The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1910-12-29
Should The Sugar
Trust Be Crushed Out
TREASURER OF THE GREAT COMBINE EXPLAINS POSITION
STOCKHOLDERS SHOULD THE GOVERNMENT SUCCEED IN ITS
LEGAL sATTLE-FAcTs CONCERNING AMERICAN SUGAR AND
HOLDINGS.

I an uninterrupted United States sta
tute is so remote that it can hardly be
considered, but if such conclusion
should be reached and the company
should be liquidated l presume the
stockholders of the company would
have to accept from $3.50 to $3.50 in
cash in lieu of each share of stock
they now hold in the company, such
being practically the book or liquidat-
ing value of the shares.
by a simple computation from the
figures already in possession of the
public, or such portion of it as has
| cared to investigate the subject, and is
based upon the actual figures from the
last general balance sheet certified to
by public accountants, the particular
figure being made up in this way:
"The capital stock of the company
consists of $45,OOO,OOO of preferred
stock and S45,OOO,OOO of common
stock. In the statement above refer
red to the assets of the company con-
sisted of real estate and plants, in
Guiding five active refineries and two
refineries held in reserve in case of
accident or fire, warehouses, cooper
age, wharves, stables, with machinery
and equipment, at cost, less deprecia-
ton, $52,S41, 537 Sc; stocks and bonds
in security vaults, $27,196,211; cash
working capital, less accounts payable
(the latter item amounting to about
3,3OO,OOO), $29,252,S52; total net assets
$119, 800. &C.
Against this amount the company
has no debt; the above figures are net,
all bills payable having been deduct
ed If, therefore, the stock be HUI
dated upon the above basis, each share
of preferred and common stock would
receive about $132.
The Trusts Real Estate and Its In.
Vestment Securities.
"The item of real estate and plants
includes, as stated above, the cane SUI
gar refineries, the machinery and real
estate, and very valuable operating
plants, including the Chalmette REIN
cry at New Orleans, the largest and
most modern and up-to-date sugar re-
finery in the world, costing something
like $6,000,000, and capable CT a very
large production at exceedingly low
cost.
1.-THE real estate included in this !
item ccnststs not alone in real estate |
in the large cities, with immensely va
luabia Waterfronts and privileges. but |
also includes thousands of acres Of |
timba, lanes in New York, Penn sylvia
MIA, Missouri and Arkansas upon
which are located the stave mills Of |
the company, producing TO: its use
hundreds of thousands of slaves and |
barrels annually used in it's immense |
business. All these items are car !
ried at q very conservative valuation. |
"Of the investments about So per
cent is represented in beet sugar prop |
critics, 20 per cent in stock Of the Ma
tional Sugar Refining Company and
Western Sugar Refining Company; % |
per cent is in marketable stocks and |
bonds taken at fair prices. It's beet
sugar properties represent invest
ment made at a time when they
were of great help in developing beet
sugar business through the West, and
Id - Yrff Two vol
ton extremely conservative consider
ing their present earning power, but
no more so, perhaps, than they should
be carried, considering the possibility
of adverse or hostile legislation af-
fecting their value, but in this parti-
cular the company is very we'll forth
fed, from the fact that any legislation
likely to adversely affect one branch
of the refining business would have a
corresponding advantage in other di-
rections. That is to say, tariff legis-
lation reducing the duty upon raw SUI
gar would affect the beet sugar fact
cries adversely, while being of advan-
tage to the cane sugar interests, and
as the company has large interest in
both branches of refining, it seems to
have been very wisely managed with a
view TO protecting the interests of its
stockholders.
"The company owns practically a
quarter interest in the National Sugar
Refining Company and a one half in
terest in the Western Sugar Refining
Company of California. The COM
pany has no interest, directly or in
directly, in any cane lands or in any
beet fields anywhere in the world, nor.
does it produce single pound Of raw
sugar. 1t devotes it's business entire
ly to the industry of refining sugar.