Sweet Profits.

Horowhenua Chronicle, 12 June 1915, Page 2

Sweet Profits.

1 * (Written for« The Chronicle}. The rise in the- price of sugar predicted some few weeks ago has not yet taken place, but people are nearer to it now that they were then, and when i: does arrive it will be found to be a substantial rise—quite a large obstruction in the way of the wage-ear-ner who is trying to storm the financial trenches, and reach the rise of affluence and motor-cars. The reason given for the proposed increase in the cost to consumer is the suspension of the beet sugar industry in Jiurope consequent on the war. In Australia KBB trouble has been accentuated by the drought, which affected the cane crop* to a serious extent, and the action of iho Colonial Sugar Company in exporting to Canada 3000 tons of sugar as late as last March. By way of excuse for this action the company has explained that it was riot aware that there would . he a shortage in the sugar crop "until a month later, when it immediately notified the authorities. Coming from a company moted for the foresight which it has displayed m the building up of its great monopoly, tliiu is cirprising. The damage caused by the drought in Australia is the elow growth of mhnths—not of a few we<ske. hi New Zealand, according to a statement made by the manager at Auckland, the-c is v.? danger of a shortage. IT : ■x-wy-a-z* obtains nearly all the sugar :■ ■-r -rt» from its plantations in ±ij.\ year 1913, the last year for *•■ a tistics are available, 1,J.9u',--\' -" : -> * -.raw sugar were imported '■ ■, ■'•ic.-a-islands, and 19,386cwt5. fro._ V'i.vi-ii. The value of this is set (lowa at £787,-30-1. In the same year iOGlcwts. of refined sugar were imported from Victoria, 9470cwts from Now, South Wales und 1356cwts. from Java. Those amounts, together with smaller quantities- from various other countries aggregate a total importation of refined sugar into this country in 1913 of lt,26scwts., valued at £12,412. As the sugar industry in Fiji is controlled completely by tho Colonial Sugar Company, and the industry in Australia nearly so, it can be seen readily, tint as; far as its supply of sugar is concerned this country is at the mercy «1 tlje company. To »be at the me-icy ot any corporate body is generally an oxpensive position to occupy; the experience of the people of Australia and ,N« w Zealand in this instance is uc> .• Suction to the rule. The paid-up capital of the Colonial Sugar Company is and in the 20 years from 1890 to 1010, the value of the above amount represented in shares on the open market reached the sum of £6,600,000— a wonderful inflation, but quite justified n the fact that during that time, the company made such profits that it was enabled to pay an annual dividend of 10 per - cent, and at the sarnie time it issued > in free script to its shareholders no lees a sum than £575,000 from, its reserves. This capitalising of reserves is known in financial circles as "watering." since 1910 the company's profits have increased steadily. For the year endeing March 1011 the net profit wu £404,142 and a dividend of 10 per cent. was paid; to March, 1912, the net profit was £136.441 and the dividend 12i per cent; to 1913 the net profit was £463,169 and the divident 12J per cent; to March, 1914, the net profit was £519,201 and the dividend 12J per cent; to March, 1915, the net profit was £529,068 and the dividend 12J per cent. In addition to these dividends the company, in 1913, presented is shareholders with a further £250.000 from ita reserves, so that the company is now making a profit of over £500,000 en a capital of £3,250,000, of which amount £825.000 is "water." The company's halance-fiheet for the twelve months ending March of this year does not say how much of the profit for the year was made in Sse\v Zealand, but seeing that in the previous year half the company's profit was made in this country, and further, <that the chairman remarked at the last annual meeting held in Sydney that the New Zealand (business was the most profit- \ able, it is safe to assume that at least half of last year's profit was made here. Half the last year's profit is £264,534—the company makes as much out of a little over one million people in this country as it does out of heady five millions in Australia. It will he admitted that the unfortunate storeholders in the company have been hard hit by tho war owing to the increase in the cost of wines (the price of champagne has increased 2s per case), cigars, and the upkeep of motor cars, but as New Zealand has treated them so well in the past (and no doubt will continue to do so in the future), and as the wage of the company's coloured workers in Fiji remains at one shilling a man per day, and according to tho company, there is no scarcity of sugar, it is hard to see why there should be any increase in price. When the people reflect that they contribute to the cost of the navy that protected the company's property in Fiji from a possible raid by the German cruisers (such as the raid at Papeete) they feel annoyed about tho matter. The people of Australia are in a different category. They have harassed the company in varous way. For instance they comipel it to pay the cane-grower an oxorb!- js? tant price for cane; they i-ompel it "& to pay ita employees an exorbitant \ wage, and worst of all, they absolutely prohibit it from importing cheap coloured labour into Australia, so that if they find now that prices are soaring, it is because of their transgression against tho law of supply and deiranti. {Explaining the difficulty merchants have in obtaining supplies of sugar in spite of the pleutitude, the company states that tho reason for ito not fully supplying orders is that ft wishes to prevent some people laying in heavy stocks and thereby creating a scarcity. One sees in this a generous atfempt on the part of the companyto protect the people from exploitation. Some, "however, say that the company simply is preventing people from buying sugar while it is cheap, in order that its profits later on may b« greater. There are many ingrates and dissatisfied people about.