Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1912-10-08

ION the last day Of the Fisher hear.
| ing, Mr.. Richard Ivers made one OF
| the most interesting statements of the
| entire investigation. He was recalled
! to the stand to answer some ques-
tons as to care-erowins contracts
that Brewer & Co.'S plantations have
! negotiated with the small growers,
and also with regard to labor irmi-
! grafton matters.)
Secretary Fisher: Mr.. Ivers,
want to ask you a few questions that
| have been overlooked before, particu-
! larly with regard TO this matter that
Mr.. Thurston has now explained al
| to that contract with the plantation.
| ! have been told that you are one of
| the men on the Islands who has made
a most careful study of the actual fl
| nancial study of the terms upon
which contracts could be made with
the homesteaders. Have you any in
| formation on that subject?
IVerS: There was complaint
| made that the price paid for cane by
the plantations was altogether mad
equate. Mr.. Robertson and myself
| talked the situation over-as the
plantations represented by Brewer &
Company in Hilo were buying more
| cane than any others. AS a result
| of that conversation, / went up in
that district and spent a month in
the fields and investigated very fully.
We decided on a uniform contract,
which has since gone into effect, on
the expiration of the old contracts
That 10 tho Rnnurn @
six per cent basis, the planter rails
ing cane on his own land, We pay for
the cane when it is delivered along
side the flume six per cent on the
price of sugar in New. York. If il
were 4 cents, or $3.50 ton in New
York we would pay per cent, pro-
vided the cane was of such quality
that 1t only required eight tons of it
to make a ton of sugar. The cane
raised upon lands owned by the
plantation paid $3.50 or $40, if the
price of sugar were $3.50. (Mr. 1vers
then described the terms in detail.)
Fisher: Well, now, this general
form and term of contract you think,
do you, is fair contract TO both par.
ties?
IVers Yes, / DO. think it is
very fair to both parties.
Fisher: Could you state what gen.
eral return it ought, under general
conditions, to yield to a plantation.
Iyefs: To the mill or to the plant
er for both?
- Fisher: Well, it might be both, if
you have the time, showing on what
basis you arrived at that term. l
would like to have it.
Figuring Profits.
Ivers Four plantations represent
ed by Brewer & Co. produced 4751
tons of cane from GAZE acres. Average
price per ton of cane was $4.25 and
in this connection / will say that a
comparatively large portion was rails
ed on plantation land. The average.
per acre received by the planter was
1872. The average yield per acre was
As tons. Now assumed that third
of the area was plant cane, and two
thirds rattoons. / assumed that pro-
yided the planter had his own money
and did not have advances from the
plantation, it would cost him $126.50
to raise plant cane-from the time he
put the seed in the ground until the
time he harvested the cane, including
all charges, per acre. / assumed
that for rattoons it cost him 1913.
Therefore the average cost would be
two crops rattoons $98 and one
crop plant $126, the average would be
$107 so. He received $107.50; he
probably made $3.50. Now l figured
on that contract that with sugar at
312 cents at New York the mill
would make $4.65 per ton and l will
say now that the advantage of this
contract is that when sugar is at a
high price, their profits increase;
with sugar at 1915 the mill would
make $6.74 ton; with sugar at 4
cents the mill would make sos; with
sugar at 4.25 cents, the mill would
the mill would make $13.7S per ton;
with sugar at Al scents, the mill
would make $1610 a ton; with sugar
at cents, $1S.45. On the same basis,
the planter, provided he received As
tons per acre, with sugar at $50, he
| would make $40.75 per acre per year
He would receive $3.50 gross for the
two-year crop.
Fisher: In other words, on plant
crop and ration crop he would make
per year $40.75.
Ivers: Yes. If, in the event of all
OF the advances being made by the
plantation, | figure he would have to
pay 10 dollars in interest for two
years, or S. a year per acre. On 40
tons of sugar. per acre at $50 | as
sumo he would make a profit of $31.-
%; 80 tons per acre yield, l assume
would make a profit of Splits With