Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-11-24
COST OF PRODUCING AND MARKETING
/ HAWAIIAN SUGAR LEAPS UP RAPIDLY
War Conditions Reviewed By Well Known Authority in Re-
ferng to Agitation for Higher Wages-BonlS Brings Un-
precedented Prosperity to LaborerS

,repared by Richard Ivers of Brewer
i & COMPANY. and were used as part
K of a comprehensive article recent!
. written by him in discussing the agl,
8 tation for higher wages by some o.
+ the Hawaii Japanese.
Mr. Ivers gave the record (average
figures) of II Hawaiian plantations
producing approximately 25 per cent
of the total annual output OF the
5 islands and whose cost OF production
; compare very fully with the average
cost production of all the Hawaiian
. plantations, while the wages and
5 bonus paid offer a similar fair COM
parison.
With these plantations for illustra-
{ ton, Mr.. Ivers' statement included
: the following:
. Profit for 1915
! For the year ending December H.
. 1915, the twelve plantations collec'
2 lively received upon an average at
+ market, for the sugar produced by
them S9O45 per ton. 1t cost these
: plantations, upon an average, TO pro
/ duce and market this sugar, $o4.o9
FER ton;
. The average profit per ton being
; $36.45;
. The average bonus paid to laborers,
: per ton, being, $1.3O.
II is generally March Of the sue
ceeding year before returns Tor all
sugar marketed are in, accounts
closed and the results of the previous
wears business available. AS has been
stated. the above showing of these
twelve plantations for 1915, represent
ing IN average profit Of $3.50 per
ton, would probably represent the
. average profit of all the plantations
operating in the territory for 1919. AS
: 2 result of this showing the planters
voluntarily. early in 1916, without de-
mands or without any request or sug-
gestions from plantation employees
very materially increased the bonus
schedule, whereby under the new
schedule plantation employees would
more generally and more largely par
ticipate in the plantation profits. Ihls
new schedule was effective, only for
seven months of the year 1916, AMI
Is reflected in the following figures
for the same plantations covering the
crop of 1916.
Gross average price received fol
sugar per ton, $1,000.
Average cost to produce and mar
ket this sugar, per ton, $1,000.
Average profit, per ton, $421O.
Average bonus paid to laborers, pei
ton, $40.
In connection with this bonus, how |
ever. it should be pointed out that
included in these plantations are a
number of plantations purchasing a
certain quantity of cane grown by
outsiders, and upon these plantations
the bonus cost per ton is less than
upon plantations growing all of their |
own cane. The average cost OF the
bonus per ton in 1916 upon the plan
tations included in the above, grow
ing their own cane, was $3.50 per ton.
Increased Cost Large
Reviewing these two years, we find
that whereas the selling price of SUI
gar had increased some $3.50 per |
ton, the profit thereon had increased
but $625 per ton, or to about the |
game extent as had the bonus.
Admittedly a profit of $42.70 per ton
is an unusual one in the Hawaiian SUI
gar industry, but it is not such an
extravagant profit as it appears, 1t |
representing a twenty per cent profit /
upon the capital employed upon these
twelve plantations in the production
Of this sugar.
Japanese Were Grateful
When this bonus was increased to
IL. Ill So,
there was not Japanese paH~r that
was not praising the magnanimity Of
the planters, anu it is safe to say |
that there was not a plantation en-
ploye who was not surprised at the
amount of this substantial increase,
which had not been anticipated, and
which at the. time gave them an AL
portunity and made it possible for
them to earn monthly an amount far
larger than they had dreamed of.
Comparing the results most likely
to be obtained for the crop of 1917
with the crop of 1915, the following
facts stand out: that although the
selling price of sugar will have in.
creased from $90.45 per ton to prob.
ably $4,000 per ton, or approximately
$4,000 per ton. the, owners of these
will not have realized one
daliar benefit thereirom. One-half OF
the $4,000 increase will have gone to
the plantation employees in the way
of bonuses and higher wages and the
one-half, or $500, will
have been absorbed by the Federal
and Territorial governments in in
creased taxes and in the increased
cost of materials going into the manu-
facture of this sugar and the market
ing thereof.
What Are The Facts?
AS the bonus cost per ton of sugar
does not represent in dollars and
cents the actual amount of wages. or
the actual bonus received by each1
plantation employee, let us review
these figures upon these twelve plan
tations for the month of July, 1917,
when the labor agitation started
There were employed, as unskilled
day men. upon these various places
during July, 1858 Japanese. The
average monthly earnings of each
so employed was $3.50. The
average monthly rate paid to these
for 90 days work was
$3.50. The average bonus paid for