domestic Commerce maintains an office in Batavia, Java, and district and cooperative offices throughout the United States for the benefit of American exporters of electrical goods. Inquiries may be addressed to the nearest district office or to the Klectrical Equipment Division of the Bureau of Foreign and Domestic Commerce, Washington, D. C., where they will receive prompt attention. WiLriam L. Coorrr, Director, Bureaqu~of Foreign and Domestic Commerce. QcrosER, 1930. - Md pe THE ELECTRICAL EQUIPMENT MARKET OF THE NETHERLAND EAST INDIES By Donald W. Smith, Assistant Trade Commissioner INTRODUCTION GEOGRAPHY The area known as the Netherland East Indies comprises a number of islands stretching between southeast Asia and Australia and has a total land surface of 733,681 square miles. The islands are divided into two groups for political and administrative reasons: Java and Madura, which are the most important commercially, and the islands of the “Outer Possessions,” which include Sumatra, Borneo, Celebes, and New Guinea, besides hundreds of smaller islands. Java and Madura have an area of 50,815 square miles, which is about the size of the State of New York. Sumatra with surrounding islands has an area of 162,258 square miles, Netherland Borneo 213,589 square miles, Celebes and the small islands in the immediate neighborhood 71,763 square miles, and Netherland New Guinea 153,321 square miles. Other islands, such as Ternati, Amboina, Timor, and Bali, complete the total. The islands of the Outer Possessions are far behind Java in agri- cultural and commercial development. Sumatra, however, has made rapid strides during the past decade and is often referred to as the “island of the future.” Netherland Borneo, New Guinea, and the Celebes, although rich in natural resources, have been opened up only along the coast. All of these islands except Java contain large tracts of virgin jungle, much of which has not yet been penetrated by the white man. CLIMATE The temperature averages between 83° and 87° F. throughout the year, while the relative humidity is unusually high, averaging be- tween 95 and 98 per cent. This warm, moist climate has an adverse effect on electrical equipment which is not properly insulated, the insulation being in danger of breaking down unless manufacturers construct their equipment with special windings and extra-heavy insulation. If this 1s not done, many complaints regarding the inability of their products to withstand the climatic conditions are likely to be received. The climate also handicaps radio broadcasting, the island of Banka, which lies between Java and Suamtra being one of the worst spots in the world for radio reception. With the exception of possible interruptions from the frequent electrical storms in the mountains of east Java, the climate is favorable for transmission-line work. (1) POPULATION In 1926 the population of the Netherland East Indies was esti- mated to be 51,013,878 inhabitants, of which 209,934 were Europeans, 49,848,661 natives, and 955,283 foreign Asiatics. Java, which is one of the most densely populated areas in the world, was estimated to have 36,403,833 inhabitants, or about 717 per square mile. The population of the Outer Possessions was placed at 14,610,045, or about 21 per square mile. The principal cities of the Netherland East Indies are: City datavia. . _ Surabaya... —— SeMArANT _ cma enna Soerakarta (Solo) eee. Total nopulas Hon 5 131 "48, 961 50,952 51.273 ‘uropean popila- tion 24, UB 23, 620 18, 954 9 144 ty NGOCNE we oem Jjokjakarta (Djocja).....__. DALAL. csiniesiisesmisieis sw Todan_ Total popula- tion 26,018 10, 120 58, 718 15, 246 European popula- tion 15, 743 9, 604 2, 742 3 198 TRANSPORTATION AND COMMUNICATION The transportation facilities of Java are adequate to serve the needs of the island in spite of the denisty of population. The same degree of development has naturally not taken place in the Outer Posses- sions, although Sumatra is well served by railway and bus lines in the more densely populated areas. Busses are now an important feature in the transportation system of Java. Road mileage through- out the territory is estimated at 36,200, of which over 25,000 miles represent improved highways of macadam construction. The principal railways in the islands are owned and operated by the Government. In addition, there are 19 private railway com- panies, the most important of which are the Netherland Indies Rail- road Co., which operates in central Java, and the Deli Railway Co., which operates on the east coast of Sumatra. The total length of Government and private railways in operation is approximately 7,300 kilometers, of which 4,300 kilometers are Government operated. {One kilometer equals 0.62137 mile.) Connection with Europe is maintained by two lines of fast mail steamers owned by Dutch companies. The interisland trade is entirely in the hands of the Koninklije Paketvaart Mij., a Dutch company. The latter company also maintains a regular service between Java ports and Singapore and Australian ports. There are also monthly [reight services direct from the west coast of the United States to Java ports. The chief ports of the Netherland East Indies are Surabaya, Batavia, and Semarang in Java; Modan and Palembang in Sumatra; and Makassar in the Celebes. These ports have modern equipment installed to facilitate the handling of cargo and meet all of the require- ments of the present shipping traffic. In Java the ports are well connected with the commercial, producing, and consuming centers in the interior by a system of railways, canals, and roads. The Netherland East Indies were among the first countries in the Far East to realize the possibilities of commercial aviation. Daily flights are now scheduled between the principal cities and a weekly service connects Singapore with Batavia. IMPORTS OF ELECTRICAL EQUIPMENT The total imports of electrical equipment into the Netherland East Indies during 1926, 1927, and 1928 amounted in value to 48,748,259 florins, or almost $20,000,000. Of this amount, 78 per cent was imported into the island of Java, and the balance was taken by the islands of the Outer Possessions. Imports during 1928 were approxi- mately 70 per cent more in value than imports during 1926, an indi- cation of the increasing importance of the Netherland East Indies as a market for electrical equipment. During this three-year period the value of the imports of Govern- ment-purchased electrical equipment amounted to 24 per cent of the total, being valued at 11,851,622 florins. The value of imports by private firms amounted to 36,886,637 florins. The following table shows the value of imports of electrical equip- gs into the Netherland East Indies during the years, 1926-1928, inclusive: [MPORTS oF ELECTRICAL EQUIPMENT INTO NETHERLAND EAST INDIES, 1026-1028 1 [Value in florins 2] Territory and importer Java and Madura: Private SINS. cucu ssmmimsisss oa wa Government. _ Outer possessions: Private firms. ocean Government... Total ____. Grand total _________ Total... OOK 6, 653, 269 2. 200, 937 8. 854. 208 2, 706, 152 371,879 3, 078, 031 11, 932, 237 | 1927 "1098 10, 225, 466 | 10,985,212 3, 706, 40 4, 285, 274 3.931, 506 + 15,270, 4868 2,062,202 | 4,163,336 430, 352 958, 140 2,402,554 | 5,121,476 16,424,060 | 20,391, 962 1 Compiled from statistics of the Central Bureau of Statistics, 21 florin (guilder) equals $0.402 in United States currency. ORIGIN OF IMPORTS An analysis of the imports of electrical equipment shows that Germany and the Netherlands supply approximately 80 per cent of the total, the United States 7 per cent, and the balance of 13 per cent comes from Great Britain, Swtizerland, France, Sweden, Italy, and Japan. No attempt is made to separate the amounts imported from the Netherlands and Germany. The import figures indicate that the former is the largest supplier, but the official statistics of the Netherland East Indics show shipments to the country where the goods were last traded in, rather than the country of origin. A large portion of the German purchases are made in the Netherlands by the secretaries of private companies, public-utility companies, and the Government purchasing bureau; the goods are thus sent through that country for shipment. These transshipments are credited to the Netherlands rather than Germany, thus distorting the trade figures somewhat in favor of the Netherlands. With few exceptions, Germany and the Netherlands supply the majority of all the classes of electrical equipment used in the Nether- land East Indies, particularly electric lamps, copper wire, motors, water turbines, transmission and distribution equipment, and wire- less and telephone equipment. The United States holds third place, owing largely to the heavy shipments of flash lights and flash-light batteries. ‘The United States also obtains an important share of the trade in storage batteries, electric tools, therapeutic and X-ray equipment, and domestic appliances. The remaining countries supplying electrical goods to the Nether- land East Indies, with the exception of Switzerland, do not obtain an important share in any particular class of equipment. Switzerland furnishes most of the water wheels used in the islands and about 6 per cent of the motors. Government purchases are chiefly from the Netherlands, but no discrimination is shown against the goods of other countries. - The following table shows the value of the imports of electrical equipment from the three principal countries for the years 1926-1928: [MPORTS OF ELECTRICAL EQUIPMENT, BY PriNcipAL COUNTRIES OF ORIGIN, 1926-1928 [Value in florins] Territory and importer Nether- lands Germany United States Total 1098 Java: Private. ___._...___.. Government __.___..__ OJuter Possessions: Private......... Government _ _ Total _.___ 2, 333, 083 L, 525, 559 (. 695, 280 294’ 066 5. R48, 888 2, 651, 220 244, 204 496, 250 ag’ 009 3.420 773 149, 050 129, 055 151, 433 21. 683 751, 261 5, 653, 269 2, 220, 937 9, 706, 152 371, 879 Li, 952, 237 1027 Java: Private. ._._....._. Government .____... Duter Possessions: Private. __.__._. Government . Total _ __ 2, 743, 500 2 001. 658 789, 323 308, 181 5. 042. 662 4, 900, 290 642 477 553, 865 73. 600 6. 170. 232 736, 581 | 191, 889 46 115 074, 585 | 10, 225, 466 3,706, 040 2,062, 202 430, 352 16, 424. 060 109% fava: Private. _...._.... Government. __._.. Juter Possessions: Private. oie iannas Government __ Total 4, 508, 751 3,252, 125 1,853, 627 758,975 10. 463. 478 1, 396, 463 621, 113 1, 300, 414 85 411 6. 403. 431 785, 340 202, 445 306, 866 106, 203 1.400, 854 | 10, 985, 212 4,285,274 4, 163, 336 058, 140 20, 391, 962 NATURE OF IMPORTS During the last few years, the imports of electrical equipment have been featured by the demand for power house, transmission, and distribution equipment for new generating stations and for trans- mission lines that were erected since 1925. Imports of wireless equipment have also been on the increase and an even greater demand is expected during the next few years. The following table, which shows in detail the value and nature of the imports of electrical equipment for the year 1928, indicates the heavy private demand for electric cables, motors, electric bulbs, and the outstanding Government purchases during the year, which were for transmission equipment and electric-railway material. DrraiLs AND VALUE oF ELectricar Equipment IMPORTED INTO THE NETHERLAND East INDIES, 1928 {Values in florins] "tem Aluminum and aluminum alloys; wire fo™ electrical con- OBEN cs se BS mw ms ptm mg eames [ron and iron alloys; wire for electrical conducting_.____..._ Copper and copper alloys; wire for clectrical conducting... Rolling stock (material) for rail and tramways; for electri cal traction and parts... ________ Rolling stock; electrical locomotive and parts._.___________. Dynamos, electromotors, transformers, and rotary con- VEITerS eee Dynamos for automobiles, motors of }4-horsepower or low- er, and signal transformers... o_o... Parts of dynamos, motors, and transformers, and converters. Electrical aggregates for house lighting and small power installations, and parts... ooo oo... Water-power machines (water turbines, ete., and parts)____ Cables, electric....__..___.___.. _ . i. Insulators, for electrical conducting__._._______ Posts and masts for electrical outer conducting and neoces- sities thereto, as well as lightning conductors, and other protecting apparatus against excessive pressure of the outer conductors and other materials... .._.._____ Material for electrical installations in buildings_______._ __ Element, galvanic, already or not in batteries and parts... Electricity, water, and gas supply meters, and parts. _.___. Ventilators, eloetrical, and parts, for air refreshing in build- ings. Ventilators, electrical, and parts... ______._..._._________. Accumulators, electrical, and parts, of more than 15 cells, as well as batteries for rail tram traction. _._.____.._____. dcecumulators, electrical, and parts; other, already or not In batteries... o.oo oi. Apparatus, installations, electrical, for wireless telegraphy and telephony, and parts________ Apparatus for wire telephony and telegraphy, bell or sig- nal, and other low-current installations, and parts. ....... Apparatus and instruments, electrical, and parts... _. Electric bulbs. _..._ ___ ns Private Java Other Posses- sions 67,462 36,777 492, 007 1,458 14, 288 573, 852 1,291 2 141 49 30, 230 |, 554, 978% 756, 204 49, 151 283. 760 2,434 250 977 20, 872 79, 861 . 115, 003 R1, 402 16,378 19, 597 116, 633 44. 484 | 566, 955 777, 664 104, 028 232 461 87, 765 219, 002 289, 223 %9. 003 158, 741 47,354 35, 402 371,933 374, 685 | 82, 826 968, 475 , 580, 983 22, 636 17, 542 47,451 (28, 692 90, 981 | 144, 764 344, 620 358. OR3 10. 985. 212 4.163, 336 Government Java | Other Posses- sions al 95, 084 517, 902 35,125 3, 049 57,736 T7718, 658 120.705 | 353 505 125, 570 798, 201 156 16, 966 "T4512 44,342 34,345 19, 885 20, 400 | 208, 264 105. 561 | , 060, 811 13, 686 104, 720 230,236 33,236 9,952 7717 189 1,642 19025 10. 468 65,771 | 191, 677 318, 719 1, 564 85, 447 10, 625 4,285 274 + 958, 140 NATURE OF IMPORTS FROM THE UNITED STATES Imports of electrical equipment from the United States increased in value from $556,798 in 1926 to $687,976 in 1928, a gain of 23 per cent, owing to the increased demand for American flash lights and batteries, which amounted to $331,243, or 48 per cent of the total. During the last few years, the United States has supplied very little power-plant equipment to this territory, the American exports being small quantities of almost all classes of electrical equipment. As previously mentioned, the United States supplies most of the trade in storage batteries and other electrical automotive equipment, therapeutic and X-ray equipment, electric tools, and motor-driven electric household appliances. IMPORT DUTIES The Netherland East Indies tariff law does not discriminate against or show preferential treatment to any country, goods from all coun- tries of origin paying the same import duties. The tariff of import duties in the Netherland East Indies is for revenue only and does not strive at protection of local industries. The following are the rates of duty levied on imports of electrical equipment into the Netherland East Indies: Cables (telegraph and telephone), 12 per cent ad valorem. Copper (copper and brass wire for electrical conducting), 6 per cent ad valorem. Factory and steam-plant equipment, 6 per cent ad valorem. Machinery, 6 per cent ad valorem. In addition to these tariffs there is a statistical duty, which is levied irrespective of the countries of origin, in the form of a stamp tax, which requires stamps to the value of 5 Dutch cents (approxi- mately $0.02 in U. S. currency) on each 20 florins (approximately, $8) or part thereof, calculated on the aggregate value, expressed in full florins, of the goods included in the entry. POWER PRODUCTION AND RESOURCES An indication of the increasing demand for electrical energy in the Netherland East Indies by private industries and by Government and public-utility companies 1s shown in the increase in the installed capacity of the central power plants at the end of 1929 as compared with 1924. The increase during these years is over 60 per cent. In 1924 the official estimate of the total installed capacity of the princi- pal power stations was 139,300 kilowatts, while at the end of 1929, new plants and extensions to the existing plants had brought the total up to over 225,000 kilowatts. Fortunately, the increased demand for electrical energy presents no problem to the Netherland East Indies as regards fuel supply. The islands, particularly in the Outer Possessions, are rich in natural resources, and coal and oil production is more than sufficient to take care of local needs ,while the water-power resources are just beginning to be utilized. In east Java, the center of the sugar industry, which is probably the most important private industry making use of elec- trical energy, the majority of sugar centrals use bagasse for fuel. At the present time approximately 65 per cent of the electrical energy supplied by the principal central power stations is generated in steam or oil plants, while the remainder is developed in water- power plants. ToraL INsTALLED PRIMARY PowER IN THE NETHERLAND East INpims, 19291 In kilowatts] tem Public utilities: Javea Quter possessions. ....... Total oceans . Government power plants: Supplying to public utilities— Java. ieee mem mm emma ——— a Outer possessions. ..o..ocooo.oo Supplying to Government factorias— TRY cco spams mms SRE RR SR Quter possessions._.._ Total. mee-.. Private plants: TOUT ccc gm oo gr SR Outer possessions. ._..oo__c_.c... CRRA otal... uummmsusunnumnyn - Grand total._.._ Hydro- electric 23, 500 5 200 23.700 42 600 400 +, 600 44. 600 18, 000 4,000 G2. 300 Steam or oil 25,700 12,400 38,100 1,700 2.000 1,400 26,100 31.200 40, 400 26,000 76,400 Total 49, 200 12,600 61, 800 14, 300 2,000 1, 800 27, 700 75. 