The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1902-02-14
FOR
KONA SUGAR CO.,
PETITION FILED THIS MORNING
BY NJ MCHESNEN
AND SONS.
A MOVE TO CLEAR UP AFFAIRS
OF THE CONCERN.
Agents Have a claim for Nearly $780,
O0O aud There Are 500, 600 Bonds out
standing.

A petition for the appointment of
receiver for the kona Sugar Company
was filed today by r. w. Haukey. at
tOrney for NJ. W MCChesncy d. sons.
This suit is entitled W. NJ. McChesnev
* sons VS.. the KOna Sugar Company
and the American Bank and Trust
Company the latter being sued as truss
tee for some of the creditors.
The plaintiffs sue for SlS9S26, alleged
To be due them from the corporation.
and ask that a receiver be appointed
to take charge of the property OF the
corporation, for the benefit of an the
creditors. In addition to this Hdsau,,
iJ is stated, there are 100000 Of the
last issue of bonds, held by trustees.
and there are also some other credi-
tors.
The affairs of the corporation have
been under discussion for some days,
while the application for a receivership
has been also under discussion. Atty.
Hankey stated this afternoon that the
suit was probably the only method by
" hich the affairs Of the company could
| be cleared up, and that the result
would probably be the protection Of all
concerned and the successful operation
Of the company.
McChesney & Sons are agents for the
plantation having a contract to act as
such up to October 1908. The complaint
sets forth that the agents are under
/ Cbhgauons to pay Oh behalf of the
! Nona Sugar Company TO Castle d
Cooke, S2,26S.99; to Brewer & Company,
$3SOO4S. to n. G. GreenWell 81 600.
1t is set forth that the sugar crop
now on the plantation is worth 100000
and that it's value is deterioraung on
account of the corporations lack of
funds to properly care for IT,
1t is understood that the proceeding
| IS friendly one; that Bishop q Co,
| who are among the largest creditors,
4 nave agreed to name the receiver mad
! advance sufficient money to carry on
/ the plantation for a time at least s.
4 NJ Damon, or some one on his behalf
viii go to the plantation by the next
steamer to look over the plantation and
| the situation.
Tho annual reports Of the corporation
are now being prepared. In these it is
stated that the past year has been u
most favorable one for growing cane,
and that there is now a crop of some
1000 to $500 tons of sugar ready to be-
sin milling or will be ready to begin on
or about the end of this month One
of the reasons for beginning this pro-
ceeding are, that difficulties having
hoen encountered in providing finances
necessary to harvest this crop il is be-
leved that a receivership wll enable
this to be done, so that the crop can
be milled and marketed promptly and
that this will go far toward straighten-
ms out the most pressing of it's fnan-
Cial difficulties, and enable the COM
pany to make arrangements for a COM
piete disentanglement from its difficult
ties
The First American Savings and
Trust Company Bank is made a party
defendant, because IL Is the trustee
for the bondholders. OF these bonds.
500 600 have been issued. Part of them
have been sold and part of them nego-
tiated as collateral security for debts
, Of the corporation.