Honolulu star-bulletin., 1916-01-01
SUGAR PROSPECT
IS HIGH PRICES
FOR 1916 YIELD
Continued from page one)

Continued from page one)
after the war low prices prevail once
more.
Some of our plantations could prob
ably live even under free sugar, but
investors should consider the newt.
able return of low prices for sugar
when normal conditions are restored. T"
All Business Benefits.
John Guild, secretary of Alexander
& Baldwin, Ltd, gave out the follow.
ing resume of the past year, and his
views of the future of the sugar indus.
try of the islands:
In looking back over the very pros
porous year that this country has
had, and how much we who live in Ha-
wall have to be thankful for, cannot
help thinking tnat the stockholders In
our plantation corporations and the
community generally are too apt to
consider only the large dividends that
have been paid. This, of course, is
natural, as increased sugar dividends
mean everything to this community.
and the results reach every kind Of
business.
There is, however, another very
real gain from good years like these
that / think should not be lost sight
Of / refer to the liberal amounts that
the plantations have been able to ex-
pend for improvements during the
past year. On nearly all of our plan
tations large sums have been spent
for increasing the efficiency of the
mills, for improving and making more
certain the water supply and for gen
orally putting into the best shape pos.
sible everything IN connection with
the physical side Of the plantations.
besides this, the good profits of the
past year have enabled many planta-
tions to pay of bonds and other in
debtedness, thus reducing interest
charges. Nor have the laborers been
forgotten. On many plantations large
amounts have been spent for increas-
ing their comfort and general welfare.
s.Ail these expenditures for improve
ments are, l. believe, the very best
kind of an Investment for the. future,
as, in the long run, 1t is better to have
taken advantage of the good years 10
keep our plantations in every respect
right up to date, so that when hard
times come they will be able to pro-
duce sugar at the lowest possible fig.
ure, and the stockholders be more
sure of receiving moderate dividends
right along. Hawaii and its sugar in.
dustry cannot expect to be always on
top of the wave of prosperity. The
reaction and the lean years are sure
to come, and now is the. time to pre-
pare for them.
while one can only guess as to
what we will get for our 1916 crop,
cannot see how the average price OF
sugar for next year can be low. Even
If the war should come to an end soon.
which seems less likely than ever,
believe high prices will rule for some.
time after that, until the worlds sup
ply of sugar gets back to something
like normal"
Prepare for Lean Years.
Allen w. T. BottomIey. president of
the Planters Association. also points
out that present prices are due to alb
normal conditions, and advises prep
arRtion for possible lean years in the
future. Mr.. Bottomley says.
Il do not think / can add anything
to what has already been said about
the sugar business of the islands for
the past year and, as for the pros.
poets for this year, one mans guess Is
as good as another's when you come
Ito prophesy about future prices Of
sugar.
7 do know that we have had very
prosperous year and indications are
ontpuraglng for the future, but do not
let rs forget that our prosperity is
due to tie abnormal conditions now
prevailing. without which. with the
very large Cuban crop now in sight.
we would IN al probability be facing
q year d very low prices, even with
the existing tarin
might we'll 1e 10 continue n the care
fuI and conservative course which We
have |||||9| @~ as II he 1[rer1fe6 far