The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1899-09-01
NEARLY HALF A MILLION IN
MAKAwELI.
No Change in Management of the
Plantation-But Facility in Dealing in
the Stock is Secured

The 2000 share deal in Hawaiian Su-
gar Company stock which was announc-
ed yesterday on the Honolulu Stock EX-
change brings to the Islands $450,0OO of
foreign capital, and in the opinion of
men of affairs ought to go far toward
relieving the situation here. At the
same time it does not change the con-
troll of the plantation nor in anywlse
affect the management of a property
which has always been conducted with
the view of developing the sugar in
dustry and in the interest of stockhOld-
ers. 1t is not, as some may have been
led to suppose, the introduction of new
or doubtful methods of finance.
The deal was made by the Hawaiian
Trust and Investment Company, and
George r. Carter, the treasurer, gives
this account of it's purpose and the
plans of the new owners of stock:
Some time ago Mr.. Strassburger Of
San Francisco, secured an option from
Alexander K Baldwin on a large block
of the stock. but did not close
it up. The Makaweli Sugar Com
pany was then Incorporated in San
Francisco, for the purpose of holding
this stock. For each share of Hawaiian
Sugar Company stock of the par value
of 800, it issued five shares of it's own
stock of the par value of $40. The ad-
vantage of this was that if a man want
ed to invest in Hawaiian Sugar he could
do it by buying Makaweli stock and es-
cape the eXorbitant stamp duty
imposed on transfers of Hawaiian
corporation stock. On the books of the
Hawaiian Sugar Company the Maka-
we'll Sugar Company stands as the own
er of certain number of shares. When
dividends are paid by the Hawaiian Su-
gar Company, the Makawei Sugar Com
pany gets its share of them and distri-
butes 1t among it's stockholders in pro-
portion to the number of shares they
hold. Its stock can be dealt in on the
Coast without, the payment of the stamp
tax, and in this way dealings in Hawai-
ian Sugar Company stock are facilitat-
ed. The stock of the Makaweli compa-
ny was not put on the market at a big
promoters profit, but at less than the
market value. Since then holders of
Makaweli Sugar Company have been
offered up to $50 or what it was
worth as an investment, representing
an interest in Hawaiian Sugar. AS a
matter of fact, there was very little of
it put on the market, the original hold
ers considering it so good a thing that
they kept it. They thought II so good "A
thing, that they wanted more Hawaiian
Sugar Company stock ard authorized
the Hawaiian Trust aid Investment
Company to purchase it. The only brok-
SIS WHO ndu any JnlnBl 10 90 with the
purchase We're the Hawaiian Trust and
Investment Company and Harry Armi-
tage.
The Makaweli Sugar Company has
given a power of attorney to H. F.
Baldwin to represent it in the Hawaiian
Sugar Company. 1t does not own an
absolute controlling interest in the Ha-
waiian Sugar Company, but with the
Alexander and Baldwin interests it
does.
THE situation then is simply this
The Hawaiian Sugar Company owns
the plantation and manages it through
its officers, just as it did before. The
Makaweli Sugar Company is a stock
holder in the Hawaiian Sugar Company,
receiving its dividends and distributing
them among it's own stockholders. The
Makaweli company wanted more stock
and went into the market to buy it. The
Hawaiian Trust and Investment Com
pany bought it for them from various
holders. c. NJ. Cooke, however, is not
one of the sellers. This stock will go
into the treasury of the Makaweli COM
pany which will issue it's own stock to
its own stockholders.
The advantages are facility of trans
fer of stock, stability and permanence
in the management of the plantation
and large amount of foreign capital
brought to the Islands,