, 1896-06-03
ARE THE SUGAR ESTATES RUINED?
From the Demerara ArgoSy.)

\G'N
-
From the Thirtieth Report of the Colonial
Company, presented to the General Meeting
on the 23rd of last month, it appears that
the prospects of sugar cultivation are not
quite SO black as they have been painted.
True. no dividend was declared, but if it
were not for q loss on a mortgage there
would have been a small balance to the good.
The company has 1903 acres in canes in
British Guiana, 1923 in Trinidad, and 274
in Barbados. besides plantations Of cocoa
and cocoanuts, and allotments in Trinidad.
The Directors arr pleased at the slight rise
in the price Of sugar and believe that if 1t
c%ontinuc, the estates will ..pay. and this is
proved hy the fact that while the average
net price Of sugar last year was &9 los. Id.
per ton the cost of production had been
reduced to 80 Is. 4d. Excepting the year
1894. when the cost exceeded the returns,
every year of the last seven has shown q
steady decrease, but the profit has neverthe-
less been as steadily becoming less. In 1889
the difference between E15 lis. Cd. and
&l2 Os. 4d., i. e., a profit of &3 lis. i'd.
per ton, WAS something to be appreciated,
but the year following it amounted to less
than ,fl. Undoubtedly this goes to prove
that sugar estates have sunk very low, still
there is vet room for hope. The company's
estates reduced the cost of production last
year to the extent of &3 0s. Cd. per ton
possibly it may vet be further reduced this
is very encouraging.
in this connection it would be we'll to look
back on the ; good old times, when musco-
vado sugar fetched sixty shillings a hundred
weight. These were indeed the Palmy days
of planting, but with the cheapest of all
labour, that of the imported African, sugar
could not be turned out at anything like
nine shillings. In 1912 the planters were
ruined when the price fell to "a shillings
and they began to petition for open markets..
But. they again recovered by the practice
of economy and went on swimmin2ly until
1890. when he cry of ruin was again raised.
In 1881 the average price was only 23S. 3d.,
while the cost Of manufacture lbs. Sd,
and bringing to market IS. Cd. total
24s. Cd. showed a loss of I'd. per hundred
weight. This cost of manufacture was made
up by taking reports from different colonies,
which ranged from lis. I'd. to 81 IS. Sd,
and it may be seen that the lowest was
higher than that of the fine vacuum pan
CRYSTALS of to-day. At that time the British
Parliament granted a million sterling in the
shape of loans, and for a year or two, after
q rise IN the H1dIheGJ Clle plaulolS again went
on fairly well.
With the emancipation, however, the dark
cloud came again, and this time tn, re was ITO
mistake it was not a mere cry of ruin. but
the thing itself. Coming to a crisis in 1912,
it eliminated when the differential duties
were taken off in 1916. BY returns made in
1841, it appears that the average cost of q
hogshead Of sugar was $98.S1. and this was
sold for s86.40 (918) Next year sugar
was Ell lower and the estates fell into such
a serious condition that very few had the
shadow of a hope. In 1849 the whole sugar
production gave a return of only So. 076, 100,
and this was estimated to nave cost
So, 100000.
Yet from this, the utmost verge of ruin,
the plantations recovered, and they did so
mainly by reducing the cost of production.
Machinery and labour, saving appliances, to-
gether with a fair supply of labour, tended to
produce a better quality of produce at a much
cheaper rate. The output of sugar gradually
reached its first dimensions, then every wear
showed a steady increase, until it more than
doubled that of the good old times" Estates
paid we'll in mos. cases, and as long as this was
the case little attention was given to the cost.
But, when in 1884, another cry of ruin"