The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1921-01-28
Plan of Financing
Crockett Explained
E. Faxon Bishop Goes Into
Details Not Heretofore Civ
EN- in Full to the Public
Through Press.

,ery than has been made public here
tofore is contained in an interview
given by e. Faxon Bishop to the Ho-
nolulu Star-Bulletin last Tuesday and
mere reproduced:
THE fact of most interest to general
public, | take to be the amount of
capital that island plantations will put
into the reorganization of California
& Hawaiian. That amount is 100000
900. No, we positively do not IN
template any subsequent and further
issue OF Crockett common. There
may be a comparatively small issue
Of preferred shares.
Crockett, you understand, is held
by the Sugar Factors Co., the shares
of which are in urn owned by the
sugar agencies here-C. Brewer &
Co., for instance, and the rest of them.
Under the plan of reorganization,
these Crockett shares will pass from
the hands of Sugar Factors Ltd, to
direct ownership by the plantations,
and the refinery, through its sales de-
partment, will become their market
ing agency.
Method of Financing
ITO finance temporarily a possible
issue of preferred stocks in the refin-
cry, we are contemplating an eX-
change of Sugar Factors stock for
preferred shares of California & Ha-
waiian. These shares-that is, Cali
fornia & Hawaiian preferred-ulti-
mately would be taken up by the
agencies. Such is the plan, but the
details of this and many other mat
tiers have not been perfected"
Previous to December, 1920, all the
shares in Sugar Factors, Ltd, were
held outright and solely by Hawaiian
plantations. At that time they were
taken over almost in a block by the
plantation agencies, although some
producing companies decided to retain
their Factors stock. At the same time
Sugar Factors, Ltd, became sole own
ers of the Crockett refinery many of
whose shares heretofore had been
held by Pacific coast interests.
The net result of these exchanges is
that the plantations subscribe for the
new issue of California & Hawaiian
shares made necessary by reorganiza-
ton, and the agencies provide what
additional capital is needed"
Mr.. Bishop did not say on what
basis Sugar Factors stock would be
turned in by the agencies which now
own them.
The Waiakea Mill Co., for which
Davies & Co., is agency, in its recent
letter to the Waiakea homesteaders'
trustees stated that 1--WE shall sell our
Sugar Factors stock at a greatly re-
duced valuation" From the best of
authority, The Star-Bulletin learns
that this valuation is in round figures
$40 a share, representing a shrinkage
of $40 a share.
Sugar Factors, Ltd, was incorporat
ed for 5000, 600. Assuming the n
official valuation of $40 a share to be
substantially correct, the amount of
the shrinkage, $4,000, 900, would be
the amount of capital supplied by the
agencies toward recognizing Crockett
The total furnished by the islands is
thus approximately 5000, 900, of
which sum the plantations subscribe
10 and the agencies 3 millions.
Book Value 5000 a Share
Being closely held, Sugar Factors
stock has never been listed on the Ho-
nolulu stock and bond exchange. Par
was 500, but the value of Factors
holdings in California & Hawaiian
stock and other mainland securities
brought up the book value to 5000 a
share. No dividends were ever de-
clared. Earnings accruing from Cali
fornia & Hawaiian dividends were put
back into the business by charging
the capacity of the refinery.
at is estimated" said the Waiakea
letter just referred to, that for this
year the output of the plantations
which have sold their sugar to the re-
finery in the past will be ATS, 900 tons.
Crockett refinery can take 5000 10
tons and can sell $4,000 more to the
Western Refinery, making a total of
$4,000 tons, leaving 125, 900 tons of
raw sugar TO be disposed of to other
refineries or on the open market"
Assuming this statement to be cor
rect, Mr.. Bishop was asked if the rea-
son Crockett could not take 300, 900
tons of Hawaiian raws was because
OF physical limitations or because the
refnery's selling territory was saturat-
ed.
Crockett he answered, has a
present capacity and actually has run
at periods with an outturn of 1000
tons a day. That amounts to appro-
Ximately $4,000 tons a month, or 600,-
600 tons a year"
Hawaii's output for 1918 is given
in the Manual of Hawaiian Securities
as 515, 900 tons, increasing to $685. 13
tons in 1888 and dropping again to
100000 tons in 1890. 1t can be seen
that the capacity of Crockett exceeds
the island Outturn by approximately
100, 900 tons.
That must mean," the inquiry pro-
ceeded, that if Crockett takes the
whole island outturn, some of it will
have to be marketed in new terri
tory?"
Yes" said Mr., Bishop, but that's
another of the things that has TO be
worked out. You can't go into a new
field on a priori basis, by merely say
in" you're going to do it.
The Sugar Factors Co., when the
new arrangements have been worked
out in their perfected details, will
cease to exist as an element of any
financial importance in the general
sugar business of the islands. It's
statistical functions amy be continued