The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1901-12-31

guardian in the estate of Annie T.
Parker yesterday morning
Guardian Alfred W Carter had re-
ported in his accounts an investment
in McBryde bonds. F. ]. Russell. ap-
pointed to report on the accounts as
master. was directed by Judge Hum
phrevs TO look into the affairs of the
McBryde Sugar Company and give
his opinion on the value Of the bonds
as a security for the investment OF
trust funds
Attoyney A. C. NJ. Robertson ap-
peared for the guardian yesterday
morning and claimed that the invest
ment was a perfectly safe security.
The Minority Helpless.
The attention of the attorney was
called TO a provision OF the law of
the Territory relating to mortgages.
which makes the minority holders of
mortgage bonds helpless in certain
instances. A minority of the stock
holders would be at the mercy Of the
majority in the event OF foreclosure,
although the s750000 issue CT the
bonds of the McBryde Sugar Com
pany was fully secured by the prop
erty in pledge.
Judge Humphreys ordered the guar
dian surcharged with the amount in
vested in McBrvde bonds and inter
est at six per cent from the date of
investment A written decision will
be fled later.
The masters recommendation for
an increase of the guardians bond
will not be followed, said Judge
Humphreys. as being excessive. The
amount will be fixed when the matter
has been further considered
Where a plantation borrows $3.50.
900 on a trust deed" said Judge
Humphreys in answer to Attorney
Robertsons argument. which can
only be foreclosed by consent of a
majority of the bondholders, the
minority of the bondholders are with
out any security at all. The minority
bondholders. OF which this estate is
one. are unsecured. The minority
have not one bit of security for their
money. The majority are well secur-
ed"
Judge Humphreys said the bonds
were the same as a good promisory
note. but that the guardian of an es-
tate was not supposed to invest in
promisory notes. however good they
are.
In his written decision Judge Hum
phreys will show authorities.
The Masters Report.
The report of F. ]. Russell. master,
is as follows:
The masters report filed herein on
the 18th day of December. 1901, was
referred back by the court for further
investigation as to the quality of the
security of the bonds of the Waialua
Agricultural Company, Ltd. in which
the guardian has invested $4,000, and
those of the McBryde Sugar Co.. Ltd,
in which the guardian has invetsed
$4,000.
in conformity with the instructions
of the court, the master has made in
quiry and taken evidence. according
TO the custom and practice of this
court in such matters. from the officer
and employees of both companies and
of others. The evidence taken at the
hearings and in connection Herewith
has been transcribed and the trans
cript is hereunto annexed and hereby.
made part hereof.
The Waialua Bonds.
The master finds:
81. AS to the Waialua bonds. The
capital stock OF the corporation is S4.-
100000. all outstanding and all paid
up The stock is quoted in the market
at Honolulu at 55 per cent OF its par
value. The total assessed value of the
corporations property last January
was $500. 900. and large amount of
money has been expended upon per
manent improvements during the pres
ent year. The trust deed which was
given by the company on April LIST OF
this year. TO secure its bonded indebt-
edneSs authorizes the sale OF bonds
in the amount of 1000, 600, of which
$4,000 worth have been sold and the
balance Of $3.50. 900 worth are still in
the treasury OF the company. Said
trust deed contains the following
clause; In case OF default in payment /
OF interest on any OF the bonds hereby |
secured. the coupons therefor having !
been presented and payment demand |
ed. should such default in payment !
continue for the period of three /
months after such demand, then and 1
thereupon the principal OF all OF said 4
bonds. outstanding and unpaid shall. |
at the option Of the holders of q major
ity Of said bonds, signified in writinS
become Immediately due and payable.
provided that non-action OF any Of 4
said bondholders in case of any de-
foult shall not extend and shall not
effect any subsequent default or any
rights arising therefrom.' Said trust
leeds convey all OF the property OF
he corporation Though the property
IS new. il is well developed and is ex-
pected to pay dividends in year.
The Me6ryde Bonds.
As to the McBryde bonds. The cap
tai stock of the corporation is s.. 5oo.-
BOO. OF which s3.S1S.SSo is outstanding
and paid up and slS6.l20 is in the
treasury Of the company. The stock
5 now quoted on the Honolulu market
II about IS per cent OF its par value.
The assessed value Of the entire prop
srty OF the corporation last January
5 said to be si.242. SIS and about $780,.