The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1896-07-18
Successfully Floats Big Ha-
waiian Loan in London.
NOW SELLING AT A PREMIUM.
The Spreckelsville Per Cent. Bonds
Converted into Those Bearing 3
Per Contemporaries In London at
the Iime-Experience is Necessary.


cess of his recent mission to London,
where he negotiated a loan for three
quarters of million dollars on behalf
of the Hawaiian Commercial and Sugar
Company of Maui, or better known as
the Spreckelsville Plantation, which is
now owned or controlled by Messrs.
c. A. and Rudolph Spreckels, sons of
the millionaire sugar king. California
and Eastern papers in their Geographic
dispatches from London, recently an
nounced briefly the success of this loan,
and with a view of learning the exact
facts, a representative of the Adver-
tiser last night called on Col. Macfar-
lane at the Hawaiian Hotel, and an in
terview was courteously afforded the
representative.
The following information was given
in answer to the question, Can you,
give us, Col Macfarlane, for the infor-
nation of our readers, some particulars
of the recent bond issue in London?'
ITO begin with" said the Colonel,
the difficulty of placing a good Ha-
waiian security in San Francisco and
New York (where they should be bet
ter known has been long understood
by commercial men interested in these
Islands, and as the SpreckelSville Com
pany had a large number of their old
issue of first mortgage bonds maturing
this year, which were bearing Z per
cent interest, the MeSsrS. SpreckelS
conceived the idea that a conversion of
these bonds might be made in London,
at lower rate of interest, and some
months ago they placed in my charge
the issuance of their new Hawaiian
sugar bonds in that market.
After collecting certain data and in
formation about the property / pro-
ceeded directly to London, and succeed
ed in forming a syndicate among GER
tain financial men there, who guaran-
teed the issue Of a 512 per cent bond,
or debenture, to the London public, and
a London Stock Exchange quotation
for certain commission.
"a successful issue was made last
April and the amount subscribed with
in forty-eight hours. In fact, the sub
scribers to the loan discounted their
payments, mostly at per cent per an
mum. Immediately upon the issue, as
the representative of the English bond
holders, | proceeded directly to San
Francisco and there completed the new
deed of trust with the company, and
through the courtesy of the president
and directors | was elected a director on
their board, and with them executed
the new debentures, which were at
once forwarded to London, to the Eng
fish trustees, Sir William l.. Young and
Sidney HOffnung Goldsmith and on tele-
graphic adViceS from me of the forward
ing of the bonds, the money was i'm
mediately cabled to the company s
credit, with the Anglo-Californian
Bank in San Francisco, and has now
been paid out, and all the old bonds OF
the company have been cancelled. The
new ones run for twenty years, and re-
deemabIe at any time after five years
at the option of the company; j. e., they
are known as 5-20'S, and are secured on
the real estate, improvements and the
floating assets of the company, as well
as the unpaid liability of the stockhold-
ers. The company is now on a splendid
financial footing, and owing to it's very
prosperous year and heavy crop pros
poets next year, l should not be sur
prlSed to see, within twelve-mOnth
the company redeeming it's bonds by
purchase in the open market.
This is practically all the facts con-
nected with this loan, to which your
paper is welcome; but l attribute nv
success partly to luck, as we'll. perhaps
as to management.
us it true that Claus Spreckels was
in London when the issue was made p
"Yesi He was there the very day OF
the issue, on his way, | think, to Ger
many, and do not believe he knew it
was coming out until he saw it an
nounced in the London morning pa
pers. / refused interviews to the San
Francisco papers, as it was freely cir
culated there that I had taken I'D this
business and put it through from mo-
t1veS of business revenge against Claus
Spreckels, owing to my past business
differences and litigation with him
This l utterly disclaim; nor have his
sons ever discussed such a matter with
me- l took it up as a pure matter OF
business, and Mr.. Claus Spreckels
or any one else could have engaged me
on such a good proposition. l thor
oughly believed in the security offered
me, and conscientiOusly felt could rec
ommend it to my London friends The
bonds are now quoted at 104, having
been issued at par. / had some diff
Guilty at first in inducing my friends tC
take a Hawaiian industrial bond, at a
less rate of interest than a Hawaiian
National or Government bond. which
bears 6 per cent interest; but in view oil
the expected conversion of the latter
at lower rate, was able to carry my
point"
You speak of a London Stock Elk
change quotation for your bonds What
is the value of this?"
Simply it means you will have quo