80G 58, 400 32, 000 90, 400 ! Figures for the installed capacity of publi¢c-utility and Government power plants compiled from data furnished by the Bureau of Water Power aud Electricity, Baudoeng. Figures shown for private plants are pstimates bv the author. WATER-POWER RESOURCES The need for a systematic development of the water-power re- sources of the islands led to the creation of the Bureau of Water Power and Electricity by the Netherland East Indies Government in 1917, to control and direct operations pertaining to the exploration, suvey, and development of water power. The function of this bureau is not to monopolize the water power of the Netherland East Indies for governmental purposes, although certain favorable sites will be re- served for general lighting and power supply and for possible further extensions to the Government electric railways. The remainder of the water resources will be available for private development under the direction of this bureau. The bureau makes preliminary surveys of sources of power, passes on all applications for concessions, supervises power-plant construc- tions, and regulates the generation and distribution of current. Applications for concessions for the erection of generating plants and the transmission of current for light and power must be addressed to the governor general, who transmits the application to the bureau for review. The application must be on official stamped paper and prepared according to the rules prescribed in Publication No. 2, Rules and Procedure, of the Bureau of Water Power and Electricity. As security for the costs, the applicant must make a deposit, the amount of which depends upon the importance of the work to be done. The deposit may range between 100 and 2,000 florins. Likewise, applications for concessions for the use of water power must be addressed to the governor general, whose action depends upon recommendations made by the bureau, which are based upon an investigation of all details. Decisions on these applications are usually long delayed, as is the case in applications for mining and other concessions. Rentals are changed for the use of water power in cases where the installation develops more than 100 horsepower. Following is a schedule of the charges for the use of water power: 1. A maximum of 2 florins for each potential horsepower above 100 but below 1,000 horsepower. 2. A maximum of 1.50 florins for each potential horsepower from 1,000 to, but not including, 10,000 horsepower. 3. A mata of 1 florin for each potential horsepower from 10.000 npwardgd. These rates are in the nature of rental and are payable annually during the life of the concession. . Water-power concessions for a capacity exceeding 100 horsepower are usually granted for 40 years under terms and conditions specified by the Government. Water-power concessions for sites where less than 100 horsepower are available are granted free of charge and are subject to simple conditions. Electrical licenses for public-utility companies are usually granted for a fixed period, not exceeding 40 years, whereas licenses for private purposes, such as industrial and commercial enterprises. are terminable at notice. WATER-POWER CONCESSIONS The annual report of the Bureau of Water Power and Electricity for the year 1928 shows that there were 56 valid water-power conces- sions, of which 42 were held in Java and the remainder in Sumatra. 17558—30~——2 At the end of 1928, also, there were 370 licenses for electrical installa- tions in force, of which 279 were held by private enterprises and 91 by public-utility companies. Of the private licenses issued, 241 were held for private use in Java and 38 were in force in the Outer Possessions. Of the total public-utility licenses issued, 55 were in force in Java and 36 in the Outer Possessions. The following list, taken from the annual report of the Bureau of Water Power and Electricity, shows the water-power Concessions in force. StaTEMENT oF CONCESSIONS OF HYDRAULIC POWER ALLOTTED BY THE GOVERN- MENT AND STILL IN FORCE AT THE END oF 1928 Name of the river Concession granted to Status of undertaking [AVA Bol oeRyany (Semarang)_...._. 0) co gts SS AE Molek Waterworks (Malang) ____ Mangis Waterworks (Kedoe) .. __ Tiflaki, Tjitambaga (Middle . Priangan). Kali Birve (Pasocroean)..___...__. Kali Diatiroto (Probolingo).__.__ Tlipdlanganggede (West Prian- gan). Tjiseureuh (West Priangan).____. Tjiboeni (West Priangan)________. Tjiandjoer (West Priangan). ..___. Van der Wijeck Waterworks (Kedoe). Kali Tongah (Djember)..___.__.__ Kali Telefoon (Djember)____.____. Kali Koentjir (Kediri). . _ a A.N.I.E. M1 cy doo Hoo Tjwie Nio Tio Djoe Co_____. ‘Sanitas™ Ice Co... __________ Assam Tea Estate “ Malabar’ ____ ‘n operation since 1913. ixtension completed in 1923. n operation since 1907. n operation since 1912. n operation since 1994 Jotel Nongko-Djadjar____.___.__ Loemadjang Ice Factory, Asso- ciated Ice Factories. ‘Perbawatie’” Estate. .._____.__. Moelia Agricultural Co. .________. Ljisades Tea Co. (Ltd.).._____.___ Fed By Bl Onin omnmmreen N. V. Koloniale Bank____________. "‘Gondang” Rubber Co_____._.__. “‘Djatirono” Coffee and Rubber Estate. Lie Djing Han, Sugar Factory Koedjonmanis. Tjiboetaroewa (Middle Priangan). ‘Negla” estate. . ... m—— Oemboelanhronnen (Pasoercean).. xajamsche estate______________.__ Parseh main canal (Bondowoso).. Sugar factory * Asem Bagoes”___. Kali Bogowonto (Bagelen)...__... \.N.I BE. Mo. Tjiletee (West Priangan)_________ ‘Strijker’” Cultivation Co. _______ Titleuleu] (Krawang)____._____._. Snail Public Utilities Co_. Olin dO] Tjiboeni (Middle Priangan)_._____ Belgian-Tavanese Cultivation Co Tiimoendjoel (West Priangan)___. oa Tjirohani Cultivation 0. Tjisalimar (West Priangan)____.. 2andan Tes Co. [7575 3 RR Tjikaroentjang and Tjikendoeng Boekanagara” Estate, Anglo- (Krawang), Dutch Plantation Co. Kali Manis (Blitar)____.__________ \nglo-Java Estates (Ltd). _. Kali Konto (Malang) __...__...._. 4.1. W. E ccc i vt yom memset rm ee Kali Soekawidi (Djember). _..___. 3anjoewangi Electric Co_________. Tjisaat, Tjisaroeni, and Tjiawer [Misaroeni Agricultural Conve. (East Priangan). Kali Sonosekar (Malang)._.______. ‘Soember Tjoeling”” Estate__..__. Tjitjoledas (Middle Priangan).__.. 2oerbasari Grazing Lands (Inc.). Kali Kitiran (Tegal) a me of Anglo-Dutch Planata- tion Co. Secondary canal and tertiary canal Jjombang Ice Co... __.....__._. of the Pategeean waterworks. Tjikaso (West Priangan)_________. ‘Tiikaso” Estate... __..___.__. Kali Bandjaran (North Banjoe- 3anjoemas Electric Co............ mas). Kali Ware (Djember)....__..__. Zeelandia estate ..__.__._________| Barseh K. P. canals, 1and 2 (Bon- \ssem Bagoes Sugar estate. _______. dowoso). Bonne main eanal (Djem- Probolingo Ice dor] er). Kapongan main canal (Bondo- Pandjic and Tandjoengsario Cul- WOS0. tivation Co. Kali Lengkong (Probolingo). .___. “tgenoeng Sritie Rubber & Coffee Estate. * See section under “Public-utility companies’ for full names of abbreviated eoncerns. (n operation since 1921. Final installation not yet com. bleted. [n operation since 1922 1 operation since 1910, n operation since 1928. n operation since 1923. “onstruction not begun. [n operation since 1923, In operation since 1924, In overation since 1926. 1 operation since 1925, 0 operation since 1924, n operation since 1925. 1 operation since 1926, construction not begun. n operation since 1912. n operation since 1924. Id operation since 1923, 1 operation since 19925 [n operation since 1924. Existing installations in opera- tion since 1925, [n operation since 1927. [n operation since 1928, Do. 'n operation since 1927. Do. Under construction. nn operation since 1804 Partially in operation; balance not yet begun. In operation since 1928, Construction not becun. Under construction. (lanstruction not begun. Do. Do. Do STATEMENT oF Concessions oF Hypravric POWER ALLOTTED BY THE GOVERX= MENT AND STILL IN Force ar tae Exp oF 1928—Continued Name of the river Concession granted to Status of undertaking OTHER ISLANDS Loehoek Parakoe (Sumatra'’s west coast). Koerandji (Sumatra’s west coast) Asahan (Tapanoeli)_..______..—.- Aer Pasermnah (Palembang)... Koeritan (Sumatra’s west coast) - Aer Dingin (Benkoelen).. ....._. Aer Moesi (Benkoelen) . . ......... Aer Dekoe (Benkoelen). ____.__... Sinamar (Sumatra’s west coast)... Aer Lalangi and Aer Loesang (Benkoelen). Aer Loesang and Aer Gloemboek (Benkoelen). Batang DBangke and Batang Bangko Karoeh (Sumatra’s west coast). Ack Siborgoeng (Tapanoeli)....... Mamasa (Celebos) nooo N. I. Portland Cement Mij_..__. [n operation since 1912. dO cei Asahan Exploration Co. .oocunan-- Pebat Goenoeng estate. __.._._._-. sequator Mining Co... joeban Ajam estate .____...___... Aer Simpang estate. ____...__.... Joeban Ajam estate... oo... Halaban estate_. o_o... Jimau Mining Coco... ood0o oe eewiio wore. In operation since 1915. Koerintji estate... ...._._..-.1 In operation since 1923. 'n operation since 1921. Construction not begun. Do. Do. (n operation since 1926. Construction net begun, fn operation since 1927. Construction not begun. [0 operation since 1909. Jovernment. oo. aoceoooee- Jitrogen Svndicate._ cacao... Under construction. Construction not begun. POTENTIAL WATER POWER The potential water-power resources of the territory are now placed at 6,600,000 horsepower and show an increase of 1,000,000 horse- power over estimates made several years ago, indicating that as further survey work is done by the Bureau of Water Power and Electricity, additional water-power resources will be located, par- ticularly in the Outer Possessions. The recent estimates place the resources as follows: Java 600,000 horsepower, Sumatra 2,000,000 horsepower, Dutch Borneo 2,000,000 horsepower, Celebes 1,000,000 horsepower, and the remaining islands another 1,000,000 horsepower. The actual potential water power that has been mapped for Java is 783,588 horsepower, but apparently the Bureau of Water Power and Electricity considers that some of the sites are not accessible and accordingly has revised its estimates downward to 600,000 horse- power. Conversely, electrical engineers in Java are of the opinion that the Government has underestimated the water-power resources. In any case, the actual water power thet is available is more than sufficient to take care of the requirements of the country for many years to come. West Java has more available potential water power than the east and central portions of the island, 379,283 horsepower having been mapped there as compared with 137,578 horsepower 1n east Java and 120,435 horsepower in central Java. } The total of known potential water power in the Outer Possessions at the end of- 1928 was placed at 2,574,350 horsepower, of which 1,400,000 had been mapped. The Bureau of Water Power and Electricity had, however, further surveyed 19 sites with a total potential power of 916,000 units, of which one site is reputed to have a capacity of 160,000 horsepower. Six concessions for 242,650 horse- power have been granted to private individuals for the development of the water-power resources of the Outer Possessions, but actually only 6,700 horsepower is being utilized by private concerns. DEVELOPED WATER POWER ‘ The Netherland East Indies Government is largely responsible for the development in the utilization of water power for the generation of electrical energy. Of the 13 central stations in the territory with an installed capacity of over 1,000 kilowatts, 7 were constructed and are operated by the Bureau of Water Power and Electricity, 3 are owned by public-utility companies (of which 1 is owned jointly by the Government and the A. N. I. E. M.), and 3 are owned by private companies. It is claimed that the Government prefers to develop the water-power resources of the territory itself rather than allow private concerns to do it. While this policy is not looked upon as favorable by the private public-utility companies, the Bureau of Water Power and Electricity has demonstrated its ability to develop successfully the undertakings it has initiated. The total installed capacity of the Government-owned hydro- electric plants is 45,560 kilowatts. Of this amount, Government factories take the output of plants with a total capacity of 2,000 kilowatts, and the balance is supplied to public-utility companies for resale. Over 90 per cent of the hydroelectric power generated by Government stations is produced in Java, the Government having only one 1,600-kilowatt station in the Outer Possessions. The in. stalled capacity of the public utility hydroelectric stations amounted to 23,700 kilowatts in 1928. Although no official figures are available, it is believed that the installed capacity of private plants during the same year amounted to over 20,000 kilowatts. WATER-POWER DEVELOPMENTS IN JAVA The greatest developments in hydroelectric projects have taken place in west Java, where no less than nine Important stations are located. The Government stations located in ‘this area and their installed capacities are shown in the table following. GOVERNMENT PowER STATIONS IN WEST JAVA Name Bengkok. eee Plengam. uo coro. Lamadjan. ooo IBLE cosine won mim mmm mmc Kratiak___.._. a. Total. ____ River ikapoendoeng. ooo ooo... TSATOR Lee eee isangkoei_______........ ____..... cgiatio Mianten. __._._______ Gener- ators “3 Total norse- NOWer 4, 500 4, 500 8,000 0 17.900 Output in zilowatis 1, 050 1,050 12, 800 9, 000 11, 000 ' 35, 600 1 Not available. 2 Includes one other station, details of which are not available. In addition to the Government hydroelectric power stations men- tioned above, there are also three private stations located in west Java. The public-utility company, G. E. B. E. O., has a station located at Tjiandjoer with a capacity of about 400 kilowatts and the Maatschappij ter Exploitatie van Openbare Werken op de Pamano- ekan on Tjisemlanden (Anglo-Dutch Public-Utilities Co.), a private concern, has a station located at Soebang. The latter station has a total capacity of 1,840 kilowatts. 11 Another private station of importance is also located in west Java, the water-power station of the Malabar Tea Estate near Bandoeng, which has a capacity of 2,250 kilowatts. In central Java there are only, two hydroelectric stations of any importance. The water-power station Soesoekan on the River Toentang belongs to the ‘“Algemeene Nederlandsch-Indische Electri- citeit Maatschappij’” (A. N. I. E. M.) and was put into operation in 1913 to supply Semarang and Salatiga. The station has six gener- ating units with a total capacity of 4,000 kilowatts. There is also the Government power station of Giringan near Madioen, on the River Tjatoer. This station was originally intended to supply energy to the Government railway workshops at Madioen, but in 1921 the municipal electric services of that town were also connected. The Giringan station began operations in 1927 and has a capacity of 740 kilowatts. The demand for power by private parties has increased to such an extent that the Government plans further extensions to its Giringan plant. In east Java there is at present one large hydroelectric station, Mendalan, on the Kento River. This station, opened in 1928, sup- plies current to Soerabaya and the surrounding territory. It has a sapacity of 16,500 kilowatts and is the largest power station in the Netherland East Indies. The Mendalan station was constructed according to the plans and estimate of the Bureau of Water Power and Electricity, but it is operated by the ‘‘Nederlandsch-Indische Waterkracht Explaoitatie Maatschappij” (N. I. W. E. M.), a com- bine owned by the Government and A. N. I. E. M. Only one hydroelectric project of importance is planned for Java during the next few years. The Bureau for Water Power and Electri- city, in conjunction with the N. I. W. E. M., plans to construct a second hydroelectric station on the Kento River at Siman, which is below the present station. The bureau estimates that there is a potential supply of 30,000 horsepower at the proposed site, and the present plans call for the construction of a plant with four 7,500 horsepower generators of which two will be installed at a later date. The actual construction of the proposed plant at Siman will probably not begin until 1931. For the present, both the Government and the public-utility com~ panies are interested in extending their transmission lines and im- proving their service rather than in the construction of new power plants. There are, however, projects in preparation for the supply of power in central and west Java, and when these are accomplished the main points of the island will have been marked out for an inter- sonnected system of hvdroelectrical services. WATER-POWER DEVELOPMENTS IN THE OUTER POSSESSIONS Although the Outer Possessions are far richer in potential water- power resources than Java, the same degree of development hes not taken place there. At the end of 1928 only 8,700 horsepower was being utilized by plants actually in operation. All of the present hydroelectric installations located in the Outer Possessions are in Sumatra. Private industry has made more use of the water-power resources of the outer islands than either the Government or the public-utility com- hanies. Only one Government station has been erected, namely, the Teis water-power station on the Ketahun River in Sumatra. This station, which has a capacity of 1,480 kilowatts was originally built to supply power to the Government gold and silver mines at Tambang Sawah, but during 1928 it was decided to close these mines. The Teis station will shortly be used to supply power for lighting and industrial purposes to Tjoeroep, Kepahiang, and Bencoolen. A report of the Bureau of Water Power and Electricity at the end of 1929 mentions that a further extension of the Teis station is planned. The principal private water-power stations are two plants owned by the N. I. Portland Cement Mij. near Padang, with respective capact- ties of 1,800 kilowatts and 1,200 kilowatts, and the station of the Handelsvereeniging ‘ Amsterdam,” near Medan, which has a capacity of 2,520 kilowatts. Two mining companies, the Redjang Lebong Mining Co. and the Simau Mining Co. have water-power plants with a total capacity of over 2,600 kilowatts, also located in southern Sumatra. During the last 10 years various schemes have been advanced for the utilization of the potential water power of the Outer Possessions for electrochemical industries. Over 500,000 theoretical horsepower has been definitely located on the islands of Sumatra, Borneo, and Celebes in connection with these schemes, but lack of financial sup- port has caused the abandonment of most of them. It is said that the raw materials necessary for the manufacture of calcium carbides and other chemicals are to be found in abundant quantities in these islands. STEAM-POWER DEVELOPMENTS A greater proportion of the total output of Government power stations is developed by steam than is the case with either the public- utility companies or private concerns. During 1928 over 90 per cent of the output of the Government plants was derived from steam, as compared with 60 per cent of the output of the public-utility com- panies, the balance being Diesel powered. No figures are available concerning the prime movers used by private companies, but it is believed that they use more water power and oil as fuel than they do steam. - The most important steam-power stations in the Netherland East Indies, with their capacities, are given below: SreaM-PowER StaTiong. NETHERLAND East InpIiEs. 