The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1892-09-24
GLOOMY REPORTS.
The Hawaiian Commercial Com
pany's Stock Away Down.

A meeting of the stockholders OF
the Hawaiian Commercial Company
was held on the 18th inst. in this
city. saws the S. F. Chronicle.
Secretary Sheldon presented
table of receipts and disbursements
from July 1st and an estimate OF the
cost of continuing until the end Of
the year: Cash on hand July l.
1892, S2,37S; received from sales OF
sugar since July 1, 1892, S31, 1926; in
terest and sundry rebates, $971.
Paid out: Drafts of W. 6. Irwin &
Co., Honolulu, $4,000; plantation
expenses paid in San Francisco,
S25, 455; overdraft with Treasurer,
September /, 1892, S40,4S8; total,
S75,455. Recapitulation: Overdraft
with Treasurer, September /, 1892,
S4O,4S8; six months interest on
100000 bonds due October l, 1892,
S31, 500; estimated expenses of plan
tation to January I, 1893, 100000;
estimated overdraft January l, 1893,
S271, 1888.
Claus Spreckels was called upon
for a statement of the result OF his
inquiry into the company's affairs on
a recent visit to the islands. He said
that the situation just now was such
that the more sugar the company
raised the deeper it would be plrng-
ed into debt. "This year the drou ,ht
is nearly as bad as last" he said,
''and then the crop was 1000 tons
short. The bitches are all dry now,
and on some plantations the cane
tops are falling to the ground for
lack of water. If there is no water
there cannot be any cane, and it will
take good deal of money to keep
going until g. begins in Jan
uary. Affairs are at such stage that
there are plantations whose owners
would have saved money had ttey
burned their mills year back. EpE,
gentlemen, you are aware that took
81, 100000 Of the company's bonds at
par. | have carried the company
thus far, but cannot do SO any
longer. Now that the Mckinley bill
makes sugar free [ don't see how we
can get ont Between the drought
and the Mckinley bill we are wound
up"
l. ) Il sc advised partial suspen-
sion of operations until it became
profitable to resume, but to this Mr..
Spreckels replied: IF you suspend
now, your whole business will be
gone. TIE cane must be irrigated
every seven days. Besides, We have
labor contracts with japanese lasting
two years which must be fulfilled. In
my opinion there is little prospects
of the duty on sugar being restored,
and there is very blue outlook at
the islands"
There was some desultory discus
sion Of the desperate situation, in
#AiSSeea afffRo@ing Nj. spfeckers to
foreclose on the bonds and assume
the burden before the company's
debt became any larger. No definite
plan of action was decided on before
adjournment, and the matter was
left in the hands Of the directors,
who will soon decide whether to
attempt to levy and collect assess
ments or allow the company to 60
into liquidation. One of the stock
holders declared that no one would
pay an assessment il levied, and in
this lie seemed to be upheld by the
prices of Hawaiian Commercial in
the Stock and Bond Exchange. It
was opened at 40 cents in the morn
| ing, and was offered as low as 121
in the afternoon.
All the disaster has come about in
less than two years. time. Prior to
the taking effect Of the Mckinley
bill, and last summers drought, the
company had paid dividends amount
ing to S850,000, and an immense
amount was spent in improving the
property.
Vice President Spreckels said,
after the meeting, that the fate of
the company had not yet been deter
mined. His fathers interests were
too heavy to permit the plant and
crop to go to ruin, however, so that
the continued operation of the plan
tation and mills were assured for
time at least, assessment or no as
sessment. The interest on the bonds
held by the elder Spreckels is due
on the 1st proximo; but whether he
will foreclose to protect himself or
not has not yet been determined. It
was the money for these bonds that
pulled the company out of its former
slough of despond and restored it to
dividend-paying basis again.