Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1902-04-20

taken as a criterion of the value of the
land, if the property is abandoned as
sugar plantation. Situated in the very
heart of the plantation between its
Eleele and Koloa properties. is o lease
of government land known as Kalaheo
on which Is valuable stream. This
lease contains 40i5 acres and will ex-
pire on February I, 1909, little less
than seven years. According to the
testimony Of Mr.. Miller about 1000
acres of this moribund lease Is in cane
and as at will be three years any way,
possibly longer" before the company
pays dividend, IL will be readily seen
that as the basis of loan for trust
funds II is. aside from the inherent OBJ
jections to leases. decidedly illusory,
and, in view of tn edemand. the ClamOr
of American citizens in this Territory
for homesteads and the declaration OF
the President which has been hailed
region of large estates titled by
cheap labor: we wish a healthy AM
erican community of men who them
selves till the farms they own 1t may
be treated as a foregone conclusion that
the lease of Kalaheo will not be re-
$3.50 a year which the property nov
yields to the government. II further
appears from the evidence of Mr.. Mil
| Ter that 9TH eartesian wells put down
| developed salt in excessive quantities
so We had to abandon the wells, and
and obtained sufficient supply-more
than sufficient for ONE PUMP Here
we find condition such as drove the
/ American Sugar Company from cane
! planting to stock raising. And right
here It may be stated as most i'm
tn company to its stockholders not
one word Is said with reference to the
salt held in solution by the water
| from these wells
"A number of reputable gentlemen
have testified that they believe the
| one, Mr.. p. c. Jones. has said that ht
would not hesitate TO invest trust
| funds in them. II appears from hi:
evidence that the bank with which Mr.
| Jones Is connected has handled thes'
bonds, Just how they were handled
| does not appear, whether as a matter
of brokerage, or whether the banl
loaned money upon them with salts
factory margin TO the solvent maker
| OF a note. we do not know; at any rate
/ It does not appear that any bank o.
| this city now owns the bonds or ha'
ever owned any of them. and in th'
case of every witness who testified
and who has invested in these bonds
| that his knowledge of the security |:
based not upon actual inspection o.
tue property but upon what otheri
! say about II. which we trace to inter
ested sources. Mr.. S. c. Allen, who hal
invested $4,000 in the bonds and whit
is also a stakeholder. when asked abou
the property said: Il know something
Of It, | am not very familiar with 1t,
was down there--I HAVEN'T BEEN
THERE SINCE 1858. killed off a her,
of wild cattle about 1858 at Wahiawa,
He further states that he never rea,
the trust deed nor employed anyone Il
do so for him. Allen Is the only wit
ness who has testified to putting hi
own money into this enterprise. Mr.
Kinney testifes that he borrowed $50,
900 upon these bonds from the ACTIN
president John Lloyd of the German
Saving 4, Loan Society OF san Fran
cisco, depOsiting as security 100000 O
the bonds at par and that the loan wa
afterwards extended for six months
Mr.. LlOyd's lean was at the rate Of
per cent, the bonds bear only pc
cent. It is inconceiyable that Mr.. Lloy,
would lend $4,000 at per cent upo
q mortgage bearing only per cent, bu
he had other security, to wit: the Sc
curlty afforded by the solvent make
of the note. Mr.. Kinney also state
that II this property is failure as
sugar plantation II can pay per cen
on 100000 as a stock ranch. The ans
wer TO that is, the company has con
tracted TO pay not per cent on $500
600 but per cent on $I5O,0OO. Fiv
per cent on 100000 would give tn
present bond holders less than 4 pc
cent on their investment.
This case Is not one in which tn
trustee has made an investment {
trust funds in a doubtful venture at
rate of interest; but Is one In which b
has made AN INVESTMENT OF sue,
FUNDS AT A Low RATE OF INTEF
EST IN WHAT SEEMS TO ME TO d
A VERY DOUBTFUL VENTURE. A
OF the witnesses, except Mr.. Damo
state that first class loans upon fir
real estate mortgage can be placed |
from 7 to per cent, and that the d.
mand for such loans by borrowers
greater than the supply Of money
the market. Mr.. Damon who cou
not state the current rate of intere
as 1T varies was requested to furnis
the Court with list of loans mat
by his bank upon real estate NOR
cages from October, 1901, up to Il
present time. Such list was furnish'
and from that It appears that OF fl
teen loans made by the bank of Bis
op q Co. (Damon's banb thirte'
. were for per cent, one was for Il