1928 Location Tava: Baty. coca Babayd. coo cusps vamp TIODOB i. i Su EA RES Sumatra: ' Medan... ooo... Palembang _________.____._____ Taajeh.._.. “we Tandjoeng..... NERO Padang... re Borneo: Poeos Laoet_ _._............ Balikpapan._.___.__._.____.___. BOB ci wows mimmimsinmsi mimics Celebes: Makassar ........._._.. Banka: Mantoeng o-oo... Ownor Nolo 0. Mmmm 3 NL Ba Moiiassammneanss B. P. Mugu susivmamnunnmi N. LG Mea eaeelOn een Government o_o... swirls py waa EE oOo all 3. P.M. IL SS — Yo de iB Mais vunmmpmmunnsn Yovernment o_o Tra Public service. .oeaecouooo. ts Ep ot RS Oil company ...ocooewaooo.. Public service... _._..._... soo trop eS Coal WAND wwe +m mmission tgs sons A Public service... .. _ ____. Coal mines... o.oo... Dilcompany.___._._.___..... Joal company _...___.___.___ Public service... _.... MINES. in mem id Capacity in kilo- watts 7, 900 16, 800 1. 600 2, 500 2, 500 6, 100 2, 500 9 (iO 3, 000 6, 000 1, 700 2, 500 19 000 13 As will be noted, the principal public-utility steam-power stations are located in the most important cities, and Medan, Palembang, and Makassar depend solely on the steam stations of the N. I. G. M. for light and power, while the N. I. G. M. and A. N. I. E. M. supply Batavia and Surabaya partially from steam plants. The Government stations at Taajeh, Tandjoeng, and Poeloe Laocet are used to supply the Government coal mines located at these places, and the plant at Mantoeng supplies power to the Government tin mines on the island of Banka. The Bataafsche Petroleum Maat- schappij’s (B. P. M.) stations at Tjepoe and Balikpapan are used to supply light and power to the company’s oil fields, while the Steen- kolen Mij. Parappattan also supplies power for its own coal mines at Beraoe. USE OF DIESEL POWER As explained in the previous section, very little use is made of Diesel power for the generation of electricity by the Government. Diesel engines are used chiefly by the public-utility companies, which supply light and power to small towns and villages, and by private companies for similar purposes on estates or in factories. The majority of Diesel installations are designed to operate plants with a capacity of 100 to 500 kilowatts. Approximately 30 of the small central stations of the public-utility companies are operated by Diesel engines, the total installed capacity of these plants amounting to over 16,000 kilowatts. The most important private Diesel installation in the islands is at Manggar on the island of Billiton and is owned by the Billiton Tin Co. The Manggar plant, which has a total installed capacity of 8,700 kilowatts, is claimed to be one of tha largest Diesel plants in the Orient. : CURRENT CHARACTERISTICS The power generated in the power stations of the Netherland East Indies has, since 1923, been standardized at voltages which have been in effect throughout the islands, the usual system for transmission and distribution being 3-phase alternating current at 50 cycles per second. The principal voltages used for transmission are 25,000/30,000 volts and 70,000 volts. For generation and primary distribution, 6,000 volts are used while for secondary distribution (4-wire system), 127/220 and 110/190 volts are used. Direct current is used only in small private plants and by the electric traction companies. Standardized voltages for 3-phase alternating current are 127, 220, and 380 volts for lighting and small-power installations and 3,000 and 6,000 volts for large-power installations. Secondary standards are 110, 190, 500, 3,000, 15,000, and 25,000 volts. Standard voltages for direct current are 110, 220, and 600 volts. and the secondary standard for power 1s 440 volts. RATES CHARGED FOR CURRENT Electric current costs are not uniform in the Netherland East Indies, being somewhat higher in the districts where current has just become available than in the districts where the public-utility com- panies have been established for some time. Electricity for lighting purposes sells for approximately $0.20 (United States currency) per Alowati-hour in east Java and the Outer Possessions and for $0.16 (United States currency) per kilowatt-hour in west Java in the vicinity of Batavia and Bandoeng. It is claimed that this rate is excessive and prevents many people from making use of electric cur- rent. [or this reason the public-utility companies are making serious efforts to induce the natives to install electricity for lighting purposes by granting them special rates. It is now possible for natives in some areas to have one 10-watt lamp in their homes on a flat rate of $0.25 per month or two lamps for $0.45 per month. The rate for current for industrial and heating purposes is $0.08, and that rate prevails throughout the territory, although special agreements can be entered into with the utility companies when con- sumers are prepared to guarantee a minimum consumption per month. In addition, the following rates are charged on energy consumed between 10 p. m. and 6 a. m. of the next day: At least 100 kilowatt-hours per month, $0.07 per kilowatt-hour. At least 250 kilowatt-hours per month, $0.048 per kilowatt-hour. At least 500 kilowatt-hours per month, $0.040 per kilowatt-hour. At least 750 kilowatt-hours per month, $0.036 per kilowatt-hour. In some cases the power factor clause is included in rates charged for power supply, but generally a fixed rate is charged per kilowatt or kilovolt-ampere. A cost-of-fuel clause is naturally not included, when the current is supplied from one of the hydroelectric plants, but when the supply is taken from a steam or oil plant, this clause is usually inserted. Most of ths current is sold on a flat rate, one of the largest public- utility companies reporting that at the end of 1929 only 2 per cent of its total output was on a metered supply as compared with 79 per cent on aflat rate. Meters are used extensively in Batavia by the N. I. G. M.; however, in other towns where electric supply is availabls, automstic current limiters are used. Power costs for industrial purposes will have to be reduced con- siderably before the large private industries in the Netherland East Indies will avail themselves of public-utility power. It is reported that the Government sells the power to the utility companies at approximately one-fifth of the cost that consumers are charged. In addition to the actual tariff charges, many of the companies make a charge for connection, this charge taking the form either of a monthly fee, amounting to about 0.50 florin, or a stipulated sum paid once, when the connection is made. PUBLIC-UTILITY COMPANIES At the end of 1923 a public supply of electrical energy for lighting and industrial purposes was available in only 23 townships of the Netherland East Indies. During the next four years considerable development in the growth and expansion of the public-utility com- panies took place, and at the end of 1928 the number of townships where light and power were available had increased to 98. Approxi- mately 3,000,000 people were living in the areas supplied by these companies. The majority of these townships were located in Java, where 68 were supplied. In Sumatra there were 16 towns where public-utility current was supplied, in Borneo 7 towns, in the Celebes 2 towns, and in the islands of the Moluccas, Timor, Balt, and Lembok there were 5 towns. 13 The total installed primary power of the public-utilities power plants increased from 35,200 kilowatts during 1924 to 61,800 kilowatts at the end of 1928. This power was further supplemented by a potential supply of 36,300 kilowatts from the Government power stations of which the energy is sold and distributed through the public- utility companies. As explained previously, the Netherland East Indies Government, through its Bureau of Water Power and Electricity, undertakes the generation of electric current in plants operated by water power, current so generated being sold to various private concerns for dis- tribution to the users. N. V. ALGEMEENE NEDERLANDSCH-INDISCHE ELECTRICITEIT MIJ (A. N. 1. E. M.) This company, one of the most powerful and important public- atility companies in the Netherland East Indies, supplies light and power to over 40 towns in east and central Java and Borneo. Among the important towns supplied by the A. N. I. E. M. are Surabaya in east Java; Semarang, Djocja, and Tegal in central Java; and Band- jermasin and Pontianak in Borneo. The A. N. I. E. M., which was established in 1909, had at the end of 1928 a paid-up capital of 14,- 600,000 florins, a reserve fund of 6,861,730 florins, and during that year paid a dividend of 12 per cent. The management of the com- pany is controlled by the Handelsvenootschap v/h Maintz & Co., Amsterdam. : The A. N. I. E. M. has power stations located at the following points: Location Tava: Tegal ovovceaan. Pekalongan..._..... Poerworedjo........ Magelang eae... |B 370 CAT: VR 30€306KaN wor cane- K0ed08S a mucamaacnnn Kodirioooommmeaeas Blitar.. oceans Capacity in kilo- watts 730 , 360 620 680 ,410 , 600 340 340 200 Class of plant Diesel. Do. Hydroelectric. Diesel. Do. Water power. | Diesel. Do. Do. Location Jfava—continued Malang... come vines Surabaya eee ce ocaa-. Pasoeroean.. co... Borneo: Pontianak.......xo. Bandjormasin. ce... Toll... .cciinanuns Capacity in kilo- walts 1,360 11, 800 770 400 415 a3 925 Class of plant Diesel. Do. Do. Do. Do. The production of these stations totaled 75,034,000 kilowatts in 1928, and they supplied 84,582 consumers, of whom 44,812 were natives. The distribution system of the A. N. I. E. M. at the end of 1927 and 1928 was: 1928 1927 Overhead high-tension lines... o.oo... Underground high-tension lines... oo owomuecwe- Overhead I0W-tension 1iNeS. «a oawocoeecancammrmaomommammm ann Transformer Stations. coon eweccemcnnann Lamps for street Hgh ting «ooo eames ecco mmm meme m oman Crmmm eke we SOMOOLOTS.. EHR ERR HARA irr rename meena QO 76 545 1,112 463 9.879 76 444 915 402 7.517 17568—30——-3 id a N. V. NEDERLANDSCHE-INDISCHE WATERKRACHT EXPLOITATIE MIJ (N. I. W. E. M.) The N. I. W. E. M. was formed in 1925 by the A. N. I. E. M. and the Netherland East Indies Government for the purpose of develop- ing the water-power resources of the Konto River in east Java. In addition to the construction of a hydroelectric station under Govern- ment supervision, the N. I. W. E. M. also has built high-tension lines and substations for the distribution of energy in bulk to public- utility companies, chief of which is the A. N. I. E. M. The present capital of the N. I. W. E. M. is over 6,000,000 florins, which is shared equally by the two contracting parties. The company is managed by the A. N. I. E. M. under the supervision of a board of five which includes two A. N. I. E. M. members and three who represent the Government. The N. I. W. E. M. has only one station, Mendalan, in operation at present, but plans are now under way for the construction of a second hydroelectric plant with a proposed capacity of 30,000 horse- power at Siman, also on the Konto River. The present station, Mendalan, has a capacity of 16,500 kilowatts, and its output is used to supplement the power of the A. N. I. E. M.'s Diesel plants at Surabava and Malang. N. V. NEDERLANDSCH-INDISCHE GAS MIJ ( (N.1. G. M.) The N. I. G. M. is the oldest public-utility company in the Neth- srland East Indies, having been established in 1896 to supply light and power to Batavia and its suburbs. In 1899 the company estab- lished a plant at Medan, Sumatra. Further development of the company has been confined chiefly to the Outer Possessions. Ag present it is supplying current to 4 towns and villages in Java and to 16 towns and villages in Sumatra and the Celebes. The most important installations of the N. I. G. M. are in the vicinity of Batavia and at Medan, Palembang; and Macassar. At the end of 1928 the book value of the entire undertaking exclu- sive of renewal and reserve funds was 27,535,000 florins. During the same year the dividend on the company’s ordinary shares was 12% per cent. The N. I. G. M. has power plants at the following places: [.oeation Fava: Batavia... .._. Cheribon. cece aoo.o Sumatra: 5 5 Ls Se ODI IEE cuss msm mn mips Palembang... _._... Celebes: Makassar - vo oe eae Total Tapacity in kilo- watte 7, 900 1. 700 600 2, 500 195 2. 500 > 500 17 ROK Class of plant Steam, Diesal Do. Steam. Diesel, Steam. Da. N. V. GEMEENTSCHAPPELIJK BLECTRICITEIY ZEDERIIE BANDOENG EN OMSTREKEN The G. E. B. E. O., which holds concessions for supplying electric current in west Java in the districts in the vicinity of Bandoeng, Garoet. Seekaboemi. Buitenzore, and Poerwarkarta. is owned jointly 17 by the Government, the provincial government, and the municipality of Bandoeng. The book value of the entire undertaking, exclusive of renewal and reserve funds at the end of 1928, amounted to 4,865,000 florins. During the same period, a gross revenue of 1,889,000 florins Li earned, and a dividend of 12} per cent was declared on ordinary shares. ; The G. E. B. E. O. buys most of its current in bulk from the Govern- ment hydroelectric stations in West Java; however, the company owns and operates small stations at Tjiandjoer and Garoet, a hydro- plant of 398-kilowatt capacity at the former, and a Diesel plant of 326-kilowatt capacity at the latter. With an ample supply of energy available from the Government power plants, the G. E. B. E. O. Is concentrating on the extension of its transmission system. At the end of 1929 the company had 544 kilometers of overhead wires as compared with 358 kilometers at the end of 1928. The total number of consumers at the end of 1929 was slightly in excess of 24,000, of whom 10,996 were natives. At the end of the previous year the total number of native consumers was 7,164. The increase during 1929 is an indication that as the distrib- uting systems of the public-utility companies are extended to the native kampongs (villages), a large increase in the number of consum- ers is to be expected. SOLOSCHE ELECTRICITEIT MAATSCHAPPI (S. E. M.) The S. E. M. has a concession for the supply of electric current in the Solo district in the eastern portion of central Java. The com- pany has a Diesel plant at Soerakarta (or Solo) of 2,238-kilowatt capacity and a small Diesel plant at Lasem of 420-kilowatt capacity. During 1930-31 the company plans to extend its high-tension lines a distance of 40 kilometers to supply small towns in the vicinity of Soerakarta. At the present time the S. E. M. is furnishing light and power to five villages. ‘1 The S. E. M. is managed by J. C. Van Aaldaren, Batavia. The book value of the entire undertaking of the company was 1,577,000 florins at the end of 1928. During the same year the S. E. M. shows a profit of 15 per cent on ordinary shares. ELECTRICITEIT MAATSCHAPPLI BANJOEMAS (E. M. B.) The E. M. B. owns and operates three small Diesel plants in central Java in the Banjoemas districts. The company supplies electric current to the following towns: Tjilatjap, Soekaradja, Banioemas. Poerwokerto, Wonsobo, and Karanganjar. . The E. M. B. is also managed by J. C. Van Aaldaren of Batavia. OTHER PUBLIC-UTILITY COMPANIES Other less important public-utility companies are the Electriciteit Maatschappij Rembang, which supplies current to a few small towns along the north coast of central Java; the Electriciteit Maatschappij Sumatra, which holds concessions to supply light and power on the west coast of central Sumatra; the N. V. Boesoekische Electriciteit Maatschappij, which holds concessions for the extreme eastern por- tion of Java; and the N. V. Electriciteit Maatschappij Bali en Lombok, which supplies current to the villages on the islands of Bali and Lombok, located southeast of Java. 1R The first two mentioned companies are managed by J. C. Van Aaldaren of Batavia, while the Besoekische Electrioiteit Maatschappij is under the direction of Anemaet & Co., Surabaya. POWER-HOUSE EQUIPMENT : PRIME MOVERS Boilers. —The Statistical Abstract of the Netherland East Indies, 1928, places the total number of boilers in contral power stations at 75, of which 32 were located in the Outer Possessions. Some estimate of the general capacity of these boilers may be gained from the average size, which was 187 square meters of heating area. In addition to the boilers located in the central power stations there were undoubtedly others used by private industries for their steam turbines, but the sugar industry is the only one on which details are available. Six. teen of Java's 180 sugar mills are equipped with a total of 30 boilers for the purpose of driving steam turbines. It is doubtful whether American manufacturers secured any of the above business. During 1926, 1927, and 1928, a total of 1,158 boilers were imported, of which Germany supplied 518, Netherlands 508, England 375, and the United States only 16. In addition to the boilers imported, a fair number are made locally by several large engineering concerns. Co Superheaters.