The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1902-08-13
SUGAR PRICES
AND PROFITS
AS TO OAHU PLANTA-
TION's CONDITION AND
PROSPECTS.
DIVIDENDS CONTINUE AT PRES
ENT PRICES.
Railway to Cut Rates When Pearl
Harbor is Opened-Cost Of Production
Reduced to S45

\ masters report by Frank +.
Thompson on the accounts of the trus-
tees of the Bishop Museum was filed
this morning in the circuit court, con-
tanning much interesting information
about Oahu Plantation and sugar pro-
fits, as well as testimony regarding the
values Of land, obtained in an inquiry
into the value of oahu Sugar company
bonds. The report of the trustees is ap-
proved in all particulars.
August Ahrens, manager of the PLAN
tatiOn, was the first witness examined.
He testified that oahu was capitalized
for $500, coo, all paid up, and that il
had a bonded indebtedness of $3.50, 600
1t controls 1900 acres of arabic land,
most of it under leases. The planta-
ton owns a pump worth $S,000,OO0, said
the manager, a mill costing $500 900.
wells, $175.00O railroads, 1920, 900: pipe
lines, $24O,0OO: rolling stock, 100000;
bitches, $4,000 1t has 500 acres OF
land in fee, worth over $500 per acre,
and is growing a crop that Will make
this years output $1,000 tons of sugar,
produced at a profit of $40 per ton, even
at the present lowest recorded price of
sugar. OF the 1000 acres of land in
the possession of the company. g 800 are
in growing cane.
The manager Of the plantation made
the following statements as to sugar
profits and the labor situation on oahu:
The value of sugar is $55 per ton.
1t is a low price. Sugar has never been
SO low before. But the expenses are
lower. The cost of the 1900 and 1901
crops were about S4S per ton. A pro-
fit of S14 per ton, but expenses are
lower now. We paid for cutting and
loading last year 81 cents, now we are
down to 40 cents. The cost of produc-
tion now is S45 per ton"
What is the sugar worth in the
states?"
Sugar is worth 3ls cents in the
states"
And what is the profit per ton?"
Ten dollars per ton, and on a crop
of 27,OOO tons it will be $27O,vvO."
| In answer to other questions Manager
Ahrens said: We have perfect ship
! ping facilities We have an agreement
with the railroad AS soon as Pearl
| harbor is opened it will be fifty per
cent lower on railroad freights. AS
soon as the harbor is opened the freight
is reduced"
what is the condition of Oahu in
regard to labor? Do you have trouble
in getting labor?"
THE plantation as compared witn
the plantations on the island of Hawaii
is favored a great deal in the matter of
| luDbI. lie lbDpltlS ldNOl llllS lSldlu Il
great deal. We lowered the wages
about 10 per cent the first of May anu
there is no kick. l think the men WORK
better under the lower scale of wages.
The less wages they get the less they
! lay off There used to be so much con-
tract work. II is hard to get anybody
to work in front of a luna. As soon as
the wages are lowered the conditions
will be better There viii be more work
and it will be done more willingly"
THE land is all in sugar, DdL cOu--.
it be used for anything else?."
where We have water we could do
anything"
Last years crop was q 500 tons The
year before it was 1880. This year >
| crop of 1900 tons viii be followed by
crop of $4,000 tons, said Ahrens. AL
ready 600 tons have been secured this
year. At the present price of sugar this
will mean a dividend of one-half per
cent per month for this year. Last
years dividend was $432 000
Cecil Brown, of the First National
! Bank testified that he thought Oahu
| bonds good security. AS to Investments
in real estate securities he said:
In regard to real estate investments
(Continuad on naPe dVaN