THE BEET-SUGAR INDUSTRY.

Waikato Times, Volume XXIV, Issue 1951, 8 January 1885, Page 2

THE BEET-SUGAR INDUSTRY.

Public Meeting at Hamilton. A chvinuL meeting of all those interested in the establishment of the beetsugar industry in Waikato was hold at The Waikato Tunes Buildings, Hamilton, on Tuesday afternoon. There was a l'Ugc and representative attendance, the room being full, and the greatest inteicst was taken in the proceedings thioughout. The chair was occupied by Mr \V. A. Graham, who read a letter of apology from Mr S. T. Seddon, who was absent. Mr Knox also apologised for the absence of Capt. Stcele. Mr W. A. Graham said : It devolves upon me to lay before you the object of our meeting hero to day, which is to dis cuss and fuither enquire into the resolutions arrived at by the fiist committee ielati\eto the beetroot sugar industry. And in doing so I would ask you to considei them from the points of view adopted by Mr Swarbrick at our opening meeting, namely :—(1): — (1) The national im portance of the successful starting of the manufacture of sugar from beetroot grown in the colony ; (2) the capitalist's interest in its successful issue and prac ticabihty as opening to him a new field for profitable investment for his surplus stores of cash ; and (3) the agriculturist's and tradesman's future involved in this industry if proved a success. I wish you to fairly criticise to your utmost anything that I may have said upon the matter, and to judge impartially, in the interests of all concerned, whether in your opinion we are justified in continuing our efforts to establish this new branch of industry in Waikato. The better to enable you to do so I have to lay before you the results of my enquiries, which have led me to the firm conviction that the first sugar mill must be undertaken upon co-operative principles, and the large bulk of shares must be taken up by New Zealand residents of all classes, and not by foreign capitalists. In advocating this policy, I am only acting consistently upon the advice of sound and practical Get man exports, as you will glean from the following letter I received in ISBI, and published in The Waikato Times ■ — " I may mention that I communicated its contents (Mr Graham's letter) to the largest establish men u in Germany for the complete turn out of such beet sugar factories. The people were highly pleased with the result of the tests made by Mr Pond, and calculate that the profits, even without the direct gain to the fanners, would be very large. They have erected the greatest numberjof sugar plants here, and themselves own a beet plantation and sugar factories in the neighbourhood of Strasburgh (Alsace). They are willing to erect for you a complete factory, and send the requisite number of skilled workmen, with overseer, so that the working during the first twelve months may not be attended with any hitch through want of proper management. They will besides, undertake the guarantee tint the machinery and wholo apparatus shall be erected and handed over to you in perfect order, and in fact be a succsss, as far as their part of the nndertaking goes. They will further take one-fifth share of the capital apart from the hhates which I would take myself, or some of my friends bore, lint the great bulk of the shareholders must come from New Zealand for the following impoitant reasons. 1. That the management must necessarily be in New Zealand, and therefore supervised by local gentleman having an interest in the concern. 2. That New Zealand farmers must take the principle shares, to ensure their planting a sulh'eient quantity of the beetioot. It in quite out of the question to take German farming men out there, buy land, and build houses for them That would be too cumbersome, too tedious, and expensive, or, in other words, require double the cnpital. The capital requisite for a first-class factory factory would be about £2r>,000 or £30,000, and should in my opinion, be erected (say) by the issue of 1000 shares of £25 each. I presume the banks would allow overdraft on hypothecation to provide funds for current expenditure .... My friends lu-ie, if they should be able to form a company, would require an undertaking in the deed of partnoiship that all shareholders would agree only to glow beet-root for the pioneer company, as they feel certain that the results will be so satisfactory a3 to create a desire for more factories, and in order to keep opposition out of the field, this proviso would be necessary. . . . . In order to benefit by the Government bonus of £1000, it would perhape be necessary to enquire whether such ha 9 lapsed in the meantime, and if so, whethor the Government would feel inclined to restore the same ; and that it would be advisable at once to sound the views of your neighbours, and if favourable start the undei taking, by causing your friends to take up, at least, 730 shares of £'2Tt each, with the understanding to grow sufficient beetroot. The remaining 250 shares would be placed by us heie." The pos»ibibty of achieving our purpose, I assume from the following statement of interests directly wrapped up in the advancement of this portion of the Colony :—: —

It is e<tirmte<i (lint .1 perfect mill can bo erected at Hamilton, of latest model, for j£2J,OOO Floating company, and all other intiJiMit.il expenses up to starting work in mill ... 1,000 C4SII balance available to use as Working capital . . . . 0 000 __- £.50,000

