lis.' ' - '--.v:
UJi' I Mill 1 .
NOTICE TO-Wm Ml INVESTORS,
HAWAIIAN GAZflTTS; FBIDAX.V';
, "Since this prospectus Was printed a gentleman who
"represents large interests in the sugar culture of .these
islands has criticised my estimate of expense. My aim'
has been to make a careful, conservative estim'ate .of
the earnings and expenses of the proposed undertaking,
and my object is to inaugurate a "business which will
be a paying ihvestmeut for every one concerned, and a
credit to this country. I have invited criticism froriita
large number of able men to whom T have submitted
my Prospectus before putting it in prints some of whom
have responded in writing, as may be seen in the Pros
pectus. If to be conservative one must place the es
timated income of an enterprise at such a low point,
and. raise the estimated expense to such a high figure
that there will appear to be no profit; such a course
would be as much a mistake as to make an over estt
anate of profit. To meet the views of my critic, and to
satisfy, if possible, any one who may question, the
soundness of my figures as made in the Prospectus,' -I
beg to submit the following:
When Ewa Plantation was started, the so-called con
servative element in this country, contended, that the
cost of pumping would leave no profit on the sugar
raised. Haiku and Paia plantations, on the Island'of
Maui, have been, truly; mines of wealth for the stock
holders. Great stress is laid upon the fact that these
plantations enjoy the superior advantage of flowing
wjater, for irrigation, and hence "avoid the enormous
expense of pumping.'' Recent reports, which are au
thentic, give the jFolIowing results: " '
Cost of irrigation per ton. of sugar, at Haiku Plantation. . .$7 00
.' ' " " Paia . " -...7 69
Ewa Plantation Pumping and Trti gating S 09
Now we find by actual experience that it costs Ewa
Plantation for irrigating, forty cents per ton more than
Paia, and one dollar and nine cents per ton more than
'at 'Haiku. A difference so small on enterprises of such
great magnitude asto "cutn'o ifigure;" when the value
6a water supply which can be regulated at will1 is duly
While 1 believe the Oahu Sugar Company will be in.
position to pay a dividend on the first and smmcrops;
to "tie "conservative" I suggest that no dividends may
be paid until the second crop has been harvested. The
third crop according to the plan in the Prospectus will
coyer 4,000 acres; 2,000 acres' of "Plant Cane,;' 1,200
acres of "Short Ratoons," "and 800 acres of "Long
Ratoons." It is not expected the crop willon any yea
following the third crop be . less 'than 4,0i)0acres, 'though
the area of land held by the Company Syill admitf oflah
annual crop much larger, say '5;Q0Q to 6,-jDOO" acres.
Starting then, with the third year will make a con
servative estimate of the sugar to he made each year
from January to July, and will estimate the: expense
for the entire year at the rate suggested by my- con
The 3Tield of Ewa Plantation in 1894, under unfavor
able circumstances, due to an inefficient mill, was six
and ninety-six one-hundredths tons per acre for the
-entire crop harvested While- ifc is admitted, generally
that the lands of the Oahu Sugar Company are as good
if-not better sugar lands, I will place the estimate of
average yield at one-half ton per acre less, say six and ,
.one-half tons. .
ESTIMATED YIELD OP SUGAR FOE 1S99.
. ;Crop.to be taken off between January and July :' '
4000 acres at six and one-half tons 26,000 tons -
'56000 tons; jnet of marketing-charges (which are
' v noWncladed in the estimated. expense) "at $55 . : $1,430,000
1 ' " ; vtf'r :
ESTIMATED EXPENSE 12 MONTHS FOR 1899. '
..Agricultural labor, conducting .irrigation , "":'
rf ' and milling, .. $ 475,000 ' ' ' 'X "
.Pumping" on say 5000 .acres of land at $60. 300,000
Jient on estimated yield as above, 6 per
"cent bn$l43b,000. : .'. : . :
. :' ' $. 530,000
The foregoing is certainly a conservative .estimate,
,and yet the result shows $130,000 larger profit fth an-is.
Represented in the Prospectus. (See page 6)'" "
ULTRA CONSERVATIVE ESTIMATE. . .
I base the yield on the-average returns of "EwaV
Jast crop, say seven tons per acre: '
,4,000 acres at seven tons ". . '. .28,000 tons
28,000.tons sugar at $40 per ton . ... '." $1,120:000
EXPENSE 12 MONTHS OK CURRENT YEAR.
Agricultural labor,. irrigation and milling .$,475,000 '. " :
iiinci'dentals .rr I N. 82,100"! :
.Pumping .... 300,000 ' -
fcReB'perrcent. oa $1,120,000: '-33,600
:C ' r 1 ' '' $ 890,700
' This estimate with sugar netting clear of shipping
charges 40.00 per ton, shows a profit of nearly thirteen
, ""per cent, on the proposed .capital required and eleyeh
." and forty-six one-hundredths per cent, on the total
Capital Stock. . 1 ,
B; F. DILLINGHAM,
"General Manager Oahu Railway ahd Land Co.
