The Hawaiian gazette., 1911-11-03
RAY STANNARD BAKER H.
OF HAWAIIAN CORPORATIONS
sugar is King" lie Writes, and Gives Some
Impressions Of King Sugars Rule
As tie Saw 1t in Force

Is true; the stock Is scattered among
business men, professional men, Minis.
tcrs and teachers, and even TO some
extent among che Chinese.
"But this in Hawaii. MS elsewhere,
does not at all change the essential
feature Of centralized control. tndoea,
IL makes it the easier for a compare
lively small group of stockholders in
side the agencies to dominate the plan
tation corporations, and it tends to es-
tabish public opinion favorable to
the existing system of control.
"Now, | am setting down the facts
regarding this solidarity of cooperative
or corporate control as n plain cOndi-
ton to be honestly examined. What
is the result Of this cOntrol2 What are
the advantages and disadvantages An
answer to these questions will not only
explain Hawaiian conditions, but will
illuminate the great problem Of indus
trial combination which confronts the
nation on every hand.
al think no one can visit the Islands
without being impressed with the re-
markable intelligence and the high eff
ficiency with which the sugar industry
is directed. 1t has been in high de-
gree farming with brains.
"More than this, the combined plant
ers have dealt infinitely with the meth
DDS of shipping and selling. When
! they found that the sugar trust was
robbing them, they got together and
formed a corporation called the Sugar
Factors Company and bought n rein
| cry in California in which they began
to refine some of their own sugar and
thus compete with the trust. 1t was
only small refinery, but it was enough
to force n favorable agreement with
the trust, which has not only served to
strengthen the power of the Ftrust, +"
but has made the Hawaiian planters
sharers in the profits which arise from
that monopolistic combination.
In the same way the planters stud
led transportation and were instrument
al in having the American. Hawaiian
ship-line established, which carries the
bulk of their sugar on favorable terms
across 1000 miles of sea to Central
America thence by land across the
Isthmus of Tehuantepee thence again
by sea to New York-a rather tremen-
dous enterprise. They have also helped
in the development of shipping facil-
tiles to the Pacific Coast
Sin other big ways-tks handling
OF their credits the purchasing of sup
plies in great quantities their parSici-
patton in the control of the company
| which makes most of their own sugar
mill maehinery-in all of these big,
! daring, constructive lines of activity,
the combined planters have shown un.
usual ability in overcoming the dis.
/ advantages of distance and the rigors
! of world competition. In other WAYS
also characteristic of the modern game
/ of business ms it is played at its best
] Cor worst), the planters have shown re.
markable facility mean in the way
in which they have secured and retain
ed the advantages of high protective
| tariff, and their adroitness in handling
their labor problem OF these two lat.
ter activities, ] shall speak more fully
later
A." 1t may be asked how it is possible
for a comparatively few white men and
their families, ont of population of
nearly 100000, thus to control so vast
an industry.
| I'm the old South domination rested
upon three essential advantages or priv
ileges. First, upon the ownership of
the best and most fertile cotton lands
second. upon the control of the indis.
pensable machineTy-the cotton gin;
and third. upon the absolute domination
of the labor supply-tbe negro slaves.
All these advantages gave the great
planters wealth and political power,
and by the use of wealth and power
they were able to buy still more land,
control still more machinery, and not
only acquire more slaves, but by the
domination of the government, protect
the institution of slavery. Power is
never stationary; it either expands or
contracts; and in the South il expand
ed-until the explosion.
Now the power of the corporation
aristocracy of Hawaii, of course, rests
| upon exactly the same fundamental ad-
vantages. Land, machinery, labori Con
troll these and you control the world
| Control is made easier in Hawaii
| ms il was in the old South by the pres
ence of very large population Of non,
voting workmen. This not only includes
that half Of the population which is
made up of Chinese and Japanese. hui
of thousands of ignorant Portuguese
Spanish, Russians. and others. who arr
not yet natnraized Fully three.quar
tiers of the population Of Hawaii hav,
no more to say about the government
under which they are living than tn,
old slaves.
lone would imagine from their pre-
dominance in number of voters tina
the native llawaiians would dominat,
the Islands They could do IL If the,
voted together, but as a matter Of
practice they are mo match for th,
powerful, money. controlling, land.Own
ing omploymentgiving white man. in
deed, in the by-gOne days Of the ol,
nniiNe government, even before the
had large property rights, white mel
, controlled the dnings Of the old king
ana queens and when thai eontTo
proved unAubslaniial and another a.
, ranRemoni seemed 10 PROMISE bette
business conditions They turned out th
. old royal family ugd orgnniged n
, pnhiigi aud then, when they wer
, frala, ana fuI hnsinrra Truaonu, the
sought ihr udmifsion 81 tho Islands d
% irWiuf} "a iie American Npun,
Efrr hlnr ihp emily times ~ ih
F, go ragged ipmiuniInF New knglan
HIHlH3Hrr 700 nfie msn hns hfr
iiY ieefhH Hnd rnI'ghiWer ~ lhe M