The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1902-07-30
RECEIVERS
STOCK RISES FROM ITS Low
POINT.
An Assessment of $40 a Share Delin-
quent August 16-In Spite of This
the Price Goes Up.

SAN FRANCISCO, July 16.-Another
assessment of so a share has been le-
We'd on the stock of the Oceanic Steam
ship Company. This action. the second
of its kind in the history of the COM
pany, was taken late yesterday at d
meeting of the directors. The new as
sessment will be delinquent August 10.
Although a call on the stockholders
to dig up has been threatened for some
time, the thing was done very quietly.
No information was given to the public
last night, and the news had not reach
ed the street this morning.
About ten days ago Oceanic stock,
once quoted as high as $1O3, dropped
from $50 to 81 a share. Since then it
has recovered to SIG. Yesterday after
noon it closed in the board al $3.50
bid. The recent break was a hard test,
but during the drop from $40 to 81 and
the subsequent rally less than one
hundred shares of the stock came out
for sale. This shows that Oceanic was
well held and that it's holders are con-
fident of the future.
At the present time the company is
burdened with a heavy debt repre-
senting an overdraft with the firm of
John d. Spreckels q Brothers, which
is the treasurer of the company. This
Overdraft amounts approximately to
$l,OOOOOO. The number of shares of is
sued stock is twenty-five thousand
Therefore the assessment will yield
$25OOOO, about One-quarter of the sum
represented by the overdraft.
The Indebtedness has been increas-
ing for months past. This is due in
part to necessary expense for recon-
structing the new steamers of the
Oceanic line that were built in the
East. These vessels proved not to be
in order and many changes had to be
made. Another big item of expense
was the conversion of the steamer Ma
ripOsa from a coal burner to an oil
burner This vessel sailed yesterday
for Tahiti, using oil as fuel for the
first time. If her trip is successful and
it is shown that there is a large saw
ing in substituting oil for COAL all the
other vessels of the line will be con-
verified in a like manner. This will
mean a great saving in operating eX-
penseS.
Recently the company has made nu-
merous improvements, particularly in
the engineering and stewards depart
ments, in which a more economical
plan of management has been estab-
lished. From all indications the Gee
aniC will eventually become a good
paying line, as business is picking up
all the time and there is practically no
limit to the development of Australia
and the islands on the route. Such
progress means a constantly increasing
business for the company.
1t is d year and half since Oceanic
levied its first assessment. In Febru-
airy, 1901, stockholders were called on
to put up SO a share, which was the
only assessment until the action taken
yesterday by the directors. According
to its last annual report, the company
owns seven steamers valued at So, $40, -
6l5, and one barkentine, valued at 12,-
600. The total assets were given as So
95G276, The capital stock is 81, 500, 600,
against which 3 per cent bonds have
bee nissued to that amount At par
the stock would be worth 500 a share
Just now a great deal depends on the
burning experiment. The MaTipO-
sa is the pioneer of first-class ocean
going passenger steamships to make
the venture, and the maritime world
awaits the result with anxiety, If the
| change proves successful ii will not
only mean a boom in Oceanic but 9th
er lines, wherever oil can be secured
will discard coal as fuel and use OF
in its place.
In the board this morning ten shares
of Oceanic sold at $40 and ten at SO
but just before noon the stock closed
at SIS asked and no bids