THE COLONIAL SUGAR COMPANY.

Auckland Star, Volume XLI, Issue 204, 29 August 1910, Page 6

THE COLONIAL SUGAR COMPANY.

THE CHARGE OF MONOPOLY. With reference to the article in our issue of Saturday last, referring to the Intention of the (Jommonwcallh Government to set up a Commission to inquire into the sugar industry, in the course of which mention was made of the closing down of the Australasian Jam Company's factory on the alleged ground of a rise in the price of sugar, and a demand by the Colonial Sugar Company of the solo right of supply ; Mr. Philson, Auckland manager of the Colonial Sugar Company, states that the rise in priie has been in sympathy with a similar movement all over the world. It is solely due to increased consumption and an inadequate ■supply. With regard to manufacturers, botli here and in Australia, the business is usually done by contract for a year, at a considerably lower rate than the current price for general consumption. This ensures the manufacturer against fluctuations, and affords him a stable basis to )Work on. The following letter to the Melbourne " Age : ' embodies the- Company's answer to the allegations with regard to the Australasian Jam Co.: — " To the Editor of "The Age." " Sir.—ln your issue of the 7th instant it is stated that the stoppage of worl< at the Australasian Jam Co.'s factory i; the direct outcome of the advance of this Company's price of sugar, and that Javp sugar can be landed here at £19 15/, oi £1 7/9 below our quotation. We do nol know the quality or the conditions of pur chase of the Java sugar referred to, bul we do know that white Java sugar can not be bought for early shipment at th( above-named price, and that all sugai which comes from that island is raw sugar, and cannot be compared with oui refined article. Further, we undertak< to protect our contractors during tin present abnormal position of affairs b\ giving them the full advantage of an; reduction that may be made in our taril rates, between the Ist July and the 31s October; while the}' cannot be charge( any more should the world's market fur ther advance. We again assert tha sugar similar to what we deliver canno at present be purchased anywhere in thi world at the price quoted by us, allow ing for the duty. As to the statement that the factor? has been closed down and some 350 em ployees, of whom a number are girls, havi - been thrown out of work by our refusa , Ito supply sugar on the terms demandei ,j by the jam company, I would say tha . we have supplied their sugar requirement - for a number of years, and T notice tha , in JuU- last year they obtained no svga - ! from us. and comparatively little in th i corresponding month in previou; - J years, so it would appear that it is no uncommon for that company, along witl . ! some others, to close or fuse down a i this season of the year, although it is ni ' ; doubt convenient to throw the onus fo 3 doing so upon us at this particular June ! . ture. —Yours, etc., J H. H. SYIIONDS, V I Manager Jn Victoria for the Colonia r J Sugar Refining Co., Ltd, a I Oth Jul£.' 5