The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1890-11-21
THE SUGAR TRUST FLOORED.
Two Receivers Appointed by
Judge Pratt.
1t Cannot Legally Hold the
Trust Assets.
Plan Of REORGANIZATION.
Bad Financial Showing Dividends Paid Out
Of Borrowed Money.
Great Fail In Certificates (!
SAN FRANCISCO, Nov. 6, 1890.

"lhe capital OF the corporation
will be S50,00O,000 consisting of
S25, 900, 900 of seven per cent cumu-
lative preferred stock and $50, 000,.
600 of common stock. The shares
of the new company will be ex-
changed, share for share, for Cen
trail Trust Company receipts, repre-
senting certificates, one half in pre-
ferred shares and one-half in COM
mon shares. Each holder of the
Central Trust Company receipts for
100 shares Cor fractions thereof in
proportion) will received so shares
of the American Sugar Refining
Company seven per cent cumulative
preferred stock, 80 shares of The
American Sugar Refining Company
common stock, and in addition, five
per cent in cash ($500).
sin order to provide for future
contingencies, bonds to an amount
not exceeding $40, 900, 200, at a rate
of interest not to exceed six per
cent to be secured by mortgage of
active refineries, will be provided
for, to be used only as occasion
shall require. Upon completion of
the plan and after the distribution
of the five per cent in cash, it is es-
timated that the American Sugar
Refining Company will commence
operations with cash assets and in
vestments exceeding S9,O0O,OO0
Cover 81 900, 900 will be in cash and
available cash assets), with the
power to raise upon mortgage $10,-
100000 additional, if required.
"All certificate holders who de-
sire to participate in this plan may
deposit their certificates at once
with the Central Trust Company,
when they will receive in exchange
the Central Trust Company receipts,
which are in turn, exchangeable for
the stock of the new company. The
time for deposit of certificates is
limited to December l, $780,"
Referring to this scheme for throw
ing dust in the eyes of certificate
holders and capturing their refineries
by foreclosure of mortgage the New
York Evening Post, Oct. 31st,
said editorially: "The Sugar Trusts
plan for swallowing itself and COM
ing right side up is now before the
public, bearing the Endorsement of
the eminent counsel who prepared
the plan for the original trust. We
think the new plan will encounter as
great obstacles as the original one,
and perhaps even greater. The
whole concern must pass into the
hands of receivers, to be disposed
of in accordance with the law as
laid down by the Courts, one ele-
ment of which is that the consolida-
ton feature is of itself illegal, as
being in the nature of monopoly"
The certificate of counsel is as
follows: "We have examined the
foregoing plan and are of opinion
that it protects the rights of certi-
ticate holders and is in conformity
with law" Signed, Alexander and
Green; Butler, Stillman and Hub
bard, Hoadly, Lanterbach and John
son. Parsons, Shepard and Ogden,
Root and Clarke-all of whom are
and were ain the Trust SWIM
Comment upon these facts and
proceedings are needless. If ISL
ands certificate holders want to get
something out of the Sugar Trust
Estate they will join the party fight.
ing the combine. If they should
deposit their certificates they would
strengthen the hands of men whose
past management does not entitle
them to confidence, and through
whose plan of reorganization may
be traced design of continued
fraud and false pretence. More.
over, certificate holders should insist
upon a disclosure of the cost OF
management, which would show un.
mistakably that while dividends
were being paid out of borrowed
money the earnings of The Trust
were disbursed among the inside
ring in salaries.
When the financial exhibit was
read on Wall street in the first few
minutes the price dropped 81 to 62,
then rallied to Ga on the report that
no decision had been handed down,
and when the official news of an
adverse decision was published the
price fell from Ga TO 595. The sale:
in the first three hours were very
heavy, amounting to one-fourth OF
the entire capital of the trust. Or
the 9th certificates sold down to 81
and they were still on the down
grade. 1t is generally conceded
that certificates have no ascertain,
able value and are only dealt in as i
gamble, The "street" has lost all
confidence in the Sugar Ring, which
has engineered the most gigantic
swindle of modern times, The Al
torney-General Of New York Stat,
Is reported as saying that the plar
OF reorganization is illegal, and in
slsls that the capital stock shOulC
only represent the value Of the 70
lnerles or money actually sub
s'rlhed, This would make II unde
slu,n00,000 instead oi sdu, 0QQ, 900
Anl hllng down tho lInsl 10 a hnsi
npss hasis, Moreover, he holds lha
Nhe corporations cannot lplpgAll