The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1904-12-09

Present Value and Future importance to the
Nation---susar securities--lndustriaI and Agr-
cultural Development 0pportunities for Set
tIement.

IN the States Is due 70 the fact that the
bonds particularly are mostly of small
issue, too small TO interest any Of our
large bond houses, and 10 the further
fact that as many OF the bonds as
possible are absorbed and held for in
yestment by the large island banks.
Once these securities are known and
appreciated on the mainland they will
be in as eager demand among conserv-
atiye investors as our large bank stocks,
which, once purchased are practically
out Of the market
The growth OF the sugar industry has
stimulated other industrial development.
railways among others, and the stocks
and bonds OF these railways are most
excellent purchases The Oahu Railway
and Land Company earned last year s
per cent on It's capital stock of 81 900, 600,
besides paving 8 per cent on bond
issue of 100000 The Hilo Railway
did as we'll, and the new Kohaia-H iIo
Railway Company promises equally as
favorable a showing.
The bonds Of the Kohala-T4ilo Railway
are considered by the most conservative
men on the islands as very choice in
vestment, considering the management OF
the road and the probable earnings. The
right of way of the road has been sur
veyed twice from Hilo to the port of
Mahukona, a distance of some 100 miles.
A third survey IS now being made for
final location. as the steel rails for the
first section of fifteen miles have been
shipped, and the roadbed IS to be ready
for the rails when they arrive The
prospects for the Kof1a1a-Hilo Railway
are full of promise Next to Honolulu
Hilo is the largest town IN Hawaii, and
is situated on a large deep harbor. The
new road will start from Hilo, running
north for fifty miles TO Kukuihaele, and
tapping on the way twelve large sugar
plantations with an approximate total
yearly output OF 100000 tons OF sugar
The experience of the Oahu Railway IS
that as much freight IS shipped to the
plantations as sugar is shipped out OF
them As nothing but sugar IS raised
on the plantations, all provisions, hay,
gram. lumber. etc, have to be brought
to them The sugar shipped from the
Island of Hawaii IS at present done by
vessels on the open sea coast, where the
water IS frequently rough, so that small
steamers. which act as tenders TO carry
the sugar TO larger vessels IN Hiio are
often unable for weeks to take on or
discharge freight and II occasionally has
happened that sugar mills were obliged
10 shut down, their sugar houses being
full to overhowing and unable to hold
more From Kul1uihaele the road viii
extend through the famous WaiHlea
plains, a fine district of 100000 acres.
Farmers declare that these plains can
raise all the hay and grain used on the
entire islands when the railway can fuf-
nish transportation. Every sugar plan
tation may be Iikened to q village. as
they employ from 1000 to 1900 hands
each, and these scattered populations viii
form the nucleus for large passenger
traffic This road is to be standard gauge
and laid with seventy pound rails There
will only be S2.5oo,ooo OF these first
mortgage gold bonds to be sold, and
they give promise of being absorbed
quickly. Mr.. Philip Peck, president OF
the First Bank OF Hilo, is handling the
issue.
The agricultural development now
going on in the islands will logically lead