—Superheaters are not generally used, and America’s trade in this line is insignificant. During the three years ended December, 1928, only 214 were imported, of which the United States supplied only 1. Germany and the Netherlands are the principal suppliers. Steam turbines.—German and Dutch manufacturers have secured the majority of the business in steam turbines in the Netherland East Indies. There are several English and American steam turbines in operation in the islands, but none has capacity exceeding 1,000 horsepower. In the Government power stations there are more turbines manufac- tured by Gebr. Stork & Co. than any other make, chiefly because it is a Dutch firm. Six of the Stork steam turbines installed in the Government power plants are of over 2,000 horsepower, three are between 1,000 and 2,000 horsepower, and two are less than 1,000 horsepower. The Algemeene Elektrizitaets Gesellschaft of Germany (A. E. G.) has supplied six turbines of over 1,000 horspower capacity to the Government, and a Swedish firm, A. B. de Lavel, has secured a limited amount of business in small-size machines. Only one Stork steam turbine has been installed in the public-utility power plants. The A. E. G. has supplied six turbines to public- utility companies, three of which operate generators of over 3,000 kilowatts capacity. Another German firm, Brown, Boveri & Cie., has installed six steam turbines in the public-utility power plants, but of them only two are large units, developing over 2,000 kilowatts. One German and one Dutch firm, the Beremann Elektrizitactswerke A. G. and the Nederlandsche Fabriek van Wertuigen en Spoorwegen- materiaal, have divided the balance of the public-utility company business between them. It may safelv be said that continental 19 manufacturers have little fear from competition by the United States or by Great Britain in this line. As previously mentioned, there are but few important private steam power stations. There are, however, a number of small ones and the majority of these have installed small turbo units manufactured by Gebr. Stork. } Water turbines.—Recent hydroelectric developments in the Nether- land East Indies have greatly increased the demand for water tur- bines, particularly in the larger sizes from 1,000 to 9,000 horsepower capacity. This increased business is being keenly contested for by continental manufacturers, and American firms have not profited from this growth in business. At the present time the largest share of the market is being obtained by a Swiss firm, Escher Wyss. & Co., which has supplied some of the largest water turbines installed in the islands as well as the majority of the smaller sizes. The largest water-turbine installation in the Netherland East Indies is the three units of 8,000-horsepower capacity each, which are located in the Mendalen plant of the N. I. W. BE. M. Other large water-turbine installations are located in the Government-owned and operated plants of Lamadjan and Kratjak where two units of 9,000 horsepower each and two of 8,600 horsepower each, respectively, are located. The turbines in the Lamadjan and Kratjak plants were supplied by Gebr. Stork & Co. Water wheels. —The number of water-wheel installations is declining yearly owing to the fact that the large hydroelectric projects have made electrical energy more widely available, thus cutting down the number of small installations. Some business is being done, however, end again the majority of it is secured by Escher Wyss & Co, although Swedish firms are obtaining a portion of it. An American water wheel was popular in the islands up until a few years ago, but at the present time its sales are practically nil, owing to the inactivity of the firm which is handling the line. ‘GENERATORS Over 10 important electrical manufacturers, among them an Ameri- can, arc competing for a share of the trade in generators in the Nether- land East Indies. The A. E. G. has supplied the largest number of generators to the public utility and Government power plants, a total of 49. A Dutch firm, with a total of 35 (Smit) is the second largest seller in these two fields. Siemens-Schuckert is the next largest supplier of generators (26), with an American firm (23) and Brown Boveri Co. (22) obtaining fourth and fifth places, respectively, In this trade. Other manufacturers obtaining a share of the generator trade are Qerlikon (15), Heemaf. (13), Bergmann (10), and A. S. E. A 20) The following table gives the details of the generators installed in the principal public utility and Government power stations: RECAPITULATION OF GENERATORS INSTALLED IN Pusric UtiLiry AND GOVERN- MENT PowER PLANTS IN THE NETHERLAND East INDIES! [Capacity in kilovolt amperes] Make B.B. CooL STS TR AE. Gol. Smit... SR QOPUBGL. cocina an enasmsi manus Hotiinl. coon sunumsmimstins fmmmman ul i San Lemme mmm mm ABE A Bergmann... ooo. ___. Other.._.... [—— Total .cvvnmamannenussiuy ss Up to 100 * pri Gov- vate | Or1- ment 9 i 2 1 —————— a2 I 101-1,000 | 1,001-2,000 | 3,001-4,000 LAOS 00 Pri- vate Gov- Pri. Gove ern- | oo ern- ment’ ment Pri- vate Gov- ern- ment vate | ment Total 2 1 epupumranmmeg anon 1 2 Z 2 5 2 jinn 1... 0 [ooenon| 11 Jv J 4 em rg Hin Se AE 1 won B oe srnimns mommies fmt 2 emmeen [LI war 2 somlo9g ceed) 5 8] 205 22 26 49 25 1, 1 Compiled from figures furnished by the Bureau of Water Power and Electricity, Java. As can be seen from the above table the greatest demand by the public-utility companies and the Government is for generators of between 100 and 1,000 kilovolt amperes capacity. Smaller sizes (under 100 kilovolt amperes capacity) are installed chiefly by private industries. Generators of from 1,000 to 2,000 kilovolt amperes capa- city are also in fairly good demand, while sizes of greater kilovolt amperes capacity are rarely installed. The largest generators in- stalled in the Netherland East Indies are the two Smit machines, each of 8,000 kilovolt amperes capacity, which are installed in the Government hydroelectric station at Lamadjan. Most of the Government orders for generators are placed with Dutch firms, although in 1922 and 1923 an American firm was success- ful in securing orders for six generators of 1,500 kilovolt amperes capacity each. The most important private industries appear to favor Siemens Schuchert and Oerlikon generators. SWITCH GEAR There is a marked preference for indoor switchgear of the conven- tional European type, and most of this equipment installed in central stations and other power plants is of German or Dutch manufacture, the former predominating. This is due to the fact that the engineers in charge of electrical installations in the islands are graduates of European technical schools and have standardized on Kuropean equipment. Some American switch gear has been installed in central power stations. Although some of French and English manufacture have been installed, it is even less popular than the American make. During the last few years numerous tests have been made with outdoor switch gear, and it is expected that the demand for this type will show an increase in the future. Since the best results thus far have been obtained with American equipment, it is believed that the United States will profit most from any increase in this trade. Aside from the American products, the remainder has been supplied by German manufacturers, principally A. E. G. 21 TRANSMISSION AND DISTRIBUTION During the last five years, considerable attention has been given to the expansion of distributing systems and the extension of high- tension lines with the result that at present there are over 5,000 kilo- meters of cables carrying voltages of 10,000 volts and over. The total distances connected by these cables amounts to over 1,000 kilometers, of which about 15 per cent is located in the Outer Possessions. West Java.—-The greatest development in this direction has taken place in west Java and has been carried out almost entirely by the Netherland East Indies Government. The outstanding distribution system in this area is the 70,000-volt line that transmits the output of the two great water-power stations, Oebroeg and Kratjak, to the metropolitan district of Batavia, Weltevreden, and Meester Cornelis, through substations at Buitenzorg and Depok. About 710 kilo- meters of 70-millimeter copper cable is used in this 118-kilometer line. Other important systems in West Java are the following: System Plengan-Malahar-Bengkok o_o... Padalarang-Poerwakarta________________.._... 3engkok-Padalarang..... SRR. Maswati-Tiandjoer_ aan Lemboersitoe-Goenoengboelend. Jebroeg-Lemboersitoe «comma ceemeeaee Lamadian-Padalarang. ooo. ooo oimnnn 2oerwakarta-Kosambi. o_o oll Plengan-Guaroet. ..... SERRE aroet-Singaparna. . AERA Soemadra-Tjondong. on irae Jehroeg-Tiitjoeroeg - o.oo Kratiak-Rangkasbitoeng. _ .. Voltage 25, 600 30, 000-25, 000 95, 000 30, 000-25, 000 30, 000 30, 000 30, 000 30, 000-25, 000 30, 000-25, 600 30, 000-25, 000 30, 000-25, 000 30,000 20. 000 Length of line Num- ber of cables Metal Copper-ccou_- eee 0 ees [RU s {« JURA wiv Dr sm mms ssa mmm mmm Aluminum... mom i in 7 remo BO ie iin pean @O eae zr ee O 20 | eee 2 B [rma OD mmo me 57 8 dons 0 am mn Kilo- neters Total length of cables Kilo- meters 250 125 55 or a 100 110 70 366 197 ¢ 6. 340 The N. I. G. M. and the G. E. B. E. O., the two public-utility companies marketing electric current in west, J ava, have standardized the following currents for high and low tensions distribution in their respective areas. N. I. G. M., for high tension: 12,000 (volts); 7,000, 6,000, 2,000. For low tension: 440 (volts), 220/127, 110. ] G. E. B. E. O., for high tension: 30,000 (volts), 25,000, 6,000. For low tension: 220/127 (volts), 190/110. Central Java.—There are no outstanding distributing systems in central Java, the longest high-voltage transmission line being only about 30 kilometers in lencth. They are listed below: Svstem Tjatoer-Madioen co. oceeemememcmamem memo T0entang-SAMATATIE cov uem mannan cmmmmaennn Toentang-Sararang. «coo camececescamamccomen-n Madioen SYSteI ooo coe cece meee mmmma a o- 301o-1301018 11. — ee eee emma Voltage 25, 000 30, 000 30, 000 25, 000 5 000 .ength line Number nf cables Kilo- neters an 27 27 2 | ; 20 ’ Metal Copper....o..- cml 0m wa wi JOTI... SEE Aluminium... | wendoo aC Total ength of cables Kilo- meters 120 80 85 85 an 29 The public-utility companies operating in central Java have standardized on the following voltages for transmission work: A. N. I. E. M., for high tension: 30,000 (volts), 6,000, 3,000. For low tension: 140 (volts), 380/220, 220/127, 190/110, 220/110. Solosche Electriciteit Mij. (S. BE. M.), for high tension: 15,000 (volts), 6,000, 5,000. For low tension: 220/127 (volts), 220/127. Electriciteit Mij. Banjoemas (E. M. B). East Java.—In east Java, a 70,000-volt system transmits the energy developed in the hydroelectric station at Mendalan to Sura- baya through the Modjokerto substation. The Mendalan-Modjo- kerto-Surabaya line is a 6-cable system approximately 85 kilometers in length, the total length of aluminum cables installed being 510 kilometers. This system is owned and operated by the N. I. W. E. M. and will eventually be developed into a complete circuit embracing the central station at Mendalan, substations at Modjokerto, Surabaya, Bangil, and Blimbing, the steam power station at Semampir, and the Diesal power stations at Pasoeroean and Malang. When completed the entire length of the 70,000-volt lines will be about 170 kilometers, and if six cables are used throughout, the total length of installed cables will be 1,020 kilometers. | Aside from the system mentioned above, there are no other trans- mission systems of importance in this part of Java. The only two public-utility companies operating in east Java are the A. N. I. E. M. and the Besoekische Electriciteit Mij. (B. E. M.). The standardized voltages of the former are the same in this section 8s In central Java, while the standard voltages of the latter company are 3,000 volts for high-tension work and the usual 220/127 for low- tension work. Outer Possessions —High-tension transmission lines in the Outer Possessions are confined to Sumatra and Banka and are all Govern- ment owned. The most important distribution system outside of Java is the system around the island of Banka, which supplies the Government tin mines with power. The Banka system transmits current at 30,000 volts for a distance of about 60 kilometers. Three and six copper cables are used; the total length of the hich-tension cable employed is 530 kilometers. In Sumatra the chief transmission systems are the Teis-Moeara Aman-Tambangsawah system and the Tandjoengenim-Lahat system, both in south Sumatra. The former is a 25,000-volt 3-copper-cable system with a total cable length of about 160 kilometers over two 27-kilometer lines, while the latter is a 30,000-volt 6-cable system using a total of 95 kilometers of aluminium cable over 16 kilometers »f line. Extensions to both of the systems were under way during 1929. TRANSMISSION AND DISTRIBUTION EQUIPMENT F¥As most of the extension of transmission lines has been carried on by the Netherland East Indies Government during the last few years, the major portion of this business has been obtained by Dutch firms. But the Bureau of Water Power and Electricity at Bandoeng, which is in charge of this work, has adopted an open-minded policy, and experiments have been conducted with the products of leading manufacturers of this type of equipment. German manufacturers 39 Le) have secured most of the orders for transmission and distribution squipment from public-utility and private companies, although in some instances such as high-tension insulators and lightning protec-~ tive equipment, American equipment is almost standard. Poles and masts—Owing to favorable climatic conditions, lighter poles and masts are used for aerial transmission work in the Nether- land East Indies that are usually found in the United States or Europe. German and Dutch manufacturers have catered to this demand and have practically eliminated other countries from this share of the trade. In 1928, these two countries secured over 90 per cent of the business in poles and masts, most of which are galvanized iron. In 1927 the Posts and Telegraph Department experimented with Ameri- can steel poles, but the results were not satisfactory and no American poles have been purchased since. American manufacturers of steel poles and masts have little hope of securing a portion of this trade unless their prices are competitive to those that are now being sold in the Netherland East Indies. Cables.—The United States is obtaining a share of the cable trade of the islands chiefly through the popularity of steel-aluminum cable, which is now considered by the majority of public-utility companies and the Government to be more efficient than copper cable. Steel- aluminum cable is used only for high-tension lines, the total amount used being only a small percentage of all copper cable, which is supplied mainly from the. Nethérlands and Germany. Although price is the determining factor, quality is desired in purchasing cable. All that is sold in the Netherland East Indies must be accompanied by a guaranty. Conduits are not used for underground transmission work, armored sable being used almost exclusively. } Insulators—Practically all of the low-tension insulators in the Netherland East Indies are of German origin; the United States, however, supplies the majority of insulators for high-tention work. It is reported that the Bureau of Water Power and Electricity has more or less standardized on a certain type of American insulator, which is now considered obsolete in the United States. Numerous attempts bave been made by other American manufacturers to secure this Government business, but the type now in use is apparently giving complete satisfaction. As the public-utility companies make further sxtensions to their transmission lines, the demand for high-tension insulators will increase. American firms interested in securing a portion of this trade should get in touch with the leading public- utility companies. . Lightning-protective equipment. —The prevalence of electrical storms in the mountain regions of west Java, where most of the large gen- erating stations,in the island are located, results in a steady demand for lightning-protective equipment for transmission line substations and buildings, most of which comes from the United States. The installations are usually simple though some of the larger buildings, particularly in west Java in the vicinity of Bandoeng, have elaborate tnstallations. i High-voltage transmission lines are usually grounded through a reduction coil between the neutral point and the earth at the power olant. The higher primary voltage lines of city distribution systems ‘300 to 20,000 volts) are usually not grounded, but the lower (con- 4 sumer’s) voltage portion (below 300 volts) has a grounded neutral point. Lightning has caused frequent interruption of the electrical service between generating plants and the towns and villages in west Java, and the Government is continually experimenting with the new types of protective equipment. Horn gap arresters are used to some extent. At present the Government is experimenting with an arrester made by an American firm. ELECTRICITY IN INDUSTRY THE SUGAR INDUSTRY Java’s most important industry, the sugar industry, offers one of the best potential markets for electrical equipment. At present most of the mills produce their own current, particularly since they all have an ample supply of cheap fuel in the form of bagasse, by-product of the sugarcane. As the transmission lines of the public-utility companies are extended into the sugar-growing area and power costs become cheaper, perhaps the mills will find it cheaper to avail them- selves of public-utility power; but until that time they will continue “0 make their own. In the 188 sugar mills there are over 500 motors installed, most of which generate current for lighting purposes. The generators are usually driven by small reciprocating steam engines, as steam is