The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1895-05-03


from Honolulu, is in the city on 6
brief visit, and when seen at the I'M
perial last evening, talked very enter
tainly for an hour on the Hawaiian
situation, and the sugar industry al
the Islands, says the Portland Oregon
ian of April 18th. He is thoroughly
| familiar with both subjects, being
connected for years with one of the
largest sugar-growing and refining
| concerns there. Mr.. Lovekin came
up on the Alameda's last trip, and
reports everything quiet in Hawaiian
politics since the discovery and frus-
tration of the recent plot against the
Government. Referring to the sugar
industry, he said:
"Like all the great staple products
of the world, at the present time,
sugar is far from profitable, generally
this great product of the Islands is
practically in the half-cent allowance
by our reciprocal relations with this
country. Without it, we could not do
more than to just manage to keep
even. The planters in sugar. produc-
ing countries, such as Cuba, that have
no such advantage, are making moth
ing, if indeed they are avoiding loss.
But the half-cent secured by the treaty
of reciprocity with the United States
enables the Islands to be fairly pros
porous. The last crop was large, and
the yield of the refneries Is up to the
average. AS you are doubtless aware,
tax thfeAs mRg t5ta1 trust BY contract
for the five years from 1898 to 1898.
Most of the sugar comes through San
Francisco, although the trust has been
shipping 25 per cent. of the product in
clipper-ships around the horn during
the past year.
'The Islands produce the best sugar
in the world in the raw state. We
make a grade that polariZes at 9S, the
standard for the best refined sugar be-
ing 100. The average throughout the
country polarizes at 96. 1t is practic-
ally the only developed industry there,
and in importance and amount of cap
ital invested, it far Overshadows any
other industry.
''The Islands are as undeveloped in
other respects as the Pacific States.
The sugar plantations merely occupy
narrow fringe along the coast, while
an immense stretch of territory inland
is practically untouched, and affords
splendid opportunities for settlers with
little capital. These lands will pro-
duce fruits and grains of all kinds and
in the greatest abundance. All the
products of the temperate zone, as
well as those of the tropics, can be
raised with success in the proper loca-
tions. This is owing to the tOpOgra-
ply ofsthe country, making a variety
of climates at different elevations. At
IS, 900 feet the climate is frigid. The
country needs large number of small
farmers, those who can handle from %
to 80 acres each, working their planta-
tions themselves. The coffee industry
offers great inducements to settlers, as
very many are engaging in it. We
raise the finest coffee in the world. 1t
brings now in the London market 2
cents more than any other, not accept
ing the Mochas and Javas. There are
already thirty coffee-grOwers to one
sugar-planter at the Islands, but it
should be remembered that it takes at
least $500, 900 capital to engage in the
sugar industry. It requires a large
tract of land, and every thing must be
done on an immense scale in order to
make it pay. You will understand
this when / explain that it costs $780,
900 to put IN mill and appliances for
TGuDlDH1 anu LuGA large COIpS vi
skilled men, including a competent
manager, engineers, operators, ETC.,
have to be employed. This equipment
| can handle an output of 10000 tons as
easily as an output of 5000 tons, conse-
quently the more extensive the plan
tation, or larger the product, the less
comparative expense. The tendency
recently has been to combine as much
| as possible. For instance, the COM
pany with which / am connected owns
several plantations, and is capitalized
with a stock of 100000. Almost
every enterprise at the Islands is on a
| joint stock basis. All the sugar con-
Germs are capitalized at from $3.50, 900
| to $4,000, COO The average is from
| $3.50, 900 to S750,000. By this method,
| you see, the man of small means is en-
! abled to make his pro rata profit with
| the millionaire. a man may invest
| $1,000, and his percentage of profit is
| just as great as that Of the man who
| invests 100000. We have no stock
! gambling there. a great deal of the
| stock is very valuable, some of it
| steady at from $50 to I75 Our concern
| cleared last year a little over 20 per
cent. on its capital stock, which is up
| to 200.
| "Of course, annexation to this coun-
try is the great desire of the infiuen-