The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1916-05-19
0XNARDS ORGANIZE
SREFNERYcOMPAM
Plant At Savannah, Georgia, Viii
Have Capacity Of Million
Pounds a Day Il il

The Oxnard brothers, who are large.
,y interested in California enterprises,
and rcputed to be among the most sue.
eeSsful sugar reRners in the United
states, have organized the Savannah
sugar Refining Corporation, for, the
purpose Of building at Savannah,
Georgia, plant with n capacity Of
100000 pounds a day, or 10000 short
tons year. At normal prices the
value Of the output will be about $I5,.
10000 n year. ~. 7lT'2
! = A company hns been organised under
the laws of New York State with the
following capitalization: Seven per
cent cumulative preferred stock (par
$luO), 81 600 900 outstanding; preferred
as to dividends and as to assets ut par.
The authorized issue of preferred Is
shortly TO be increased to $1,000 ,OOO)
no par value common stock shares, $780,
900 outstanding. .s,.. 81 tPr
The enterprise has been underwrit.
ten by l. syndicate composed Of Will
liam Morris, lmbrie 4 Co. CT New York
and Chicago and Byrne 4 Mcdonnell
OF san francisco. IL is understood that
large Fart of the stock has been
noated IL san Francisco where the ae-
eumulated profits Of raw-sugar produc-
ton are very large. Regarding the en-
terprise I AZ underwriters shy:
The entire territory at present tribu-
tary to Savannah, which will he its
outlet for finished product, has no sugar
refinery nearer thaI Philadelphia to the
nurth and New Orlco MS to the, south.
The consumption OF sGgar in the terri
tory to which this COMPANY will enjoy
preferenti.l freight rates Is about 500.
900 tons p"f unnun, or three times the
output of the Savannah refinery. The
consu ptiUa If sugar in the United
States for npmDer of years has in.
ereaseu IL the rate Of 10000 tons per
annrm, or equivalent to the entire out
put Of the factory.
SAy.AEn..h Has Advantages
,,'oa sannah is geographically very In.
yorably situated for getting raw ma.
terial from China and Porto Rico, the
principal sources of supply, not only
because of its greater proximity to
these countries, but also because IL of.
fers low port charges and favorable
outward eargoes to vessels bringing in
the raw sugprs, with consequent very
favorable freight rates inward on these
sugars. ~ Il NJ
Savannah stands second in volume Of
export among the cities of the Atlantic.
Coast, many vessels coming there emp.
ty In order to take export carRoes out.
Therefore, inward freight rates win
be particularly favorable. There IL al
50 quick and cheap transportation from
Cuba by ferry TO Key West and north
ward over the Florida and East Coast
Railway. The Savannah Sugar Corpor.
alton is excellently located to take adj
vantage of this freight ronte. s,y.. So
The chief manufacturing expenses Of
sugar refining consist OF the itens--
packages, fuel and labor. 90
Cheap Fuel Near At Hand
The refinery win be situated near one
of the largest lumber mills in the
Southeast, so that the company win not
only have an abundant supply Of wood,
from which barrels are made, In very
close proximity ut low cost, but win
also be able TO get fuel from sawdust,
slabs and other refuse of the sawmill
at n nominal cost. In addition. other
fuel can be procured at as low q. figure
as Mt other refining points AS to labor,
the scale of wages for labor In ilayan.
nah is materially lower than in the
Northern States.
None of the above savings in expens-
es beyond that OF the Ieompany's com.
petitors 10 included in the estimate of
earnings, which are based upon the ten.
year average of costs and sales prices
as complied by Messrs. Willett & Gray,
the sugar atatisticians, for the years
1905 10 l9l4 Inclusive. Based on these
ilgpres, little over a sixth OF a cent
per pound profit on n daily melting of
100000 pounds would give the com
Pany an annual net profit of 100000,
~ after ldedncting preferred stock .diyi.
bends, would leave about $50 a share
available for dapfeciption reserve and
dividends on common stock.