always available for power purposes during the grinding season. The small generators vary in size from 10 kilovolt amperes to 200 kilovolt amperes capacity, but the majority are of about 25 kilovolt amperes capacity. Direct current is used almost exclusively for lighting purposes by the sugar mills, and the voltages are usually 110/115 and 220/230, the former being the most common. Twenty-five mills are using power more extensively, and have installed facilities for the operation of electrically-driven centrifugals. These 25 mills have over 600 centrifugals installed; the majority are driven by small alternating-current motors. These electrically- driven centrifugals are usually made in the Netherland East Indies by Dutch and German engineering firms. The centrifugals are direct coupled and are equipped with automatic switches for lifting she bowl. High-amperage, low-voltage motors are used for this work, Sixteen mills use electric current to such an extent that they have installed steam turbines that operate generators having capacities ranging from 400 to 1,600 kilovolt amperes. These mills have a total of 30 steam turbines installed and the total generator capacity is approximately 24,000 kilovolt amperes. Four of the mills are using direct current exclusively, and 26 are utilizing alternating. Ifour sugar mills in Java have been completely elegtrified. These mills have the largest motors in use in the Netherland East Indies. The first to install electrical equipment throughout was the Redjo Agoeng mill at Madioen, which was ready for operation in 1927. Three-phase current is used and the energy for the electric motors is supplied by. one 1,250 kilovolt ampere, 240-volt, 60-cycle constant- frequency turbogenerator and two 1,250 kilovolt ampere, 360/520- volt, 45/66-cycle variable-frequency turbogenerators. One of these surbogenerators is always in use and one is held in reserve. The turbogenerators supply power to five 250-horsepower slip ring induc- 25 tion motors which drive the mill tandem. The complete installation was made by an American company that has had considerable ex- perience in electrifying sugar mills in Cuba. The feasibility of complete electrical operation in a sugar mill having been proved, other mills became interested. At the end of 1929 three more mills had completed their electrical installations. These mills were all equipped by a German company, which obtained the bids by offering lower prices and longer terms than its American sompetitor. Details of the three mills which were electrified during 1928-29 are as follows: Quear mill Bedadreng....cocoeann SoIMBOrO. anes sans annans OenSENERAT maemo Capacity of generators Current 1,350 kilovolt amperes_............. Alternating... saci Ousva peammmmanpenmrme pms ogin wid 1,000 kilowatts oo oooocaeooanaan. directo... ,600 kilovolt amperes... _......... \lternating... L000 kilowatts. ooceooeeooaeooooo. Directo... #00 kilovolt amperes....-....._..| Alternating. ..| »Y 1,600 kilovolt amperes... __..do....._._. 3v 1,000 kilowatts. .o.oomeoooooo) Directo... Ty 19 kilowatts ooo eceonyeee On 4by7 Bos emoeeaion aR en »y 100 kilovolt amperes..........} Alternating... yy 4 kilowatts. _ mcemmeeee Directo... Voltage | Prime mover 100/23 100/231 160/225 180/220 160/225 120/990 Steam turbine, Do. Do. Do. Do. Do. Do. Do. Motor. Do. Diesel motor. Motor. 160/320 230 230 270/380 290 it is probable that other additional Java sugar mills will install slectrical equipment, particularly if experience proves that lower operating costs result from such installations. With world sugar prices at their present levels the argument of economy of operation will have a strong appeal. This same price situation, however, may result in ducking the tendency to invest in expensive new equipment until conditions improve. MINING INDUSTRY Coal mining. —FElectrical energy is used extensively in the Govern- ment owned and operated coal mines in Sumatra, the total installed capacity of the mines being 9,350 kilowatts. - At the Ombilin coal mines on the west coast, three steam turbines, one A. E. G. of 2,750 horsepower capacity and two Stork machines of 2,500 horsepower each are installed. The A. E. G. turbine is connected to a generator of the same make, while Smit generators of 2,000-kilowatt capacity each are connected to the Stork turbines. The current is used chiefly to operate the direct-current locomotives which carry the coal in the mines and for operating ventilators and electrically driven air com- pressors, as well as for general lighting purposes. Prior to 1921 the motive power for the Poeloe Laoet mines was generated by steam, but this was not entirely satisfactory and two turbogenerators of 1,000-kilowatt capacity each have been installed. In 1927 a further addition was made when another unit of 1,000- kilowatt capacity was added. The three steam turbines are Stork machines and are coupled to Smit generators. The electric installa- tion at Poeloe Laoet made it possible to operate with electric motors their pumps of 2 to 4 cubic meters per minute capacity, the lifts, and the ventilators. An air-compressor plant for the operation of the pneumatic-drilling machinery, with an air capacity of 3,000 cubic meters per hour, is also operated by the power generated in the electric plant. 26 The Boekit-Asam coal mines, which were opened in 1919, also use electric power, two A. E. G. steam turbines and generators, each of 1,250 kilowatts capacity having been installed in 1924. Since the important coal mines in the territory already have elec- trical equipment, any further business in this field will necessarily take the form of renewals and: extensions. Tin mining. —Electric power is used extensively by Government and private interests in the extraction of tin on the islands of Banka and Billiton. On Banka the mines are entirely Government owned and operated. They obtain their power from the Government sta- tion at Mantoeng, where six Stork stesm turbines developing 2,500 horsepower each operate a similar number of generators manufac- tured by the Dutch firm, Willem Smit & Co., having a total capacity of 12,000 kilowatts. The first installation was made in 1919 and con- sisted of two 2,500-horsepower steam turbines and two 2,000-kilowatt generators. Four additional installations have been made since then, and at present the mines are completely electrified. A still further increase in the central power station is now under consideration. The mines operated by the Gemeenshappelijke Mijnbouw Maats- chappij Billiton are also using electric power obtained from 8 central station at Manggar, which is claimed to be the second largest Diesel installation in the world. The plant at Manggar was first opened in 1914, when three Werkspoor Diesel motors and three Siemens- Schuckert motors, having a total generating capacity of 3,300 kilo- watts, were installed. The plant has been enlarged from time to time until the present capacity is now about 8,700 kilowatts. Electrical energy is used chiefly by the above mines in connection with the operation of suction pumps of 200 and 250 horsepower, and other small motors. As early as 1921 the Banka tin mines were using approximately 40 electric motors aggregating over 1,300 horse- power. Asin the case of electric power used in coal mining, new busi- ness in this field is limited to renewals and extensions of existing facilities. RUBBER INDUSTRY With few exceptions, all of the European rubber estates in the Netherland East Indies are using electrical energy of some descrip- tion for power or lighting purposes. Few of the estates are obtaining their electric supply from the public-utility companies, as the latter's transmission lines have not yet been extended to the localities where rubber estates are situated. In the rubber factories electric power is used chiefly for driving the machines which press the coagulated latex into sheets. Electrically driven machines are also used to macerate the coagulum and produce crépe or to clean and process scrap rubber. These machines are little more than a set of two steel or cast-iron rollers, which are driven by a prime mover of some description, commonly a Diesel or a steam engine. But estates with ample electric power available are now using motors. Motors of 6 to 10 horsepower for each battery of three machines are used for the manufacture of sheet rubber, and motors of from 15 to 20 horsepower are used for similar batteries of rollers making crépe sheets. Electric driers, especially for crépe rubber, are being tried out in the Netherland East Indies, several being installed in 1929. The 27 drying of rubber electrically is claimed to be both practical and eco- nomical, 40 kilowatts being sufficient to dry 3,000 pounds of rubber per day to an extent which reduces the total drying time from 18 to LO days. As the public-utility companies extend their transmission lines rubber estates will probably turn more and more to the use of elec- tric power. The prospect of such extensions, however, may have the affect of reducing the tendency to install private generating equip- ment except on sites where water power is convenient. TEA INDUSTRY Although one of the largest power companies operating in Java, G. E. B. E. O,, is generating current in the Preanger district, which is the center of the tea industry, the majority of the tea estates are generating their own power. This is chiefly due to the fact that at present hydroelectric and Diesel installations on the estates are pro- ducing current cheaper than it could be bought from the G. E. B. E. O. The location of the tea estates, which are in the mountainous districts of west Java, enables them to utilize the many waterfalls in the Preanger district and generate their own hydroelectric power. Some estates have no water power available, and are using Diesel motors to generate current for lighting and power purposes. The majority of the estates have plants with a capacity of from 150 to 200 kilovolt- amperes, Electric current is used chiefly by the tea industry to operate the various machines such as tea rollers, ball breakers, driers, and sifters, connected with the preparation of tea in the factories. For- merly the majority of the machines were operated by one large motor which was connected to a shaft running the length of the factory. During the last few years, however, there has been a tendency to use individual motors for each machine. In some of the larger tea fac- tories between 30 and 40 small motors, from 2 to 25 horsepower capacity, are operating the machines. The majority of tea factories are equipped with from 10 to 15 fans of from 4 to 6 feet in diameter, of which about 50 per cent are elec- trically driven. The “wilting” rooms of the tea factories are usually equipped with from 6 to 8 of these fans for ventilating purposes, and the remainder are put in the sorting rooms, where the native workers use them for blowing away the tea dust. These fans or blowers are as a rule direct coupled and are operated by motors of from 2 to 15 horsepower. Two tea factories have recently installed locally manufactured electrical equipment for drying the tea. Although the results have been favorable, the practice is not considered economically sound, since the use of oil or wood burners for this process is cheaper. Electric current is also employed for lighting purposes on the tea estates. It is now the policy of the estates to equip the native workers’ quarters with electric lights in order to make them more satisfied with their surroundings. There is room for considerable extension of the use of electricity in the tea industry, but it is retarded at the present time by low prices for tea, which have the effect of reducing the number of new estates opened up, as well as cutting down expenditures for new equipment. TAPIOCA INDUSTRY During the last few years a few of the factories on Java's 137 tapioca estates have been electrified. As power becomes cheaper and more available, there is little doubt that many of the factories will be electrified. In an electrified tapioca factory the roots are carried by electric conveyors to tanks where they are washed by paddles that are also electrically driven. The roots are then placed in disinte- grators, which are usually operated by individual electric motors of about 20 horsepower. After the disintegration process the tapioca is drawn by suction pumps to electrically operated sieves, where it is sorted into the various grades. COPRA INDUSTRY A similar process is employed in the electrified copra-crushing mills in the Netherland East Indies. After the sun-drying process to re- move the moisture the copra is disintegrated by machines that are usually driven by electric motors of a slightly higher horsepower than those in the tapioca industry. The disintegrated copra is crushed to a meal by rollers operated by 12 to 15 horsepower motors and from there is pumped to the hydraulic presses by electrically driven pumps. ELECTRIC MOTORS Although motors in use in the Netherland East Indies must comply with the “Standardization Rules of the American Institute of Elec- trical Engineers” or with “Die Normalen fur Bewertung and Priifung von Electrischen Maschinen und Transformatoren des Verbandes Deutscher Electrotechniker,” comparatively few American motors are in use in the islands. Some of the American motors that have been imported in the Netherland East Indies have given excellent results, but many have been unsatisfactory and caused the buyers much trouble because the American manufacturer had not constructed the motors to suit the tropical climatic conditions and current char- acteristics of the country. As previously mentioned, 3-phase, 50- cycle, 127/220 volts current has been standardized, and manufac- turers must make their motors adaptable. Furthermore, unless special windings are used on the motors exported to the Netherland East Indies, the intense humidity causes the insulation to break down after a few days. The largest trade in alternating-current motors is in the sizes from 5 to 25 horsepower. Larger motors are used to operate the gravel pumps in the tin mines and by the sugar mills, but orders for motors of over 100 horsepower are rare. The largest motors used in the Netherland East Indies are those of 250 horsepower, used in the electrified sugar mills. Slip-ring motors are favored and are usually required by the power companies. It is reported that the Govern- ment favors squirrel-cage motors with a double cage (high torque starting). Direct-current motors are used only bv factories or indi- viduals making their own power. Squirrel-cage induction motors, connected directly to the low- voltage distribution circuits of the public-utility companies are prohibited unless equipped with some form of starting equipment which limits the current thev take from the line at time of starting. 29 SOURCES OF SUPPLY German manufacturers, through their branch houses and agents who carry large stock, obtain the largest share of the trade in motors in the Netherland East Indies. Over one-half (2,545) of the total of 4,884 motors imported in 1928 were supplied by German firms. Dutch manufacturers supplied the next largest number (1,514). Imports of American motors during that year amounted to about 3 per cent of the total number, or 133. Government purchases of motors were largely from Dutch firms. Although the United States has, in the past, supplied some of the largest motors in use in the Netherland East Indies, imports at present are confined chiefly to sizes under 25 horsepower, and fractional horsepower motors. The United States obtains most of the trade in fractional-horsepower motors, since they are used largely as replace- ments in the American electric household appliances that have been imported into the territory. MOTOR-CONTROL EQUIPMENT The present regulations in force in the Netherland East Indies provide that motors of over 1-kilowatt axle capacity (1.34 horsepower) and not more than 2-kilowatt axle capacity (2.68 horsepower), used for intermittent operation and having a short-circuit rotor, must be started with a starting resistance in the stator or a star-delta switch which meets the approval of the electricity service. Motors with a larger axle capacity than 3 kilowatts must either be provided with a slip-ring armature and be started by means of a starting resistance in the rotor circuit or if with a short-circuit rotor be started with a starting transformer in the stator. An ampere meter is required in one of the phase circuits of motors of more than 10-kilowatt axle capacity. The Government factory safety-inspection service favors iron-clad starters, but they are not absolutely essential. The use of the star-delta switch with six leads practically eliminates the use of American squirrel-cage motors unless they are equipped with the proper starting equipment. Automatic no-voltage releases are not at present insisted upon, but it is likely that the new “factory safety ordinance” that is now being drawn up will provide for their use. MOTOR-INSTALLATION REGULATIONS The following regulations governing the installation of motors were published in 1923. They are still in force although under revision by a committee appointed to draw up new rules. 1. Motors must comply with the “Standardization Rules of the American Institute of Electrical Engineers’ or Die Normalen fiir Bewertung and Prifung von Electrischen Maschinen und Transformatoren des Verbandes Deutscher Electrotechniker,” but the motor must, except in special cases, be built for an atmospheric temperature of 40° C. and be provided with protective insulation against moisture, and the name plate must indicate the power factor under highest tension. . 2. Except for deviations in special cases, as for inclosed motors or crane motors, to be decided by the electricity service, the power factor for polyphase-current Nt motors for low tension at full pressure must be at least as much as indicated in the following table: Axle capacity Kilo- watts Horse- Dower 0.35 L5 35 | 11 30 75 0.5 Number of revolutions per minute 2.000 1.500 750 275 Power Power Power factor factor factor 0.72 0.69 0.60 .78 74 L687 .81 .78 .73 .85 .83 L7® .87 . 