The morning call., 1892-09-16


ite investment, the shares selling as high as
s67. This bright state of affairs did not con-
tinue long. Considerable money was ex-
pended In thoroughly eQuipping the planta-
rion In the Hawaiian Islands. untn there
was an Indebtedness of S1.l00, O00;
Alta critical time when the shares mad
fallen as low as % cents ClauS Spreekes
came to the rescue lie advanced the
necessary funds and TOOK the company
bonds at par for 81. 100, 600.
The paving of dividends was soon after
resumed and the shares gradually rose to
$40
Two years ago they began again to fall,
until Yesterday they were 0HeFeu as low as
from 10 10 10 cents.
This extremely low figure was caused by
the result of a conference held yesterday
morning between the stockholders OF the
company and the bondholdeT, to discuss the
situation.
A. 3. Spreckels, one OF the directors, pre-
sided.
A statement was read by E. II. Sheldon.
the secretary, showing receipts from July
10 September /, 1892. Of S34, 967, and expen-
ditures So, ,455. leaving an oVerdratt with
the treasurer of SAC, ,4SS. There was also SIX
months interest on $500, 600 bonds due Oc-
tober l, S31, 800, besides 500, 600 Tor estl-
mated expenses of running the plantation
for four months. to January !. 1893 These
three sums would mean an estimated over
QraIt at January l. 1882 u 80 JOO.
During the year 1850 tons u sugar were
received and sold for S406043. The cost OF
making this sugar was 02,240 loss OF
S294, 1877.
Claus SpreckeS explained the position of
affairs at the plantations on the Hawaiian
Islands.
There had been a bad drought last year
and the estimated yield Of sugar had been
in consequence 1000 tons short. Owing TO
the extreme drought this year the tops OF
the sugarcane on some plantation was faH-
ing to the ground, and the water dltches
were dry. No water meant no cane.
lie thought II best in the circumstances
TO have a conference with the stockholders
TO discuss what should be done.
In answer to a question Mr.. Spreckels
said il would not pay 70 raise a big crop Of
sugar at present market rates. The more
they produced the more they would get into
debt
He had carried the company through thus
far, but he could not DO so any longer. Since
the Mckinley bill made sugar free be failed
to see a way out of the difficulty. He did
not think there was any chance OF the duty
on sugar being restored unless some ex-
traoTdinary necessity should arise for money,
such as war or other unl0oked-for con-
tngencies.
If at the same time, work on the planta-
ti0ns was suspended the whole business
would be lost irretrlevably. as the cane
must be irrigated every seven days. An
other thing there were labor contracts for
two years with Japanese which had to be
fulfilled.
a stockhoder remarked that if they
should produce say 10000 tons OF sugar
next year at the same cost as this year and
sell 1t AT the same price they would lose
$3.50, 600 more and on January !, l894, they
would be in debt over S650,0O0.
Such practical way of putting it struck
home and another stOckhOldeT said despair
tDgiV ftIf levy assessment ma
viii pay it; if we keep on we will simply
get deeper in the mire. Our case seems
hopeless The best thing is to let Mr.
Spreckels foreclOse on the bonds"
This seemed 10 find an echo in the hearts
of the other stockholders and the confer
ence adjourned. But no definite course was
decided upon.
And this sad state of affairs belongs to a
company which since Its organization has
paid out $40 600 in dividends.