The returns of the mill I e&timato as> follows : — Receipts. — 1000 tons of sugar at £24, £24,000; 3000 tons pulp at £1, £.3000 ; molasses, £."00 ; residue, fertiliser, £230 ; total receipts, £27,7.">0. Expenditure, — Purchase of loots and manufacture, at 2}d per lb (raw), £2-J,-100 ; contingencies, rent, &.u., £2,000 s intercut on £10,000 debenture* at 1} percent, £000 ; dividend on £'20,000 called-up capital, at 10 per cent, £2000; balance suiplus to carry forwaid, £G5O ; total, £"27,7<"i0. From this table of approximate shareholders you will sco that not only is the the successful floating of the pioneer suji.tx pompany within the bounds of possibility, l)ut tli.it ill making tl)e lirst company goiieiaHy open to all conieis, we a u> enlisting the sympithy or large interests which canmt fail in lealismg gitat benefits from our success, men \\ ho therefore can fairly be asked to assist in the undertaking. In doing so we also leave a laige field open for f'ltuie investors of capital fiom other counliics. But before wo can piesuine to start a company, we must be satisfied that the basis upon which we found our opinions is nound. And this is the icason we have askpd you tq meet to-day. Upon the resolution passed by tljjs h)eetiny, a great deal will depend. J±iu\ therefore gentlemen, I ask you to give the matter your careful consjdpration, (Hear, hpar.) Mr Swarbiiqk said ha li*«l been requested by the oommittoe to give t|j§ meeting the results of his enquiries into the subject. He had given the matter deep consideration, and was glad to ofFci them his conclusions, Mr Swarbrick then proceeded to speak as follows :—: — The annual consumption of sugar in the world is estimated at a value of £li) 0,000,000 of which one half is bertroot sugar. The production of sugar by slave labour will ceaso iv a few years,

