The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1902-10-14
JERSEY CORPORATION.
TO OWN HAWAIIAN
STOCKS
OWNERSHIP AND DISTRIBUTION
OF EARNINGS TO BE REPRE-
SENTED BY THE HAWAIIAN
SECURITIES COMPANY.

Special meetings of the stockholders
of Hawaiian Agricultural, Onomea,
WaIuku and Honomu, four of the
Brewer & Company plantations, have
been called for next Saturday, October
Is, at which will be presented plan
for the organization of new corpora
tion to own the stock of these four
plantations.
The new corporation is to be known
as the Hawaiian Securities Company.
Its proposed capitalization is $12,OOOOOO
divided into 10000 shares of 500 each
par value. The corporation is to be or
ganized under the laws of New Jersey
OF the 120 900 shares of stock, one-half
or 10000 shares, are to be preferred
stock to be entitled to seven per cent,
non-cumulative dividends, and one
half or $4,000 shares are to be common
stock to be paid such dividends as
the earnings will authorize, after the
dividends on the preferred stock have
been paid.
The stock of the new company is to
be exchanged with the holders of the
stock OF the four plantations included
i'm the plan, on the basis of two shares
of preferred and two shares OF common
stock for one share of Hawaiian Agrl-
cultural; two and a half shares each
of preferred and common stock for one
shares of the present Onomea stock
for one share of preferred and one
share of common stock in the new cor
poration, the Onomea shares being OF
par value $40; and one share of pre-
ferred and one share of common stock
for each share Of Honomu. On THIS
basis Hawaiian Agricultural, includ-
ing the new railroad and mill is valued
at $4 800 600; Wailuku at $3,5OO,OO ono
mea at $2,000,00O, and Honomu at $l,-
100000.
The new corporati ton will be organiz-
ed and the present owners of the STOCK
of the four plantations Will De given
the opportunity of exchanging their
present holdings for the stock of the
new company on the foregoing basis.
1t is certain that more than half or the
holdings will be exchanged at once, be-
p, cause Brewer & Company, and friends
TO whom the matter has already been
presented have agreed to it. No one
will be compelled to make the eX-
change, though 1t is hoped all Will. Inc
stock of the new company will then be
listed on the New York stock exchange
"The PLAN" said Manager George
Robertson this morning, lis one tha'
mas been thoroughly thought out 1t Is
not a plan to sell anything, for Brewer
& Company do not intend to lose con
troll of the management of any of thu
properties represented, for it believes
it can manage them better than any
one else. But it is believed the plal
will have many advantages both Il
Brewer &y Company, to the indlVidua
stockholders, and to the general inter
ests of the territory. The plantation
will be run as they are now. But witt
each individual plantation returns var.
from year to year; a good year IN
oreases the returns and bad year re
duces them. 1t has been the history o
these four plantations however, tina
when one of them has had bad yea
some other one has had an unusuall
good year. So that when the owner o
stock in one of the plantations eXchan
ges his stock for an equitable share 1
all of them, he equalizes his returns
his eggs are not all in one baske
Brewer & Company itself is the bes
evidence, perhaps, of the advantage G
this sort of equalizing. Owning stoc
In these and other plantations 1t ha
paid regular dividends notwithstandin
the returns for the individual planta
tions have varied, and the compan
was even able to keep up its dividend
the year the losses due to the America
Sugar Company fell on it.
"The stock of this company listed o
the New York Stock Exchange, we e1
pect will make it's way, and attract a.
tention to itself as a regular dlylden