The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-12-31

MASTERS
REPORT
Humphreys Kick
on McBryde
Bonds.
IGNORES EXPERT
TESTIMONY
Form of Trust Deed Criticised
Same as in Nearly All
Sugar Bonds.

In the face OF an exceedingly favor
able report, which he himself had or
dered. Judge Humphreys yesterday or
dered Alfred W. Carter, as guardian of
the property OF Annie T. K. Parker. to
dispose OF the bonds of the McBryde
and Waialua Plantations held by him
for his ward.
The report OF the master. F. ]. Rus
sell. stated that ne Waialua bonds of
81 ,0OO.O 900 were secured by property
worth $500, 600, while the McBryde is.
and of $3.50, 600 was secured by property
valued at 100000. He said it was
good security" Humphreys decided
that II was not, and based his rulins
luron clause In the trust deed which
makes necessary the consent of a ma
ljority of ( 5ond-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
McBryde's 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-
reys in his ruling yesterday Is the real
cause of the dlsapprbval of the bonds,
[ he Will continue and order an exam
nation into every trust fund now in
circuit court, for nearly every plania- !
/ ton bond is subject to tire same criti- |
cism 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 T. K. Parker and pay to her in
terest on the amount, sS1 900, invested
in these bonds at per cent. Aside
FROM this, the decision will be of no eff
-<sect, as it is not anticipated that it win
affect the market value of such securi-
lies. 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: l.
"The masters report filed herein on
the i2th day OF December 1901 was re- Il
ferred back by the Court for further in
vestigation as to the quality OF the Sc
''Irity OF the bonds of the Wa.alua Ag-
cultural Company, Ltd, in which the
guardian has invested $4,000 and those of
the McBryde Sugar Company Ltd, in
which the guardian has Invested $4,000. II
I'm conformity with the Instructions OF
the Court, the master has made inquiry !
and taken evidence, according to the <
custom and practice of this Court INF (
such rtatters, from the offic and en-
ployss. of both companies and of otherV I
The evidence taken at the hearings in
connection herewith has been TRANSCRIPT
ed ana the transcript is hereunto annex
ed and hereby made part hereof Il
THE master finds: I
81. As to the Waialua bonds-The )
capital stock of the corporation Is $1,000 r
COO all outstanding and all paid up. The
stock is quoted in the market al Honolu-
lu at s. per cent of its par value. The
total assessed value Of the corpora TONS ;
property las January was Sc, 800 600, and =
a large amount of money has been ex-
pended upon permanent improvements
during the present year The trust decd l
which was given by the company on
April LIST of This year to secure its bond
ed Indebtedness authorizes the sale of I
bonds in the amount of S1,OOO.0O0 of
which 100000 worth have been sold and
the balance of $3.50 600 worth are still in
the treasury of the company. Said trust
deed contains the following; clause: Tn \
case of default in payment of interest |
Or, any OF the bonds hereby secured theI
coupons therefor having been presented !
ann payment demanded should such
default and payment continue for the
period of three months after such de- L
mand. then and thereupon the principal "
of ali of said bonds, outstanding and I'M
paid shall at the option of the holders
OF a majority of said bonds, signifed in
writing, become Immediately due and
navable provided that non-action of any
fa,,I+ shall not extend and shall NOT ef
feet any subsequent default or any
RIGHTS arising therefrom.' Said trust
deed conveys all of the property Of tho
Though the property il new
n is vel developed. and Is expected 70 @
nav dividends in few years. p
"As 70 the McBryde bonds-Tba cani- p
tai stock Of the corporation is g. 100000. g
y which S5.3l2StO IS outstanding ard mad | s.
~. ord s1SS11O is In the treasury of tho
ca,.1a1v. The stock is new ouoted on
,ba IFonoluiu market at about 8 ner cont
NJ ,ts ma value. The assessed vaIua IF | %
m nitro property II the corrc-,.to,, | 81
lac. January IS said to be $1,2faS15 and A
aLort s7g2 80 has been expended since | "a
sal assessment on permanent tnDrove- cf
rnents 10 the property of the compauv
The trust deed given oy the company st
co,,,,e1-z It's entire property, authorizes
an ts..,,a ,sf $4,000 in bonds ana contains o
nr,o+t1ally the same clause as 10 The
rIvb, 10 foreclose upon non-pavn,an+ Of
coupons as IS quoted above The entire