The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1914-06-19
BOND ISSUE Of
sl,750,000
PLANNED
Oahu Sugar Company Directors
Will Make Recommendations
for Floating Of Big Issue to Run
for Twenty and twenty-five
Years Bearing Six Per Cent In
tsrest -4b,ooo-Ton Output Esti-
mate for 1917.

The directors of the Oahu Sugar Com
pahy have decided TO recommend the
issue of $l,750,0UO twenty and twenty
fipe-yeaf, six-per cent bonds The pur-
pose of this issue is to refund the out
standing Oahu sugar Company bonds
amounting to $809,0O0 which have about
reached their maturity, and, to repay
the advances made by II. Hackfeld &
Co. on account Of the Waiahole Water
Company; as well as provide funds for
the completion of that project.
The plantation directors will meet in
few days or as soon as the final de-
tails have been arranged and authorize
the bonding Of the company. The pro-
position will then be passed ON by the
stockholders.
A number Of local bankers and fnan-
ciers have been making a very ex.
haustive investigation Of the physical
status Of the Oahu Sugar Company and
of the Waiahole Water Company's dew
eloquent work during the last two
months. 1t is stated that they are
perfectly satisfied with the tangible
and potential assets of the properties
and that the money win be forthcoming.
Passing Through Transition Period.
}. +. G. Hagens said yesterday that
the Oahu Sugar Company is now pass.
ing through what may be termed n
transition period in its development.
such period occurs in the growth
of all great enterprises, he said.
During the time when every effort is
being made to perfect the implements
of production so as to put the property
on u close business basis, every dollar
that is made must be turned back into
the business and no dividends can be
paid. 80
"All who are acquainted with the
history of the sugar industry in Hawaii
will remember the extremely trying be.
ri0d which Hawaiian Commercial PASS
ed through before il reached its pres
emit high standard of productive eflici-
eney. Their transition period was
lived through when high prices were
ruling for the product The correspond
Ilng transition Period Of the Oahu Sugar
Company has been in progress under
the adverse influences Of low prices and
q difficult money market.
Ultimate Results VIII Be Greater.
1.-THE ultimate results of the develop.
.ment work which we now have, under
way will more than make up in ano.
mented dividends to the stockholders
the loss Of income which they arc now
suffering. This expenditure IL an, m
the. interest of the stockholders every
dollar of it, said Mr., Hagens. "The
oahu sugar Company owns over 5000
acres Of the richest virgin sugar lands
IN the Hawaiian Islands that are sim.
ply waiting the advent Of the steam
pillow and the Wniahole water TO make
them q producing asset Of the planta-
Big Things for 1917.
Mr.. Rodiek said that Oahu win he
q 45,009ton plantation in 1917 "Not
only will there be an increase in area.
but practically all Of the enormous cost
81 pumping water win be eliminated, -
he said. The experience on all the
plantations that have already changed
from underground to gravity water has
been that the sugar content Of the
cane increases one to two tons per acre.
because Of the use of fresh water
This gain is clear profit
Mr.. Rodiek said that on some plan
tatiOns there has been an increase in
the sugar content of the juices and an
augmented gross yield of cane totaling
more than twenty-five per cent follow
ing the application of mountain water
TO the fields.
Reduction In Production Cost.
There are going TO be a good many
minor reductions in the cost Of produc.
tion, Mr.. Rodiek said, (which In their
aggregate will materially decrease the
cost Of production and increase the
profits. " #.
Both Mr.. Rodiek and Mr.. Hagens
said that they believe that the present
is favorable time to float bonds. The
sugar outlook is improving. Prices are
higher and the money market is easier,
and all who have Investments in the
industry have more confident feeling
as TO the future of Hawaiis main in
dustry.