T ii i A lit
TO BE INCORPORATED
O. t Gain WL
' 20 per cent: upon the cagitat stock.. ' r
COMMENCE BUSINESS IN 1896;
.... "k :vcnpITV sT.?,t2,ooo,ood.
:'."v-- ? 'l l- 'tUtis:
Estimated cost of plantation fully equipped with
exejyhing-necessary for rthe cultivation anlniknnjffii-tiprptsugMnpppj'aJase:--'
Tr;( " , pJZ 'f N
Site for Mill'and Pumping Plant'say 170 )
- acresin iee. onAnn
Purchase of: entire watr right of Wai- H 90;00-
pahu Springs .. j ........ J
Entire 'Pumping Planf situate on above ' ' , ' -
w. land usedi to supply WAter for, tthe ,. ,
Robinson Banana Plantation 5,000". r
Purchase. price offleasg'.aaanaiia Planta- , ' -( ..
ing.ajie,annnarYeHue,fromsale"bf ' ; ' .
Capitah2ed"vltre''iof,a portion of the rent
. ipr uyuuo acres . ... ; .. 300,000
Building, Agricultural ilachinerv. Tnnln
-Hive Stock, etc. ., - . . . ;. . . S 9.1 a nnn
Railwdy and .Rolling Stock.., . 00,000 ,
Mill and.Machinery complete with capacity " ;
, fot 2QQ tons of sugar, per.. a'y. . f M . 450,000
Six High .LiftP.umps.cpmpleteimth com- )
, pound .condensing engines . . f 346000
Pipe, Plumes, etc . . . . . . . V - !,ur 1
Crop Expense, 2,000 acres, 1895. . . . . . .$.160,000 'a
General and Incidental Expenses ....... . ; 40 000
'' ' - '- $ 200,000
' - $1,800,000
' , . '
Estimated returns of First Crop to be planted, say in
1S95 and milled in 1897 : : .
Crop of 1897, 2,000 acreg at G tons average yield
per acre. .... 12,000 tons
. 2Set returns' to plantation clear of bagging," shipping
charges and -commissions?, $50 'per ton $ 000,000
' , , " . EXPENSE;--. .
Agricultural labor,, conducting irrigation ' A.
and milling 1 ......$ 160,000 1
General and Incidental Expenses 40,000 -
Pumping 'for 2,000 acres at. $50 100,000 ' '
Annual .Rental,- 3 per 'cent!J'of returns for
; sugar, say $600,000 18,000
.- . : .'. -,$ 318,000
Net Gain... '. .$ 282,000
15 2-3 per cent. onractual capital employed. .Mm '
i 0:4: 1-10 per cent: bhftotaT capital stock, v ' ;' " r"r--,;'r
ESTDrATED YIELlV AND EXPENSE FOR 198:
Crop of 2,000 acres from-nlant cane 1896. V
average, say 6 tons . . "... '. .-. . 12,000 tons "
Crop of ratoons from, plant cane of 1895, v" ' " " '
1,200 acres-yield, say 3 tons ... H'flOQ tons
Making a total j'ield from the crop'
) of;i898 of J&.OOO tons at $50 per ton. . . :.......$; 800,000
Agricultural labor, rtonducting irrigation -
'. randmUling :'-.,;.'.....;;,.:.. ..$230,000
General Expenses '. -. -46 000
Pumping on 400 acres at $50 per acre , . . 200,000
Rent 3 , per cent, of- $800,000 ' 24,000
Net Gain . ' $ 300,000
. 15 per cent, upon the "capital stock; , ' . f
ESTIMATED YIELD FOR 1899;
2,000 acres eane planted in 897. k . . ' ' .
Average yield per acre 6 tons . . . . . 1 2,000 tons '
.'1?PQ .acres' short ratoons from plant of ''
' "n 1897 . : . ; . . . . 4,000'
S0Q acres long ratoons from plant of '-.'
" - ?895 t 4j00p ' -I
. At $50:per ton. . ,"
.,20,000 - : .
. . . . : . -. . . . . $1,006,000'
- v.'.-.;.- j 14
j Agricultural . labor; conducting, irrigation ' .
Uv'tifd "sgV - I :. T26b,o6o " :
Gerrar.ahd Incidental Expenses. '-.'. li'O.OOO ' ' -
The. fti-ea of, land offered by the Cib ltttm 4
planted, every yeaand allov 4,03ikiifsffim!;
continuously: e '"',?
memorandurk of survey hereunto attached, km-
7-7 ,:. "J rr;. sv . jnou w .w ruljy dQaai HI.
