THE COLONIAL SUGAR COMPANY

Waikato Argus, Volume III, Issue 187, 23 September 1897, Page 4

THE COLONIAL SUGAR COMPANY

The proposal of the Company that an additional duty should be put nps-n beet sugar has elicited the following letter to the Premier from the Wellington Chamber of Commerce : 'i Sir,—This Chamber has had under consideration the subject of a petition which, it is reported, has been presented to the Government praying that a differential import duty should be laid upon sugar made from beetroot. I am directed to state that in the opinion of this Chamber there is no justification for such a request, and that the imposition of an additional duty would be extremely objectionable. Its effect would be to increase the cost of an article of large and daily consumption among all classes of the community, the cheapening of which is commonly regarded by statesmen as a desiiable object. The only persons who would benefit by such action are those interested in a single company whose headquarters are at Sydney, and whose shareholders are believed to be entirely outside New Zealand. That this company is not in a position to need special assistance may be gathered from the following figures, which are extracted from the balance-sheets of the company for the past five years :—Year IS9J, net profits £175,7G9 ; dividend at the rate of 10 per cent., amount £144,170. 1893: Piofits, £198,049 ; 10 per cent, dividend, £157,879. 1594: Profits, £197,535 ; 10 per cent, dividend, £163,276- 1895 : Profit*, £170,012 ; 10 per cent, dividend, £170,005. 1596 : Profits, £170,7112; 10 per cent, dividend, £170,159. In addition to paying the above handsome dividends, this company has succeeded in putting aside out of profits the following substantial reserves : —Reserve fund, £IOO,OOO ; guarantee and insurance fund, £04,007 ; reserve for equalisation of dividends, £165,000; employees' provident fund, £24.232 ; replacement and depreciation funcl, £483,954. These reserves amount to a total of £837,194, or equal to between 49 and 50 per cent, of the paidup capital of the company. Under these circumstances this Chamber desires respectfully to urge that effect should not be given to the petition in question." f?t£s