1 Nov., 1902.] QUEENSLAND AGRICULTURAL JOURNAL. 359 
was arrived at, and which method is explained in the Royal Commissioners’ 
report, Appendix C, Part I[1. (210) D—Note I. This reads as follows :— 
“As the produce of a muscovado plantation consists of two commodities 
viz., sugar and molasses—the method of finding a correct answer to the question 
“what is the cost of producing 1 ton of sugar’ is not very obvious. The 
following process, however, which was employed in arriving at the foregoing 
results, affords about the nearest approach to accuracy that seems possible 
under the circumstances: First, equate the molasses crop of any given year to 
sugar—that is to say, find the number of tons of sugar which was required to 
realise in that year the amount of money which was actually realised by the 
molasses crop; next, add the number so found to the actual number of tons of 
which the crop of sugar consists; then divide the total expenses of the 
plantation by the sum of those numbers, and the quotient will be the cost of 
producing 1 ton of sugar. 
Let us now adopt this method and see how this year’s crop works out. 
- Assuming that the sugar crop of the island will be 65,000 tons, we must 
add, say, 70 gallons of molasses per ton. This may seem a low average, but I 
have taken it inasmuch as a certain portion will be vacuum pan molasses, 
which is of very little value at the present moment. 
Dollars. 
Now, 65,000 tons sugar at 70 gallons - molasses will give 
4,550,000 gallons at say 8 cents per gallon 008 mK ... 364,000 
To hold this molasses, say, 38,000 puncheons, at 4 dollars... ... 152,000 
‘Total amount received for molasses crop oe iF dn ... 516,000 
The net ton of sugar, 2,240 Ib., at 1:20 dollars per 100 1b... ag 26°88 
Amount obtained for hhd.... ... foe és xi nat fe 5:00 
‘Total received per ton of sugar ... nox S00 cad on sex 3188 
This sum divided into the amount received for molasses crop will give an 
equivalent of 16,185 tons sugar at 1:20 dollars and 5 dollars, or, roughly 
‘speaking, 16,000 tons We thus have 81,000 tons sugar at £8 12s. 2d. cost of 
production, and not 65,000 tons. The 81,000 tons sugar at £8 12s. 2d. will 
cost to produce £697,275. The 81,000 tons at 31:88 dollars (or £6 12s. 10d.) 
will give £537,975. Therefore, loss on working expenses at 1°20 dollars and 
5 dollars will be £159,300 as against £48,000 as stated. Sugar having fallen 
-20 cents per 100 lb. means an increased loss of 4°48 dollars or 18s. 8d. per ton 
net. ‘This on 81,000 tons sugar gives an increased loss of £75,600, thus 
making a total deficit, unless prices improve, on the year’s crop of £234,900. 
We may have reduced expenditure somewhat since 1895, and, supposing we 
knock off the 12s. 2d. per ton, we save the sum of £49,275. This leaves still a 
deficit on cost of production of £185,625. Five cents rise or fall on 100 Ib. of 
sugar means in each ton net 112 dollars or 4s. Sd. A rise of 5 cents per 
100 lb. in 81,000 tons gives £18,900. 
By a “rule of three”’ sum it will be found that a rise of nearly 50 cents 
on 1:00 dollars and 5 dollars will be required to work off the deficit of 
£185,625. In other words, sugar would have to sell at 1°50 dollars and 
5 dollars to make good to the cultivator the cost of production pure and simple, 
and I feel convinced that every practical man that has charge of any estate will 
acknowledge that these figures more nearly represent the average island cost of 
production than 1°38 dollars and 5:00 dollars. Some estates favourably situated 
may take less, but others in laborious or bad-yielding districts will certainly 
require more. Unless prices improve we shall, therefore, have to face a 
probable deficit of £185,000; and no one can wonder that the merchants, who 
-are business men, hesitate to continue advancing to estates whether in Chancery 
or out of Chancery. It is to be hoped that the Imperial Government will see 
‘their way, by some tariff arrangement, to help us to pull through the interim 
till 80th September, 1903, the date of the proposed abolition of the bounties. 