and that from the cine by free labour does not increase, whereas the beetroot sugar industry baa obtained its present importance atter only 30 years of practical manufacture. This rapid giowtli is mainly due to the impioved results obtained by tlu> farmers and manufacturers. Thua in 1840 it took 17 tons of roots to produce the sugar which in 18G5 was produced from 12 tons. This improvement continues to the pro sent time ; and bearing in mind tins lapid growth on one hand and stignation on the other, we may realise the importance to which the beetroot-sugar industry must attain in the near future. Sugar beets are grown in France, Ocr many, Austrii, Belgium, Russia, Hoi land, Denmaik, Sweden, Italy, and the United States ; but it is in the first six of these countries that the industry lias attained to it 1 ? chief impoitmcc. In 1576 Russia, with a difference between customs and excise duties of 10s (id per cent., giew all her own sugar. Oeun.uiy and Austria with a like protection of 2 per cent, grew all their own sugar. Fiance without piotection giew twothirds of her sugar supply. B'lgium ■without piotection giew four fifths of her sugar supply. Holland without protection grew one-seventh of her sugu supply. In New Zealand we have piotection to the extent of 4s B'l per cwt , besides a bonus. Thus we have in New Zealand a "protected" market for far moi e sugar than we could produce in the Waikato, and even were the whole of New Zealand devoted to this industry it would not be possible to over-stock the market with an article of such easy transport anil enormous consumption throughout the world. The question whether this industry can be profitably can ied on depends mainly upon the proportion of saccharine matter contained in the roots, and this vaiies exceedingly in different localities. Dr. Voelckei , the great agricultural chemist, status the average amount of sacchannc matter contained in beetroots used for sugar-making is 10 per cent. M. Ville, a French agricultural chemist, and an accepted authoiity on this sub jeot, advises the use of certain manures by means of which, he says, 12 to ]."> per cent, may bo obtained. In Germany it is said that the best beets contain as much as Il> per cent , but the oHic'-il estimate is very much lower. In Vic toria roots yielded 7 per cent. ; in Napier roots yielded 64 per cent. ; m the Waikato the roots averaged 12 2!) per cent., and rose as high as 15 per cent. To rightly estimate these figures it must be remembered that these high percentages have only been obtained in Europe by a special system of cultivation ami mantir ing, the result of a century of experience. By this means the amount of sugar ob tamed has been increased ,)0 per cent. On tho other hand, the roots grown in the Waikato were grown in complete ignorance of the proper cultivation and manure, and it is only fair to suppose that with pioper knowledge the already high yield could bo increased, as lias been done in Europe. The analysis of the Waikato roots was sent to a German house of practical beet root sugar ni,inufactmers, who were so well pleased with them that they were prepared to invest thousands in the manufacture of beetroot sugar in the Waikato had the fanners done their part. Mr Mclvor, tho well known agiiculturat chemist, says of the W.iikato :—": — " Your land would produce sugar-beet in great quantity. First of all your sugar land is not rank, and rankness in the soil is repugnant to the production of good sugar and beet In the second place, potash is a veiy important substance, particularly impoitant to a crop like beet, and your soil contiins abundance of it. In the third place, so far as I can judge of your climate ftom what I have read and seen, it is very suitable for the growth of beet." It is thus manifest that the Waikato is exceptionally suitable for the growth of sugarbeets. Formerly it was supposed that the growth of beetroots impoverished the land, but all modem authorities are now ug.unst that : ou the conti.iry it exercises a most beneficial influence, ,unl wherever beets are grown tho yield of other ciops increases. Mr Mclvor says : "If you restore the waste—the icfuse of your manufactory to your land, you can go on growing beetioot to all ctornity vvitliout your soil suffcimg any detenorition m value." AU giain crops rid tho eirth of certain elements, which can only be replaced by manure. Pure sugar, on the contrary, consists of elements that are obtained from the air, and if we consume the leaves and pulp by feeding cattle, and also put back the refuse from the factory, then the soil is a gainer to the extent of the manure originally employed. The growth of beetroots also ensures the thorough cultivation of the soil for a succeeding crop. And these facts must not be lost B'ght of in estimating the results to the fanner. With regard to labour : The wages paid in this country are about three times the amount of tho*e paid in the beet growing conntiies, but this does not represent tho 1 elativ c cost of the actual work done. It h.m been shown that our Englishmen at fid an hour works more cheaply than a Belgian at 4d ; and we should be safe in estimating tne cost of manual labour here at twice that in Europe. Again, where labour is cheap it is used in place of other things that are more expensive. We having choap ooal and horso-power, reduce labour to a minimum. Bearing those facts in mind, the difficulty of labour is not really so formidable as at first sight appears. The price now paid for the roots in Europe is usually 10s per ton, and it is suggested to pay this pi ice here. The yield of roots is from 1.1 to 80 tons per acre— 2o tons being considered a fair orop. From an Amencan authority, quoted by Mr Brooks, it appears that the actual cost of producing the roots in America is $2, or Ss per ton in the field. Another authority quoted by Sir Julius Vogol estimates the cost in America at from ',)s to lQs per ton. In France it cost £7 to £7 12a por aoro, .say 7s to 8s per ton, but half this represents rents and taxes. We have by actual experience the cost ot ploughing and harrowing an aore of land, which mi»y bo put at i'l 0s (id ; also of sowing witli horse drill, 2s 6d ; soed, 8s ; manure, £1 10s. This gives £3 Is as the cost of '• putting in" an acie. Now suppose »»». hoe and clean and lift the cro'i by manual labour, as 111 Franec, thin oo.?ts in Fiance l!»s 4d per aore. Or allowing three times the wages here, £2 ISs per acre, making a total cost of iM 19s for an acre. On a crop of !."» tons this would be 8s per ton, and one of 20 tons (is per ton in the field. But hero we should utiliaQ horse labour, and t lie cost ought to bo ovon loss. In older to eoononu/e transport, it is proposed to build the faotory oil tho bank of the Waikato river, and to have a siding fiom the railway. Taking the river ton miles on each side of tho factory, and the laihv.iy for 5 miles each way, we have an area of (io square imlesof land within one nilo of the liver or railway. It is proposed to coijvej tl)c rqota from the various landings 01) the rivpr by means of baigi's holding, say, hb tons e.«ch. Tho fanners would cart direct from the field to the baige, and tho baige would go alongside the factory. On the railway the farmeis would cart to the tiucks which would run into the factory. To build a mill ca^ahln of manufacturing 1000 tons of sugar a year wqulrt loquire a capital of £30.000, and to establish a company for this purpose, it is necessary to have a guaranteed supply of not less than 300 acroq of roots each year for 10 years., ft is hardly pqssiljle to even estimate tl)e advantages wluoh would accrue to the district from the establishment of such an industry in our midst. Even a single factory would pay away each year upwards af €30,000 for labour, coal and farm produce And ono suuenssful factory would lead to others being established. Putting aside the direct profit from growing the roots, the farmers would gain enormously by the increased demand for beef, butter, and all farm pioducc. To the tradesman it would bring huudiedi of now cuatomors and infuse life into business generally. To the

