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

the final returns for our sugar. and
as noted in the report, II was expected
that they would amount to about
$4,000 more than the figure incorpo
rated. The excess value proved to be
$71s0.S1, and this added to the fore
going figure makes the actual profit
for the first six months period $780,
035.575. -
The profit on our 1915 crop, as
near as we can figure it without the
final returns for our sugar, which, as
you have probably heard, was sold last
month In New York at 4.S9 cents, will
amount to about $55, 560.625 In add
ton to this, our sundry earnings such
as railroad freight, store profits. etc.
amount to S1133.0l5, or total for the
year of $57,293.64U. Against this we
have written off heavy charges, part
of those referred 10 above, amounting
to $50;4l3.85; 50 our balance Of un.
divided profits Is increased by the dif
ference between these two figures, or
by $6879.79. This brings our total un.
divided profits up to $206, 915.365, or
a 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
a half worth Of property. To every
one who understands bookkeeping
these things will all be evident by
tour financial statements, an outline
of which have sketched above, nut
favor making the realization more
complete by a stock dividend OF 90
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
S4O0. 900 to 100000. have no doubt
that with efficient administration, our
present plant, with some comparative
IL inexpensive additions. will be able
| to pay very fair dividends on the lat
| ter capitalization. But it must be
well operated to do so. :.
II estimate that we can pay OIL
all our floating Indebtedness and CON-
mence the next years operations with
a cash balance of little over $2O.0OO.
| 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 II is because we have put
our profits into plant. Our bankers
have intImated that they are reaay
| 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 50, the
mar 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 hlgner
than that of many local sugar compa-
mics from the time of their incorpora.
ton to their dividend era.
Has Avoided Stock Trades.
'1n fact 1t would be an interesting
study for some historian or statisti-
clan to point out just what local sugar
companies, II any, have made as good
proeress 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 l
/ have made it point to abstain from
trading in 1t, either directly or indi-
rectly. from last April when ] COM
menced my work of reporting on IL,
I'M order to avoid the slightest POSI-
biIity OF criticism on that score. From
the first it has been my desire to SO
identify myself with the company that
/ 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
oyertaken by any unforeseen catas-
trophe at least my sincerity in in.
ducing others to invest in it 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 it could be
replaced for less. That is not an ex-s
cessiye valuation for it. The bonds.
too. are worth considerably more than
the present asking price. | have no
hesitation in predicting that both,
more especially the stock which is
SO abnormaliy low. will advance as
soon as people realize fully what has
been accomplished to date, and that
the operating expenses can be cut