The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1900-08-22
MUCH GOLD SENT AWAY OAHU COMPANY BONDED.
LOAN OF $75O,OOO SECURED BY
FIRST MORTGAGE.
The Stockholders Decide to Raise A
Large Sum for Permanent Improve
ments on their Property.

At a special meeting of the stock
holders of the oahu Sugar Company,
Limited held this morning in the Cham
ber of Commerce, it was decided to bond
the property in the sum of $3.50, 900. This
issue will be made for ten years and is
only for the purpose of making perma-
nent improvements. According to the
original plan of the board of directors it
had been intended to bond the property
for only 100000 but after some dis
cussion and the superintendent of the
plantation had spoken upon the needed
improvements of the plantation it was
decided to increase the original amount
to the sum named.
President Isenberg stated the pur-
pose of the meeting and said that al
ready $275,000 had been expended in
permanent improvements. There was
still a credit of $152, 900 and by January
1, the company would be in debt, ac-
cording to the estimates, $500 900.
Taking from this the credit of $152,OOO
the company would still be in debt
about $4,000. According to the report
of the superintendent the increased
acreage under cultivation would bring
the crop in 1902 to 10000 tons of sugar
almost double the amount produced this
year. In order to handle all of this
crop additional improvements were
necessary There would have to be a
new mill, new evaporators, centrifNgals
and pumps bought so the directors
thought that the proposed issue of
bonds was necessary especially as 1t
was the further intention of the COM
pany to begin paying dividend of one
per cent a month beginning September.
This dividend could be paid only by is
suing bonds.
According to the plans as outlined by
the secretary the bonds would be first
mortgage to run for ten years, bearing
interest at the rate of not more than
the secretary the bonds would be first
6 per cent, and the company had the
right to begin to redeem them at the
expiration of three years. Mr.. Lewis
| moved that the bonds be issued in the
| proposed amount. B. F. Dillingham;
seconded this motion.
j. A. McCandless offered an amend
ment increasing the issue to $750,O00
| He said that in view of all of the per-
| manent improvements required and the
fact that the present pump was liable
| at any time to break down and a new
| one, involving an expense of 100000 to
| $150,000 be necessary he thought the in
crease should be made. If it was sub
| sequently found, not necessary to dis
pose of all of these bonds they could be
! kept in the treasury but it was an eX-
| cellent idea to have them on hand in
order to meet any sudden requirement
| that might arise. This amendment met
| with general support and Mr.. Dilling-
ham spoke, in favor of it as did Mr.
Lewis who accepted the amendment
| without debate.
| ]. o. Carter inquired if there was not
some alternative proposition to be sub
mitted He thought that an issue of
| bonds to this amount was not matter
| which should be made without much
! consideration. In his opinion the pro-
position in all of it's details should have
been printed and given to the stock
| holders for their consideration. In
creasing the capital stock was not likely
to be accepted with favor at the present
time while the temptation to declare
dividends of one per cent a month was
a temptation to issue the bonds
Mr.. Carter said that he did not. as a
matter of fact. see the necessity of
making the proposed increase in the is
sue. if it was to be made at all. The
directors and the superintendent had
made the proposition and they knew
what they were talking about. His eX-
perience with sugar companies had beer
that it was far wiser to act upon the
advice of the board of directors than
that of stockholders.
Mr.. Isenberg said that he favored
doing without the dividend and paying
the improvements from this source but
this was not likely to prove the most
: satisfactory plan. An argument II
favor of issuing the bonds for the i'm
provements was that they could be
paid back gradually. The board O.
directors would pledge themselves HI
said to use the money raised from thu
bonds for nothing but permanent i'm
provements and to take the money al
it was gradually required. The motion
as amended was then put and carried
, by a large, majority
! The announcement was made tina
Spreckels had contracted to take 5000
tons of sugar with rs Of cent off, Will
the contracts with the American Suga
Company for the sale of the plantation
q crops had been made for three years.