The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1917-07-17

cient nse Of bagasse as fuel In Hawai-
has mitigated the pressure Of inereas
ing fuel priees. "a
During the three year period under
consideration, Hawaii felt the pres
sure Of the rising charter rates Of fhs
FIRST year Of the war but 1918 dated
! that entrance into cohtrpcts for The
transportation Of the Hawaiian product
that have maiatained the freight rates
more or less near the level Of the figure
of that year up 90 the present time
Meanwhile Cuba, and Porto Rico AZ
well, have struggled with the constant.
ly increasing scarcity Of bottoms and
consequent advancing charter rates
that have boosted transportation
charges TO almost prohibitive figures
ut times and caused shortage Of cargo
carriers that has often been critical
problem threatening AM absolute stop.
page Of freight facilities.
Factory Efficiency Maintained
Against these factors Of increased
costs for sugar producers in Hawaii
qas been the counter-acting influence
of factory efficiency which the depart.
inent of commerce report 20 pointedly
'emphaalzes in relation 70 sugar bro.
duetion in the Islands. The steady
march Of progress 10 this direction
has not been halted during the last
three years, and local. sugar men point
TO this factor as probably the most inn
portaht Of those that have depreci
ated the effect OF the increased costs
of production in Hawaii.
While practically all Of the annual
reports Of plantation managers this year
mentioned numerous items Of produe.
ton that had materially advanced,
many were able to sho% decreased
cost Of operating the factory. Waiaine
for example found plantation operating
expenses had Increased In 1915 by.
4445, O45.24 over 1915, vet the cost Of
manufacture for the season Of lDl6
was thirty -four cents less per ton than
Similar reports were made by other
managers and even on plantationf
where the most unfavorable conditions
prevail 1916 saw the cost Of pfoduc.
tion not more than 3.5 cents a pound.
Consideration Of the increased cost
# sugar production in Cuba by tho
Louisiana Planter is given in an article
relative to the increased price Of sugar
in the world markets. In this connec.
ion the article points out that though
sugar has marketed for an increasing
y high figure each year for the last
hree years, II is a safe prediction that
sven higher levels win be reached as
the cost Of production increases. The
article follows:
Speculative Forces Negligible
Along with consideration of the
using prices of all foodstuffs, and the.
reasons therefor IL is interesting Il
look for a moment into some of the
underlying causes for the high levell
at which sugars have been maintained
for months, and to consider the prob
ability of an early reaction or a con.
tinued upward trend. Undoubtedly
botent factors in the surprisingly swift
rises in the prices of certain commodit.
es, the tantrums of May wheat, foi
Instance, have been excitement and
speculation; but in. the case Of sugar
he influence of these factors has been
negligible. Even when the daily press
gave publicity to garbled report OF,
Mr.. Hoover 8 recent statements regard
ing the possibility of sugar shortage
there was no appfeciable effect upoi
the market; for the reasons for presen,
prices are to be found not so much IN
the decreased worlds stocks as in con.
ditions that result from abnormal. in.
iustrial conditions. ,.lf X 4.
tThe situation in the island of Cuba.
now the world g greatest exporter Of
sugar, may be taken as fairly illustrat
ing the basic causes Of these high
prices. There, at the beginning Of the
summer of 19l4i il was usual to place
the cost Of a pound Of raw sugar il
the batey of the average ingenio at
little less than two cents; SO that b.
the time the Sbagged product was pu'
in warehouse in port its cost might
be reckoned at very close the figure
just given. But from July, l914, Il
the present, every item In the produc
tion costs barring factory efficiency
has been climbing steadily, until today
II is doubtful II In the Cuban ware
houses there is a pound Of raw sugar
hat represents an outlay of less than
three cents. In many instances this
outlay win even go 70 four cents, and
the end is not yet in sight. 7 ''..' 4
All Costs Advance .a...t.
+ Gas concerns labor, always a large
item, In the past three years its cost
has doubled in most sections of the
island, while certain plantations that
Formerly paid their cane cutters Dol
lar a day have been forced this spring
TO pay this class Of labor as high as
four and six dollars per day on ton,
mage basis. ~ f,
Fuel has gone up with almost in.
credible rapidity. Coal that was con
traeted for little over a year ago at
"a per ton, In Cuban ports, Is now Jun
obtainable AT less than $l6 TO $ls--.
and $7awas a big increase over prices
OF three years ago, A new tandem that
cost $4,000 to 100000 in 1914 now
means an Outlayfof &l60, 900 10 5000 900
and the price of all other factory equip,
ment has risen in like proportion, while
deliveries have become more distant
and difficult. s.os 7 /.
Interior freights have increased,
while the percentage rise in the cost
Of ocean transportation has been higher
than the percentage increase in any
other direction. For months preceding
July, l9l4, sugars could be shipped
from Havana and other north coast
pOrts To New York and phifdaInh;a NJ