Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-12-23


sugar We have so far made has always
been left to the sole discretion OF
Charles J. welch of New York, and
whenever we think OF the high prices
obtained for our crops we should re-
member with grateful recollection the
ability and courage that he has dis
played in taking advantage OF the mar
ket's violent fluctuations in such a
way as to secure us the BENEFITS Of
the high prices that have not prevail.
ed without interruption.
First Season Crop Short.
Still the fact that our sugars were
sold at unusual prices in no wise de-
preciates the value of these PROFITS.
Moreover. IL should be borne In mind
that we have had bad luck as well as
good fortune; consequently the net re-
suits OF the first two seasons should
not be regarded as being so far as
appears at first sight from what might
be expected under normal conditions.
For example, we expected l0,0O0-ton
crop the first season. We got 1900
tons. To make up the deficiency for
the succeeding season, we took in
our railroad. After this we got only
1900 tons. even less than the first
year, and on the latter crop we had
to pay a freight rate to New York of
two and one-half times the normal
figure
While / was out there this year,
arrangements were made to lay down
six miles more of track. estimate
the coming crop at the modest figure
of 5000 tons and nothing short Of a
calamity is going to prevent US from
realizing this. nor will il be surprising
in the least il this estimate is ex-
ceeded.
II was to be expected that our first
crop would be abnormally expensive,
but our second one is a disappoint.
ment; both as to cost and the factory
efficiency. However. the encouraging
feature is that there is nothing insur-
mountable in the way OF establishing
an efficient organization TO overcome
both faults; and, with the added adj
vantage Of a larger yield and a higher
percentage Of sugar for the mills
share from the newly contracted plan
tations, we may rely upon fair re-
turns under any normal conditions.
Our plant is, generally speaking, In
a fundamentally sound condition. Some
things have cost more than they
should have and some rebuilding and
alterations may be necessary to other
parts of il before they may be con-
sidered as being in harmony with
economical upkeep and efficient opera
ton. Against this we have written Oft
high depreeiations and similar charges
amounting to about $4,000 in the
last two years, or over 80 per cent
on our capital stock. so the valua.
tons of our property as whole, as
now shown by our books. may be re.
garded as being very conservative.
Paid For BY Profits.
when it is realized that our plant
cost more than estimated to start with
and that we have since increased its
capacity from 600 tons 10 1000 tons OF
cane per day and paid for all this ex.
tension out of profits, it will be un.
derstood why. in spite OF our large
earnings, there has never been any
money left In the treasury for the pay
ment of dividends. Our initial capital
was inadequate to pay for the large
plant we now own; yet 1t seemed nee,
essary for the good Of all stockhold.
ers to increase it to its present size
in order that the overhead charges
might be distributed over larger
crop, thus decreasing the unit cost
per ton of sugar. As conditions were
at that time unfayorable to our raising
any more money through the sale or
additional stock the only recourse left
was to turn our profits, which would
ordinarily have been distributed as
dividends, into capital, and this was
done. The time has now come when
this temporary disadvantage becomes
the opposite.
"The first report submitted to our
stockholders covered an operating pc
Rod of six months to June 80, 1914.
and showed a profit for this period
of $192,S65.765. At the time we closed
the accounts, we had not received