H.—2

18

as yet been begun elsewhere, simply on account of local difficulties in obtaining a sufficient supply of roots of the proper description, the growing of which in this country would not seem to be so remunerative as in Belgium, &c, where the mode of cultivation is different. Considering all the discrepant accounts relative to the cost of cultivating beet-root, and making allowance for labour-saving appliances and low price of land, I think it will be some years before growers in New Zealand will be able to supply good sugar-beet, with profit, at 17s. per ton. I incline to estimate 19s. or 20s. per ton as nearer the mark for several years. The question of the effect of the different prices of labour upon the cost of producing sugar from beet is one deserving serious consideration, and upon that I can do little more than say that there appear to be very varied opinions as to the exclusive cost of the labour. It is fair to consider that the cost of labour in this country is two-and-a-half times that which prevails in Germany and most parts of France. On the other hand, it is fair to give very great consideration to the plea, that has been urged in America, that where labour is dear a great deal of expense is avoided by the use of labour-saving machinery. I give the following extracts from Mr. Grant's book. Between the statements in some of these extracts, and those in others on the same points, it is not difficult to find discrepancies. My object, however, is to enable persons who read this paper to judge for themselves; therefore, where I have found contradictions, I have thought it right to place them before you, so that those who wish to form a judgment upon the subject can do so:— In Prance the expense of manufacturing raw sugar, including the cost of the beet, varies from 3 to 4 cents per pound. The average expenses of converting 1,000 tons of beets into sugar by the best processes are about as follow, not including taxes or interest on capital:— 1,000 tons beets, at 83.80 ... ... ... ... ' ... §3,800=£760 Coal, 120 tons, at §3.00 ... ... ... ... ... 360 72 Bone-black waste ... ... ... ... ... ... 300 CO Sacks for pulp, 250, at 70 cents ... ... ... ... 175 35 Labour, 220 men, 5 days at 70 cents ... ... ... ... 770 154 Administration and salaries ... ... ... ... ... 200 40 Lighting ... ... ... ... ... ... 50 10 General expenses, insurance ... ... ... ... ... 250 50 Lime, metals, rasp blades, repairs, &c. ... ... ... ... 845 169 6,750 1,350 From this is to be deducted, say— 200 tons pulp, at §2.50 ... ... ... ... 500 30 „ molasses, at !?0.22 ... ... ... ... 660—1,160 = 232 Leaving, as total cost of working 1,000 tons beets §5,590 £1,118 The cost per pound of sugar produced varies in accordance with the percentage of yield, as shown in the following table :— Yield. Sugar. Cost per pound. 6 per cent. ... ... 134,440 lbs. ... ... 415 cents = 2d. 7 „ ... ... 156,800 „ ... ... 356 „ lfd. 8 „ 179,200 „ 3-10 „ 1R In one establishment that I visited in France, I asked in writing of the proprietor, to whom I had letters that warranted me in doing do, his percentage of sugar and molasses, and the cost of manufacturing. This gentleman had been very successful, kept his accounts with great accuracy, and, as he manufactured by the old process, I selected him as a good representative of the old system, and asked him many questions, which he answered with great courtesy and in the fullest and most satisfactory manner. His yield of juice was 80 per cent, of the beets worked; his percentage of sugar was 685, and of molasses 275 per cent, of the juice. This gives a result of 548 per cent, of sugar and 22 per cent, molasses on the beets worked, which was the poorest result with which I met. In reply to my question as to the expense of converting a ton of beets into sugar, I shall give a literal translation of his reply, stating that the estimate was made from the business of nine years, in which time he had made improvements and enlargements of his mill, all of which were charged to expenses: — " Hand labour, general expenses, 10 per cent, depreciation of machinery, coal, taxes, in one word,

Cost of production, and rent therefrom.

(Effect of price of labour.)