The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-07-01
Bic DEAL
|MPENDIAG
KonaSugar Estates
Being Brought
Together.
PRELIMINARY A~lS
ARRANGEMENTS
A Million Dollars of Coast Capital
is Likely to Be intro
duced Here. +

| Negotiations for the amalgamation of
the Kona Sugar Company of North
Kona and the South Kona Agricultural
| Company of South Kona, Hawaii are in
progress and may be concluded within
the present week The amalgamation
will bring together twei plantations
whose acreage will make. the new cor
poration one of the largest sugar prop
ositions in the Islands.
The details of the amasgamation have
not been decided upon by the direetorsA
of the two companies, aJut when ready
the matter viii be submitted to the
stockholders for their approval No
name has been selected for the new
corporation, although it~has been sog
gested that one or the other of the
lpresent names, with slight changes. be
used.
The new corporation viii have a cap
italization of s1,5O0 OOO and vast inn
provements are contemplated by which
the entire available land and water re-
sources of~the two companies can be
developed. Bonds TO the amount of
$500, ,000 have already been decided Upon
as an issue to provide means for the
erection OF 80 mill with capacity
of $50 tons z i 81 The mill win be
erected near the present inside bounda-
ries of the two plantations, which will,
bring it near Kealakekua Bay, to which
a branch line of the plantation railroad
will be run. a wharf will be extended
into the bay in order that deep-water
vessels may be loaded.
The Kona Sugar Company is at pres
ent grinding 500 acres and will COM
mence on January / on 1500-acre crop.
One thousand acres are now being
planted and that with the ratoons will
make the crop of 1903. A large amount
of capital is offered from the Coast for
the development of the amalgamated
plantations and the probabilities are
that about $1,000,0 coo win be brought
here from that quarter. The controlling
interest will be held by stockholders res
ident in the Hawaiian Islands, although
it is probable that the bonds win be
taken up by Mainland buyers
A railroad is being built to run
through the Kona Sugar Coupany's
property and this viii be extended to
ramffy throughout al parts of the two
plantations The original intention Of
the Kona Sugar Company was to run
the railroad downesto Kaiua, but with
the amalgamation tfte most feasible out
let is by way of Kealakekua Bay.
The Kona Sugar Company has been
in operation a little over two years, and
it's properties developed to the extent
of about 100000. The improvements
have been carried on steadily until it
is now considered a fully developed
proposition. The mill at the present
time is sufficient to take off the preseht
crops which cover between five and
six thousand acres. The agents of the.
company, McChesney & Co, were caleu-
lating few months ago to enlarge tte
mill to meet the. requirements of the
increased tonnage, but the pendiI5 re
organization will change these plans
entirely.
No irrigation is necessarr on the
company's lands. They have all the
water necessary for f1unling and mill
purposes from reservoirs which are
filled from springs and by rafnfalls.
Heavy rainfalls are generally the rule
in the Kona districts, so that tunnelling
for water is not required Where
fumes are not practicable. overhead ca
BILE trolleys are used for conveying the
cane from the fields to the mill.
The South Kona Agricultural Com
pany has large area Of fee simple
lands and the combining of the two
viii make it little short of a &c. 900 acre
plantation. There are a large number
of parcels of land under lease to the
South Kona company. The plantation
has been in operation for year and
enough cane has been planted for seed
The land is mostly available for plant
Ing, there being very little waste. La
haina and bamboo varieties of cane are
so far preferred on the two plantations
to any others.
The largest stockholders in the two
companies are agreed as to the trims
Of the amalgamation and the distribu-
ton of the stock of the combined com
panies. An equitable arrangement IN
the pro-rating of the stock has alseady
been effected and about all that is aec-
eTsary is toSreceive the approH ) ali
meeting wllf shortly be cYnu
Il
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