Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-11-10
GOVERNORS
REPORT NOW
MADE PUBLIC
Annual Statement to Secretary
of interior Discusses Sugar
and Tariff Briefly
NEEDED LEGISLATION
". SEEN BY EXECUTIVE
Industrial and Other Conditions
Summed Up in Outline
of Situation

ham to the secretary OF the interior
for the fiscal year ended June 80, 1914,
has been made public, copies OF the re-
port reaching Honolulu this morning
from Washington. .
The governor discusses Industrial
conditions and problems and needed
legislation. In discussing sugar and
tariff legislation he says in part:
d. Under the protective tariff OF the
United States sugar production IN ha-
wall was stimulated TO q great devei.
opment. Nearly all sugar enterprises
established previous to the year 1888
had normal beginnings and gradual
and healthy growth, physically and
financially. In just 90 Far. 40 these
came methods have been adhered to
these estates are sound today. In 1898
modern methods Of physical optimism,
Valuations capitalization, haste, and
anticipation Of profits obtained. The
failure cf these methods Of business
has placed . burden on investors, the
responsibility for which u 10 attempt.
ed 20 shoft on to legislation. The ter.
ritcry has felt the depression In the
prices Of sugar and such depression
strikes . practically tHo-erep country
severely. Privately Il 10 admitted
that the responsibility lies In the
marked cVerproduction m the worlds
sugar supply, In which Hawaii has had
its full part. ="....a
The main recommendations are
contained in an Introductory summary
OF conditions, which is as follows:
General Conditions. -
The Territory Of Hawaii is practi.
cally q two-crop country and can not
. be called a self-contained country. 1t
produces a varying per cent of perish,
able articles for local consumption,
always endeayoring to add varieties
and nonperishable products and thus
become more and more selfsustaining
II Is primarily a country of exports
with resulting imports for the main
tenance of fits inhabitants and enlarge
ment of its enterprises.
Under the protective tariff of the
United States sugar production in Ha.
! wall was stimulated 70 a great devel-
.opment Nearly all sugar enterprises
established previous TO the year 1888
had normal beginnings and gradual
and healthy growth, physically and
financially. In just so far as these
same methods have been adhered to,
these estates are sound today. In 1898
modern methods of physical optimism,
valuations, capitalization, haste, and
anticipation Of profits obtained. The
failure of these methods of business
has placed burden on investors, the
,I,slstxr Pk,,. xn,ffnh u ;s altar,
ed TO shift on to legislation. The Ter
rftory has felt the depression In the
prices of sugar and ssch depression
strikes practically two-crop country
severefy. Privately 1t Is admitted
that the responsibility lies in the
marked overproduction In the worlds
sugar supply in which Hawaii has had
It's full part.
i While Hawaii has some moderate
relief In coffee, rice, etc., its second.
airy product is canned pineapples,
which industry has had such sudden
and abnormal growth that 1t has this
season, 1914, outstripped the means OF
caring for the field product, and where
unprotected by contract the grower il
helpless as to price and market. The
Ihold-oyer stocks Of 1918 and immense
increase OF the 1914 pack raise the
question whether, the market is not SC
oversupplied that considerable time
i for adjustment will be required.
The fundamental law of supply and
/ demand seems to have struck the Ter
i rifory of Hawaii forcibly. enough to
cause its bankers and directors Of
business and public opinion to place
more value on conservatism. especial
~ where small community is direct
ny amenable to their influence.
z Al this writing the European wal
has caused recent violent reaction in
i prices Of sugar. and on the New York
4 basis Hawaii has experienced this year
\ a range from a minimum delivered
!, In New York of $3.50 per short tor
to $130.S0 maximum.
i The fact remains that sugar com
prising 1881 per cent of Hawaii's ex
i ports and canned pineapples 11.98 pei
cent, total of 91.79 per cent, are In
an uncertain condition, hence there IL
corresponding unrest and concern.
i The situation isl not without some
compensations. There is apparent
i greater voluntary efficiency ON the
4 part Of labor and greater economic
prudence in the management Of oul
agricultural enterprises. The time al
loved between the reduction In the
tariff and the date of free sugar is toe
short to test possible reductions in
costs of sugar in Hawaii, for cane Is
not here an annual crop, but, plant
and rattoon combined, may be consid
erred a 30 to 36 months crop. The
prospect of being able to compete
with free Cuban sugar Is not fiattering
particularly as Hawaii is transporta
| ton handicapped IS to S. per ton II
PREACHING markets. This subject had
best be presented at q later date, al
though of vital importance to the Ha
i waiian Islands
Beginning In February some distress
appeared from lack of employment, &C
tual and self-imposed, but through pri
yate and government efforts this ha.
largely disappeared. It is fortunat,
that the government can almost dali!
reach the labor market. No govern