The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1905-10-19
WAIALUA BONDS
At 5 PER CENT
Continued from page one).

the meeting as IL was thought that
the matter of the rate of interest of 5
per cent might cause some debate. A
five per cent bond is a departure in
these islands. There was no discus
sion of this matter however
E. d. Tenney presided at the meeting
and explained the purpose of the stock
holders having been called. A resolu-
ton which had been passed by the
board of directors and which included
a resolution for authorization by the
stockholders, was read. The resolu-
tion where the stockholders authorized
the issue was as follows, after several
amendments had been made:
Resolved that the Directors of the
company be and they are hereby au-
thorized to issue bonds of the Waialua
Agricultural Company, Limited, in the
sum of One Million Five Hundred ISL
500000) dollars, to be dated the 31st
day of March 1906 or such other date
or dates as the Board of Directors may
fix. said bonds to be i'm such denomina-
ton or denominations and such form
as may be fixed by said board and to
be for the term of twenty years from
said date or dates with the privilege
of redemption after ten years from said
date or dates, at such time or times and
in such manner as may be fixed by said
board, with interest payable at such
, times as may be fixed by said board to
be at a rate to be fixed by said board
/ of not more than five per cent per an
mum, payable semi-annually and said
Board are authorized to secure said
q issue of bonds by pledge roertgage or
deed of trust to the Hawaiian Trust
/ Company, Limited, or such other trus-
! tee as the board may select, said pledge
mortgage or deed of trust to be direct
ed by said board, upon all the property
real and personal of the corporation,
except it's franchise, or so much thereof
or such parts thereof, as theh board
may determine, and said board may
include therein property to be here
after acquired by the company.
Resolved that the board of directors
in such pledge, mortgage, or deed of
trust, shall provide a sinking fund to
/ redeem such bonds in such form and
upon such terms as said board may de-
! termine i'm an amount not more than
ten per cent of the net annual profits
of the corporation, and may provide for
the sale of said bonds i'm such manner,
upon such terms and at such price or
prices as they may fix, and may pro-
vide for the exchange of said bonds
or any portion of the same, at such
rate or price, i'm such manner and up
on such terms as they may determine
for bonds of the existing bonded in
debtedness of the Company
]. A. McCandless moved the adoption
of the resolution. j. r. Calf seconded
the motion. F. Van Valkenberg in
quired when the sinking fund was to
be started.
w. Pfotenhauer moved to amend the
resolution as originally presented. The
resolution had provided that not less
than 10 per cent of the net annual
profits should be laid aside as a sink
ing fund. His amendment proposed
to change this to read that not more
than 10 per cent could be taken Mr.
Kidwell inquired if the placing of tn,
sinking fund every year was compul-
sorry. He wanted to defer starting a
sinking fund for years. He thought
that the stockholders should be given
some consideration. Tenney replied
that unless some assurance were given
to the investors that there would be
means to meet the Indebtedness of the
plantation the standing of the bonds
might be affected in the eyes of the
public.
]. o. Carter thought that the holders
of the present bonds should be accord
ed some privilege of taking the new
issue pro rata at par. Tenney stated
that it could probably be arranged so
that they could have the bonds at 9S.
L. L. McCandless did not favor the
rate OF interest. He did not think
that the local bond holder should be
considered. He thought that in all
likelihood, if the plantation went TO
the mainland with the bonds which
were amply secured by a property
worth Sc, 1000 the bonds might be
placed at per cent This might take
time however.
He moved an amendment providing
that the rate should not be more than
per cent. Subsequently d. l.. With
ington proposed a second amendment
in the wording of this amendment
which was accepted.
PfeSluenL lenhty SNdlIu tllhN llN hHN
interviewed the different banking in
Y stitutions and the owners and trustees
of the present issue of Waialua bonds
regarding the matter and 1927 800 worth
of bonds had been pledged to accept
the new refunding at 49, He stated
later in the meeting that Castle and
Cooke stood ready to take on their own
account 100000 of the bonds and the
Bank of Hawaii was also prepared to
take an additional 100000 which made
an excess of 1921, 800 over the proposed
total of the new issue. The resolution
with the two amendments were unani-
mously adopted.
Manager w. w. Goodale of Waialua
was present and was asked regarding
the general condition of the plantation.
He said that he expected to plant an
additional 700 acres and that the acre
age for the crop Of 1907 would be 1000