Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1902-04-25

may hereafter acquire. with such en-
cuI tiuns and reservations II any. rs
the board Of directors shall decide
upon. and otherwise TO include in
such trust deed such terms. provi'
SONS and conditions as they shall
deem best: ana be II further
Resolved. That the board of direct.
Or aforesaid be. and they hereby are,
authorized to sell and dispose of the
said bonds as the same may be rCquir.
el for the purposes aforesaid and to
allow and pay such commission and
charges for the placing Of such bonds
a. they shall see 1T. said board of di.
T,,tOrs being expressly authorized 10
h:pothccate said bonds or any part
thereof pending tie sale OF the same
To- secure the payment of any Obliga-
ton or obligations whatsoever of the
company. upon such terms and provi-
sicns as they shall see 1T: and, he It
further
Resolved. That said board of direct.
O's be- authorized to defer payment of
said original issue of bonds or any
port thereof for such length Of time
as they shall see fit, provided they
keep AZ least like amount Of the
bCads OF the new issue In trust to
liquidato and discharge said original
bends 20 outstanding.
Mr.. Kinney's Views.
In presenting the foregoing rcsolu-
ton. Mr.. Kinney made the following
statement:
In behalf of the directors of the Me.
Bryde Sugar Co. | desire 10 make the
following proposition for funding tho
debt OF the company. The treasurer
statement just read shows that the
company will owe under present plans
S90n000 AT the end Of this year on open
account This. with the original bond
issue now outstanding, would make the
J total Indebtedness Of the company
! 81 ,650.OOO at that date. We propose To
! meet this debt by bond issue of 81
! 900 900, an amount sufficient to cover
! all obligations of the company up Ia
1 the LIST Of January Of next year and
( leave balance of $3.50 ,OUO for cOntin-
| gpnCies and further development of the
property. Upon the lst of January next
| II Is calculated the plantation will be
at least self-suppOrting, or in other
words will pay running expenses and
Nll interest charges out of current re-
I "eipts from the sales of sugar.
It Is suggested that the new issue be
! handled as follows: That $75O,OO0
worth of new bonds, or more If CON
/ sidered advisable. be reserved to pay
, Hff the original bond issue of $3.50 900,
| which issue becomes due and payable
( In 1910. the company. however, having
J the option to call in and pay the same
or any part thereof nj any time after
, July 1905. So much of the balance
, Of the new issue ESTIMATED at 81 .250.-
900 las may be- needed 10 cover the
| obligations Of the company up TO the
. UNI VI l'NN N'hl VIII w HblN' U'HulHE
] sale these bonds may, II necessary, be
! hypOlh"catCd.
The course here suggested of setting
| aside u certain amount OF II new issue
Of bonds to meet payment of an old
! lssu" not yet due Is quite common.
While We have seven years in which to
pay off the original Issue of bonds. it
Is anticipated that in much less time
perhaps within year, the old issue
wIIl be ont of the way.
The bonds in excess of requirements
for this year. will be held in reserve to
be- disposed Of as may be finally decided
by the company. by the end of the
year under present plans, IL Is calcu-
lated the company will be on basis
to manufacture $4,000 tons economi.
, cally and will have completed large
portion of the permanent improve
mcnts necessary to expand consider
ably beyond that output.
The fixed policy of the directors,
however, even at the expense of re-
iarding expansion, Is to retain as
strong reserve In bonds as possible
against contingencies, until the plan
tation is on dividend paying basis,
abel to create and maintain reserve
| fund.
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