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CHAPTER 5
Commerce and Industry
The Hawaiian Islands are industrially a busy
and progressive place, and, unlike other tropical countries, physical
activity is not limited to the dark-skinned races. The climate is such
that Caucasians can not only work in the open but, for the sake of
health, need vigorous out-door exercise. The result is that agricultural
opportunities are limited only by the extent of available land. The
variety of crops that can be raised, moreover, is almost endless,
ranging from the fully tropical near the seashore to crops of the
temperate zone on the higher levels.
Only one industry has so far been developed
to its full capacity. All the large tracts of land suitable to the
raising of sugar-cane are already taken up by the plantations. The only
increase in production can be through the growing of cane on small
parcels of land by individuals who will sell what they raise to the
plantations to be ground at the mills. There was sugar-cane on the
Islands when they were discovered. The first exportation of sugar was
made as far back as 1837. A man who visited one of these primitive sugar
mills has described the curious granite rollers used to extract the
juice, and the crude iron pans used as boilers, adding, as something
hard to believe, that one mill was able to produce as many as 300 pounds
of sugar in a day. The great impetus to sugar production was given by
the Reciprocity Treaty of 1878, which insured a market, and since then
the industry has steadily grown, until in 1912 the fifty-six plantations
produced 566,821 tons, valued at $45,345,680, this being an increase in
the ten years since annexation of 200,000 tons. The value of
incorporated and private sugar property is about $70,000,000. Over
200,000 acres of land, about half of which has been reclaimed, are
devoted to the growing of cane. Artificial irrigation of this formerly
arid land is carried on by means of extensive series of artesian wells,
from which water is pumped to the higher fields, and by great mountain
reservoirs, from which ditches distribute water over thousands of acres.
An immense amount of fertiliser is used annually, and the plantations
devote large sums to scientific study of soils and to improvement by
hybridisation of the different varieties of cane. Indeed, the scientific
precision with which the industry is conducted, the perfection of the
machinery, the success in adapting different kinds of cane to different
soils, and in raising those soils economically to their highest
producing power, should be a lesson to agriculturists the world over.
On the large plantations the soil is
ploughed to a depth of about three feet and the cane is planted in rows
about eight feet apart; on irrigated land the distance is less. The
first crop is ready for the mill in about eighteen months, is followed
by a rattoon crop in fourteen months, and by another rattoon crop about
eighteen months later. The third rattoon crop is not profitable, so the
land is usually allowed to rest until a new planting is made. As no
proper harvesting machinery has been invented to cut the cane, which
grows in tangled masses, it is cut by hand and sent to the mill on cars,
or, where water is plenty and the slope of the land sufficient, in
flumes. It has been found best to burn the fields before harvesting, as
the value of the small amount of juice lost is incommensurate with the
great expense of stripping the cane. At the mill the cane is passed
through three sets of rollers, which so thoroughly extract the juice
that the refuse or bagasse is immediately fed into the boiler furnaces.
The juice goes first into the boilers, from them into the settling tanks
and into the evaporator, which may have a capacity of 1,500 tons of
juice per twenty-four hours. From the evaporator, which has reduced it
seventy-five per cent in volume, the juice is sent to the vacuum pans on
the upper floor of the mill. Under these are the crystallisers, and
lastly the sugar is sent for drying to the centrifugals. As it drops out
of these it is shovelled into bags and is ready for shipment.
Sugar cane in flower; will be ripe and ready to grind in from six to
eight weeks
The whole process, which is intensely
interesting, can most easily be seen in one of the great mills near
Honolulu, that of Ewa, Oahu, or the Honolulu Plantation, the latter
being the only plantation which refines its own sugar. These three
plantations, which are among the most progressive in the Islands,
produced, respectively, in the last year for which there are figures,
31,000, 33,000, and 17,000 tons. The average yield per acre on Ewa
plantation has run as high as eight tons and a single acre has produced
eleven tons. This is the more remarkable when one realises that the
average yield throughout the Islands is a little over four tons, being
6.44 tons on irrigated land and 3.69 on unirrigated land, and that the
average yield of the plantations in Cuba is only a little over two tons.
The largest plantation in the Islands, and indeed in the world, is the
Hawaiian Commercial on Maui, which produces between 50,000 and 60,000
tons a year. The plantations along the coast of Hawaii and on Kauai are,
with one or two exceptions, comparatively small, although they are often
as prosperous and as progressive as any.
