At the same time the government offered companies starting sugar refineries a bonus of six per cent per annum for five years on the paid-up capital, or a single bonus of twenty per cent of the value of the plant and equipment. Other enterprises were supplied with machinery by the government for five years; in other words, the machinery was bought with government money and the sugar company was given five years in which to reimburse the government. Cane lands could be acquired on very favorable terms, and any planter who was willing to bind himself to raise a crop of cane for five consecutive years was supplied with fertilizer by the government, free of cost. These privileges remained open until the early part of 1911, when they were abrogated. About the first enterprise to receive the benefit of this special legislation was the Taiwan Sugar company, incorporated in 1900 with a paid-in capital of 500,000 yen, which carried a bonus of 30,000 yen from the government. The company’s intention was to buy the cane from the growers and make it into sugar for the Japanese market. The factory was ready for business by the fall of the following year, but as soon as grinding was begun the Chinese farmers manifested a decided unwillingness to furnish cane. As a consequence, the sugar company determined to grow its own cane, and after increasing its capital to 1,000,000 yen proceeded to carry out this plan. Arrangements were made to turn out 30 tons of sugar per day during the grinding period of 150 days, but the first year’s results were only 1200 tons. Two factories near Tainan owned by Chinese were started about this time at the instigation of the government, and also with its assistance. Unfortunately, the operators did not understand how to use the modern equipment furnished them by the authorities. Further trouble arose in connection with the buying of the cane and there was constant friction between the factories and the government experts at the sugar bureau. So the venture proved far from profitable either to the factories or the industry. The Chinese growers continued to cling tenaciously to their crude method of grinding cane in their buffalo-driven mills, instead of selling it to the factories, and they obstinately refused to plant the new and more productive variety of cane, Rose Bamboo, imported from the Hawaiian islands by the government for seed purposes—this in spite of the fact that cane tops for planting could be obtained gratis at the sugar station, and that the substitution of the better cane entitled the farmer to free fertilizer, irrigation privileges and a money bonus.