The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1900-05-23
N MBRYDE ISSUES BONDS
STOCKHOLDERS AUTHORIZE THE
ISSUANCE OF THEM.
S75O,OOO the Amount-Bear Six Per Cent
Interest, and Are Payable at Any
Time After Five Years.

purpose this morning, authorized the
board of directors to issue bonds for
! S150OO0, to bear six per cent interest,
/ interest payable semi-annually, the
bonds to become due in ten years, but
, to be payable at the option of the COM
pany at any time after five years. The
following is the resolution adopted, Civ
ing this authority:
Resolved That for the purpose of
, purchasing and erecting sugar works
| and appurtenances upon the property of
| the McBryde Sugar Co., Ltd, on the
Island of Kauai etc, the Board of Di-
rectors Of the McBryde Sugar CO., Ltd,
is hereby authorized and empowered
in the name of said company to borrow
seven hunderd and fifty thousand dol
lars $I5O,O0O) and to Issue therefor sew
| en- hundred and fifty (750) first mort
gage coupon bonds of the McBryde Su-
gar Co, Ltd, of the denomination of
one thousand dollars (S1 000) EACH to
bear interest at the rate of six per cent
per annum payable sem-annually,
which bonds shall be due and payable
ten years after date, with the right re-
served to the McBryde Sugar Co.. Ltd.
to redeem and pay the whole or any
portion of such bonds after the eXpira-
tion of five (5) years from the date
thereof, and as security for the pay
ment of such bonds and interest there
on, said Board of Directors is hereby
cluNllOl iHGh anu empowered TO make, eN-
ecute and deliver or cause to be made
executed and delivered, deed of trust
of all the property of the McBryde Su-
gar Co., Ltd. excepting shares of stock
IN SAID company now or hereafter own
ed by said company, and excepting
promissory notes and debts in favor of
and owing to said company by its en-
ployes), to three trustees to be named
and selected by the Board of Directors:
and said board is likewise authorized
and empowered to include or cause to
be included in said deed of trust such
terms, conditions and agreements as
! may be necessary, in their Judgment,
and to do and perform all such other
matters and things relative to the ne
, gotiation and placing of such bonds and
loan, including, if necessary, a commits
sion to negotiate the same as may be
, necessary in the premises"
Over 10000 shares of the stock of the
| company were represented at the meet
ing. President Isenberg presided. Pre-
} vious to the meeting being held a map
I of the plantation showing the develop
f ment completed, in progress and CON
templated, was shown to the stockhold-
ers, as well as number of photographs
OF various features of the plantation.
The resolution relating to the bonds
was presented by w. A. Kinney on be-
half of the directors In explanation of
the matter he said that owing to con-
. ditions affecting the whole community
the directors had been confronted with
d, a situation where the issue of onds was
I deemed advantageous. Aside from the
issuing of bonds there were three alter
natives; either to retard the deVelop-
: ment of the plantation; to ask the
1 agents to make advances not called
? FOR by their agency contract, or to call
S IN assessments more rapidly than was
= intended To retard the development
= of the plantation was unwise, as to re-
t tard 1t now for few months would be
4 to delay its development for a whole
} year. The directors did not feel that
f they could reasonably ask the agents to
make further advances than they had
- and to levy assessments too RAPIDLY
Il would be to work an injustice to MANY
e stockholders.
n An opportunity had been presented Ia
J. buy mill somewhat in advance of the
d time originally contemplated for paying
f FOR mill. But in view of the exper-
e ience of the other plantations in DELAYS
n in getting their mills put up, and in
f view of the fact that to order a mil
ii such as was now offered them il
= would cost them, because of the ad-
e vance in the price of iron and steel
over 100000, and the ample time thai
= would be given to put up the mill ready
= for the first crop exceeding the capacity
: of the present mill, it was deemed ex.
d pedient to buy it, Mr.. Hedemann, OF
: Honolulu iron works. had been consult
o ed as to the quality and suitableness
e of the MILL and while making some
= criticisms of it, had advised the com.
e pany to buy it, There was only one
S unsettled factor in the purchase, and
n that was the arrangement to be mad,
with the maker as to the change of 10.
n cation from Molokai to Kauai No diff,
o hculty was apprehended on this score
It however. Mr. Stillwell had been teIe.
gTFu lnsa1 l..
e pected by the Alameda. The McBrydt
n Company's contract for the mill was
= with Brewer & Co., and they would ac,
n cept the bonds of the company in pay
II ment.
e The bond proposition then would Sc
y cure them a mill in ample time, it would
relieve them from the necessity of call
s ing on the agents for advances, and 1
o would enable the company to continu,
!. its development without burdensomt
e frequency of assessments, and would
e thereby be in justice to stockholders
In reply to a question by Harry VoI
/ Holt, Mr. Kinney said that this bono
IS issue would in effect be. for a part O
g 1t, an increase of capitalization ovel
s what was expected at the time the
I prospectus was issued. The portion tina
l. went for the mill would not be, and
J. perhaps another portion of 1t would no
II be- But it must be remembered tina
l. since the prospectus was issued the
- price of steel had gone up $50 per cent
70 iron 100 per cent lumber and all othe
material from so TO 100 per cent.
y must also be remembered that McBryd,
It was practically a fee simple panta,
e ton. The leaseholds amounted to only
y a rental of less than 81, 900 a year.
- AS TO the sale of the bonds, Brewer
& co, took $32j,00O of them at par, ant
without commissions; Albert Wilco.
l. would take 100000 of them at par anC
n without commission, and I'm the judg
# ment of men whom he had consulted
!. on the subject. there would be no diff
J. Guilty i'm placing the remainder will
If very slight expense for commissions, es
e. pecially I'm view Of the speedy paymen
20 Of the Hawaiian Government bonds IN
anticipation Of placing bonds they hat
CONTINUED On page fiye)