The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1912-06-26
PAAUHAU HAS
TOO MUCH WATER

IOO WOOit UuIGu
/ HLO. June 24--IIigh finance OF
the most modern brand figured in the
notation of Paauhau Sugar Company
when the control was secured some
years ago by Eu. POLITE of San Fran.
cisco, according to the testimony that
came out here before the tax appeal
court lpat Friday Richard lvers, sec
Ietary of q. Brewer & Co., was the
star witness and the tale he unfold
ed made Hilo sit up and take notice
Mr.. lvers principal statement re-
garding the recapitalization of Pau
hau was to the effect that the eli
! mate must have been included among
the main assets: at least, there was
nothing besides the climate that he
knew of to cover one item of $2,i0O,
GEO down i'm the list of assets. In
spite of increased capitalization, de-
clared Mr. Ivers, Paauhau is not
worth as much today as it was some
years ago, before it became an iHi-
gated plantation. Irrigation had ac-
tually decreased the crop-bearing val
ne.
Regardng the figure of $5,0OO,O0O,
at which Paauhau is capitalized, the
( facts, as stated by Mr.. Iyers, are that
Mr.. POLITE bought out the sugar com
pany, which was then capitalized at
| ST, 600. 600. Mr.. POLITE then went back
to San Francisco and floated a new
paauhau Sugar Company, which he
capitalized at $5,OOOOOO. The assets
of the company had to be shown to
he worth S5,OO0OOO. Therefore, ac-
Cording to Mr.. Ivers, the value of ev-
cry possible asset of the company
was inflated as much as possible.
Even when this was done to the
fullest possible extent, there still re-
manned a sum of $2,7OO,OOO to be ac-
| counted for This amount was shown
on the corporation return, as plan.
tation Accounts" and it was over
those figures that the debate in the
appeal court ragged.
Pressed as to the reason that the
sum of s. 700 900 was so shown ~
the returns Mr.. Ivers stated that
-, possibly Climate" could be worth thc
large amount mentioned.
- Ia,
came a joke in the courtroom, anC
. any amount of money Lhat was men
toned by either side in the case wa
always queried as to whether or no
:, it could be charged to climate"
D. As a matter of fact, explained Nj
v Iyers, Paauhau plantation is nothin
like as valuable now as it was a fey
81 Years ago. The mauka fields ar
played out" and the rrigatio
scheme that was to make the plant;
ton such valuable one has resulte
~ in an enormous expense that is dras
sing the estate down to bedrock
81 think said Mr. Ivers from tn
witness stand, that Paauhau wa
Id worth from 100000 to 100000 NOR,
as an unirrigated plantation, than
a is at the present moment, as an irr
GATED one.
THE Paauhau company cOntracte
as with the Hamal1ua Ditch Company I
take 2O,OOO,OOO gallons of water ever
day. The annual cost was to be $40
600 per annum.
50 The ditch was constructed and Il
water taken to the plantation supp
> bitches Ever since then there hi
ei been a great loss through the wat,
Icing allowed to run away into Il
oi sea. There was no use for the waE
on the plantation, owing to a splenG
- rainfall.
'Paauhau was better as an unlrl
=, gated plantation and, although the
used to be bad season sometime
under the old rule, the average cror
year after year, were good enough f
'' anything. Now, with irrigation, Il
cost of cultivation has increased
- lot. The hoeing is heavier, owing
the seeds of grasses and weeds bell
brought for miles in the water fro
the bitches. The cost of applyi
the water to the cane is heavy a.
tie consequence is that the cost
in raising a ton of sugar has jumped $
go per ton"
m- Paauhau plantation, during the pa
lgs six years, has annually made t
be profits shown below 1t will
noticed that in 1908 the profits We
- very high. This was explained
- MI Ivers, who said that in 1905 the
=, was wonderful crop The cane W
heavier and the sugar contents we
very high. The consequence was II
~, not only was a larger tonnage
~. cane taken OFF, but it took less
cane to make a ton Of sugar. 7
~ Erofts were: 1906, Sl39632; 10
, SlGG,O34; 1908, $37O,792; 1909, 50
-. 7S4; 1910, $127195, and 1871, 81