COLONIAL SUGAR CO.

Auckland Star, Volume LXIII, Issue 266, 9 November 1932, Page 4

COLONIAL SUGAR CO.

FUTURE PROSPECTS DISCUSSED. NO INDUCEMENT TO EXPAND. In his address to shareholders at last meeting of the Colonial Sugar Co. the acting-chairman, Mr. E. R. Knox, spoke as follows: — "It seems evident that there may not be any considerable increase in the population of Australia and New Zealand for some •time to come, and our refining plant is fully equal to providing all the sugar that may be required. We can do this on a small margin of profit, as five of our refineries were built when it was possible to carry out such work at a reasonable cost. As regards the Australian mills, we will ensure that the standard of efficiency is maintained and that they are kept in a position to withstand any economic attack, while they should have "ride of place, for they were established many years before most of the others and have been greatly improved and strengthened from time to time. Fiji may be kept going under present conditions, but the prices of cane and agricultural wages are greatly above those of other tropical countries against the products of which the colony could not compete without Empire preference. "It may well be expected that after so long an experience of the sugar trade I might be prepared to prophesy how the present crisis should end, but this is not the case, as a point h.as been reached which cannot be compared with anything that has happened previously. Britain has met the difficulty by protecting her own sugar beet industry and the output of her dominions and colonies, and perhaps the protection will endure, but there is no inducement now to extend either the manufacture or the refining of sugar in the Empire. Position of Shares. "With reference to the increase of 35 per cent in the selling price of our shares during the past six months, I should tell you that I know of no reason that can be given as accounting for such an advance. Then, as now, the financial" position of the company gave no cause for anxiety, but no one could urge that the present market position and the prospect of finding a paying outlet for ' the largely increased production of foods is any better than it was earlier in the year. "As you are entitled to know to what an extent there has been change of ownership in our shares, I give you the following figures for the transactions during the half-year. _ "In all we have passed transfers for 10,199 shares, of which 4827 were sold, the balance covering changes in trusts, estates or bequests." These sales represented 1.65 per cent of the entire capital, which is an indication that the shareholders generally wish to be partners in thejnisiness, not speculators for capital gain.