The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1910-01-28
THE BUSINESS WORLD
Churchill Harvey Elder, Financial Editor.


Considerable interest is being mani
tested in the new series Of Olaa bonds
which viii be placed on the market
January l. There are practically no
bonds to be had at the present time and
that the new issue will be taken care
Of in short order seems certain.
The new bonds are ten-twenties, re-.
deemable at the option of the company
on February !, 1920, or on any interest.
bearing date thereafter, and payable
February 1, 1880. The issue will amount
to $2,500,000 and will bear interest at
the rate of six per cent per annum.
The bonds are secured by first mort
gage on the properties of the Olaa
Sugar Company.
The trust deed provides that that on
| February 1, 1916, and annually there
| after, there shall be set aside as a
sinking fund sum equal to ten per cent
of the net earnings of the company for
the twelve months ending December
81 last preceding.
The object of the new issue is to
retire the outstanding issue of $780,
| 600, and in addition to liquidate the
| other outstanding indebtednesses of
the company. This will consolidate the
Indebtedness and win result in a mate.
rial reduction of the interest paid on
the outstanding debts.
The outstanding bonds which have
been called in were issued August /,
1906. and are secured by property valu-
| ed at that time at $3,750,000. The
present value of the property, accord
| ing to the last prospectus issued by the
company, is $7,034,000.
Olaa plantation controls 22,292 acres
of land, of which 1862 are held in fee
simple and 6130 acres are leaseholds
having thirty years yet to run. In adj
dition to this Olaa owns all of the
bonds of the Puma Sugar Company
| ($5o0,000).
Olaa operates a nine-roller mill hav-
ing capacity of $50 tons every TWEEN
| ty-four hours.
During the past four years the olaa
crops have been as follows: 1906, TO-
272 tons; 1907, 10603 tons; 1908, H.
4s6 tons; 1909, 1919 tons. The crop
for 1910 will be harvested from 1854
acres of plant and 346s acres of rat
toons and is estimated at about 10000
tons. The crop for 1911 will be har-
| vested from 1875 acres of plant and
47S0 acres of rattoons and it is esti-
mated by the manager that it will
amount to from $4,000 to $4,000 tons.
A complete prospectus will be found
elsewhere in this issue of The Adver-
| tiser.
Hilo Bonds All Sold.
| One hundred and thirty thousand dol
lars worth of Hilo railway extension
skies were disposed of before the stock
exchange session yesterday morning.
This disposes of the balance of the
100000 worth of the bonds floated. The
price was %, the quotation at which
these securities have been going since
placed on the market. The sales were
made through j. F. Morgan and the
Waterhouse Trust Company.
| This clears up the new Hilo bonds
bond market, for there is not a Sc
curity to be had now. When the Hilo
railway extension bonds were issued
they were placed on the markt in small
blocks in ordar to prevent a drop in
price All that were available were
eagerly snapped up, however, and the
last lot to make its appearance went in
record time.
The sales were made in four blocks.
The first recorded transaction repre-
sented $4,000. This was followed by
an $4,000 deal and then came one
for $4,000 and one for $4,000.
Kauai r. r. Bonds.
One thousand dollars worth of Kau-
al railway skies brought 10000. This
is fifty cents better than the quotation
at which the last sale was recorded and
indicates that the securities are travel
ing upward. A half million of the
Kauai railway skies were authorized