The Hawaiian gazette., 1918-02-01
Hawaiian Pineapple
Conlpany's Year
Shows Record Growth
dividends Amount To One Hum
dred and Two Percent On Old
Capital Plant Grea,Ii Increas-
LED and 'Ftfure PROSPECTS More
Than Ever Brilliant Il

~ ~. u - ~ (
stockholders Of the. Hawaiian Pine.
nipple Company received IN dividends,
stock and cash, $7l5,O00 during the
year 1917 upon the seompany,s capital
izntion OF 600, 900 on january 4, 1917,
now $1,200,OO0. This was 4 total IN
dividends Of n fraction over 102 per-
cent on the former capital Of the COM
'pany. sa
Highly satisfactory are the reports
Of the Hawaiian Pineapple Company
for the year 1917 That Of James ID.
Dole, the president and manager, goes
into the general business Of the com
pany in detail. 1t says q considerably
smaller pack than in 1916 had been
expected due to smaller Quantity OF
fruit available for purchase from OUT
side growers but the pack was 1881
9S2 cans, 766, 72l eases, which was only
22,977 fewer cases than the 1916 out
put. Seventy-six and one.tenth per-
cent Of the fruit was produced on the
eompany's own plantations as against
BOA percent in the previous year. This
year II is expected the plantation win
produce n considerably higher percenc-
are Of the fruit used. The plantation
looks well and the company should OBJ
tain sufficient fruit to put ont pack
considerably larger than its best prev.
inrs record Of 790;s95 cases, that Of
1913. f Z
Improved Methods shown IS
Improved methods enabled the earn
ing Of handsome profits despite increas-
ed costs and excess profits takes Of
$l64, 034S0. Cane alone cost propor-
tionately 1852, 044.03 more than in 1916.
While prices were considerably higher
than during the period Of extreme de-
precision, the company avoided taking
advantage Of an opportunity to profit
Ger and its prices were only seven per-
cent higher than the average for tbs
past ten years and lower than in 1919
or in any year prior to 1909. NJ
Much Of the years crop was taken
by the United States army and navy
and forty percent Of the entire winter
pack win be furnished 10 the govern
ment. Shipments to Great Britain were
again cut in two and twenty percent
Of such shipments were commandment
by the British government. 1.
Profits Are Invested
On December 81 the capital Of the
company was increased by vote of the
profits which had been invested in
permanent improyements at the can
merry, ON the plantation and in growing
crops This outlay Is designed to en-
able the company TO raise its output
to l 600, 900 cases a year. tf
Accompanying the report of the pres
ident and the financial report Of the
Audit Company of Hawaii there was
sent eto the stockholders letter tell
ing them of what adyices the company
has relative to taxes upon the divi-.
dends Of the year.
Profits Invested - -. d
Relative to therstock dividend Of
january 20 last year of 500, 900, the
letter says the company is advised by
its attorneys, It Is not taxable as re.
venue under the federal income tax
laws under either the normal or super
tax and should be admitted in making
out returns. "A S#E&
: As to the stock dividend of 100000,
twenty percent, the letter says:
st,'f Unless affected by the recent deci.
sion of the U, s. Supreme Court in
Towne VS.. Eisner. 9233S percent or
$685. per share is subject to super.
taxes as 1917 income. The remaining
1862 percent or .306e per share appears
to be also subject to snpertaxes, but at
the tax rates In effect in the year 1916.
II is our opinion, subject to adverse
ruling Of the treasury department, that
this amount should be returned as 1917
income, but subject only to the rates
of tax prescribed by the Act of Sep.
TENDER s, 1915" :.
p The monthly and special dividends ara
both subject to supertaxes as income
under IDA rates. Ia tsy54Ja