COLONIAL SUGAR GO.

Taranaki Herald, Volume LXIII, Issue 144669, 1 May 1915, Page 7

COLONIAL SUGAR GO.

HALF-YEARLY MEETING. BI ELECTRIC TELEGEAm—COPYRIGHT. SYDNEY, April 30. At tho half-yearly meeting of the Colonial Sugar Refining Company the report, which was adopted, showed the net profits at £272,707, to which was to ho added tho balance of £1.65,890, making a total of £438,598. A dividend of 5 per cent: for the half-year was declared, making 10 per cent, for tho year, and a bonus of 5s per share, leaving a credit balance of £235,473. Mr. Binnie was re-elected a director.

Tho report stated that the production was a-record, tho Fiji portion being equal to tho Australian. The prevailing drought will cause a heavy diminution in next season’s output. It will be unnecessary to add to the capacities of tho refineries for several years. Tho chairman’s speech referred to tho action of tho Commodities Board in disregarding tho market values in fixing the prico of sugar. Tho continuance, of the drought made it certain that the Commonwealth could noc produce all the sugar needed till the 1916 crop was available. The existing stocks would be exhausted before the end of July, and because of tho late start that must be made, and with a small crop, the supply for August was not in view, unless it was immediately bought from other countries. 1 XTulor normal conditions the situation caused 1 some little trouble, hut now, with a. maximum price fixed of about £8 below the raw sugar producing rate, the position was more difficult. After outlining the effects of fixing the prices, he declared that in Australia the company not only failed to derive any advantage from the sale of its surplus sugar, but the expenses had increased, and the rates fixed by the Commodities Boards prevented bringing the rates of refined sugars back to the June level. From New Zealand there was a bolter return, but the net gain on the whole of the Australasian business, excluding shipments to Europe, was only 5s or o‘s a ton. Tho construction of tho Largo steamer ordered by the company had been delayed owing to tho Admiralty taking over the yard, and it was not expected the company would ho able to use the vessel this year. Fifty-seven of the company's officers ami 95 of its wage-earners had enlisted, and the company was keeping tho positions open, paying the absentees’ subscriptions to tho provident fund, and making good the difference between the military pay and thoir salaries. At a' subsequent special mooting tho shareholders adopted tho proposals for tho formation of a new company. These provide that the existing Colonial Sugar Rofining Company sells to a new company all its Fiji ami New Zealand assets, ' including goodwill, as from March 31 last, for £3.250,000, the existing company having the right to take up 12.500 ordinary contributing £2O shares, also 102,500 preference £2O shares, hearing a fixed cumulative preferential dividend of 0 per cent., ami ranking as preferential with regard to capital in tho event of winding up. The new company is to create a dividend reserve fund of not loss than £200,000 for tho sole pumose of equalising tho dividends payable on the preferential shares. No greater dividend is to be paid on ordinary shams till the full amount- of reserve is created. Tho existing company is to undertake the management of the new company on terms to ho arranged. 'The Chairman explained that tho preference shares are to ho made available for the existing company or its nominees.. Tho existing company would nominate its various shareholders, who arc to receive one share in tho now' company for every ordinary share held by the existing company. A formal meeting of shareholders of the new company is to ho called to authorise tho issue of shares, and for deciding on which register (Sydney. Suva, or Auckland) holdings should he recorded. Tho first dividend for the six months ending September 30 is to be paid at the end of October. The title of the now company is to be the Colonial Sugar Rofining Company, Ltd., of Xriji and NonZealand.

THE SHORTAGE OF SFGAR. REFERRED TO COMMODITIES BOARD. (Received May 1, 9 a.m.) SYDNEY, May 1. Tho Premier submitted to tho Commodities Board tho Colonial Sugar Company’s letter pointing out that all available stocks of sugar in Australia would be exhausted by August and the necessity of importing from Java and elsewhere and the inability of the company to meet tho emergency owing to the board fixing such prices as would leave* a loss of probably £7 a ton When importing sugar. It declares the matter is urgent and of importance.