The great problem of the sugar planters is
labour, which must be cheap and to produce the best results ought to be
stationary. The plantations have suffered immeasurably through the
exclusion of the Chinese, an exclusion which here loses its point, since
they do not, as labourers, compete with the whites. The Japanese are
excitable and restless. The Hawaiians and the Portuguese are far too few
to supply the demand. Field labourers get from $18 to $25 a month in
addition to comfortable houses. The planters are testing also various
co-operative schemes, as well as a sliding scale of wages, the amount
increasing according to the length of time during which the labourer has
worked for the plantation. Profits are large, few of the plantations
being over-capitalised, but they are by no means extravagant, as they
occasionally were in the early days of the industry, and a serious
increase in the cost of production could be borne by very few
plantations. The abolition of the duty on raw sugar would permit most of
them to continue with greatly reduced profits, whereas it would probably
kill the sugar industry of the Southern States, benefiting only the
Sugar Trust, the sole business of which is refining.
Among other Island industries the
cultivation of rice, carried on almost exclusively by Orientals and
according to Chinese methods, is almost as old as sugar and long held
second place. Some 12,000 acres are devoted to this industry, and even
under the primitive methods employed the profits are large. Japanese
rice is still imported, but probably would not be were modern machinery
used in the cleaning and polishing of the homegrown crop. As it is,
water-buffaloes, strong, patient, deformed-looking creatures, do most of
the work, not only in the fields but in threshing the grain. Picturesque
they certainly are, but it is equally certain that they are neither as
thorough nor as clean as is modern machinery.
The commercial cultivation of pineapples is
an industry of comparatively recent introduction, although pineapples
for table use have been grown for many years. For its best development
the fruit requires an elevation of from 500 to 1,200 feet and a rainfall
of 35 inches or over. The plants are set out in numbers varying from
2,500 to 12,000 to the acre, according to the size of fruit desired. The
first crop, of about 10 tons to the acre, matures in from eighteen
months to two years, and a rattoon crop of from 15 to 18 tons is
harvested a year later. A second rattoon crop is not, as in the case of
sugar cane, profitable, so the fields must be then reset. About 6,000
acres of land are now devoted to the cultivation of pineapples, and in
1912 approximately 1,000,- 000 cases of two dozen two-pound cans were ex
ported, worth about $3.50 per case—this in addition to fresh fruit and
to bottles of pineapple juice. There are several canneries in the
Islands, that in Honolulu being the largest in the world, so the fruit
is sent away ready for the market, which is still by no means
satisfied.* Hawaiian pineapples, both raw and canned, are said to have
the finest flavour of any grown. With the canneries at hand the fruit
has now a definite market value, and the time has gone by when a
passenger on an inter-island steamer could buy from the canoes
surrounding the ship at some port of call a hundred delicious little
pineapples for the extravagant sum of one dollar.
*A drummer told me that he had
distributed a dozen cans of Hawaiian pineapple in Minnesota in 1909;
that in 1910 he had orders for two dozen cases; and in 1911 for
thirty carloads.
These three are the principal agricultural
industries of the Islands, with sugar, of course, far in the lead—too
extravagantly in the lead, perhaps, for a really safe financial
situation. In calm weather a ship does well enough with one anchor, but
in a storm it is more prudent to have several to windward. At present
sugar is the Hawaiian anchor, and in comparison to it all the other
industries are but larger or smaller fish-hooks attached to slender
cords. It is very satisfactory, therefore, to note the growing interest
in other agricultural ventures. For example, there are now about 3,000
acres in sisal, with an annual output of several hundred tons of fibre.
That this will in time become an important industry is almost certain,
since there are in the Islands large tracts of arid land where sisal,
which requires only two inches of rain a year, will grow, and where
little else can ever be cultivated. The Hawaiian fibre is of the highest
quality and is much preferred in the San Francisco market to that coming
from Mexico, where ninety-eight per cent of the sisal used in the United
States is at present grown. Another promising experiment is the
cultivation of rubber, but, whereas the first returns from sisal come in
three years, rubber trees do not begin to pay until the eighth year.
This, of course, necessitates a large initial outlay and means that the
money will for a long time be unproductive. There are, however, some
1,500 acres planted in rubber, and prospective rubber growers have been
encouraged by the discovery that it is possible, while the trees are
young, to get small immediate returns by intercropping, that is, by
planting some quickly maturing crop such as soy beans between the rows
of trees. Another young industry is the cultivation of tobacco, of which
the finest grades can be grown successfully and economically. There are,
at the lowest estimate, some 30,000 acres of soil excellent for tobacco
culture, and with intelligent management the industry should be one of
real importance. Coffee has been raised since 1817, but at present the
low wholesale price has cut down the profits to a minimum and has
discouraged the starting of new plantations. Hawaiian coffee, especially
that grown in Kona, is, however, of such delicious flavour that if a
co-operative association could be formed properly to introduce it into
the United States there is no reason why it should not again become one
of the most attractive and well-paying industries.* Bananas grow wild
all through the Islands and are also extensively cultivated for export.