S&otX( Ian" cnia-H'V
The following memoi-audum furnished br W J
Lowne, A&pager of Ewa Plantationi gives tte tiipot'
cedented yield of sugar from Plant Cane for tkvbfaif
of 1894, whierwas found to, average, as.wiH t mc
the follpwingfigures, nearly 8 tons" per acre: ' "
MEMORANDUM FURNISHED BY W. J. LOWRI2, 13., XAXMM
V EWA PLANTATION CO.
272 acre field averase
Notwithstanding the remarkable yield given 'bY,
?v1hlc5 1-tfe,.1Fgest ayGra"e ever obtaina n. ttege "
islands, we are informed bylfanager Eowrie t&t ff
yielj from the crop, of 1894. -would haye ben Mtr
1,0Q0 toris more if the capacity of the mill had uii
such as to do the work required in five instead of eifebt
Hfe"?088 of an amount equal to the 5rst cosfcof a
large mill. ?y-T
.The .great importance of, erecting a mill witk a
capacity sufficient to take off the entire crot in J5t or
not more than six months is.thus clearly shown. This
we have provided for in orir'foregoing estimate.
From the foregoing figures, which give the reeolfe of
sugar cane culture on land adjoining the land we now
offer, it will, be seen that, we haveestimateffa ji&d of
nearly 30 less sugar from JanS. equal ii? ffrtilii. aaa
have placed the returns for sugar at about the lowest
price ever reached in the worldys history.
If the yield of this land' proves as large as at Ewa
Plantation, then the returns, at the low price estimated
will be oyer,xf 200,000 more on the first crop tfeaa ws
Our estimates of expenses are all largo as may be
seen by comparing with expenses of the Hawaikn
Sugar Company's reports.
We have also made liberal estimates for cost of the
entire Plantation outfit.
It should also be noted that we have figuredje
pi pumping ac nigtier rate lor lilting the water Than
nas oeen rounu to oe the average cost to the Ewa
Plantation Company who have used coal exclusively
If the Oahu Sugar Compay use the Maceratj.-B
instead of the Diffusion Mill, there will be a surplus of
' trash" or bagasse from such a large quantity of cane,
after supplying all necessary fuel for the mill, sufficient
1 to supply a 'considerable portion of the fuel required
for. running the pumps, and thus reduce very materiallv
the estimated cost we have made.
. 1st. Aside from the great advantage of haviag a
ffeS01 easy of access, where the agents, and otters
interested can visit the scene of operation amy tfer
'Wth6 being absent from Hbnoluln more thaa ihne
kpi. a?d where, in the event -of any serious accident
to machinery, it can be placed m a achiae shop in
Honolulu in a few hours; the question of cheap aad
quick transportation from the sugar house at tbe Mill
totthe vessel lying at our wharf, is a consideration oi
hp Small consequence. -
2nd. The4 possibility of being able to purchase in fee
the water right and land, on which to erect t& 3ffl
and .Pumping Plant, will be duly appreciated by iht'
Stockholders of all Corporations whose itnprowneate
are built-on "Leasehold," if not by those to whoa thi
'property is respectfully offered.
3rd. The lfiiLsfi nrrmrisfld hv f h f'nmnantr
7,000 acres of the tract for a term of 60 year and
v,wv uiiics iui a teiuj uj. iu yours, an average ot xiearJv
one-fifth loncrer time than was rmmtaA fn 1.-0 nr vk
lies on these Islands
largest Sucdr Comnar
4th. The 10,000 acres herein offered is almost all
smooth land, free from rock, brash, trees, or any kind
of obstruction; and may be plowed immediately, with
out the usual delay and expense amounting from sav
$20 to $50, per acre for clearing, a saving equal to the
Capitalized portion of the rent.
5th. The grade' of the land will greatly facilitate
and reduce the cost of Irrigation, and render Drainage
perfect, a condition of value which cannot be over
estimated, for lands which must be watered bv irri
gation. . ....
Transportation by rail without the risk e lex or
. damage by water, consequent updnihtet-jaadewriage.
' andthe immense, saving in the diffarsBceiii. tkw rate of
-freight oh a" plantation of the size-of &a oe e pm
"ppje lo have esfitblisTied, will amonnt--fcr$43,W0" or "
$50,000 each year, a sum equal to two infUHfttttlf pc :
fccent of , the entire Capital Stock of tivTpnjpo
.jCqmpany. ( ' , i
.- : ' ' FiNiifcrAi. - :
. i ,
Total Capital Stock . . . t . ; j:, :Z :T: :
The par .valne. of "each fhare. . .. .1:
j! . i r-
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