COLONIAL SUGAR CO.

Hawera & Normanby Star, Volume LXIX, Issue LXIX, 1 June 1915, Page 7

COLONIAL SUGAR CO.

MR KNOX REPLIES TO ALLEGA-

TIONS

BY CABLE—PEESS ASSOCIATION—COPYEIGHT. (Received June 1, 12.30 p.m.) SYDNEY, June 1. Mr Knox, in his reply to Mr. Hughes' statement on the sugar position, says the Colonial Sugar Company^ wrote to i Mr Holmsn five weeks ago pointing out the probable shortage, andMrHolman replied that he deemed it necessary to see nun. Subsequently a series of letters pnssed and interviews were held, but the company was still without official confirmation of the understanding j to purchase £250,000 wor-th ofJavan sugar. He never proposed nor said anything in favor of a remission of duty. Mr Knox traverses Mr Hughes' statement that the company was aware there would be a shortage which could be,! averted. Not till April 20th _ was the •company aware of this, and it informed Mr. Holman on the 26th. It sold the 3000 tons of sugar to Canada on March 12th, before the shortage was apparent, and would now lyive to import at £40 per ton abov-e what Canada paid. Mr Knox admits that probably the company could have bought at less ! than it" was paving for Javan sugar if i the New South 'Wales and Federal Gov--ernments had taken its warnings seriously, and not delayed the negotiations Dealing with Mr Hughes' statement that the handling of imported sugars was one of the company's chief sources of gain, Mr Knox declares that the margin ,cf profit is very small. He had informed Mr Holm an that he expected 4 per cent, nrofit on the" Javax; sugar in bond, whilst the diatribnti^f trade received 'from the company 6 per cent, discount" for merely selling the -sugar. He denies that any tracer or. manufacturer was ever debarred from -buying the company's sugars at list ipri'ces and discounts.