The banana fruits about a year and a half after planting, and the tree
is then cut down to give room for the suckers which spring from the
roots. From 800 to 900 bunches per acre is the usual crop. Some fifty
varieties are grown at various altitudes. Many of them are, so far,
unknown commercially—especially is this true of the cooking varieties,
which are even better than those eaten raw. If a market were created for
these new kinds of banana they could be raised very profitably and in
quantities limited only by the amount of suitable land. Other crops
which have been planted to some extent and have grown well and which,
therefore, seem to offer good opportunities to intelligent farmers are
cotton, producing here a more valuable and finer lint than any grown in
the Southern States; cassava, Manila hemp, citrus fruits, vanilla beans,
which flourish in very wet regions; corn, and forage plants. Full
development of all these agricultural possibilities would be of
inestimable benefit to the Islands and would be also excellent
investments to those who carried them through.
* A New York dealer said not long ago
that if the Hawaiian coffee agents, instead of being modest about
it, had called it by some fancy name and insisted that it was of
fancy grade, they could have got high prices and sold all the
Islands could raise.
The ranching business, almost entirely in
the hands of Americans, uses as grazing lands some 160,000 acres. So far
these ranches have supplied the home demand for beef, but the demand is
increasing rapidly and to keep up with it the ranchers will have to
raise large quantities of forage plants to supply the cattle in time of
drought, since the natural grazing lands will not support many more.
This is, of course, recognised, and the ranchers prefer to plant
extensively rather than to lose control of the market. Sheep are raised,
but not yet in sufficient quantities to meet the demand for home
consumption of mutton. Nor up to now has enough attention been paid to
selection of breeds which will produce the finest quality of wool. Much
work is at last being done along this line, and the wool exported in the
future ought to be far above the standard of that exported in the past.
No hogs were imported during 1911, enough, for the first time, being
raised to supply the home demand. Both horses and mules are imported
annually as draught animals, although the Island ranches should, and
probably eventually will, furnish all that are needed. Poultry raising
is carried on to some extent, but quantities of chickens and eggs are
brought from the mainland. Poultry diseases are troublesome here as
elsewhere, but are no more troublesome nor harder to deal with. It would
certainly seem, therefore, that there is an excellent opportunity for a
few men who are experts in the business.
The vital need of the Islands is to insure
settlement on a satisfactory basis of the labour problem, and the only
proper settlement would seem to be the creation of a class of
independent small farmers. The time of unrestricted Oriental immigration
is over. More and more the balance must turn in favour of the Caucasian
labourers, who are brought in large numbers annually, at great expense
to the Territory and the planters, from southern Europe. These men bring
their families. They cannot be expected, and ought not to be expected,
to hoe cane all their lives. Their ambition to become independent
land-owners, to have their own little farms and orchards, which they can
cultivate and leave to their children, ought to be realised within the
Territory. So far as land is concerned, there is no difficulty, but
these men do not want land unless it can be proved to them that small
farming is profitable. For this reason efforts are being made to test
all kinds of crops, to establish a central marketing agency for the
small farmers, and when these experiments are completed, when it can be
demonstrated that this kind of farming is feasible and profitable as
well in Hawaii as on the mainland, then, it is hoped, the plantation
labourers will work to earn enough money to buy an upland farm, not
tickets to San Francisco. They and their children will come down to the
cane fields to work in harvesting the crop, just as the similar class of
small farmer works in the harvesting season in California. In this way
only will the problem of labourers for the plantations be permanently
simplified, and at the same time the Territory will have gained a steady
and reliable rural population.
Manufacturing, aside from the manufacturing
processes connected with the production of sugar and with the canning of
fruit, can never be of great importance. This is inevitable owing to the
distance of the Islands from world markets, and still more to the
absence of coal and of minerals. Only one company, the Honolulu Iron
Works, has, in the face of these obstacles, worked itself into a
position of prime importance. This company has a large plant and
manufactures all the machinery for the sugar mills and pumping stations,
except, of course, those parts controlled elsewhere by patent. Indeed,
so well known is it for its accurate and excellent work that it ships
sugar machinery to the Orient and even to Cuba. This success, however,
is an exception, brought about by demands arising from special local
conditions, and does not affect the truth of the statement that general
manufacturing would be unprofitable.
