THE SUGAR SHORTAGE

Dominion, Volume 8, Issue 2477, 2 June 1915, Page 5

THE SUGAR SHORTAGE

FEDERAL GOVERNMENT'S ATTACK ON

THE COMPANY

MR. KNOX REPLIES TO MR. HUGHES

(By Telegraph— Press Assn.—Copyright,)

Sydney, June 1

Mr. Knox, of the Colonial Sugar Company, has replied to Mr. Hughes's statement regarding the; sugar position. He says that the Colonial Sugar Company "wrote to Mr. Holman five weeks ago pointing out that it was probable that there would be a shortage. Mr. Holman replied that he deemed it necessary to see subsequently a series of letters. Interviews were held,_ but the company was still without official confirmation of the understanding to purchase a million pounds' worth of Javan sugar:, He had never proposed or said anything in favour of remission of duty. Mr. Knox traverses Mr. Hughes's statement that the company was aware there would be a shortage and could have averted it. Not till April 20 was the company aware of the probable shortage. It informed Mr. Holman on April 26 that it had 3old three thousand tons of sugar to Canada on March 12, before a shortage was apparent, and would now have to import sugar at £4 a ton above what Canada had paid. Mr. Knox admits that probably the company could have bought at less than it was paying for Javan sugar if the New South AVales and Federal Governments had taken the warnings seriously and not delayed negotiations. Dealing with Mr. Hughes's statement that the handling of imported sugar is ono of the company's chief sources of gain, Mr. Knox declares that the margin of profit is very small. He had informed Mr. Holman that he expected 4 per cent, profits on Javan sugar in bond, whilst the distributing trade r&ceived from the company 6 per cent, discount for merely selling the sugar. He denies that any trader or manufacturer was ever debarred .from buying the company's sugars at list prices and discounts.

To enable the reader to follow Mr. Knox's points, Mr. Hughes's criticism of the companr is appended:—"The Colonial Sugar Company has secured control of the market- and prevented all effective competition. It has made hug® profits and built up great assets which are hidden from public scrutiny by means of ingenious methods. It swallow* the lion's share of a great Australian industry, and has treated grower, distributor, and consumer with contemptuous indifference. The oompany knew of the impending shortage when on one else did or could have, but it neither took steps to meet it nor to discloss the information until the price had risen and opportunities for freight became still more restricted. Then, when the community, as it thought, was helpless, it spoke, assumed an air of great concern, and offered to come to the relief of the people provided it could be assured of its profits. Had the publio been notified, arrangements could liavo been made for meeting the shortage on much more advantageous terms." Mr. Hughes alleged that six days before it notified Mr. Holman (Premier of New South Wales) of a shortage, the company exported three thousand tons to Canada.