Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1906-01-15
CUTTING THE DIVIDENDS

The policy of cutting dividends is
not a pleasant one. No more Is the
price of sugar compared with last year
a source of great Joy.
II may be true, as claimed on the
street that some Of the leading cor.
porations are too conservative and
others take too long chances. There
Is always someone who knows how 1t
should be done. AS a general business
proposition, however, 1t is absolutely
necessary that there should be a close
relation between the price of sugar
and the size of the dividends. Fur
thermore, the reduction of dividend
TO meet possible or probable market
conditions need not be put down as an
evidence that the bottom has dropped
out and all things are either approach
ing the toboggan slide or on 1t.
1t would be remarkable for any in
dustry to maintain its dividend rates
after drop of 500. ton in the selling
price of its product, that 500. repre-
senting clear profit. II would be i'm.
possible to do 1t legitimately, provided
the profit was paid out when available.
In a general way the islands are in
a much better condition financially
than for several years. A good year
has furnished the opportunity for pay
/ ing the debts following over.expansior
and low prices.
This good fortune has led some "a
believe that now the bottom has beer
replaced, dividends should be held &c
top'notch figures, and II this is moi
done 1t is proof positive of conditions
being worse than appearances suggest
Every effort should indeed be made
to place as much income In the peck
cts of stockholders as is possible
Should this be done on a suppositlor
Of high-priced sugar and the sugar does
rot rise, the last state of this stock
holder is certain to be worse than tn,
first, and the community suffer more
hardship.
The Bulletin has no sympathy with
an element forever crying wolf ant
predicting how many years 1t will b'
before the sugar industry OF Hawaii Il
wiped out. These people in their tall
have had the islands on the verge o
collapse every year. but one, since an
nexation. Previously It was ever!
year. Some seem to think that unless
the worlds markets or the Unite,
States Congress take orders from Ha
wall the islands and all their indus
tries will disappear from the map
They propose impossible panaceas AM
apparently instead of buckling dow
TO the work OF the day, spend thei
time complaining and sometime
drawing profits regularly.
No industry in these Islands can ON
pect to exist without facing new an,
incessant problems. The bushes
spirit that will win is the one ready 4
contest for the interests of the island
whenever they seem threatened, bu
doing II in robust fashion that viii
sustain a fair degree of prosperou
sentiment at home. Communities an
industries don't amount to much II tn
leaders be like the old maid, ready t
Ne down and die every time the SUI
went behind q cloud.
Sensible business judgment direct
corporations as well as individuals
: keep within their income. What on
does need not necessarily DO criterio
for another dealing with different col
0 ditions. Notwithstanding dividend
] have been cut in some instances, HI
!. wall is on the right side of the ledge