The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1911-05-19

sTOoKs AND on
7 The montbiy digest o. Wakefield.
Garihwaiio a Co, N regard 10 Call.
fornian and Hawaiian securities for
May contains considerable matter Of
interest to investors especially in 70.
gard TO oll stocks, about which Il 10
comprehensive aud optimistic. Among
other things Il has this 10 say as 70
sugar stocks and later Of oil:
April has not developed any material
fact toward altering the oonciusiOns ex-
pressed in last months Digest regard
ing tho sugar market. According 20 the
returns which have como in, tho extent
Of the shortage in the Cuban crop is not
yet fully determined but according to
all now estimates that have been made,
it is about the same as stated last
month While buying of raw sugar was
slow, much less being taken by reaners
than their normal requirement, the
present Indications are that the renewed
buying in May viii come at distinct
advance in price, probably close up to
flour cents Tho Hawaiian crop is now
4 pretty well through the cane mills and
returns Indicate n total yield approx
mating closely TO tho estimate made for
it. Net profits at the close Of the cam
paign seem likely TO DO as substantial
in totals as in 1910. Prices Of stocks
reflect this condition very accurately
Compared with the market prices of
shares in November 1910, tho present
prices are from three to eight dollars
, higher. Compared with the high level
prices of shares in October, 1910, the
present quotations are three to six doll
lars lower.
Trading in Associated Oil stock
through rise in price to its former
thigh record, followed by recession to
the price level at the beginning of the
: month. has been the feature Of the oil
Q securities market during April. The
4 settings seems to have been by holders
/. who had become pessimistic as TO profits
/. on their investments through the pay
ment of dividends. Having the oppor-
0 tunity, they took their profit through
! selling at the advanced market price.
There has been nothing in the market
\ opera lions to suggest chat any OF the
! larger stockholding interests have been
! selling. The market operations rather
NhkktaN NhhA NuitG MhNh00N III
terest is buying for investment. IL
= this be so the probability is that this
interest is European. It is also prob
able that its buying is based on the
European financial estimate of the sta
: tistical position of the California PEE
y troleum production industry.
European fnanciers see two things in
Q the Immediate future for California pc
i truleum which American finaneiers and
Q the California owners of the petroleum
q have so far either entirely failed to see,
or seeing have not estimated at their
full commercial value. One is the re-
Mobilization Of the. maritime commerce
: of California, which will follow the
l. opening of the Panama Canal in 1913,
: and the other is that tho ships owned
by European capital, which win con.
% duct the rehabilitated commerce, will
,. consume California petroleum in place
n of coal for fuel. Obviously, IL European
10 capital becomes the owner of Associated
Id Oil, and thereby Of its large petroleum
production and pipe line plant for dc
A. livering it from the oil fields into ship
* tanks Mt tide-water, European capital
ID becomes independent of American CAPT
Or tai for the fuel supply for its ships and
for petroleum to supply the European
Is market demand
10 me supply OF petroleum Iuel TOT Jns
r. ships which viii rehabilitate California
maritime commerce is a far more inn
IF portant matter, commercially, than oul
ID local petroleum owners have foreseen
Or Technically, these ships win not be
n. steamships They will be new typg
of motordriyen ship using crude pc
troleum directly as the source of mo
tive power.
The Hamburg American line is re
ported to be building four ships for {
direct service between Hamburg and
n San Francisco. If these are motorships
similar to the one il is now building
they win make the trip from port Il
port via the Panama Canal in abou
thirty days, and consume approximate
Iy 375 tons (2250 barrels) Of California
u petroleum Estimating the cargo-carry
ing capacity of such a vessel at 1900
tons and the cost of petroleum at on,
dollar per barrel, the fuel cost Of trans
pOrtation of ton of freight between
Hamburg and San Francisco works on
Of a rate of twenty-five and a half cent
"a a ton. Comparisons based on thes
figures are Illuminating.