107 



season. There has been much argument as to the most economical size. 

 Doubtless, if the factory were the only point to be considered, the larger 

 the factory the greater the economy in working, but in most instanc js 

 the capabilities of the district in which the factory is to be placed, the 

 quantity of canes available, and the conflicting business interests of 

 estate owners, all have to be taken into account in preparing plans for 

 any central factory scheme. From want of correct appreciation of these 

 local points there is often a tendency to suggest factories which may be 

 found to be too large for the district in question. It is important to 

 ascertain what cane supply can be actually guaranteed, or relied upon; 

 then to design a factory capable of dealing with these canes and at the 

 same time capable of having its capacity so increased that any reason- 

 aole development of supply may be dealt with without incurring great 

 additional expense. The additions to the factory's capacity need not be 

 made unless there is good ground for thinking that they will prove 

 remunerative, whereas if a factory too large in size is erected the char- 

 ges for interest and maintenance may prove fatal to profitable working. 



(11) How the capital is to be procured and the amount to be pro- 

 vided are themes for much discussion. If the cane growers who can 

 associate themselves together are able to provide the required capital 

 they will be able to procure a factory for the minimum cost and will be 

 able to work with a minimum amount of capital. Unfortunatel v this 

 condition is seldom met with in the West Indies. When capital has to 

 be procured from outside it will always be found in practice that rather 

 more will be wanted than in the case just mentioned, and the cost of 

 the factory itself will also be somewhat greater. 



(12) If central factories are erected by outside capital, it is of the 

 first importance to any colony that the basis of trading should be a 

 co-operative one. If this is not the case a condition of affairs may 

 arise whereby practically all the profits of the industry are sent away 

 from the colony, and the final stage may be more disastrous than that 

 now existing. Matters should be so arranged that those owning the 

 land and growing canes participate in any advantages arising from the 

 factory. Most modern schemes contain some provision whereby this i« 

 secured, this is usually made by providing that a portion of the cost of 

 the factory shall be paid off out of profits, and that ultimately the factorv 

 shall become the joint property of the capitalists and the cane-growers. 

 It will be seen that there is much scope for sound judgment in adjust- 

 ing the initial cost of the factory, part of which has to be paid off out ot 

 profits, and of determining what proportions of the factory and its busi- 

 ness shall ultimately belong to the capitalists and to the cane-growers 

 respectively. 



(13) Considerable difficulty has been experienced in ascertaining 

 what price should be paid for canes. In Queensland and in Egypt the 

 price is about 13/ to 14/ per ton. Where the cane-growers are ulti- 

 mately to become the owners or part-owners of the factory this difficulty 

 is minimised, for if a low price is paid for canes the larger will be tho 

 profit of the factory, and the sooner will a portion of the cost be paid 

 off, so that the cane-growers will then own a large portion of the factory 

 and directly share the profits. In most of the schemes recently put 

 forward in the West Indies it has been proposed to pay about 10/ to 11 

 per ton for canes delivered at the mill. 