capitalist it would yield thousands in tlie improved value of all pioperty. To the woiking classes it would give a new field of labour at steady and temuueiative wines. To start this industry requires the co-operation of all classes, and as all will reap the benefit, it is fair that all aho ild contribute, according to tlieii means, to launch the enterprise. In answer to a question, Mr Swarbriek said he believed that beets could be grown in this colony quite as cheaply as in Fiance. We possessed so many advantages ovir the European farmeid, which could be set against the one disadvantage of labour. He felt quite convinced that the beet could be produced for 83 an aeie. Mr Pnmrose had statrd at the former meeting that it was useless to expect the fai nicr to go into this industry unless it could be shown that there w.vs a profit in it He was still of this opinion ; but w hereas on the former occasion he did not think that a profit could be shown, hi' had since, by giving the subject <■ irnest consideiation, changed his views. He was not ashamed to tell the meeting Cut he had been converted. He was e<it»in that 16s per ton at the factory would give the fanners a %cry handsome leturn, even if the price of labour were much higher than Mr Swat brick had statocl. (Hear, heai). C.ipt. Runcunau ngiecd with what had fallen from Mr Primrose. But there was another phase ot the question which so far had escaped notice. In older to the successful carrying on of the dany f.ic ' toiies labour of a special kind — youthful labour — was requited, and this was ju«t the kind required for the cultivation of beet too, so that these industries would ic.iet one upon the other to the benefit of both. The beet growing season would tome in the milking season. Replying to Mr Coatea, Mr Swarbriek said that from all ho I'ould gather the land best adapted to the cultivation of beet was a sandy loam ['eat would not do. There was a laige area of land in the Waikato eminently adapted to the growth of beet. Mr J. J. Uaiuurh said there could be no po«sille doubt as to the suitability of the Waikato foi root growing. He had beeu growing loots all his life, and he was bound to say that he had never seen any I md so well adapted for the purpose as t'nt in Waikato. There might be some difficulty about working the horse hoes at the til st onset, owing to the lightness of the soil, but this would soon be over0 mie. Tho adaptability of this district to the cultivation ot suzar- beets was beyond the shadow of a doubt. Mr Primrose sai<l the next thing to do was to ascertain what area of beet would likely be grown, and decide about the guarantee. Mr Graham said it would be desirable at this stage of the meeting that an expression of opinion should be given as to whether it was desiiable or not to start the industry. Mr (iillctt moved, " That in the opinion of this meeting the data lv fore us is sulhcient to wart ant the establishment of a beet sugar company in Waikato " He said it was not necessary to go over thegtound travel sed by Mr Giaham and Mr Swarbriek, but (4)011 the question of tlte co-it of haulage he would add a word or two. From information supplied by Mr T. (I. Sandes, he found that the aveiage price paid by the local bodies for carting gravel per cubic yard for one mile was Is (id, for two miles 2si, and for tluee miles Ms to 3s (id. This included stripping Now, a cubic yard of gravel weighed, he believed, something like a ton and a thitd, so that thete need be no fear about the cost of haulage. Mr Swarbriek seconded the resolution. He said he had gone carefully into the question of the cost of manufacturing tlte .sugar, quite independently of Mr Graham, and his conclusions tallied with that gentleman's in the most remarkable manner. In his report to Parliament, Sir Julius Vogel stated the cost of manufacturing beetroot sugar in France. Taking this as a basis and adding— for l<ibom, 200 per cent ; inanagenvnt, 100 percent ; coal, 10s per ton ; lates and taxes, £200; depreciation and tencval, £1000 ; the cost of wotking .1 factory using 11,500 tons of roots a year would bj 1*22,000, including cost of root?. Now, 11,500 tons of roots, containing 12 29 per cent of saechatinc matter, would proiluce 1000 ton-i of sugar aud molasses and pulp, to a total value of £2">,000. These hgures he had checked by private inform ition, and arrived at the same result — viz., a nett profit of £6'ooo a-year on auch a factory as is proposed. But ha believed it was now possible to produce white sugar direct from the root, in which case the profits would be largely increased. Another thing which they should bear in mind was the fact that since the industry started in France the yield has risen 50 %, find thete was no reason why such an improvement should not take place here. After some further remarks, the motion was put and carried unanimously. On the motion of Mr .J. M. Gelling, seconded by Mr Barugh, a committee, consisting of Messrs \V. A. Graham, R. Gillet, A. Swarbriek, L. O'Neill, Kno\, James Hally and (Jeo. Edgtiumhe, with power to add, was appointed to draw up aprospectus and form of guarantee, to be submitted to a future meeting Mr (itahain said the result of the meeting was very giatifying, and he felt that he could with some reason w ish them all a happy and prosperous new year. Votes of thanks to Mr Graham, Mr Swarbriek and Mr Gillett having b"en cariied, the meeting terminated.

To be Interested Sub- Share* Total Am'nt. called Chsies. senbers. each. shares. £ up. Land holders 8c land agents 10 100 1000 5000 £2.00 lownsmen ... 20 50 1000 5000 'J5OO Wailvato townsmen & others 70 20 1400 7000 1i.'.00 l'armcri. kc... 100 10 1000 5000 2000 Sm ill homosteiA proprietors ... 100 5 600 2W 1230 Workmrn and others .100 2 200 1000 300 Foreign holders, {mill and plant) 2900 14500 7250 600 U 40.0U0 20,000 It i> estimated to float on Home money market, debentures, at 0 per cent. ... 10,000 £30,000

li|K'Ni-\y /.i \i \vn Co-oi'kr\tivk Mitt-root Sl'd\K AssOf I^TIOY {L'MMKI)) — CtriTAr, £40,000 iv 8000 bjiAafb ov £n hacu.