The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1900-08-23
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 $4,000. This de-
cision was reached yesterday morning
at a special meeting of the directors
and stockholders held in the Chamber
of Commerce room at 10 o'clock. The
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 the
subject the three-quarter million
amount was deemed the wisest course
to pursue. The meeting was opened by
President Isenbsrg. He stated that by
January there would be debt of
1920, 600. He said further that s2I5,oOo
had already been used for improve
ments and credit of $4,000 was still
available for permanent works. De-
Quoting the latter amount from the es-
timated indebtedness Of 100000 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
tation who had estimated that by 1902
the crop would yield 10000 tons of
sugar, doubling the output estimated
for this year.
He stated that the company would
require large number Of permanent
improvements, as for example,, new
evaporators, centrifugals, an entire
new mill to meet the increased demands
for capacity. Pumps would also be an
expensive feature. Upon this showing
Ii was his opinion that the bonds were
necessary. The company had proposed
to pay dividends monthly commencing
to meet this proposed obligation funds
for going on with the new works would
be absolutely necessary. The scheme
preached by the secretary was men
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 ques-
ton was open for debate. Mr.. Nc
CandlesS made an amendment that the
bonds be an even 100000 issue. lie
thought ii best to take into considera-
ton the liability of breakdowns and
other accidents which would cause con-
siderable expenditure for repairs. TIE
extra $150,000 proposed in his amend
ment would be of material assistance
under such circumstances. Whatever
bonds ii was thought best not to float
could be held as treasury stock by the
company. If any sudden exigency
arose the bonds could be sold. Mr.
Dillingham; and Mr.. Lewis accepted the
amendment.
( 1t was the opinion of Mr.. J. o. C2ltel
that the adoption Of such bond issue
should not be made without due delib-
Grafton. The plan should have beer
publicly placed before those interested
in the plantation. He favored the
$600,O00 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
ored the proposition, however. he wa:
willing to abide by their decision.
The president favored paying for the
permanent improvements out of The
money realized by the sale of bond.
and doing away with the proposition
10 pay one per cent dividend every
month. He stated that bonds ISSUED
for improvements, could be paid baci
with greater ease than using the bonds
to pay off the dividends. He said tn,
board of directors would pledge itsel
to utilize the bond realization for tn,
permanent Improvements. This sug
gestion was put in the form of al
amendment and accepted by the or1gi
nal mover, Mr.. Lewis.
SDrecEpiS has agreed hv contract 4,
, take over $4,000 tons of sugar with
: deduction of three-eighths of cen
, Off the regular quotations. This is t
be delivered by Hackfeld & Co, Davie
d Co., Grinbaum, Schaefer and Water
house.