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


the most interesting statements of the
entire investigation. He was recalled
to the stand to answer some ques-
tons as to cane-growing contracts
that Brewer & Co.'S plantations have
negotiated with the small growers,
and also with regard to labor immi.
grafton matters.)
Secretary Fisher: Mr. Ivers,
want to ask you few questions that
have been overlooked before, particu.
Iarly with regard to this matter that
Mr.. Thurston has now explained az
to that contract with the plantation.
j have been told that you are one of
the men on the Islands who has made
most careful study of the actual ii
Rancial 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 &
cane than any others. AS 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 is, the contract was known as
& 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
were 4 cents, or $3.50 a ton in New
York we would pay per cent, pro-
vided the cane was of such quality
that ii 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. Ivers
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? <-.....
Iyers: Yes, do. l think it is
very fair to both parties. i
Fisher: Could you state what gen.
eral return it ought, under general
conditions, to yield to a plantation:
lvers: To the mill or to the plant
er or both? 4
Fisher: Well, it might be both, if
you have the time, showing on what
basis you arrived at that term.
would like to have it. ..I. i
Figuring Profits.
Ivers: Four plantations represent
ed by Brewer & Co. produced 4751
tons of cane from 6475 acres. Average
price per ton of cane was $425 and
in this connection l will say that a
comparatively large portion was rails
ed on plantation land. The average
per acre received by the planter was
192. The average yield per acre was
40 tons. Now | assumed that a third
of the area was plant cane, and two
thirds rattoons. i assumed that pro-
vided 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, ancluding
all charges, per acre. / assumed
that for rattoons it cost him $98.
Therefore the average cost would be
two crops rattoons $98 and one
crop plant 1926, the average would be
$10750. He received $10750; he
probably made $3.50. Now / figured
on that contract that with sugar at
3 1-2> cents at New York the mill
would make $4.65 per ten and 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 1914 ton; with sugar at
cents the mill would make $9.OS; with
sugar at 4.25 cents, the mill would
make SLAP, with sugar at 450 cents
the mill would make $13.78 per ton
with sugar at Al scents, the mill
would make $16.10 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 $4075.
lvers: 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 So a year per acre On 40l
tons of sugar per acre at $50 / as
sumo he would make a profit of $31.-
20; 30 tons per acre yield, | assume
would make profit of $21.75. With