The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1916-07-11
OAHU PLANTATION
PLANS TONCREASE
HSclAIIPITAL STOCK
Meeting Of Shareholders Has
Been Called For Next Monday
BY Directors
STOCK TO BE LISTED
ON COAST EXCHANGE
Big Sugar Company Is Getting
Ready To Go Upon $4,000. !
Ton Basis

+
AZ meeting OF the directors OF Oahu
Sugar Company yesterday morning II
was voted to call special meeting Of
the shareholders Monday, July II. Al
that time . nronositior will bo .rh,,;+.
Ii r,,, 49,
'0u ~ Tue s""'e"o'uerS 10 'hereaSe 'ne
capital stock OF the company from
| $4,000 900 to $4,000 this increase
Of Al 600 600 IN no issued IN sbore!
holdor. 90 rooo4a A.. -,
"o' " '0'u nusu'' us S'o0N
uiViuehu:
Ell y. l'owrey, hrst wee president OF
oahu gu gar company IL preparing a
statement 10 the erect that the com
pahy VIII Probabiy be able to pay ex,
ira diVldends OF tour per cent in addi'
non 10 the regular monthly one per
cent during this year, OF sixteen per
cent IN all . ~
| - WIN De necessary IN order 10 bnng
NV an t up W lne my snousaao
| pacitv. to nrov;de nm add;t;onof Al
| 900 900 I, Al. $50 600 of canitol Tbs
shareholders will be asked 70 deeids
whether this il TO no Accommodated 10
1 an Issue OF nSARRQ1 hlp al OPk uhathAr
the imnrovements sbar ha mode ont ~
the earnings of the companv
70 paiss yUs,oho,. 10
- ~ -''
/. Ihey VIII also De asked TO author
We an increase IN the capital stock or
sne Malahole "aer company TO So
p0oouoo' from $Z,ooo,OOo, its present
mint, IN order TO take up the oVer+
draft and provide funds for reservoir
ana dltch construction. This stock Is
owned 6Oy the oahu sugar Company.
Ihe directors nave also recommend
ca that the eharter ana bylaws be so
AMENDED thar the STOCK can be listed
on tne ran FranelscO STOCK exchange
inns increase IN capltahZatlon mas
long been discussed by the financial in
terests ana some dlnerence or opinion
naS arisen as TO whether II IS or is not
suVlsaDie 10 90 tnls AT TINS time
rrenirusiles OF July 3 takes the posi-
non 'nat IL Is not 1ustlhaDie'
What TrenTrusTics Thinks
After going into the financial condi.
ton of the company in great detail and
stating the history of the Waiaholel
water project, it's present development
and future crop outlook. il states.
n'FrenTrusTics dOas' not haI;ava tho
time Is opportuue for n stock dividend
1t is we'll enough to argue that Al 900.
900 of shareholders money has GONE
into the Waiabole proiect mt N date,
this investment has brought no fnan.
cial return to the plantation.
'Our opposition to the stock divi
.dend is based on the fact that Oahu's
capital is already $4,000 600, and in ad.
dition there are ST ,750,O 900 in bonds
outstanding a total capital Of 1880. =,
900 on crop of 30 700 to $4,000 tons
When the actual benefits of these re
invested earnings \(WaiahoIe expendi
tures) materialize in the shane OF in
creased tonnage, stock dividend
would be in order. but to increase the
capital by stock dividend before the
production is Increased seems t6 ny
TO be discontinue the future
High Prices and War
1.-THE islands are enioyinp abnormal
prosperity at present, but L IL a ma.
rural law that such a period must soon
er or latter be followed by q period of
depression, especially where the pros
oerity foundation is Of flimsy eonstruc
ZION, as is the case in Hawaii at pres
emit.
"When the European war ends, and
England again purchases it's sugar sup.
ply from Germany and Austria, the
enormous increase In Cuba 3 produc-
ton, as we'll as the big increase in the
American beet crop made possible by
the elimination Of Free Sugar. will be
factors operating in favor of low su.
gar prices.
"While all indications point other.
wise, this condition might develop in
the immediate future, and the abnormal
earnings now enjoyed would quickly
disappear under low sugar prices. In
the case of Oahu il will be 1918 before
any appreciable incrense in cron will
be noted as a result of the Waiabole
development. Therefore, would il not
be better to defer a stock dividend
listributionf