SUGAR FROM BEETROOT.

Daily Telegraph (Napier), Issue 3192, 21 September 1881, Page 4

SUGAR FROM BEETROOT.

The following is from the New Zealand Herald of a recent date :—

On several occasions we have drawn attention to the fact that efforts are being made to set on foot the growing of beetroot in the Waikato district and the manufacture of sugar therefrom, and the refining of the same. The steps are being inaugurated in connection with Mr W. *.. Graham, at Tatnahere, and a large Hamburg firm, A committee of Waikato farmers has been appointed to carefully consider the matter, and arrange among themselves the possibility of taking up a portion of the stock of such a company, and to agree as to the quantity of beet each should grow, &c. This committee have met on several occasions, and so far as we can learn are working with a fair measure of energy and hope? of ultimate success. Another committee has been appointed in Auckland to collect information, &c, but they appear to have fallen asleep. This is not the way to attain success. In the matter of sugarmaking, it must be remembered that there is at present an enormous trade within the colony, which will necessitate the employment of a very large capital indeed to meet the yearly- demand from plants grown within the colony. Our total annual sugar requirements in one form or other is considerably over £600,000, and with import duty added, considerably over £700,000 per annum, about 28s 6d per head of the population. The experiments made during the past summer showed that sugar beet can be grown in the Waikato district with sugar contents equal to 15 per cent., and surely something ought to be done with such materials to meet the heavy annual cash drain for sugar. The following extracts are from a letter received by Mr W. A. Graham, from the Hamburg firm. At the time the letter was written Mr Pond bad not obtained the highest percentages of sugar, which were subsequently developed. The returns of the tests made were sent on two seperate occasions to Germany, and the highest, following extracts refer to, were equal to a little over 10|- per cent, of sugar. After that, as the crops grew more mature, the percentage of sugar rose as each sample was tested, until 15 per cent, was reached. That was the highest percentage obtained, and after a time the roots that were not pulled and stored up showed a decreasing content of sugar, part of the sugar stored up being utilised by nature in the fresh growth that Was taking place in the plant. But of roots with the 10£ per cent, of sugar the careful Germans " calculate that the profits, even without the direct gain to the farmers, would be very large." What, then, might be the profit of treating beet with 15 per cent, of sugar instead of 10£ ? The following are the extracts referred to, and the letter from •which they were taken wag written in reply to one sent by Mr Graham: —I may mention that I communicated its contents (Mr Graham's letter) to the largest establishment in Germany for the complete turn out of such beet sugar factories. The people were highly pleased with the result of the tests made by Mr Pond, and calculate that the profits, even without the direct gain to the farmers,' would be very large. They have erected the greatest number of sugar plants here, and themselves own a beet plantation and sugar factory in the neighbourhood of Strasburg (Alsace). They are willing to erect for you a complete factory, and send the requisite number of skilled workmen, with oversee?, so that the working during the first twelve months may not be attended with any hitch through want of proper management. They will besides undertake the guarantee that the machinery and whole apparatus shall be erected and handed over to you in perfect order, and in fact be a success, as far as their part of the undertaking goes. They will further take one-fifth sharo o;? the capita! apart from the shares which I would t.ake myself, or some of my iriends here. Bub the great bulk of the shareholders must come from New Zealand for the following important reasons :1. That the management must necessarily be in New Zealand, and therefore supervised by local gentlemen having an interest in the concern. 2. That New Zealand farmers must take the principal shares, to ensure their planting a sufficient quantity of the beetroot. It is quite out of the question to take German farming men out there, buy land, and build houses for them. That would be too cumbersome, too tedious, and expensive, or, in other words, require double the capital. The capital requisite for a first-class factory would be about £25,000 or £30,000, and should, in my opinion, be erected (say) by the issue of 1000 shares of £25 each. I presume the banks would allow overdraft on hypothecation to provide funds for current expenditure. . ... My friends here, if you should be able to form a company, would require an undertaking in the deed of partnership that all shareholders would agree only to grow beetroot for the pioneer company, as they feel certain that the results will be so satisfactory as to create a desire for more factories, and in order to keep opposition out of the field, this proviso would be necessary. ... In order to benefit by the Government bonus of £1000, it would perhaps be necessary to enquire whether such has lapsed in the meantime, and if so, whether the Government would feel inclined to restore the game ; and then it would be advisable at once to sound the views of your neighbors, and if favorable start the undertaking, by causing your friends to take up, at least, 750 shares of £25 each, with the understanding to grow sufficient acreage of beetroot. The remaining 250 shares would be placed by us here."

An outline is then giren of the provisions desired to be embodied m the deed of association, amongst which are some financial recommendations which show how far public opinion on the Continent is in advance of that in Britain in respect to the division of profits in a concern depending for its success upon the labor of others. The following are some of the recommendations made :—From the gain of the financial year the following deductions should be made: 5 per cent, to the reserve fund ; 5 per cent, as bonus to the Board of Management [the only remuneration allowed them, and a large one] ; 5 per

cent, to the manager and officials in proportion to the salary received by each ; the balance to be declared as ii dividend. Tfe hope to see this business assume a practical shape before long.