86 +2 .R8 Re ww Power factor 7g 0 The power factor for single phase motors may be 0.03 lower. The power factor for high-tension motors may be 0.03 lower. The required power factor for motors with axle capacity or a number of revolutions not mentioned in the table must be in ratio to the figures mentioned in the table. 3. Before operating motors the electricity service must be offered an oppor- tunity to, examine the same at the expense of the party who has installed them or the party who uses the current. 4. The mountings of motors and the metal parts of the starting resistances which are not under tension, as well as all the handles, must be properly con- nected with the earth by means of tin-covered copper wire or cable. The earth connection may not be joined to the neutral wire of the installation, nor to gas pipes. The connection with the earth must be approved by the electricity service. 5. Every motor must be provided with working regulations and a switching scheme which shows in which way it is disconnected. . 6. Motors with an axle capacity of not more than 1 kilowatt (1.36 lorsepower) may be switched on with an ordinary 3-pole switch. 7. Motors with an axle capacity of more than 1 kilowatt up to not more than 2 kilowatts for intermittent operation and of not more than 3 kilowatts for continuous operation which have a short-circuit or rotor, must be started with a starting resistance in the stator or a star-delta switch to be approved by the electricity service. Intermittent operation is considered to be operation of the motor for not more than 5 consecutive minutes. The star-delta switch must be of such a design that it can be switched in only two movements from the dis- connected position into the delta position; when switched off it must leave the motor entirely without tension. 8. Motors with an axle capacity larger than 3 kilowatts must be provided either with a slip-ring armature and be started by means of a tarting resist- ance in the rotor circuit or with a short circuit or short-circuit rotor and be started with a starting transformer in the stator, or be equipped with another special device approved by the electricity service by which the strength of the starting current is kept within certain limits. When starting the rofor circuit may not have a tension higher than 300 volts. 9. Motors with a capacity of over 8 kilowatts must be equipped with one or more devices which break up the current carried in all phases and make it impos- sible to start anew until the starting device is brought back to neutral, when the voltage of the system decreases fo more than 50 per cent of normal (auto- matic protection against low tension) for longer than 5 seconds or when the carrying of the current is interrupted in one of the phases. 10. The starting strength of current which is taken from the system, except in special cases, may not be more than 10 amperes higher than the normal full tension strength of current of the motor, except in installations where several motors are being used; the starting strength of current in such installations may not be higher than that of the largest motor. 11. Motors with an axle capacity of more than 10 kilowatts must have in one of the phase wires an ampere meter, which must be easy to read for the persons who operate the starting device. 12. On the starting device the off position must be indicated, and the connect- ing installation must be clearly indicated by an arrow. An inscription must state that connecting must be done slowly. It must be impossible to leave the handle in an intermediate position. The intermediate positions- f the starting ay devices of large motors must be perceptible and clearly visible. NE 13. Motors which have to run a driving gear must preferably ‘esr »d offi a loose belt pulley or with uncoupled friction clutch. The electricis smvice ~ may require this in special cases. Lo 14. In dusty places, entirely inclosed motors with radiator or a cooling device or motors which absorb cool air should be preferred. X-RAY AND THERAPEUTIC EQUIPMENT 2 nt The standing of the medical profession is high in the Netherland East Indies, and consequently there is a good but limited market for X-ray and therapeutic equipment. Prior to 1927 German manu- facturers controlled this market. In that year, however, an Amer- can firm making this class of equipment appointed a large engineering concern as its representative and assigned a factory representative to the Netherland East Indies to work with its agent. The results have been encouraging, and at present the agents have realized the possi of the line to the extent of carrying a representative stock. Despite the fact that the prices of the American equipment are more than double those of similar German and Dutch equipment (the latter has only recently been introduced), its popularity is increasing because of various features not included in other machines and because of the policy of the local agents in giving free service. Sales have been helped considerably by demonstrations in charge of a trained factory technical man before prominent Government offi- cials and physicians. American firms manufacturing this type of equipment and desirous of marketing it in the Netherland East Indies could hardly hope to do so by correspondence alone. The 3 companies that at present control the market, 1 American, 1 German, and 1 Dutch company, all have their own salesmen in Java. ELECTRICAL COMMUNICATION TELEPHONES Local telephone companies have been in operation in the Nether- land East Indies since 1884, when private companies opened ex- changes in Batavia, Surabaya, and Semarang. These plants were later taken over and operated by the Government, which at the present time owns and operates all the telephone service of the islands with the exception of the lines owned by the Deli Railway Co. on the northeast coast of Sumatra. At the end of 1928 there were 45,201 subscribers to Government telephones. During that year local calls totaled 73,000,000, while long-distance calls totaled 2,131,643. The revenue from the Government telephone service amounted to 11,219,- 121 florins in 1928. Although experiments have been conducted with American tele- phone apparatus and some has been installed in the islands, the majority of the equipment comes from Germany. Most of the local plants have only simple magneto switchboards. At the end of 1928 the following types of local plants were employed by the Government telephone service: Common-battery, multiple-manual switchboards____..___.__..___________ Common-battery, multiple-manual switchboard with automatic selective cord switching 29 Magneto-multiple-manual switchboard. .__..___._.. _ et mmo Magneto-multiple-manual switchboard with automatic clearing out lamp BRETT. ce connie csi at 5058 Borys merase Simple maceneto switechboards 8 —— -- 314 Seventeen of the 337 plants are used to relay long-distance calls. TELEGRAPH The telegraph services of the Netherland East Indies are chiefly in the hands of the Government, although several private companies also maintain services in various parts of the islands, namely, the Deli Railway Co., the Netherlands Indian Railway Co., and the Madura Steam Tram Co. At the end of 1929 the Government tele- graph service owned 33,179 kilometers of overhead telegraph line, 11,616 kilometers of submarine cable, and 1,356 kilometers of under- ground cable, a total of 46,151 kilometers of line. A total of 377 telegraph offices were in operation at the end of 1929, 223 of which were located In Java and 154 in the Outer Possessions. In addition, there are 580 Government railway telegraph offices and 193 private railway offices. Most of the telegraph apparatus has been purchased from Europe, although some American equipment is in use. The following state- ment furnished by the Netherlands Indian Telegraph service shows the systems and types of apparatus in use at the end of 1929: Telephones... _. Morse_ _ _.._._.__ Syphon recorders__._.__.__. __ Wheatstone automatic nerforators. Siemens rapids. _ Teletvpes. __. CABLES The Netherland East Indies Government Post and Telegraph Department maintains an extensive cable system between the islands in addition to the telephone and telegraph services on the mainland. Cables connect the west coast of Sumatra with Batavia; Borneo with Java, Menado, and Makassar; Banjermasin (Borneo) with Surabaya; Makassar with Menado; and Tandjong Pinan, opposite the island of Sincapore, with Batavia. WIRELESS COMMUNICATION The development of wireless communication has been more rapid in the Netherland East Indies than in any other country in Asia. The first wireless station was opened by the Government in 1911 at Sabang, at the extreme northern end of Sumatra. Other stations were erected with regularity, and at the end of 1929 the Government owned 54 stations, 1 of which (Malabar) is in constant commercial communication with radio stations throughout the world. At the end of 1929 the press in Java announced that the Government was planning a building program of 40 additional stations during the next four years and that the estimated budget for construction of stations at Macassar, Semarang, Menado, Palembang, Bandoeng, and Wel- tevreden was 517,000 florins. The radio station at Malabar, which was opened for public service in 1923, has been in direct communication with stations in the United States since July, 1925. The traffic of this station has increased to the point where over 60 per cent of the messages formerly sent by cable are forwarded by radio at the present time. RADIO BROADCASTING Radio broadcasting has not kept pace with the development of wireless communication in the Netherland East Indies.” At present there are only 10 stations broadcasting regularly, namely, 3 Government stations, the Bandoeng Laboratories, the Malabar radio station, 3 stations maintained by local chapters of the Nether- lands India Radio Association in the major cities, and 2 stations operated by private companies. In addition to the above, there are about 30 amateur stations which broadcast irregularly. All broad- casting is short wave, and the programs offered are poor both in quality and variety. MARKET FOR RADIO EQUIPMENT ‘Although there are few good programs broadcasted by stations in the Netherland East Indies, the public is considerably interested in buying short wave radio seis operating on 10-85 meters in order to pick up stations broadcasiing from the Netherlands, Australia, and the United States. Numerous attempts have been made by American manufacturers to market their products in the islands, but few have met with success because their sets were not suitable for local climatic conditions, which have a deleterious effect on most radio sets that are not specially wound and insulated to withstand an unusual amount of moisture. Unless American manufacturers can produce an efficient short-wave set specially insulated to withstand a tropical climate, they have little chance of securing business in the Netherland Ifast Indies. A large Dutch radio manufacturer (The Phillips Co.) has spent a considerable sum in experimenting and advertising in the Netherland East Indies. As a result it has secured approximately 90 per cent of the business. The most popular model set now being sold in the is- lands is a 4-tube receiver operated on domestic lighting current. WIRING WIRING DEVICES The Netherland East Indies offers a poor market for American-made wiring devices, wire, and conduit material. Wiring practices in the Netherland East Indies follow closely those of the Netherlands and Germany. The wiring rules in force are those of the Dutch Royal Institute of Engineers, supplemented by local rules issued by the Bureau of Water Power and Electricity. Adherence to these rules is invariably stipulated in the concessions granted to the public- atility companies, which are held responsible for seeing to it that all installations connected to their network comply with the existing regulations. In addition to enforcing the above rules, the electric licht companies also impose certain of their own additional require- ments. There is no organization in the Netherland East Indies corresponding to the American Underwriters’ Laboratories. Insur- ance companies do not inspect electrical installations, such work being left to the electric light companies. Many of the wiring devices in use in the Netherland East Indies would not be allowed by the American National Electrical Code, the sockets and switches in general use being of very poor quality, selling for about one-third of the cost of similar American products. European and Japanese tinned copper wire is used extensively. Rub- ber-covered copper wire is rarely used, the reason being that the type of rubber covering put on cheap copper wiring soon corrodes in the Netherland East Indies. The conduit in general use is of thin black lacquered stéel of about %-inch diameter. Although there are some snap and tumbler switches in use, the Ger- man rotary switch has more or less become the standard. The American push-button switch is rarely seen. The Edison socket has been standardized by practically all of the public-utility companies. The English bayonet-type socket is seldom used. The fitting of special connections near the floor for the attach- ment of electric irons, vacuum cleaners, etc., is seldom seen, but those in use are all of European origin. The most popular fuses in use are the German “Z” type plug fuses. There are no particular objections to American fuse blocks, but American plug fuses are not favored. WIRING PRACTICE Bergmann tubing on the surface is generally used in connection with interior wiring, and it is not permitted to carry wire on porcelain knobs or cleats on the surface of walls. Ceiling ‘or lamp-cord wire carried across walls and ceilings on small porcelain knobs or “button insulators” is not permitted. Wire on knobs and through tubes con- cealed in the walls is permitted provided the wiring is out of reach. Armored cable wiring and wiring in rigid iron conduits is permitted but seldom used because it is considered too expensive. Lead-covered wiring is permitted for surface work only while wooden casing or mold- ing wiring is not permitted. Metric copper wire gauge is standardized in the Netherland East Indies. The minimum sizes of wire generally used in the wiring of dwellings are as follows: For fixtures, 0.50 square milimeter; for portable lamp cords, 0.75 square milimeter; for wiring in conduits or on knobs, 1.50 square milimeters. METERING Meters are not generally used, the greater part of public-utility current being sold on a flat-rate basis. Where no meters are used, the consumption of electricity is limited either by means of a series of special sockets and lamps with special bases which are supplied by the lighting companies or by means of current limiters. In the few cases where meters are used, they are generally of 5 amperes. WIRING REGULATIONS The regulations that are now in force are not entirely satisfactory, because the safety rules of the Dutch Royal Institute of Engineers have not been revised for many years, and certain types of equipment which have been improved upon and perfected are not allowed in the Netherland East Indies. Another undesirable condition which exists is that the decision as to whether a certain device shall or shall not be 35 used lies in the hands of the light companies rather than in the hands of a neutral body of men. New rules were recenlty drawn up by the Bureau of Water Power and Electricity, but when they were submitted to the representatives of the various electrical manufacturers interested in the Netherland East Indies, a number of protests were made. The Government then appointed a commission consisting of members of the Government, representatives of the electrical firms selling in the Netherland East Indies, representatives of the public-uiility compa- nies, of private industries, and of importers. This committee is at present revising the existing regulations. One of the members of the commission is the factory representative of a well-known American electrical company. The new regulations will probably not come into force until 1931. FARM LIGHTING SETS Owing to the extension of the transmission and distributing systems of the public-utility companies, the demand for farm lighting sets has declined considerably. At present the United States is supplying less than a dozen units a year, whereas formerly from 300 to 400 sets were imported annually. Practically all of this business is controlled by American manufacturers. BATTERIES AND APPLIANCES FLASH LIGHTS AND BATTERIES Exports of flash-light cases and flash-light batteries constitute the most important items of the trade of the United States with the Neth- erland East Indies in electrical equipment. In 1928 the value of the flash lights and batteries imported from the United States amounted to $415,704. The consumption of flash-light batteries is estimated to be about 2,000,000 unit cells annually. Flash lights are popular with the natives and they are to be found on sale in almost every retail general store in the territory, even in small shops in the Outer Possessions. Numerous attempts have been made by European and Japanese manufacturers to capture a share of this business from the United States; but despite their higher prices, there is a decided preference shown for the American makes. The tubular nickled case containing three 1%-inch cells is the most popular type of case. Sales of black or fiber finished cases have been small. The focusing feature is important, and unless a manufacturer can offer a Jine embracing this feature he has little chance of doing a large volume of business in the Netherland East Indies. Flash lights are distributed in the Netherland East Indies by im- port houses that carry stock. The stock feature is important but not a necessity, as manufacturers’ agents are also in a position to obtain distribution on an indent basis. Flash-light batteries are also carried in stock, but not in the same proportion as the cases, since