BEET SUGAR INDUSTRY.

Marlborough Daily Times, Volume X, Issue 314, 28 May 1888, Page 2

BEET SUGAR INDUSTRY.

By J. Salatnay. estimated returns and EXPENDITURE Cd!' A FACTORY IN NEW ZEALAND. We have now arrived at the financial question, which, naturally, arises when the establishing of a factory is contemplated. As a basis of tho subsequent considerations, I will take a factory of a description previously given, capable of working up 210 tons of beet roots in 24 hours, aud I will suppose that the working season will last only 100 days. The first thiug to be considered is the cost of purchasing the site, erecting the factory thereon, aud fitting it out with the necessary w orking plant. This will amount to L-15,000, being mado up of tho following items : Land, factory buildings, stores, boiler settings, foundations for engines, drains, lime kiln, offices, dwellings, weigh bridge, electric light installation, fencing, &c. £22,000 Complete working plant, including all the apparatus, boilers, engines, piping, valves, shafting pulleys,belting, elevators, transporters, all complete, f.o.b. in Europe .. .. .. 19,500 Freight, insurance, duty, and cu-tage of plant; cost of fixibr and connecting same, leaving the whole meoham- ul ready for work 3500 Totai .. .. £45,000 This estimato i> reliablo. The first item for land and buildings, &0., probably is a little q excess of the actual oxpenses una r qfig fieadin‘g but I think I am j unified in allowing here a certain margin f or incidentals. The second item, for tho efco., ia taken from a definite offer s ono 0 £ tho la?’gcst European sugar engine,q n g. firms, which would undertake to dc.yQj. the complete working plant aud aocggorigg at this figure, free on board, under obtain, extensive guarantees for its quality working capacity. The last item, I think, will be readily admitted. . Besides the cost of erection and installation of the works, there should bea working capital of, say, L 15.000, which will make a total sum of LGO,OOO invested in the undertaking. I have no doubt that, with such high figures staring in the face, many of the readers wilt consider it hopoless to think of raising such a large sum ; but, after all, the matter is not as formidable as it seems, and I will give it .some further consideration in a subsequent place. Before entering into the question of working expenses and returns therefrom, I will °remind the reader of “ The Beet Root Sugar Act, 1884,” in which our Government offers very substantial inducements towards the establishing of tJp beet sugar industry. This Act, which has been in force since January Ist, 1835, and will lapse on December 31st, 1899, provides as follows :

1. A bonus of one halfpenny per pound to be paid for the first one thousand tons of sugar. 2. The excise duty eventually levied always to be one halfpenny loss than tho import duty, and 3. If the import duty ho reduced or removed, tho manufacturer to be paid a bonus in equivalent. For the subsequent schedule of expenses and returns I will, for obvious reasons, not include the bonus held out by this Act (amounting to LIGGO 13s 4d - for the first 1000 tons of sugar); but should the eventual Wairau factory be fortunate enough to get this bonus, the sum may. bo well applied to extensions of the kmiV. or otherwise. Tho other the Act will, for the next ten years, not influence the financial results of the factory’s operations. I will now proceed to put before the readers a schedule of estimated expenditure and returns arising in connection with the working of a factory, under tho above mentioned conditions, viz., a -working season of only one hundred days, and a capacity of 210 tons of beet root per diem : EXPENDITURE. 1. 21,000 tons of beot root at 1G5...£17,C00 2. 3780 tons of coal at 2Gs ~ 4014 3. Lime stone, sulphur ... 1000 4. Labor • •: f 5. Management .. •• •• 6. Sundries... •• 4000 7. Depreciation of buildings and plant .. .. , .. •• 4500 Total of expenditure <. £40,39-1

RETURNS. 1. 1785 tons of sugar at £23 .. £41,055 . 10,000 tons exhausted slices at 4s 2000 3. 630 tons of molasses at £5 .. 3150 4. Scum cakes and other refuse., 900 Total of returns ... 47,105 Deducting the expenses from the returns, we find a net profit from the factory’s operations of LG7II, which it< equal to 11T85 per cent of the invested capital ot sixty thousand pounds. This result, everybody will admit, is highly satisfactory, and in order to show that it is arrived at in a by no moans , sanguine or unfair way, I will ask the « reader to follow me through the aingl ■ items of the above schedules. EXPENDITURE. Beet Boots— The price of the raw material (beet roots) I have put down at 16s per ton. As I have mentioned in a previous article, several years ago the Waikato farmers were willing to supply beet roots to a factory then contemplated at 15s per ton. I believe, however, that although our farmers, no doubt, would be agreeable to a similar price as well, yet an additional shilling will offer more inducement to cultivate this crop. I must mention that the roots should be delivered into the factory free from any adhering soil. If such is not the case (e.g., when the roots aro taken out of tho ground in wet weather) it is customary to ascertain the average quantity of soil adhering, and to pay only for the actual weight of the roots.

2. Coal. —The quantity of good coal consumed by beet sugar factories of the like working method as I have described, avorage* about 14-15 per cent of tho worked up beet roots, (readers will remember, that on a previous occasion, I have quoted the instance of an Austrian factory, which required only 11.5 percent of coals.) In order to meet any price fluctuations and other emergencies, and allowing for tho privato requirements of the managing staff, etc, who always are living on tho premises and enjoy free fuel, —I took the coal consumption at 18 per cent, 3780 tons. Its cost I put down at 26s per ton, which is tho price, tho Llenheim Corporation Gasworks aro supplied at but I believe, that in the face of the large quantities required in our case, a lower price may be anticipated.

3. Limestone and Sulphur.— There are LIOOO for this item inths schedulo, which gum is intended to provido the limestone and sulphur for the saturation process. The amount of sulphur required will be 2-3 tons, involving an expenditure of about LGO ; and tho necessary quantity of locally procurable limestone will not exceed 850 tons; the above figure therefore provides amply for these materials.

(To he continued.)