The San Francisco call., 1904-04-29
MANY BANKS LARGE CREDITORS
OF PROMOTER B. F. DILLINGHAM;
Well Known HaWaiians Financial Troubles That
Come From Failure to Make Sugar Plantation
Paying Proposition After Very Great Outlay

The assets of B. F. Dillingham; Of
Honolulu have been estimated by a
committee of his creditors to be worth
$2,551, $50, while his liabilities amount to
$2,67S,47O On this showing the commit
tee Of creditors in the Hawaiian ISL
ands has figured out that there is a
surplus of liabilities of $121,SS0 The
same committee has estimated, under
present conditions, and reckoning that
the liabilities will draw 6 per cent per
annum, that his income, unless there is
an increase in the earning capacity of
his assets, will fall short of paying his
interest by $9080 per annum; and If his
life insurance should be continued the
annual shortage in his funds will be at
least $4,000 per annum.
Mr.. Dillingham; has been a leading
figure in the 3. F. Dillingham; Compa-
ny, Limited, and a great promoter in
the Hawaiian Islands. If the creditors
in Honolulu have figured correctly, the
assets of the Dillingham; Company
amount to S1,677,007 and the corpora
tion's liabilities to $3.50, los. There is,
therefore, surplus Of assets, as esti-
mated, of 1896, ,901. But if the assets
shall earn no more than they did IN
1908 and the liabilities draw interest
at the rate Of per cent per annum,
there will be a failure amounting to
$31,3S1 per annum to meet the inter-
est charges, so say the company.
A recommendation has been made
that b. f. Dillingham; shall assign all
his property to the B. f. Dillingham;
Company, Limited, except his shares In
the b. T. Dillingham; Company; also
that a committee of five Honolulu
creditors and three foreign creditors
shall be appointed to conduct and con-
troll in every way the business or the
B. f. Dillingham; Company, Limited.
On the next steamer from Honolulu L.
A. Thurston is expected to arrive to
confer with the San Francisco credit
orS and to make a general report TO
them regarding the facts disclosed by
the investigation of the financial af-
fairs of Dillingham; and of the corpora
tions with which he has been promi-
nently connected.
SEEKING LOST HEALTH.
Mr.. Dillingham; is in sanitarium on
Central avenue, where he is seeking to
recover his health. He is not able to
confer with his creditors in this city
concerning his business. There are
very large creditors here. The Dilling-
ham Indebtedness has been principally
incurred in an attempt to make a sue
cess of the Olaa sugar plantation, on
the island of Hawaii, near Hilo.
The Indebtedness of Dillingham; and
of the B. +. Dillingham; Company, Linn
tied, amounts. Jointly, to $3,958, $40.
Against this amount are assets esti-
mated to be worth $422S, 59S. With this
apparent excess of assets above liabili
ties the creditors in Honolulu, through
their committee, have nevertheless re-
ported that the outlook is good for
failure, to the amount of $49,4 ,460 per an
mum, to meet interest charges. The
Olaa sugar plantation has produced but
two crops. The price of sugar disap-
pointed Dillingham;, who built his ex-
pectations of success upon the price.
Dillingham; used the stocks and
bonds of the Oahu Railway and Land
Company and of other corporations to
secure those from whom he borrowed
the money TO enter upon the expensive
experiment Of the Olaa sugar planta
ton. Banks in San Francisco and a
few capitalists supplied the necessary
funds to get the enterprise started.
All the enterprises in which Dilling-
ham has been concerned, or a majority
of them, have been on a large scale
He possessed endless energy, original
ity and financial daring. When he pro-
jected the Oahu Railway and Land
Company the idea was generally ridi-
culed and ii was said that he would
have neither freights nor passengers
to carry on the road. The company
made money. 1T was capitalized with
stock amounting to 81 .000, 900 and ST.
000,000 in bonds. In December last the
total assets of this corporation were
reported TO be $1,000, 900. S. c. Allen
was the president, B. f. Dillingham;
first vice president, w. F. Allen sec
ond vice president and A. w. Van
Nalkenberg secretary.
The Olaa Sugar Company, Limited
of Olaa has always had heavy liabil-
tiles from the start. The capital stock,
paid up, was reported in 1902 to be ST.
100000 and it's total assets were then
estimated at $4,000 600. The Olaa Sugar
Company was authorized. when it was
Incorporated in 1899, to issue capital
stock to the amount of $5.000,000. with
authority to increase this to not to ex-
ceed $10,000000 in total. The original
stock authorized was issued in $4,000
shares at $40 each. The incorporators
were B. F. Dillingham;, l.. A. Thurston,
A. w. Carter, e. p. Paxton and L.
Andrews.
IN MANY ENTERPRISES.
There are various other enterprises
with which B. f. Dillingham; has beeen
connected, among which are the Hilo
Railroad Company, the Woodlawn
DdlIy, the w dldlud AGRICULTURAL OOnl-
pany. the Pacific Hardware Company,
the Haleiwa Hotel. the McBryde Sugar
Company, the Puma Sugar Company,
the Kihei Sugar Company, the Volcano
House Company and the McCuliy Land
Company. 1t is reported to be the
opinion of the Hawaiian Creditors
Company that immediate income will be
received only from the Oahu Railway
and Land Company's bonds. Last year
there were dividends from the Hilo
Railroad Company and also from the
Pacific Hardware Company, but the
prospect of dividends from these cor
porations during the present year is
not considered to be very good.
The largest individual creditor of
Dillingham; and of the Dillingham;
Company is the Bank of California,
which has loaned s450,000 to Dilling-
ham and to the Dillingham; Company
$4,000. Among the creditors of 3. F.
Dillingham; are included the following
hQ