The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1916-07-07
OLAA IS STABLE :.
DESPITE LON YIELD
In the Opinion Of Local Engineer
conversant With the
Situation
This Great Property Has Excep-
tionally Strong Basis Of In
Dtrjnsic Values :

An engineer who is thoroughly fam
liar with olaa plantation submits tn,
following analysts which should rcas
sure small shareholders as to the in
timsic strength of this property. He i,
himself n small shareholder, but hai
no other direct or indirect connection
with the company.
Announcement was made Saturday
after-a meeting of the board of direct
ors of the 0laa Sugar Company, that
according to their revised estimate the
total sugar output of that company fol-
1916 will probably not exceed $4,000
tons or would fall 43O0 tons short of
the estimated crop. Other companies
located on the Big Island are also max
ing revisions of their estimates, and
almost Invariably seem to have over,
rated this year g output considerably
one Of the best managed and most pro
htable plantations being said to have
crop of almost twcnty.seVen per cent
less than the crop of 1918.
"Serious, as a shortage of nearly
seventeen per cent from the estimate
in the case of Olaa might seem, care,
full analysis of the financial conditions
of that concern fails TO reveal any
fact which might give reason fol
alarm. According to a published state
ment of Mr.. Bottomley, treasurer, the
average returns on SIP tons of sugar
sold so far this yea: have been 5.S4f
cents per pound, which means that
these sales have brought 1897 695.O4
II is pretty certain that the remaining
$3.50 tons of the 1899 tons shipped
to date, have sold at approx, &c a
pound as the price of sugar has been
above the &c level for some time. This
would leave another 1868 tons of a
$1,000 tons crop to dispose of"
Six Cents Almost Certain
Judging by the strength of the
New York sugar market and the prices
realized there lately for Cubans and
Porto Ricans in the face of reported
reduced Cuban stocks. ii is almost safe
to say that very little if any of these
S76S tons will sell below &c a pound
This would mean returns for 10 SSs
tons at $l20 a ton or a total of al.
926, $50. Adding to this the 1851, 695. O4
from the 5ll2 tons sold to date, the
total gross earnings of Olaa Sugar Co.
for 1916 should be in the neighborhoOd
of $2,524, 255.O4.
Assuming the total expenses for
1916 TO be $2,222 663.72 which would
be the same as for 1915, based on q
32,30S ton crop and an average price
of 4.642 cents per pound for the year
1916. and making an allowance of $50,
600 for new machinery installed, while
no deduction for the cheaper handling
of the smaller crop has been made on
account Of increased wages for planta
ton help, the remaining surplus at the
end of 1916 should approximate 1888.
59l.32. The amount of cash on hand
ut the end of 1915 was published Ia
be over 100000 and this would leave
a balance of approx, $685., 59l.32 at the
close of 1916. Keeping up the announ.
ced distribution of dividends Mt the
rate of one per cent per share or $50.
600 per month would reduce this amount
to 1853 59l.32 with which to start the
year 1917.
Outlook Bright
Should 1917 prove MS good as it
promises to be or at least duplicate the
crop and prices of 1918 ii should more
than offset the slight decrease in cash
holdings at the end of 1916, as 1918
had resulted in a surplus of $77S,sll.
The physical condition Of Olaa
mill has been considerably improved
during the present year and instolla,
tions proposed and in course of con.
struction will help to make it a well
balanced unit. While 80 far the boiling
department. could not keep step with
the grinding capacity Of the mill, the
mi "a
by local firm and now being erected
at Olaa will do away with the inferior.
ity Of the boiling department, while
a Searby shredder will bring the
grinding capacity Of the mill up
to the highest pitch. The installation
OF Sterling water tube boiler has
also been reported lately and thus,
with average weather conditions, Olaa
should be. able TO produce sugar on a
profit making and efficient basis.
L.