THE SUGAR MONOPOLY.

Taranaki Daily News, Volume LVII, Issue 278, 3 May 1915, Page 3

THE SUGAR MONOPOLY.

NEARLY -HALF A MILLION PROFITS, j I TRUST METHODS ADOPTED. C AN INGENIOUS SCHEME. THE PUBLIC PAY. Sydney, April 30. At the half-yearly meeting of the Colonial Sugar Refining Company the report, which was adopted, showed the net profits at £27'2,707, to which was to be added the balance of £H!5,800,' making a total of £l3B s:>B available. A dividend of live, per cent, for the half- , year was declared, making ten per cent, for the year, and a. bonus of as per share, leaving a credit balance of £235,473. Mr. Rinnie was re-elected a director.

The report stated that production was a record, the Fiji portion being equal to the Australian. The prevailing drought will cause a heavy diminution in next season's output. It will be unnecessary to add to the capacities of the refineries for several years.

The chairman's speech referred to the action of the Commodities Board' in disregarding the. market values in fixing ■ tile prices of sugar. The continuance of the drought made it certain that the Commonwealth cannot produce all the sugar needed till the lfllfi cro'j) is available. The existing* stocks will be exhausted before the end of Juy, and be- j cause of the late start that must be made, and with a small crop ( . the' sup- : ply for August is not in view, unless it lie immediately brought from other countries. Under normal conditions the situation caused some little trouble, but i now, with a maximum' price fixed at about £3 below the raw sugar producing rate, the position is more difficult. ; After outlining the effects of fixing ■ the prices, the chairman declared that in Australia the company not only failed to derive any advantage from the sale of its surplus sugar, but the expenses had increased, and the rates fixed by the Commodities Hoards prcccntcd bringing the rates of refined sugars back to the June level. From New Zealand there was a better return, but the net ■ gain on the whole of the Australasian business, excluding shipments to Europe, was only 5s or (is a ton. The construction of the large steamer ordered by the company had been delayed owing to tlio Admiralty taking over the yard, and it was not expected that the company 'would be able to use the vessel this year. Fifty-seven of the company's officers and 1)5 of its wage-earners had enlisted, and tlie company was keeping the positions open, paying the absentees' subscriptions to the provident fund, and making good the day difference between the- military pay and the salaries. At a subsequent special meeting the shareholders adopted the proposals for the formation of a new company. These provide that the existing Colonial Sugar Refining Company sells to a new company all its Fiji and New Zealand assets, including goodwill, as from March 31 last, for £3;2, r >0,0&0, the existing cornpan/ having the right to take up 12,500 ordinary contributing £2O shares, also' 102,500 preference £2O shares, bearing a fixed cumulative preferential' dividend of six per cent., and ranking as preforen- J tial with regard to capital in the event j of winding up. The'new company is to create a dividend reserve fund of not less than £200,000, for the sole purpose of equalising tile- dividends payable on the preferential shares. No greater dividend is to be paid on ordinary shares till the fu.l amount of reserve is created. The existing company is to undertake the management of the new company on terms to lie arranged. The chairman explained that the preference shares are to be made available for the. existing company or its nominees. The- existing company would nominate its various shareholders, wdio are to receive one share in the new company for every ordinary share held by the existing company. d formal meeting of shareholders of the new company is to he called to authorise the issues of shares, and for deciding on which place to register. Sydney, Suva or Auckland holdings should be recorded. The first dividend for the six months ending September 3D is to be paid at the end of October. The title of the new company is to be the "Colonial Sugar Refining Company, Ltd., of Fiji and New Zealand.

TIIR SHORTAGE OF SUCAE. Sydney, May 1. The Premier submitted to the Commodities 'Board tlifi Colonial Sugar Company's letter pointing cut that all available stocks of sugar in Australia would be exhausted by August, and the necessity of importing from Java and elsewhere and the inability of the company to meet the emergency owing to the board fixing such prices as would leave a loss of probably £7 a ton when importing sugar. It declares the mutter is urgent and of importance.