COLONIAL SUGAR COMPANY

Otago Daily Times, Issue 18867, 21 May 1923, Page 8

COLONIAL SUGAR COMPANY

financial readjustment. Speaking at the half-yearly meeting of the Ooiomal Sugar Refining Company, field in Sydney recently me chairman (Air L. W. Knox; said that owing to the low rainfall a reduced yield this year was inevitable. 'ifie commonwealth's connection with the company could not be severed until the stocks now in store had been refined and sold, wiucn would not be before September. There were various questions to settle, such as the embargo on importations, the price to be paid lor the sugar, etc., on which there was difference of opinion. Still no reason existed why a fair arrangement should not bo made, with due regard to the rights ot the consumer. With reference to the liquidation of the Fiji company, he had to state that, after paying off the pieieronce .shareholders, it would be possible to divide among the proprietors of the parent company—as owners of the ordinary shares —a portion of the cash assets not required for the conduct of tiie business in and outside Australia. Accordingly it was proposed to pay to the shareholders who are on ,tlio register os owners on the 15th inst. £2 per share, and this would be paid by the liquidator on 31st May in cash. In addition, and from the same source, the ■ board proposed to restore the capital reduced in 1920 by the amount of £6bO,OGO then returned. The board of the, company will that day make a call of £4 per share, payable on 4th Auguse, and unless any proprietor gave instructions to the contrary, that amount would be paid by the liquidator to the credit .of each sareholder in respect of each share standing in his name on that date, and the whole of the stock would thus be again fully paid up, additional working capital being provided in that way. Both those payments (£2 and £4 per share) were in respect of the capital interest of the parent company in the Fiji and New Zealand institution represented by the ordinary shares possessed by the former. The remaining assets woulu be transferred by the liquidator direct to the parent company, and the effect would bo that the business would then resume the position existing before the'separation into two companies eight years ago. During these years they added to the capital accounts about £270,000, and the transfers in cash and securities would strengthen the business; but it could not be said that things in Fiji are in 1923 what they were in 1916. Then, the plantations were in good order with an adequate labour staff, under conditions that enabled the company to sell its sugar against that produced in Java; now, much would have to' be done to bring back the cultivation to a proper level, and little could be effected in that direction yet, for there ’ was still the uncertainty about procuring Indian labourers, without whose aid an adequate supply of cane to the mills could not; bo maintained.

The report and balance sheet were adopted.

.. .Owing to advancing years Sir Charles MacKellar has retired from the directorship of the- company, and did not seek re-elec-tion.’ The position was filled by the election unopposed of Mr E, R. Knox, nephew of the present chairman, Mr E. W. Knox. Mr H. V. Dixon was appointed to ■ the position of general manager in place of Mr W. H. Rother, who has retired after 44 years’ service with the company. The new general manager has been in the company for 36 years.