The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1886-01-02
PROSPECTIVE RETURNS OF THE COLO
NIzATION SCHEME.


temporary presents some OF the
sources of profit to investors, and
advantages to settlers, held in pros
pect by the promoters of the cha
waiian Colonization, Land and
Trust Company" For the inform
alton of our readers we summarize
the leading facts. The Honolulu
territory, of which the company has
the refusal, contains 1900 acres of
land suitable for growing sugar
cane. OF this amount 1000 acres
are comprised in plain requiring
artificial irrigation. TO effect that
object artesian wells are proposed
for the portion lying at an elevation
not exceeding thirty-five feet above
sea-level, and a series of dams, in
natural gulch, for higher levels.
Both means are proved feasible be-
You'd any reasonable doubt, by the
complete success attending their
adoption, under similar conditions
and in contiguous areas. Their
estimated cost, for this company's
purpose, is S125,000. When the
land is furnished with watering
facilities, it is assumed that at least
from $500 to 5000 acres will be
occupied by responsible cultivators
of sugar cane. The cane would be
raised on shares, in the proportion
of, say, five-eighths to the planter
and three-eighths to the company.
Milling facilities, with transportation
of cane to mill and sugar to place of
shipment, should be provided by the
company, while the planters should
do the harvesting and loading. -Four
tons to the acre is the very lowest
estimate of the soils productive
ness, but experience dictates a
higher figure by two or three tons.
Taking the smallest amount of both
land and yield, however, we have
$500 acres producing an aggregate
of 10000 tons of sugar. OF this
the. company's share would be 81
$50 tons, worth, at present value,
1915, 900 net. AS to the cost of
accomplishing the result just given,
the author of the article herein
drawn upon presents the following
statement:-
Cost of 3O-ton mill, say. $3.50, 900
Cost water supply for mills and
dams. '.........'.''' lZo,ooo
Cost tramway and cars for trans
porting cane and sugar, say. 25,O0O
Total estimated outlay. $500, 900
On this estimated outlay of $780,
900, which, he explains, is a liberal
one, the following reductions are
allowed:-
| Interest at percent. $4,000
| Wear and tear on mill and
tramway, and repairs to dams,
| say............ ............. 2S,O0I
| Current expenses, taxes, insur-
ance, etc ................... 1J,OUt
| Total annual expense. ....... $50, zoo
Ultimate results are thus deduce6
from these figures: eff this amount
for annual outlay under every legit-
innate head of expenditure be de
Quoted from 1915, 900, the value O.
a seasons sugar crop, there is lief
balance of S245,000 and interes
of 8 percent on investment. This
is calculated on the basis of existing
prices. But suppose that the price
of sugar should drop 40 per cent.
or cents per pound, as an extreme
limit, which is very unlikely, Their
would be S150,000 to write off tn
value of the sugar crop, reducing
the 1915, 900 estimate to S225,000
Now, deducting from this sum o
1925, 900 the estimated expenditure
of $3.50, 900, there would remain
net profit of S95, 900 and interest a
8 per cent. on the investment
making total income ON the in
yestment of $122, 900 per annum.
| 1t is asserted that most, il not all
-, f"t' ~