COLONIAL SUGAR.

Hokitika Guardian, 12 May 1924, Page 1

COLONIAL SUGAR.

POSSIBLE ‘WITHDRAWAL DISCUSSED. AUCKLAND, May 9. The fact that the Colonial Sugar Company is once more hinting that it will close down the Chelsea sugar works, is the subject of considerable comment among business men in Auckland.

Discussing the actions of the company in the past, one well-known business man declared that, when Java sugar was imported into the Dominion in fairly large quantities. Colonial sugar immediately dropped in price, “royal” merchants receiving a rebate on their stocks.

“if the Colonial Sugar Co. did withdraw from New Zealand,” lie said, “1 believe the people of the Dominion would get cheaper sugar.”

The Government was mistaken last session, was the opinion of another merchant, and it did something that was economically and morally wrong in granting a duty on imported sugar. It was nr.t even politically right. The Government was merely stampeded into it hv a stupid Board of Trade. A well-known importer pointed out that, when there were labour troubles in Fiji, the Colonial Sugar Co. in tho end made its own terms with the workers, for the big combine held the whip hand. One result of these labour troubles bad boon that there was a shortage of Fiji raw sugar, and large quantities of Java sugar had been imported for some time past into the Chelsea sugar works. Not only did the import duty handicap the refined Java sugar trade here, but a serious draw-hack was the law which compelled everyone who sold sugar, whether by the half-pound or the hundredweight, to have tho hag marked as containing Java sugar. Naturally grocers would not take the trouble to have every paper bag stamped. The speaker could not see how No. 1 grade of imported refined Java stigai could lie inferior in quality to No. 1 grado Java sugar refined at Chelsea. It was likely that there would lie ail increased importation of raw Figi sugar this year, and therefore, the cost would he materially reduced to the company.

Opinions vary as to the respective quality of Java sugar, imported as refined Java, and the raw Java sugar refined at Chelsea. Some importers and merchants 'consider there was really very little difference between the imported Java sugar of first grade, and anv first grade sugar from Chelsea, whether made from raw Java or raw Fiji sugar.

“It is the case of giving a dog a bad name,” said one merchant. “No doubt an inferior lot of Java sugar was distributed throughout the Dominion, and a report was spread that all Java sugar was inferior.