The Hawaiian gazette., 1900-06-29
Capital FaiSed 10
Five Million
= Dollars.
DETAILS ARRANGED
Most Of Stock Already Subscribed
For and Only Small Amount
For Market.

The Honolulu Sugar Plantation has
ceased to exist. 1t is now called the
Honolulu Plantation Company. a deaI
has just been effected by which the plan.
tation has changed hands and the CAPT.
taiiEation Increased from $4,000 to s5,-
sec,oW.
The change has been quietly made
through the agency of Henry Water
house G. Co. and others In the city. In
connection with Mr.. N. Ohlandt of San
Francisco. Tbs Is one of the most i'm
place for some time and will put the
plantation on a basis from which the
best possible benefits will accrue, II Is
said.
Mr.. N. Ohlandt,' head of the firm OF
Ohlandt e. Co. OF San Francisco. who
er. after ais annual tour of the Islands
was exceedingly pleased with the
prosperous condition of the sugar indus
try here. He stated that Hawairs de-
veiopment during the past two years has
been remarkable. and he firmly believes
sending to market in the neighborhood
of 5oo.OOO tons of sugar. AS to prices,
he would not be at all surprised If sugar
commanded 500 per ton this coming
year.
1he firm of Ohiandt & Co. is largely
interested in several sugar estates To-
Gated on Hawaii and Oahu, including
Hakalau. Paauhau. Hutchinson, Wal
manalo and Honolulu Sugar Company.
The property in which they are most
concerned is That of the Honolulu sugar
Company. located just short distance
outside the limits of Honolulu. on the
Eva side of Halawa mill. This planta-
uon was started in 1898 under the man
agement of James A. Low, and has been
developed almost entirely by foreign cap
ital. For this reason very little has been
known in Honolulu financial circles about
the inside affairs of this corporation.
While here. Mr. Ohlandt gave out some
interesting Information concerning the
recent action of the directorate of the
Honolulu Sugar Company In San Fran
cisco. which has resulted in the transfer
of all the property owned in the name of
the Honolulu Sugar Company. w.,h a
capitalization oil SyOO.0OO. to the Honolulu
Plantation Company. with capita. "a
ton of s5.OOO,UoO. The facts of the trans
fer are substantially as follows:
The company was organized with u
capital OF S9OO.0OV. div .ded into 5000 shares
of the par value of 500 each. Out of this
stock the company paid 1900 shares,
equivalent to sl5O.vOO. and $500 cash for
the procurement of leases. which are
. mostly pal- up for a period of fifteen
years. The remaining s75O000 had practi-
. cally all been spent in the development
Of the company's properties. by the end
Of September of last year.
The original intention of the promoters
was to establish u plantation which would
have an annual yield of 10000 tons. but in
the requirement of new lands 1t is con-
fdently expected that this will enable
the plantation TO yield in the course of
three years. In the neighborhood of 25-
900 tons annually. This enlargement of
the plantation has necessitated increased
facilities in the way of mills, pumps and
railroads, and will require at least three
ny the plantation over to its producing
stage.
" The problem confronting the directors
was either to levy assessments or to form
q new company with capital stock suf-
ficiently large, so that the property could
be sold to such new company for q suffi-
cient amount In stock which. when event
ually distributed to the original stock
holders. would give them what might he
deemed to be fair value of their pres
ent holdings. 1t was planned at the same
time that this would leave sufficient
stock In the treasury of the new COM
pany, as working capital. which, when
sold. would raise enough money to car
ry the plantation along until the time
when II would be able to produce an in
come for itself.
The latter policy was pursued. 1t was
decided after a thorough study of the
value OF the company's property, that the
holdings and actual investments made
were easily worth si,0O0,000 or more. II
was determined that the new company
should be formed on the basis OF 5000, OO1
OF capital stock. and the old corporation
was given $1,000 shares at the par value
of $50 per share. or a total OF 100000 IN
stock. This left in the treasury OF the
new corporation 1900 shares of stock of
the total par value of $4,000.
or the $1,000 shares In the treasury
there have already been placed some H.
900 shares. the purchasers being mostly
Ban Francisco and Honolulu investors.
The remaining 5000 shares will in all
probability be placed In the Islands. The
brokerage firm OF Henry Waterhouse a.
Co. at the present time is negotiating for
their disposal. These shares have been
placed on the market at s35 per share.
The new corporation has not yet been
listed on the Honolulu Stock Exchange,
but II is understood that it will be soon
er OF later.
The Honolulu plantation began with
5000 acres OF land in the District OF EVA
most OF which was suitable for cane
cultivation. The estate now embraces in
the neighborhood OF 5000 acres.
II Ia said that an abundant supply or
sAteT has been developed. Two big
pumping plants having an aggregate ca
pacity OF 100000 gallons daily are now
in operation. and another plant OF 100000