The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1901-12-30
NOT PROPER FOR ESTATE IN
NESTMENT.
Judge Humphreys Finds Fault with
Waialua and McBryde Bonds as Sc
curities in an Estate.

Judge Humphreys this morning re-
fused To approve Of investments in
Waialua and McBryde bonds by the
guardian in the estate Of Annie T. X.
Parker The report Of the guardian
Alfred w. Carter showed that he had
invested 81, 900 i'm McBryde bonds and
$4,000 In Waialua bonds Humphreys
recently referred the accounts TO +. J..
Russel as master. instructing him spe-
Cially to investigate the quality of the
security for the bonds. This morning
the guardian reported very favoraby
on both plantations. but the court held
that the trust deed did not give proper
security and disapproved the invest
mentS.
Russel's report was as follows:
The masters report filed herein on
the 18th day of December. 1901 was re,
ferred back by the Court for further in
Nestigation as TO the quality 80 the Sc
curIty of the bonds of the Waialua
Agricultural Company. Ltd, i'm which
the guardian has invested $4,000. and
those of the McBryde Sugar Co. Ltd.
IN which the guardian has invested
1000.
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 en-
ployes OF both companies and Of others
The evidence taken at the hearings in
connection herewith has been trans
cribed and the transcript is hereunto
annexed and hereby made part hereof
The master finds:
Il. As to the Waiaua bonds The
capital stock of the corporation is $4,-
100000, all outstanding and all paid up
The stock is quoted in the market at
Honolulu at 50 per cent Of its par value
The total assessed value Of the corpora
tons property last January was $500
600. ana a large amount of money has
been expended upon permanent i'm
prOVements during the present year.
The trust deed which was given by the
company on April 1st of this year to Sc
cure its bonded Indebtedness authorizes
the sale of bonds in the amount Of ST.
100000, Of which 100000 worth have
been sold and the balance of 1920, 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 cupons there
for having been presented and payment
| demanded. should such default and
payment continue for the period of
/ three months after such demand, then
/ and thereupon the principal of all OF
/ said bonds. outstanding and unpaid
/ shall, at the option Of the holders of a
/ majority of said bonds, sgnfied in
/ writing become Immediately due and
payable, provided that non-actiOn Of
/ any of said bond holders in case of any
| default shall not extend and shall not
/ effect any subsequent default or any
rights atrisng therefrom.' Said trust
| deed conveys all of the property of the
/ corporation. Though the property is
new, il is well developed and is expect
ed to pay dividends in a year years.
AS to the McBryde bonds. The
capital stock of the corporation is $3,-
100000 Of which $3,313, $50 is outstanding
and paid up and S1S6 12O is in the trea-
suEy of the company The stock Is now
! quoted on the Honolulu market at
about 25 per cent of it's par value. The
/ assessed value of the entire property
! of the corporation last January is said
| to be 81. .242 S15 and about 1892. 800 has
! been expended since said assessment un
! permanent improvements to the ~rop-
| ertV of the company. The trust deed
given by the company conveys it's en-
| tire property, authorizes an issue of
$75000O in bonds and contains practi-
cally the same clause as to the right 10
| foreclose upon non-payment of coupons
/ as is quoted above. The entire issue of
bonds has been sold. The company was
organized in 1895 is being rapidly de-
veloped and is expected to pay it's first
| dividends in a few years.
"3. The property of the Waialua
| plantation appears to be worth about
SO 500, 600 and to be good security for a
loan of $1,00O,O00
Il. The property of the McBryde
| Plantation appears to be worth not less
than $2OOO,O00 and to be good security
for loEn of $75O,0OO.
The bonds in both cases are Sc
cured by first mortgage deeds of trust
Respectfully submitted
i L