The Hawaiian gazette., 1900-08-24
OAHU WILL
Be BONDED
Three Quarters Million
Issue.
FIRST MORTGAGE GIVEN
Large Sum to be Raised for Per
manent Improvements of
Plantation.

The Oahu Sugar Company Is to be
bonded in the sum OF s75O.O0O. This de-
cision was reached yesterday morning
at special meeting of the directors
and stockholders held In the Chamber
issue will cover a period OF ten years
and will be utilized only for improve
ments to the property which are pro-
posed to be permanent. Six hundred
thousand dollars was the amount orig
inally drafted for the bonding issue, but
after considerable discussion on tho
subject the three-quarter million
amount was deemed the wisest course
to pursue. The meeting was opened by
President Isenberg. He stated that by
January there would be a debt OF
100000. He said further that s275. oO0
had already been used for improve
ments and credit Of $l52.000 was still
available for permanent works. De
Quoting the latter amount from the es.
timated indebtedness Of $320,Ooo the
company would still be in debt on jan
uary to the extent of somewhere in
the neighborhood of $4,000. He cited
the report of the manager of the plan
tatlon who had estimated that by 1909
the crop would yield $4,000 tons of
sugar, doubling the output estimated
for this year.
require large number of permanent
improvements, as for eXar,pl., new
eVaporators. centrifugals. an entire
new mill to meet the increased demands
for capacity. Pumps would also be an
expensive feature. Upon this showing
1t was his opinion that the bonds were
necessary The company had proposed
to pay dividends monthly commencing
the first day of September next, and
to meet this proposed obligation funds
for going on with the new works would
be absolutely necessary. The scheme
preached by the secretary was mem
toned This proposed that the issue
be for period OF ten years, first
mortgage bonds, with interest at six
per cent. The company should have
the right to commence bond redemp-
ton at the end of the first three years.
Upon the motion of Mr.. Lewis, sec
onded by b. F. Dillingham; the uues-
ton was open for debate. Mr.. Me-
Candies made an amendment that the
bonds be an even 100000 ISSUE He
thought 1t best to take into considera-
ton the liability of breakdowns and
other accidents which would cause con-
siderable expenditure for repairs. The
extra $150.O00 proposed In his amend
ment would be of material assistance
under such circumstances. Whatever
bonds it was thought best not to float
could be held as treasury stock by the
company. III any sudden exigency
arose the bonds could be sold. Mr..
Dillingham; and Mr.. Lewis accepted the
amendment.
1t was the opinion Of Mr.. ]. o. Carter
that the adoption of such a bond issue
should not be made without due delin-
GRAFTON. The plan should have been
publicly placed before those interested
In the plantation. He favored the
100000 issue If bonds We're to be issued
at all. To declare dividend regularly
every month only meant that funds
would have to be raised by bonding the
plantation, which he did not favor.
lnasmuch as the board of directors fav>
ored the proposition, however, he wa
willing to abide by their decision.
The president favored paying for thu
permanent improvements out OF ths
money realized by the sale of bonda
and doing away with the propositions
to pay one per cent dividend every
month. He stated that bonds issued
for improvements, could be paid bach
with greater ease than using the bonds
to pay off the dividends He said the
board of directors would pledge itself
to utilize the bond realization for the
permanent improvements. This sug-
gestion was put in the form of an
amendment and accepted by the origi-
nal mover, Mr.. Lewis.
Spreckes has agreed by contract to
take over $4,000 tons of sugar, with a
deduction of three eighths of a cent
on the regular quotations. This Is to
be delivered by Hackfeld & Co., Davies
& Co.. Grinbaum, Schaefer and Water
house,
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