The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1901-12-31
Humphreys Kick
on McBryde
Bonds.

In the face OF an exceedingly favor.
able report, which he himself had or
dered, Judge Humphreys yesteruov or
dered Alfred W. Carter. "a guardian OF
the property Of Annie T. N. Parker. to
dispose of the bonds OF the McBryde
and Waialua Plantations held BY ann
for his ward
The report of the master, +. j. Rus
sell, stated that he Waialua bonds or
81 OUO,O 900 were secured by properly
worth 50 600. while the Mcbryde is
and of $3.50. 900 was secured by property
valued at s. GOO 600. lie said 1t was
good security" Humphreys decided
that Il was not, and based his ruling
upon a clause In the trust deed which
makes necessary the consent OF n ma
jority of the bond-holders before the
mortgage can be foreclosed. The rea-
son given by the court, in the minds OF
most people, is not believed to be- the
real cause for his attempt to discredit
McBrydes bonds, after the examination
ordered by him had mad an opposite
result than expected. His enmity to W.
A. Kinney is believed to be at the bot
tom of the order, for the attorney is
largely interested in that plantation.
If the reason given by Judge Humph-
Tegs III ms TullnS iSa'
cause OF the disapproval OF the bonds,
he will continue and order an exam
ination into every trust funu now in
circuit court. for nearly every rldnta-
ton bond Is subject to the same criti-
oism as the trust deeds in each are
practically the same. Humphreys order
OF yesterday will compel the guardian,
Alfred w. Carter, to himself assume the
bonds purchased by him for the ward,
Annie Il. X. Parker and pay to her in
terest on the amount. $4,000. invested
in these bonds at 6 per cent. Aside
from this, the decision will be of no eff
feet, as it is not anticipated that it viii
affect the market value of such sacur-
ties, when the report Of the master Is
taken into consideration.
The report of the master, F. j. Rus
sell, was read yesterday morning upon
the opening of court as follows:
/ The masters report Ned herein on
the 18th day of December, 1901. was re-
ferred back by the Court for further In
vcstigation as to the quality of the se-
curity Of the bonds of the Wa'alua Ag-
ricultural Company. Ltd, in which the
guardian has invested $4,000, and those of
the McBryde Sugar Company, Ltd, IN
which the guardian has inves ed $1,000.
In conform ty with the instructions Of
the Court, the master has made inquiry
and taken evidence. according to the
custom and practice of this Court in
such matters. from the oflicals and rm-
ployes of both companies and OF others.
The evidence taken at the hearings in
connection herewith has been TRANSCRIPT
ed and the Transcript is hereunto annex
ed and hereby made part hereof.
THE master finds:
81. AS to the Waialua bonds--Thc
capital stock of the corporation Is $1,000,
600, all outstanding and all pad up. Tho
stock is quoted In the market at Horo'u-
lu at SIS per cent of It's par value. The
total assessed value of the corporations
property last January was s5,5O0,0O0. and
a large amount OF money has been ex-
pended upon permanent improvements
during the present year. The trust decd
which was given by the company on
April list Of this year to secure Its bond
ed Indebtedness authorizes the sale of
bonds in the amount of Sl,OOO0O0, of
which S6l0,0O0 worth have been sold and
the balance Of $4,000 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 demanded. should such
default and payment continue for the
mand, then ana thereupon the principal
OF all of said bonds, outstanding and un-
paid shah, at the option of the holders
of n majority of said bonds sgnliicd in
| writing, become Immediately due and
payable, provided that non-action of any
, of sad bond holders in case Of any de-
: fault shall not extend and shall not eff
= feet any subsequent default or any
|, rights arising therefrom.' Sad trust
deed conveys all of the property of the
corporation. Though the property Is new.
= 1t Is wctl developed, and Is expected To
! pay dividends In a few years.
= "As to the McBryde bonds-The capi-
: tai stock of the corporation Is 50 800, 900
9 of which sS3i3.SS0 Is outstand ng and pa d
\ up and Sl66, 100 Is In the treasury OF the
company. The stock Is now quoted on
E the Honolulu market at about 25 per cent
\ of Its par value. The assessed value OF
\ the entire property of the corporation
J. last January IL said to be $l,242, sl5 and
= about s792, 500 has been expended since
; said assessment on permanent improve.
: ments to the property of the company
I The trust deed given by the company
Z conveys its entire property. authorizes
g an issue OF s75oOOO In bonds and contains
: practically the same clause as to the
. right to foreclose upon non-payment OF
= coupons as Is quoted above. The entire
Issue of bonds has been sold. The com.
= pany was organized In 1898. is being rap.
n idly developed and is expected to pay Its
e first dividends IN few years.
e 80. The property OF the Waalua PLAN
9 tation appears to be worth about $780,
e coo and TO be good security for loan
e OF 100000.
e Il. The property OF the McBryde plan.
: tation appears to be worth not less than
I 100000, and to be good security for q
loan of $7jO.OO0.
: 1.-The bonds In both cases are secured
j by first mortgage deeds OF trust.
: Respectfully submitted,
G IF. j. RUSSELL,
e Master"
= 1T doesn't seem to me that there 4,
> sufficient protection for the minorit,
o bondholders under this trust deed" re
. marked the Court Don't the agent,
: hold majority of these bonds, and could
{ NOT fhev nrcvnnt a fnrnclnrnra Il tho,