The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1896-12-29
FLOATING DEBT
B. +. DILLINGHAM; Makes Another
Master Stroke.
REFUKDING 0. R. & |. co. BONDS
Deed Of Trust Issued and
Interest Reduced.
New Rails to Be Laid to Eva Mill.
Bishop g. Company
Trustees.

In reply to request from an Ad-
vertiser reporter for information in re-
gard to the recent issue of consolidated
bonds, refunding present bonded and
floating debt of the Oahu Railway and
Land Company, issue of stock, pro-
posed extension of the road to Kahu-
ku. relaying of track from Honolulu 10
the Eva end of the Waianae extension
with new 4S-pound steel rails, new
rolling stock, etc, Mr.. Dillingham; said:
The prosperous condition of the
country and the hopeful outlook for its
future led the management of NE COM
pany to the conclusion that it would
be a comparatively easy matter to re-
fund the debt of the o. R. & L. Co. at
home. A statement of the affairs of
the company was prepared, and plan
for refunding the present bonded and
floating debt, reducing the rate of in
terest from per cent to 6 per cent on
bonds, and paying off floating debt
bearing higher rates of interest was
clearly stated and laid before the ma
jority of the bondholders and other
creultors individually, which resulted
in securing the signatures of nearly
all to the agreement to accept on Jan
uary 1, 1897, in exchange for bonds or
notes 6 per cent consolidated bonds
What is meant by consolidated
bonds?"
Il can best explain by stating that
when the o. R. & L. Co. was inaugu
rated they deemed it best to proceed
with the building up of that enterprise
by following the example of railroad
companies in the United States and
other large countries, forming divis-
ions.
The Pearl River Division, Is miles,
was first constructed. Then say four
miles of the Waianae Division, reach
ing Eva Mill site. Next the Terminal
Division, which comprises % acres of
valuable storage and wharf room in fee
simple on the northeast side of Ho-
nolulu Harbor In June, 1895, the
Waianae extension, from Eva Mill to
Waianae, distance Is miles, was COM
pleted.
Now we again follow the example
of older and more experienced coun-
a deed of trust to cover all these di-
visions, including large areas of valu
able lands in fee simple, and also pro-
vide for a great Improvement in the
present track, to meet the increasing
heavy traffic, as well as to extend the
road SO miles farther to reach Kahu-
ku Mill. This consolidation of present
and prospective property under one
deed of trust to secure the new issue
of 6 per cent first mortgage bonds is
an act which will add greatly to the
value of the bonds as estimated abroad,
and judging from the cordial reception
this proposal has received at home it
lacks no appreciation here"
What amount of bonds are author
lied to be issued for the purpose of
refunding present bonded and floating
Indebtedness?
"One million five hundred thousand
dollars"
What is the amount of paid-up
stock issued?"
"One million five hundred thousand
dollars
What will be the total issue of bonds
and paid-up stock when the road has
been completed to Kahuku, with the
necessary addition of new rolling stock
and renewal of 4S-pound steel rails
from Honolulu to Eva Mill?'
The total issue of bonds and paid
up stock will then be about $4,000 00O."
do you think as an investment the
road will pay?"
L feel sure of it. If it does not
prove to be a paying investment, it
will be because nothing in this country
will pay"
Who are to be the trustees for the
consolidated bonds?"
''Messrs. Bishop & Co. have been ap-
pointed trustees, and all bonds author
lied by the company for issue will be
countersigned by that firm. The o.