The San Francisco call., 1899-05-06
NEW AMERICAN
BANK Of HAWAII
Will Begin Operations
Shortly.
Special Correspondence of The Call.

HONOLULU. April 2S-Colonel George
w Macfarlane this afternoon gave out
the first definite details of the organiZa-
tion of the American Bank of Hawaii.
Of the $500 900 of the capital allotted
to Honolulu $1,000 is being reserved for
small investors The articles of associa-
ton go forward by this mail for sigma
ture by the San Francisco inCorpOrators.
P. n. Lilienthal will bring them back on
the next steamer. together with the requi-
site capital and Immediately on his ar
rival the bank wiA begin business.
A site for the bank has not been select
ed yet, but several building sites are un-
der consideration against a possible deci-
sion of the concern to have its own build
ing.
Fifty per cent of the first issue of $500 900
stock will be called up Immediately, the
remainder in two equal assessments when
required. 1t is intended to keep the stock
as far as possible out of the pool of
speculation. People who can bring bust
ness to the bank and bona fde investors
will be favored.
1t is expected to have the bank in opera
ton within eight or ten weeks. Until
Territorial laws are given the islands by
Congress the bank will be the fiscal agent
of the United States Government, after
ward being changed to the title and func-
tions of the First National Bank OF Ha-
waii A branch will be established al
Hilo forthwith, and when the business OF
Maui warrants it a branch will be started
on that island 1t is in contemplation also
to start q savings bank and trust com
pany as an adjunct to the American Bank
of Hawaii.
There will be no attempt to cut down
the rates of interest or to slash into the
business of other banks. 1t is felt here
that the rapid development of industry
constantly increasing since annexation
is sufficient to absorb all the capital that
more than one new bank might place
here.
The stock market has become still more
depressed The existing banks have prac-
tically shut down upon loans on stocks.
Many shares have been sold in old com
panies and in new ones that had enjoyed
a season of prosperity, with possible dlVl-
dendS two to four years IN the future IN
order to get in on enterprises now being
fioated so as to turn the money over
quickly on the almost inevitable rise:
Thus some large original holders OF
American Sugar Company. one of the
most promising of the newer propositions
in active operation, have unloaded TO
get in with the Kamalo corporation.
whose plantation is on Molokai, as is the
American. Alfred w. Garter some time
ago sold out his large holding Of Amer1-
can simply because, being appointed man
ager of the Hilo Railroad Company, his
plantation. In consequence of such large
transfers, taken with the closeness OF
money, American has declined so per cent
in paid up and 80 per cent in assessable the
past month. This is but single example
of the general trend of the stock market.
Olaa will have its prospectus out to-
morrow. Its capital will be S5.o0O000, half
paid up, the balance assessable at 10 per
cent call on subscription. Shares are so
each. The corporation will have 2lUOJ
acres of land of which 1900 is in fee
simple. There are applications on file for
double the moiety of the capital TO be
offered the public.
The Oahu Sugar Company will begin
grinding its first crop next week. 1t has
the largest mill in the islands, with space
left beside every part of the plant for
duplication when necessary. The mill has
the enormous capacity of more than 500
tons of sugar every twenty-four hours.
There is one vacuum pan capable OF a
strike Of fifty tons and two others OF
twenty-five each. The first crop VIII
amount to 10000 tons.
The Nahiku Sugar COmpanys $ director
ate will appoint manager tomorrow ana
go into active operation at once. With
the control of 1000 acres of the finest land
on Maui, the greater portion to be fee
simple after two years, its capital OF 500,
900 makes it appear a reasonable proposl-
ton Its stock is held at 81 premium on
10 per cent paid up.