the shelf life of batteries in the Netherland East Indies is estimated to be about three months. American flash-light manufacturers who are unrepresented in the Netherland East Indies have an excellent opportunity to enter this market provided their prices are competitive, as many importers are desirous of obtaining connections for such a line. 2° STORAGE BATTERIES The predominance of American automobiles in the Netherland East Indies has resulted in a fairly good demand for American storage batteries. In 1928 this territory ranked as the sixteenth most important consuming country for storage batteries exported from the United States. The majority of storage batteries are sold through manufacturers’ agents specializing in the marketing of automobile accessories, although several well-known American makes are distributed through import houses. ‘During the last few years, however, there has been a tendency on the part of the Chinese motor-car-accessory dealers, who practically control the retailing of automobile accessories, to secure direct connections with American storage-battery manufac- turers, which has led to considerable competition in this line. Amer- ican firms interested in exporting storage batteries to the Netherland East Indies have little chance of doing so unless their prices are competitive or below those of the manufacturers who are now selling in this market. European firms also obtain a share of the storage-battery trade. One of them, the manufacturer of the Varta battery, finds it profitable enough to maintain branch houses in the most important cities. The principal demand is for 6-volt, 11-plate batteries for use in light, low-priced American cars. DOMESTIC APPLIANCES Numerous American manufacturers have made vain efforts to ex- port household electric appliances, such as vacuum cleaners, electric grills and toasters, electric washing machines, and electric refriger- ators to the Netherland East Indies. In 1928 the total exports of domestic electric appliances from the United States amounted to approximately $25,000. Continental and English manufacturers are obtaining less business in these lines than American manufacturers, which indicates the limited demand for them in the Netherland East Indies. There are several reasons why the sales of domestic household appliances have been small, the principal one being the abundant supply of cheap and fairly efficient household labor. In addition to this, the electric household appliance, no matter how simple, re- quires some one to operate it; and there are few European women in the Netherland East Indies who would consider cleaning their homes with a vacuum cleaner or ironing the family wash. They are not solicitous over the amount of labor required of their servants and are not inclined to spend money to make their work easier. Until recently, the rates charged by the public-utility companies did not favor the use of household appliances, but during the last year the power companies, realizing the possibilities of an increase in business, have been offering more favorable monthly rates to the owners of electric household appliances. It is believed that the sales of household appliances in the Netherland East Indies could be increased by sales and educational campaigns on the part of the local agents or distributors. Fans. —Despite the fact that the climate of the Netherland East Indies is tropical throughout the vear, few electric fans are used. a chiefly because of prejudice on the part of the white population against them. American desk fans are gradually becoming more popular, owing to the activity of the local representative of an Amer- ican firm in persuading the electric light companies to advertise and distribute them. Other lines of American desk fans are handled by small Chinese importers. Firms desirous of exporting to the Nether- land East Indies should attempt to secure the services of one of the large importers who is in a position to sell to the Chinese shops and the electric light companies. The ceiling fans sold in the islands are chiefly of Italian origin, but their sales are not important. Electric refrigerators. —American electric refrigerators are becoming more popular, owing to the fact that the electric light companies are pushing sales and are giving favorable rates to consumers. At present there are three well-known lines firmly established on the market. Two of these lines are handled through importers and the other by the factory representative of an American company. Lower current rates and guarantees of service will undoubtedly tend to increase the sale of electric refrigerators in Java and Sumatra. Toasters, grills, electric stoves.—At present sales of this class of electric equipment are limited, and no great increase is expected in the demand for electric grills or toasters. The electric-light com- panies are educating the people to make greater use of electric stoves, and special rates and monthly installments are being quoted to arouse public interest. One of the large public-utility companies is conducting experiments with cheap German hot plates and stoves with a view to obtaining a cheap electrical device which the natives can use for cooking their rice. Washing machines.—Several American manufacturers have made unsuccessful attempts to secure. representation in Java for their electric washing machines. A few machines were imported by one of the large publicutility companies, but they still remain unsold after being in stock for several years. Only one hotel in Java has electric washing machines installed, and this was done more to attract American tourists than because of the advantages of having such equipment. Household labor is so cheap throughout the islands that it is really not practicable for residents to buy electric washing machines at a cost of from 300 florins to 400 florins plus maintenance, when a native washerwoman can be employed for 10 florins per month. ELECTRIC TRANSPORTATION In 1926 the railway from Tandjong Priok to Batavia and those in the vicinity of Batavia were electrified. In 1929 this service was extended to Buitenzorg, a distance of 40-50 kilometers. The final extension was made possible by the completion of a substation at Kedoengbadak. Only a few cars were put on this line at first, but as the traflic became heavier more were added. In 1929 the electric railways, which are Government owned and managed, covered 165,000 kilometers, and the energy used amounted to 7,400,000 kilowatt hours of alternating current of 6,000 volts and 4,900.000 kilowatt hours of direct current of 1,500 volts. The current for the electric railways is generated in the Govern- ment hydroelectric plants at Oebroek and Kratjak, where the current is transformed from 6,000 to 70,000 volts and distributed to the over- head lines through substations at Antjol, Meester-Cornelis, Depok, and Kedoengbadak from 70,000 volt alternating current to 1,500 volt direct current. The transformation output in 1929 was 65 per cent. ROLLING STOCK The rolling stock of the electric railways has been purchased from several companies. It is reported that the servicing of the various makes of locomotives in operation necessitates the carrying of large stocks of spares. It is evident that the Government purchased several makes for experimental purposes, and if further extensions to the electric railways are planned an effort will probably be made to standardize. The present rolling stock consists of the following: Moke 11m her Horse- DOWEr TOCOMOTIVES Brown, Boveri & Cooma AB: Crcnocons An American make. ._...... _. mmm ————— MOPOR CARRIAGES QE. Commie An American make. __ 7 2 1 B 8 E 1,200 1, 500 900 1,100 460 500 All of this equipment has overhead contacts. The Government also owns 2 battery locomotives and 23 trailers for the motor carriages. The locomotives are capable of pulling ordinary railway carriages at a maximum speed varying from 70 to 85 kilometers per hour. The motor cars and trailers, first and second class, have seats across on each side of the car, with a central passage in the middle. The seat backs can be drawn either backward or forward. The combined folding-sliding door of car design is used, and passengers alight from both sides of the car at the middle. The third-class cars have three straight bench seats, lengthwise in the car. Passengers alight from both sides of the car at the middle and from the ends. The cars run on trucks and have American brakes and covered gang- ways. The length over all is 16.95 to 17.92 meters. The trains are composed of one motor carriage with one trailer. The service is also maintained by trains composed of ordinary rail- way cars drawn by electric locomotives, running between Batavia and Tandjong Priod and between Mangearay and Buitenzorg. BLECTRIC TRAMS Only two towns in Java have electric-tram service. Batavia and the adjoining township Weltevreden are connected by a single-track tram line. All of the equipment and the rolling stock of the Batavia Electric Tram Co. is antiquitated, but there is little likelihood that any new equipment will be purchased in the near future, particularly since competitive means of transport are available. The electric railway described above parallels the electric tram line, and the trams also suffer from bus competition. mn In Surabaya the Surabaya Electric Tram Co. maintains a highly efficient tram service to all parts of the town. One branch of the company’s track connects the harbor with the town, a distance of about 5 miles. The equipment and rolling stock of the Surabaya company is of European manufacture and is thoroughly up-to-date and efficient. LIGHTING HOME LIGHTING Until a few years ago, homes in the Netherland East Indies were very poorly illuminated because of the high rates charged for current for lamps of high wattage. During the last few years, however, there has been a tendency on the part of the power companies to make their rates lower. An increase in the demand for lighting facilities in the homes has been the result. Cheap German fixtures are used in lighting the native homes, while the wealthier class is furnished with fixtures of conventional Dutch design. Verandas of all European and some of the better-class native homes are lighted by large standing lamps, which are used more commonly than overhead lights because insects are atiracted to the lights. The veranda lamps are usually covered with elaborate silk lamp shades, which are made and sold very cheaply in Java. The lamps also are made locally, of reed or teak or some other tropical wood. The latter are often beautifully carved by Chinese woodworkers. New homes intended for Europeans are now being equipped with modern interior lighting fixtures, but in the past the fixtures that were installed were of cheap and antiquated design. In the homes of the wealthy, however, elaborate glass chandeliers are found. This type of fixture is also popular with the better-class natives. The types of fixtures found in living and dining rooms are varied. Single lamps, as well as highly decorated chandeliers of metal, sus- pended from the ceiling either by rods or chains, are used. American manufacturers of home lighting fixtures will find it ex- tremely difficult to persuade electrical firms in Java to handle their lines, since the European goods are so firmly intrenched on the local market and so far below the American products in price that few importers would even try to introduce a new line. STREET LIGHTING The progress in street lighting has not kept pace with other devel- opments in the use of electric power. The streets of the most im- portant cities in the territory are poorly illuminated, and in many small towns and villages there are no street lights of any description. An American company, which has been endeavoring to introduce its street lighting reflectors into Java for the last five years, has finally succeeded in interesting one of the large municipalities. This was done, however, only after tests over a period of several years were made with the reflectors. A branch office of a German manufacturer secures most of the business in steel poles which support the electric wires used in convey- ing the current used in street lighting. American poles were used by the Government several years ago, but the climate had a deleterious effect on them; they soon corroded and had to be replaced. In the small towns street lights are suspended from wires strung between the trees that line the roadsides. MARKETING OF ELECTRICAL EQUIPMENT The consumers of electrical equipment are largely European interests which may be divided as follows: (1) Private industries, (2) public-utility companies, and (3) Government. With the exton- sion of transmission limes into the native districts, the natives may eventually become a more important factor in the marketing of electric appliances and electric lighting fixtures, but the equipment necessary for the generation and distribution of electrical energy will probably always be purchased by Furopeans. QUALITY AND PRICE The quality of the heavy electrical equipment sold by European firms compares very favorably with that manufactured by American firms. In fact European goods are probably more suited to the particular needs of the country, particularly since the German, Dutch, Swiss, and Swedish electrical engineers stationed in the Netherland East Indies as representatives of their respectives com- panies, have studied the conditions and needs of the country and the equipment they supply is entirely satisfactory. The initial expendi- ture which a large American electrical-equipment manufacturer would incur in obtaining a first-hand knowledge of the market would probably make the price of his equipment out of line with the prices quoted by his European competitors unless he were willing to make sacrifices to that extent in order to develop possible future business. In the past, some American electrical equipment which has been imported has not given complete satisfaction because the same type of equipment suitable for use in the United States was supplied to buyers in Java or Sumatra. In many cases American electrically driven machines have broken down after a few days operation in Java. The result has been that until the suitability ‘of the equipment for use in & tropical climate has been conclusively proven, few firms will order from the United States. TYPE OF AMERICAN EQUIPMENT IN DEMAND With the exception of flash lights and batteries, the imports of American electrical equipment have been chiefly in lines in which the United States specializes, such as high-tension insulators, lightning protective equipment, X-ray and therapuetic equipment, and electri- cally driven household appliances. With one exception, few American firms have secured any volume of business in power house or sub- station equipment. dvnamos, or electric-lichting fixtures. NATIONAL PREFERENCES No discrimination is shown by Dutch firms or by the Government against goods of American or any other origin. However, the Government naturally shows preference to Dutch manufacturers whenever possible. The introduction and sale of American equip- ment is difficult, since the majority of electrical engineers in charge of purchasing equipment have been educated in European technical schools where the merits of equipment of European design have been stressed. American practice is not generally recognized in the Netherland East Indies, and a considerable amount of educational ans is necessary on the part of factory representatives of American TINS. GOVERNMENT PURCHASES The importance of Government purchases in the Netherland East Indies should not be overlooked by American firms desiring to obtain a share of the electrical trade of that territory. The Government, which in 1928 supplied a third of the power used in the territory, is probably the largest individual purchaser. Government purchases are divided into two classes: Goods purchased locally and those purchased in the Netherlands. Local purchases of electrical equipment are made through the Government Purchasing Department (I. C. A.), Bandoeng, and usu- ally include transmission-line materials and small substation and tele- phone equipment. The bulk of the power-plant equipment is pur- chased through the technical branch of the Department of Colonies at The Hague. Local purchases can be made only from firms estab- lished or registered in the Netherlands. No American firm can expect to get a share of this business unless it is represented in the territory. The I. C. A. is usually governed. in its choice of equipment to be pur- chased by the recommendations of the Bureau of Water Power and Electricity. Purchases in the Netherlands can only be made from firms that are represented in the Netherland East Indies by an electrical engineer, either their own representative or agent. Bids are submitted to the Department of Colonies on a certain date, and the electrical engineer representing the manufacture must submit a copy of the bid one month later to the Bureau of Water Power and Electricity at Bandoeng. The bids are opened in Bandoeng, and the recommendations of the local bureau are cabled to The Hague. Goods purchased locally are first inspected by the Bureau of Water Power and Electricity, while goods purchased in Europe are inspected by a representative of the Department of Colonies. The Netherland East Indies Government also has a representative in the United States, and in cases where goods are purchased there, they are also inspected during manufacture. ) As explained previously, Government purchases are lmportant. An American firm interested in the Netherland East Indies markets should satisfy the Government regulations, which means that it must first secure the service of a firm of electrical engineers as agents or else keen its own factory representative in the territory. PUBLIC-UTILITY PURCHASES A few American firms are obtaining a small volume of business from the public-utility companies, but the bulk of this business goes to German firms which are indirectly connected with the companies through having the same secretaries or