The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1918-03-08
SUGARCONPAN|ES /
. OF lSLANDSqN !.
. REDUCE DIVIDENDS
Announcement Made That Brew
q er & Co. Is First TO An
nounceCut u PAYMENTS
STATEMENT is MADE
: AT CHAMBER MEETING
other Factors and Plantations
Expected. To Take SINH '.'
lar Action

General reduction in dividends paid
out by sugar plantations and agencies
to their stockholders IL presaged in tho
announcement made yesterday at a
meeting Of the chamber Of commerce
that Brewer and Company has decided
to reduce the amount Of its monthly
dividends and Of any special dividends
Il has been in the habit for years Of
paying with regularity.
The statement was made by George
r. Carter, who gave rs his authority
Z. Faxon Bishop, presideT. of Brewer
and Company. Uncertainty as to sugar
shipments and returns therefrom, cou-
pied with lack Of knowledge as to
amounts Of money that will be required
from Hawaii by the federal govern
ment, was given as the reason for tho
decision reached by the sugar factors
While the argument was under way
before the chamber concerning the
question Of whether or not the chamber
should endorse the sale Of 1920, 900
worth of territorial bonds for the build
ing of the belt road, and whether or
rot it was advisable to wait until the
federal government had made known its
specific plans as to the amount of funds
would be required from Hawaii this
year for carrying on the war, Mr.. Car
ter said that, he, too, had enthusiast
cally approved tho construction of the
road under the bond sale, but had been
surprised only a short time before to
learn that the Brewer and Company
dividends were TO be reduced between
now and July l.
Announcement Q Surprise
Mr.. Carter said he did not know
the views Of the bankers concerning n
possible necessity for retrenchment and
their views as to why it might not be
advisable at this time to undertake
the floating of nearly 100000 worth
Of bonds for road building, but he felt
that the decision of Brewer and Com
pany should be given to the chamber
! at that time.
| The statement Of Mr.. Carter appear
ed to be something Of surprise to
many sitting in the session, although
such action has been predicted by The
Advertiser, and for time it appeared
as IL IL might cause an adverse vote on
the request to- have tlfey chamber en-
ddrse 1.-THE sals Of the territorial bonds
for the belt road. =
Mr.. Carter said that the situation as
explained by Mr., Bishop was this:
That the planters and agencies were
not certain just what amount of sugar
of this years crop would, 60 forward
to the mainland, owing to the uncer-
tainty of the number Of bottoms that
the federal shipping board could fur
nish for island necessities, and that no
assurance had been received from the
government that the sugar situation
would be entirely taken care Of. There
fore. he did not deem it wise, in view
Of the 100000 taxes of all kinds
which Brewer and Company would be
called upon to contribute to the govern
ment this year, to pay out dividends
under the circumstances. These retain
ed dividends would be held for eontin-
gencies which might arise and which
IN adequate sum should be on hand TO
meet.
Possible Contingency
| Mr.. Carter said that if island sugar
had to be placed in warehouses await
ing eonvenienees for shipment to the
refineries, receipts Of money for sugar
would naturally be retarded, and as
much ready money as was required for
the varied necessities Of the commun-
ity and its obligations would not be
available.
| eff it is certain that we have TO
reduce dividends, we are not so well
off as we supposed, said Mr.. Carter.
1t was also announced that had it not
been for forceful appeal from the
Islands to the shipping board, the Mat
son steamship Lurline would have been
taken off the usual run between the Isl.
ands and San Francisco and placed in
the transport service, in the Atlantic,
particularly to carry war department
supplies. It was understood that the
Lurline was a vessel admirably fitted
for this work. Representations were
made that this steamer, owing to its
great freight tonnage was absolutely re.
duired for Pacific trade, that Of the
Hawaiian Islands in particular, and
the request for its withdrawal was res
| cinded.