COLONIAL SUGAR EXPERT'S EVIDENCE

Star (Christchurch), Issue 19237, 26 November 1930, Page 1

COLONIAL SUGAR EXPERT'S EVIDENCE

TELLS COMMISSION OF THE COMPANY’S PROFITS. (United Press Assn.—B.v Electric Telegraph—Copyright.) (Received November 26, 8.30 a.m.) SYDNEY, November 26. Giving evidence before the commission inquiring into the sugar industry, Mr Henry Goldfinch, general manager of the Colonal Sugar Refining Company, said that during the past three years the company had earned 7.5 per cent interest on the capital cost, which had been written down, and was about half the cost of replacing the mills today. The profits amounted to not more than 14s 9d a ton of sugar refined. The company provided an organisation for selling in Australia at a charge of seven shillings a ton, which was less than 1 per cent, and as agents for the Queensland Government it financed the whole business in respect to Commonwealth requirements, except for 12,000 tons refined by the mill at Quinn at a rate of interest below the bank rates. Moreover, it financed the whole business in respect to surplus sugar gratuitously. The company had not taken part in the fixing of the price of sugar, nor had it sought to obtain any increase in the margins allowed for refining and selling. The working costs, wages and cost of materials were heavier than in any other country, and the rate of profit was substantially less. The mills were efficiently equipped, and were employing 90 per cent British labour. Witness added that the company had always treated Press criticism of the company with the silence it deserved, because such criticism was usually written by irresponsible people ignorant of the facts.