The Hawaiian gazette., 1903-07-17
ABOUT TWO
SECURITIES
Bonds Of .HiIo R.
r. and Olaa
Sugar Co.

| William o. Smith. guardian of Eric
r. j. Gay and Arthur f. K. Ga,
minors, addressed a petition in each
case to Juuge De Bolt for his approval
of investments of $1,000 apiece in the
bonds, respectively, of the Hio Rail-
road Co., ana the Olaa Sugar Co.
Statements relating to the different Sc
curities by officers Of the companies
are appended.
OF the Hilo Railroad Co., there have
been issued and sold $S5O,OOO of six per
cent 1920 year first mortgage gold
bonds and sinking fund consisting
of five per cent Of the annual gross
earnings of the company has been es-
| tablished to commence five years af-
ter the date of the bonds, SO that by
the time the bonds mature seventy-five
per cent of their face value will haze
been set aside out of the earnings of
the company. A list Of bondholders is
given, showing the amount of $2S3,OOO
! held in San Francisco and the rest by
| local investors. The net earnings of
the railroad last year were s2S, S,054.6O
and for this year they are estimated
at 100000. The machine shops last year
cleared more than $4,000. Lately the
company acquired the property of the,
Hilo Dock Co., to be paid for out of the
s150,000 of bonds remaining in the treas
ury. The company is paying a divi-
dend of one per cent a quarter and owes
| nothing but its bonded debt. Only
about one-fifth of the area tributary to
the road has as yet been developed.
Elmer Z. Paxton, treasurer, signs the
statement.
The Olaa Sugar Co., has issued ST.
250,O0O of first mortgage six per cent
$50 year gold bonds, secured by all
of the property of the company under
deed of trust to Bishop & Co. OF the
whole amount $645,0O0 is held here and
in San Francisco and the remainder Of
$6O5. 900 as collateral security to notes
| aggregating s525,O00 by the Mercantile
Trust Co., Security Savings Bank.
German Savings & Loan Society and
Anglo California Bank. The assets are
valued at Sc, ,524 ,333.Ss and liabilities at
81, 900, ,667.S1, or an excess of assets over
liabilities of s5,3O3, ,666.07. A conserva-
tive estimate of the coming sugar crop
gives a value of $1,950,000, to harvest
which should not cost more than $780,
900, leaving balance of s1,3O0,0OO. The
company owes nothing outside of it's
bonds sold and notes secured by bonds,
excepting monthly bills paid at the end
of each month. and a credit balance
with the agents at the end of this year
of more than 100000 Is anticipated.
Various factors of promise for the
prosperity of the enterprise are men,
! toned, including the large and modern
mill and the almost absolutely certain
/ Irai inf nd n pay
ton in conclusion says:
Nearly all of the bonds sold were
taken by responsible parties when the
plantation was first started before
there had been one-fifth of the capital
expended that there is at the present
time and before it was fully demon
strated that cane would grow equally
well at all elevations on the planta-
tion. If the bonds could be considered
fair security at that time their value
is certainly largely enhanced by reason
of the expenditure and development of
the property of the company"
| Justice Perry is the author of
unanimous opinion of the Supreme
Court in the case of l.. Ahlo VS.. c.
Bolte and the Kaneohe Ranch Co., 1t !.
This was an equity case in which plain
| tiff filed n discontinuance and then
moved for a decree of dismissal with
out prejudice, stating that he followed
that course because he believed it to
be to his best interests to seek a reme-
| dy at law. Respondents moved for
decree dismissing the bill with preju-
dice. basing their motion on an affi-
davit to the effect that David Rice had
come all the way from Boston to testi-
fly in the case and that they lad incur
red large expense and great inconveni-
ence in preparing for the trial. Plain
tiff made another move for dismissal
without prejudice.
Judge Gear declined to decide wheth-
er the dismissal should be with or with
out prejudice, and signed decree read
ing, upon motion OF plaintiff and pay
ment of costs to be taxed. the bill
stands dismissed" He specific lily held
that the question of whether the dec
rec would operate as bar to other pro-
ceedings between the same parties and
concerning the same subject matter
was one to be passed upon when raised
in some subsequent proceeding The
complainant appealed.
The Supreme Court says that In
equity a simple decree OF dismissal
without saying anything more Is pre-
sumed to have been upon the merits
and Is bar. Therefore, when party
is entitled to a dismissal without pref
udice the court should say so In It's