AUSTRALIA'S SUGAR SUPPLY

Otago Witness, Issue 3195, 9 June 1915, Page 63

AUSTRALIA'S SUGAR SUPPLY

STATEMENT BY ATTORNEY GENERAL.

CASE AGAINST COLONIAL SUGAR COMPANY.

MELBOURNE, May 26,

In connection with the threatened sugar shortage, a special Gazette under the War Precautions Act has been issued, giving the widest possible powers to officers of the Attorney-general’s department to inquire into matters relating to the sugar question, including the right to search for and impound documents, and arrest if necessary.

Replying to questions in tho House of Representatives, Mr W. M. Hughes (Attorney-general) said the Government was bound to ensure a supply of vital foodstuffs. It was alleged by a big combine that there would bs a shortage cf sugar at the present juncture. No question was of more vital importance, and the Government had exercised its powers and taken steps to ensure an adequate supply. In a letter published in the press to-day Mr Knox, general man sr of the "Colonial Sugar Company, says ; ' With reference to the threatened sugar shortage, it would be of interest to the public to know whether the authorities are attempting to stop ns from obtaining supplies from Java by preventing the despatch of cables thither. On the 20th inst. we received an offer of sugar, and on the same date replied accepting it as far as the sugar available in July was concerned. We again cabled for a reply, but received no answer. We can only assume that it also is held back.’ 5

Mr Knox concludes : “ It would be interesting to know if the object was to bring about a shortage which we wished to prevent.”

May 26

When questioned in the House, Mr Hughes said it was not true that the Government had refused to allow Mr Knox to get supplies from Java.

May 30,

Mr Hughes states that the common wealth sugar shortage is estimated at 16,000 tons. The present stocks will be exhausted by the end of July, but the Colonial Sugar Company has made arrangements to import sufficient to meet the shortage. The first shipment of 13,000 tons is due in the middle of July. May 31.

The Federal Attorney-general {Mr W. M. Hughes), in a lengthy statement to the press covering the sugar position, sets forth that arrangemests have been made with the Colonial Sugar Company to import sufficient supplies to cover the shortage. These will be sold at £25 per ton, and the import duty of £6 per ton will be suspended during the importation period. Summing up the position, Mr Hughes declared that the Colonial Sugar Company had secured control of the market, and prevented all effective competition. It had made huge profits, and had built up great assets, which were hidden from the public scrutiny by means of ingenious methods. It was swallowing the lion’s share of a great Australian industry. It treated grower, distributor, and consumer with contemptuous indifference. The company knew of the impending shortage. No one else knew, nor could have known. But the company neither took steps to meet it nor to disclose its information until the price had risen and opportunities for freight had become still more restricted. Then, when the community was, as it thought, helpless, the company spoke, and assumed an air of great concern. The company offered to come to the relief of the people, provided , the company could be as to its profits. Had the public been notified, arrangements could have been made for meeting the shortage on much more advantageous terms. Mr Hughes alleges that six days before it notified Mr Holman of the shortage the company exported 3000 tons of sugar to Canada.

Mr Knox, managing director of the company, promises a reply to Mr Hughes’s statement.

SYDNEY, May 27.

In the House of Representatives Mr W. M. Hughes (Attorney-general), in reply to questions, saiid that Mr Knox’s cable accepting an offer of 2500 tons of Javan sugar at a price something over £ls per ton. was delayed for 24 hours. No others were delayed. He explained that Mr Knox said that 11,000 tons had already been bought, and the Government was endeavouring to ascertain the circumstances of the purchase, so that, it might know whether the price asked by Mr Knox was a fair one. He added that, as the result of his inquiries, Australia would be supplied, for the Government could ensure a full quantity of sugar.

May 28

Mr Knox, general manager of the Colonial Sugar Company, in a letter to the press regarding his cable to Java ordering sugar, declares that one cable was held up for two days, and as a result of this detention the sugar was reoffered at a higher price, which he could only accept because the company was bound by an arrangement with the New South Wales Government to provide a supply during the shortage period.

May 29. The Colonial Sugar Company has assured

the Hon. Mr Hall that it has completed purchases of sugar which will overcome the shortage. June 1. On behalf of the Colonial Sugar Com* pany, the managing director (Mr Knox) has replied t-o Mr W. M. Hughes’s statement as to the sugar position. He says the Colonial Sugar Company wrote to Mr Holman (New South Wales Premier) five weeks ago, pointing out a probable shortage. Mr Holman replied that he deemed it necessary to see Mr Knox, and subsequently a series of letters passed and interviews were held, but the company wai still without official confirmation of thi understanding to purchase £250,000 worth of Javan sugar. He newer proposed or said anything in favour of a remission of duty.

Mr Knox traverses Mr Hughes’s statements that the company was aware that there would be a shortage, which they could have averted. Not till April 20 was the company aware of the position, and Mr Holman was informed on April 26. The company sold 3000 tons of sugar to Canada on March 12, before a shortagu was apparent. Now the company had to import sugar at £4 per ton above what Canada had paid for the shipment. Mr Knox contends that probably the company could have bought at a less price than it was paying for Javan sugar if the New South Wales and the Federal Governments had taken the company’s warnings seriously and not delayed negotiations. Dealing with Mr Hughes’s statement that handling imported sugars was one of the company’s chief sources or gain, Mr Knox declares that the margin of profit is very small. He had informed Mr Holman that he expected to make 4 per cent, profit on the Javan sugar in bond, whilst the distributing trade received from the company 6 per cent, discount for merely selling the sugar. He denies that any trader or manufacturer had ever been debarred from buying the company’s sugars at the prices and discounts appearing in the company’s list.