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

the final returns for our sugar, and
as noted In the report, it was expected
that they would amount to about
$4,000 more than the: figure incorpo-
rated. The excess value proved to be
$7l60.s1. and this added to the fore
going figure makes the actual profit
for the first six months period $780,.
035.5I5. '.:... 49,. H.. 49,.
The profit on our 1915 crop, as
near as We can figure II without the
final returns for our sugar, which. as
you have probably heard, was sold last
month in New York at 4S9 cents, will
amount to about SIS, 560.625. In add.
ton to this, our sundry earnings such
as railroad freight, store profits, etc,
amount to $l733.g15, or total for the
year Of $57.293.640. Against this we
have written off heavy charges. part
Of those referred to above. amounting
to S50.413.S5; so our balance of I'M
divided profits is increased by the dif
ference between these two figures. or
by s6S79.79. This brings our total I'm.
divided profits up to $206.915.S65. or
little more than so per cent of our
capital stock, which is only 100000.
Wants Stock Dividend.
in other words, Tor every dollar
that the stockholders have put into
the place. they now have dollar and
half worth of property. To every
one who understands bookkeeping
these things will all be evident by
our financial statements, an outline
of which 7 have sketched above, but /
favor making the realization more
complete BY stock dividend of so
per cent at some time in the near
future; that Is. every stakeholder
would receive one additional fully paid
up share of stock for every two shares
owned at the time Of the dividend.
This would increase our capital from
$400, 900 TO 100000. have no doubt
that with efficient administration, our
present plant, with some comparative
" inexpensive additions, will be able
to pay very fair dividends on the lat
ter capitalization. But 1t must be
well operated to do So.
II estimate that we can pay off
all our floating Indebtedness and COM
mence the next years operations with
cash balance Of little over $4,000.
II has already been explained why our
cash balance does not equal our un-
divided profits, but this question has
been asked so often that shall reply
again that IL Is because we have put
our profits into plant. Our bankers
have intfmated that they are ready
to grant us the usual advances Tor
handling our 1916 crop, so we have no
financial worries ahead Of US, rather
novel experience.
AS promoter OF the enterprise, !
deeply regret that any of the original
purchasers OF the shares have sold
out, especially for less than they paid
for the stock, and that the shares are
even now offered for sale at IS, the
par value being $40. The redeeming
feature is that less than 10 per cent OF
the stock has changed hands, and that
the price of the stock has been higher
than that Of many local sugar compa-
MES from the time of their incorpora-
ton to their dividend era.
Has Avoided Stock Trades.
.'In fact 1t would be an interesting
study for some historian or statist1.
clan to point out just what local sugar
companies, IL any, have made as good
progress as San Carlos has In the
short time of three and one-half years
from incorporation. Personally / have
never sold any stock at any time. In
fact have from time to time added In
a small way to my holdings; but
have made it point to abstain from
trading in II, either directly or indi-
rectly, from last April when | COM
menced my work of reporting on 1t,
In order to avoid the slightest posi-
bility of criticism on that score. From
the first it has been my desire to so
Identity myself with the company that
I would share whatever success or
failure might accrue to the stockhold-
ers, and to the same degree. Then,
in the event of the projects being
overtaken by any unforeseen catas-
trophe at least my sincerity in In
ducing others to invest in 1t would
not be questioned.
"As a result of what ! have seen
and learned during my investigation
on the ground believe that our pros
poets, possibilities and present status
are such that would not advise any
stakeholder to sell his stock for less
than SIS a share, unless 1t could be
replaced for less. That is not an ex-
cessive valuation for it. The bonds,
too, are worth considerably more than
the present asking price. l have no
hesitation in predicting that both,
more especially the stock which is
so abnormally low, will advance as
soon as people realize fully what has
been accomplished to date, and that
the operating expenses can be cut
down to q satisfactory figure. / am