THE SUGAR SHORTAGE.

Taranaki Daily News, Volume LVII, Issue 384, 2 June 1915, Page 3

THE SUGAR SHORTAGE.

REPLY TO THE GOVERNMENT.

By Telegraph.—l'ress Association. Sydney, June 1.

Mr. Knox lias replied to Mr. Hughes' statement of the sugar position, and he says that the Colonial Sugar Companv wrote to Mr. Holman five weeks ago, pointing out that there would be a sprobable shortage. Mr. Holman replied that he deemed it necessary to see him. Subsequently a series of letters passed, and interviews were held, but the company was still without official confirmation of the understanding to purchase £250,001) worth of Java sugar.

TTe never proposed or said anything in favor the. remission of duty. He traverses Mr. Hughes' statement that the company was aware there rould be a shortage, and could have averted it. It was not until April 20 that the company was aware of it, and it informed Mr. Holman on April 2(1. The company sold 3000 tons of sugar 'to Canada on March 12, before the shortage was apparent., and now had to import at £4 per ton above what Canada paid. He admits that probably the company could have bought at less than it was paying for Javan sugar if the. New South Wales Federal Government had taken the warnings seriously, and not delayed negotiations. Dealing ; with Mr. Hushes' statement that the handling of imported sugars was one of the company's chief sources of gain, Mr. Knox declares the margin of profit is very small. lie had informed Mr. Holman that be expected a 4 per cent, profit oil Javan sugar in bond, whilst the distributing trade received from the company fi per cent, discount for merely 'selling the sugar. He denies that any trader or manufacturer was ever debarred from buying the company's sugars at list prices and discounts.