through financial connections. Two of the largest companies, A. N. I. E. M. and G. E. B. E. O,, purchase the bulk of their requirements twice a year by a joint order. Preference will always be shown Continental manufacturers who are interested financially or otherwise in enterprises in the Nether- land East Indies. American firms will have fo tace this additional handicap. CENERAL ENGINEERING FIRMS No American electrical manufacturer is represented by an organi- zation in the Netherland East Indies that is in a position to quote for the complete construction of a large installation such as a power house, sugar mill, or an electrified tea factory. One American firm only is in a position to quote for electrical installations, but it does not attempt to bid for the complete job, whereas the representatives of German and other Continental firms frequently undertake the actual construction of buildings or electrified sucar mills, and as a matter of course also secure the contract for the oleotrical installation. The important purchasers of electrical equipment prefer to have one large firm contract for an undertaking rather than deal with one firm for the concrete work, one for the steel work, another for the electrical installation, ete. This handicap is one that will be extremely difficult for American firms to overcome unless thay are fortunate enough to secure as their representatives one of the large general engineering firms, which are mentioned in the subsequent section of this report entitled “Marketing agencies.” SERVICE AND TECHNICAL ADVICE Many orders are placed with firms having experienced technical staffs in Java, which supervise or actually carry out the electrical installation. In addition, consumers of heavy electrical equipment expect the manufacturers to maintain a trained staff and ample stocks of spare parts to servite the equipment which they have purchased. American manufacturers as a rule are not prepared to keep high- salaried electrical engineers in the Netherland East Indies on the chance that some business will come their way. Several American firms have tried it, but at present there are only two electrical manu- facturers with representatives in the territory. The men who have been sent out in the past have found that the obstacles they had to overcome were too great. STOCK It is of course desirable for manufacturers interested in marketing their products in the Netherland East Indies to consider the question of stocks. The success of Continental manufacturers in certain lines is directly attributable to the fact that either their branch houses or their agents carry representative stocks. It is only logical that a prospective buyer prefers to buy locally instead of placing an order with the agent or representative of a company which takes from three to four months to fill his indent, It is of course not necessary to maintain stocks of power house or substation equipment, but the manufacturer who expects to sell motors up to 50 horsepower, electric-lighting fixtures, fuzes, switches, house-wiring equipment and accessories, domestic appliances, etc., must look for an agent that will carry stocks or else open a factory branch. A CONSERVATIVE MARKET New lines of electrical equipment are extremely difficult to intro- duce. In view of the fact that most American equipment is little known in the Netherland East Indies, the advantages and merits of these products must be thoroughly proved and tested before it is possible to interest prospective buyers. Manufacturers desirous of having their equipment tested and approved by the Bureau of Water Power and Electricity may do so by complying with the requirements A of this bureau. A laboratory is maintained at Bandoeng, and various types of equipment are tested upon the payment of certain stipulated fees. Approval by the Government does not necessarily mean that it will purchase or recommend the purchase of the material tested, but it does mean that the results of the tests will be accepted by local buyers as definitive evidence of the equipment’s technical qualifications forlocal use. Satisfactory tests arerequired of Government purchases. TERMS Definite consumer preferences are shown certain manufacturers because of the more favorable terms quoted by them as compared with American firms, particularly in the field of heavy equipment. It is said that some of the German firms are prepared to grant almost any terms in order to introduce certain types of equipment where there is a possibility of doing a large volume of business at a later date. In addition, some of the large engineering houses representing German firms will undertake the financing of extensive projects in order to obtain the contract for the entire job. As a rule, important orders for electrical equipment are accepted [rom buyers on terms of one-third down, one-third on delivery of goods, and the balance after the installation is complete. If, however, the purchaser is fairly reliable yet unable to meet these terms, the European branch houses or the local agents of European firms usually grant longer terms. It is said that some of the large engineering houses will grant terms extending over & period of several years, if necessary to secure the business. Usually the large engineering or import house that an American manufacturer would have as his agent would accept almost any terms if there was a possibility of doing business. However, few firms in Java would be willing to in- vest any large sum of money in stocks that were not being rapidly moved. American firms usually demand a letter of credit for heavy electrical equipment, but the lighter lines are sold on terms ranging from 30 to 90 days after acceptance. The usual terms granted by American exporters should not present any great handicap to the development of business in the Netherland East Indies. To summarize the consumer preferences shown in the purchasing of electrical equipment, it would appear that there are no outstanding reasons why American manufacturers can not secure a larger share of the electrical trade of the territory if they are prepared to concentrate on this market to the same degree that their continental competitors have done. MARKETING AGENCIES Electrical equipment is sold in the Netherland East Indies through the following outlets: (1) Branch houses; (2) general engineering firms, (3) general importers, (4) manufacturers’ agents, and (5) Chinese importers. . Branch houses usually carry a fairly heavy stock of the goods manu- factured by their respective firms, which in some cases represents a complete line of electrical equipment. There are also branch houses of firms specializing in the manufacture of only a few large volume lines of equipment. The general engineering firms sometimes hold agencies of large electrical manufacturers and usually have one or more factory rep- resentatives working with them. In other instances the important engineering firms bid on entire undertakings by obtaining special prices from the branch houses handling electrical equipment. The general importers also hold agencies for complete lines of elec- trical equipment as well as specialized lines, but they are not in a pcsition to undertake the actual construction of power houses or factories. Tenders are submitted only for the electric installation, which is usually carried out by factory representatives attached to the firm. Manufacturers’ agents are important as sales agents for firms specializing in the manufacture of domestic appliances, flash lights and batteries, storage batteries, and electric tools. They do not carry stock and usually have special knowledge of the electrical trade. Orders are secured on an indent basis only. . As the distribution of automotive accessories, flash lights and small domestic appliances is in the hands of Chinese retailers, there has been a tendency on the part of the more important firms to obtain direct connections with American manufacturers for these particular items. The majority of Chinese importers sell through their own retail shops, although in some instances they have connections throughout the Netherland East Indies. GENERAL ENGINEERING FIRMS Much of the electrical installation work is done by six important firms located in the Netherland East Indies, five of which are general engineering firms that will undertake the complete erection of a sugar factory or a power house or sell a single motor, while the other firm is the largest exclusive electrical engineering firm in the territory. The firms referred to above, together with their branches are as follows: GENERAL ENGINEERING FIRMS Lindeteves Stokvis: Head office, Amsterdam; branches: Semarang (head office ‘or Netherland East Indies), Surabaya, Batavia, Medan, Padang, Palembang, Bandoeng, Soekaboemi, Djocja, Tegal, Makassar. Carl Schlieper: Head office, Ramschied, Germany; branches: Batavia (head office for Netherland East Indies), Bandoeng, Semarang, Tegal, Djocja, Sura- kata, Surabaya, Makassar, Medan, Padang, Palembang, Pontianak. Ruhaak & Co.: Head office, The Hague; branches: Surabaya, Djocja, Tegal. Batavia. Becker & Co.: Branches: Surabaya, Batavia, Pasoercean. Geveke & Co. Surabava. ELECTRICAL ENGINEERS Amsterdamsch Kantoor voo Indische Zakon (A. K. I. Z.): Head office, Amster- dam: branches. Batavia. Surabava. All of the general engineering firms mentioned buy from branch houses of electrical-equipment manufacturers in addition to holding agencies of their own. Lindeteves Stokvis and Carl Schlieper control about 75 per cent of the machinery trade of the territory; and although the percentage of the electrical-equipment trade controlled by them is not as large, they undoubtedly secure an important share of the total business as a result of their large organization and connections. The other firms mentioned, while not as outstanding as the first two, are important and are capable of undertaking larce electrical contracts. AF A. K. 1. Z, as agent for A. E. G., Berlin; Escher Wyss & Co., Zurich; Gebr. Sulzer, Winterthur; Philips, Eindhoven; and one of the large American storage-battery companies, is without a doubt the most important factor in the electrical equipment trade of the Netherland East Indies. In addition to the firms previously mentioned there are many other general engineering firms in the Netherland East Indies that are at present importing electrical equipment. A few of the leading firms are: Machinefabriek Braat, Surabaya, Djocja, Tegal; G. C. T. van Dorp & Co., Semarang, Surabaya, Bandoeng; Schulte & Co., Batavia, Surabava, Palembang. BRANCH HOUSES At present there are 10 branch houses of electrical-equipment manufacturers located in the Netherland East Indies, of which 9 are European firms and 1 an American firm. The majority of these firms carry a complete line of electrical equipment, but several gpecialize. The most important branch houses are those of two large German firms handling complete lines of electrical equipment and having their own electrical engineers stationed in the territory. These are Siemens-Schuckert Werke and Bergmann Elecktrizitatswerke A. G., of Berlin. Other branch houses engaged in selling complete lines of equipment are a large Swedish firm, Allmanna Svenska Elektriska Aktiebolaget, of Vasteras, an American firm, and one Dutch com- pany, Hengelosche Electrische en Mechanische Apparatenfabriek, of engelo. Firms specializing in certain equipment include one large German firm, Siemens Halske A. G., of Berlin, which handles telephone, telegraph, and X-ray equipment exclusively; a Dutch and a German firm handling power-house equipment (Merrem & la Porte of Amster- dam, and Hallesche Maschinfariek, of Halle; a German firm, Hack- aphon, specializing in transmission equipment; and a French firm, Compagnie d’Importation de Produits Metallurgicues & Annexes, dealing only in cables and wiring. These branch houses can not be considered as possible agents for American electrical manufacturers, but mention is made of them because of their importance in the marketing of electrical equipment. GENERAL IMPORTERS There are a number of general importers in Java that are handling various lines of electrical equipment. In most cases this type of firm is net in a position to handle heavy equipment, usually carrying only electric-lichting fixtures, lamp bulbs, flash lights and batteries, and electric appliances. The majority of these firms have branches throughout the islands and are capable of securing first-class distri- bution for any line they decide to handle. Large American electri- cal goods manufacturers interested in this market should consider the possibility of one of these large importers as an agent. It would, of course, be necessary for any manufacturer working with one of these firms to keep his own men in the territory to assist in making sales. KW MANUFACTURERS’ AGENTS Manufacturers’ agents are in a position to market automotive electric equipment, flash lights and batteries, and domestic appliances. These firms carry no stock, and all orders are secured from dealers on an indent basis. Two prominent American firms have branches in the Netherland East Indies, and either of these concerns is in a position to market light electrical-equipment lines. CHINESE IMPORTERS The importance of the independent Chinese importer has been increasing steadily in the Netherland East Indies during the last 10 years. At present several of these firms are holding direct agencies for American electric equipment, particularly for domestic appliances, flash lights and batteries, and automotive equipment. The Chinese importer probably should not be considered as a possible agent for a line of heavy equipment, but some of the larger firms are able to obtain fairly good distribution for lighter lines. ADVERTISING American manufacturers interested in bringing their products to the attention of prospective buyers in the Netherland East Indies should have their literature printed in Dutch. Most of the educated Dutch people in the islands speak and read English, but it is prefer- able to have technical discussions printed in Dutch. In sending literature to the Netherland East Indies, American manufacturers should endeavor if possible to include quotatious in Dutch currency c. i. f. Java ports. Considerable criticism of the methods employed by American firms in advertising their products in the islands was heard by the writer in the preparation of this report. Public-utility companies in particular hesitate to place orders for various types of equipment with American firms as prices usually can not be deter- mined until after the goods have been received. The usual mediums of advertising exist in the Netherland East Indies newspapers, billboard, trade directories, and trade journals. These facilities are sufficient to keep a well-known trade name before the public. In the case of equipment which is unknown it is, of course, desirable to hold demonstrations or exhibits if possible, American manufacturers should avail themselves of the opportunity to secure stalls in the annual fairs that are held in the principal centers of population, Bandoeng, Batavia, and Surabaya. O 2Q LJ J tT NY AS oo ch > Cn NN Sy ach “ oul ny -~ T oH oN rl wrabaya the Surabaya Electric Tram Co. maintains a highly t tram service to all parts of the town. One branch of the 1y’s track connects the harbor with the town, a distance of 6 miles. The equipment and rolling stock of the Surabaya ay is of European manufacture and is thoroughly up-to-date sicient. i: LIGHTING HOME LIGHTING | a few years ago, homes in the Netherland East Indies were vorly illuminated because of the high rates charged for current 1 ips of high wattage. During the last few years, however, there ten a tendency on the part of the power companies to make rates lower. An increase in the demand for lighting facilities * homes has been the result. Cheap German fixtures are used ing the native homes, while the wealthier class is furnished with 5 of conventional Dutch design. ndas of all European and some of the better-class native homes ated by large standing lamps, which are used more commonly verhead lights because insects are attracted to the lights. The a lamps are usually covered with elaborate silk lamp shades, are made and sold very cheaply in Java. The lamps also are locally, of reed or teak or some other tropical wood. The we often beautifully carved by Chinese woodworkers. } homes mtended for Europeans are now being equipped with 1 Interior lighting fixtures, but in the past the fixtures that were >d were of cheap and antiquated design. In the homes of the ¥, however, elaborate glass chandeliers are found. This type ire 1s also popular with the better-class natives. oo types of fixtures found in living and dining rooms are varied. lamps, as well as highly decorated chandeliers of metal, sus- from the ceiling either by rods or chains, are used. ~~ rican manufacturers of home lighting fixtures will find it ex- y difficult to persuade electrical firms in Java to handle their ince the European goods are so firmly intrenched on the local t and so far below the American products in price that few ers would even try to introduce a new line. > Te. STREET LIGHTING < ay C= No asl progress in street lighting has not kept pace with other devel- ts in the use of electric power. The streets of the most im- t cities in the territory are poorly illuminated, and in many owns and villages there are no street lights of any description. lerican company, which has been endeavoring to introduce its lighting reflectors into Java for the last five years, has finally ded in interesting one of the large municipalities. This was however, only after tests over a period of several vears were with the reflectors. ranch office of a German manufacturer secures most of the ss in steel poles which support the electric wires used in convey- » current used in street lighting. American poles were used by vernment several years ago, but the climate had a deleterious on them; they soon corroded and had to be replaced. In the owns street lights are suspended from wires strung between oq that line the roadsides.