Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-05-12
LARGE Dividend
INCREASES ARE
HIS PROPHECY
Unknown Honolulu Banker
Gives interview in San Fran
cisco Full of Optimism

Considerable interest and ne small
amount of curiosity is expressed in
business sections as to the identity
of the prominent Honolulu banker"
interviewed by Charles Remington for
the San Francisco Chronicle and
which interview was published April
%. There are numerous surmises but
nothing definite on the banker has
been learned. r..
No matter who gave out the inter
view, the statements contained in it
voice the opinions that are held by
large numbers Of businessmen and ii
is therefore reproduced. .. ~.
A prominent Honolulu banker, now
in this city, predicts that the 1916
disbursements of Hawaiian sugar
plantations to their stockholders will
far surpass anything in the history
of the islands. In fact, he says IL is
a settled policy of the planters TO pay
out in dividends practically all this
years earnings. His views were set
forth as follows:
For several years the plantations
have been building up large cash re-
serves against a possible period of
free sugar and lower prices, 1t has
been the policy to acquire and retain
cash, over and above that required
for current expenses, at least equal to
one years dividends. Most of the
plantations closed the year 1915 with
such reserves and many of them were
carrying much larger reserves. Since
the first of the year these reserves
have been very much increased, for
the reason that receipts from sugar
sales have been much greater than
dividend requirements at present
rates. know of one plantation that is
carrying a cash surplus more than
100000 greater than it showed as
of December 81, 1915.
THE risk of free sugar having pass
ed for the time being, there certainly
exists no incentive for increasing the
cash reserves-in many instances al
ready larger than the circumstances
call for In the face of these condi-
tions | think the stockholders can
count this year on receiving prdcti-
cally all the net earnings.
THE present dividend policies-in-
elusive of regulars and extras-were
based on IL cent sugar. Very little
sugar has been marketed at that
price, and not more than 20 to 25 per
cent of the outturns of the various
plantations have been marketed at
all. With raw sugar selling above 6
cents and the prospect that it will
sell higher, it is conservative to esti.
mate the net profits of the plantations
this year will be $40 ton on their
total outturns more than they counted
on at the beginning of the year.
"Take the case of Onomea as an ex.
ample At the beginning Of the year
the company counted on paying in reg.
ulars and extras $7.20 a share. Now
the outlook is good that the company
will pay 81. The situation with re.
spect to the other companies is SINH
lar. / estimate the maximum divi-
dends of some of the leading COM
panies as follows: Eva, Sc; Hawaiian
Commercial, IS; Hawaiian Sugar, S.;
Honolulu, 81; Hutchinson, $3.50;
Oahu, $3.50; Onomea, $11; Paauhau,
$500; Pioneer, IS; Waialua, So" -.
Accepting the foregoing. prediction
with respect to the maximum divi.
dends, and considering also minimum
or present dividends, the yields at the
market, based on minimum and maxi
mum dividends, would be: ~
Mkt DiV'dS Yields Oh