In public service corporations the Islands
can take their place with any advanced community. Honolulu has an
unusually well-equipped and well conducted electric car service, with
twenty-four miles of track. The cars serve all parts of the city, are of
the most modern make, and are thoroughly comfortable. A franchise for an
electric line for the town of Hilo has lately been granted.
The steam railroads in the Islands are
capitalised at about $7,500,000 and have about 220 miles in operation.
The Oahu Railway and Land Company has a hundred miles of track,
including the main line and branches, and is connected on the north side
of the Island with twelve miles of the Koolau Railway. The Oahu Railway
Company has excellent terminal facilities and docks and offers good
passenger and freight service. On Maui, the Kahului Railroad Company
operates some sixteen miles of track, which connects, however, with 125
miles of plantation track. On Hawaii the Hilo Railroad Company has built
some 50 miles of road and is rapidly extending its lines in all
directions from Hilo. The line northward along the coast, which is
extremely difficult to build on account of the deep gulches, will
eventually carry all the sugar of the district to Hilo for
transportation, thus doing away with the many dangerous plantation
landings where the sugar is now lowered over the cliffs into small boats
or run on cables to the steamers. These lines are mainly for the
transportation of freight, but their passenger service is also good, and
they make easy of access some of the best scenery in the Territory.
Honolulu was one of the first cities
anywhere to have a general telephone service. The company has now taken
over also the management of interisland wireless telegraphy. All
important centres are equipped with electric lights, and the capital is
also supplied with gas. In so far, therefore, as modern conveniences are
concerned, the Islands are quite on a par with the mainland.
Water transportation facilities are
continually increasing. The Inter-Island Steam Navigation Company has a
fleet of seventeen steamers, which call at all ports in the Territory.
During the year 1911 they carried 64,108 passengers and 409,714 tons of
freight. The steamers are small, but three of them, the Maunakea, the
Maunaloa, and the Kilauea, have accommodations for a hundred passengers
and are as well fitted up and as comfortable as any boats of
corresponding size. This company controls nearly all of the interisland
traffic. There are local lines, with boats plying between the mainland
and the Hawaiian Islands, which operate their steamers mainly for
freight transportation. One of these lines, the Matson Navigation
Company, has excellent passenger accommodations on three of its larger
steamers, and the Oceanic Steamship Company has one passenger steamer on
a regular tri-weekly schedule between Honolulu and San Francisco.
Honolulu is also a port of call for various through lines of steamers,
which, however, owing to United States navigation laws governing the
coastwise service, can carry neither passengers nor freight to or from
the Islands except on payment of a heavy fine. These laws do not apply,
fortunately, to the steamers of the Pacific Mail Steamship Company,
which is an American line running between San Francisco and the Orient,
nor do they apply to the steamers of the Canadian- Australian Steamship
Company, which, taking passengers and freight to Vancouver, is not
acting as a carrier between two American ports. So far as freight is
concerned, these laws are no particular hardship, but they are a serious
inconvenience to the passenger traffic, which is larger than can be
handled with comfort by American ships. A suspension of the law relating
to the carrying of passengers would not be a hardship to American
companies and would be, for the Territory, relief from a special burden.
It would seem only fair, moreover, since the possibility of outlying
Territories was not considered when the laws were enacted. With the
opening of the Panama Canal the shipping of the Islands must enormously
increase. Honolulu will inevitably become a great commercial centre,
since, being the only available port of call in the North Pacific, it
will do an immense business in trans-shipment of freight. As a shipping
centre, indeed, it has grown in importance for several years. The
tonnage entered in 1901 was 952,504; in 1911 it was 1,343,876, excluding
the United States transport service, which is very large. There is every
reason to believe that with the opening of the Canal the amount will be
immediately doubled or trebled. Steamers from Panama will call at
Honolulu for coal and other supplies, and to meet this demand the
traffic with California will be much larger.
Pineapple plantation, Wahiawa, Oahu
As a mercantile centre, therefore, the
future of Honolulu seems as sure as does the agricultural future of the
group. It means a busy port, a meeting ground for the ships and people
of all nations, less of the calm always associated with the tropics,
more dirt and confusion, but with these disadvantages it means more
colour, more of the cosmopolitan life that is so attractive to the
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