The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1906-07-14

The San Francisco Recorder of July
3 says:
The once powerful Oceanic steam
ship Company has gone another step
downward into the mire and has de-
fauIted on it's bonds
This news, which was confirmed al
the banking rooms of the Union Trust
Company, where the interest on the
companys bond issue has heretofore
been regularly paid, flew like wild fire
through the financial district today and
caused a startling sensation.
The outstanding bonds on which the
Oceanic Steamship Company has de-
faulted amount to $2405,0 600 and bear
interest at the rate of per cent. per
annun1, payable senli-annually in jan
uary and July at the rate of $3.50 per
coupon.
Notwithstanding the depression in
the company's affairs and the low price
to which the capital stock has fallen
tthe latter was offered at $3.50 per share
on June 80, with oil the assessments
paid, the interest on the bonds has
been regularly paid and when the ex-
change was last in session they We're
quoted at s61. Years ago the bonds
commanded $110.
Under the law, the Oceanic Steam
ship Company has six months in which
to pay the interest from the time of
default. AT the expiration Of that time
the bondholders can bring foreclosure
proceedings. The SpreckeIs family are
believed to be the largest holders Of
the bonds
This may mean the wind up of the
Oceanic Steamship Company.
A representative of The Recorder
called on F. S. Samuels, assistant to
the president of the Oceanic Steam
ship Company, who confirmed the re-
port that the company had defaulted
on it's bonds, attributing it to the
scarcity of funds in the companys
treasury
The fact that the Oceanic Steamship
Company has defaulted on it's 50, 405, 600
of per cent bonds, news of which
was published exclusively in The Re-
corder yesterday afternoon, is the main
topic of discussion in local financial
circles. The other papers of this city
are SO much engrossed with the re-
opening of the saloons that they have
failed as yet to give the least atten-
ton to this important matter, affecting
as it does the existence of great
American steamship line, but they will
probably devote columns to the subject
within the next day or two.
AS stated in The Recorder yesterday
afternoon, the interest on the 81, 4O5, goo
Oceanic Steamship Company 5 per
cent. bonds is due semi-annually and
payable in January and July. The to-
tai amount of each payment is about
$50, 900. This interest has regularly
been paid to the bondholders at the
banking rooms of the United Trust
Company, but no money was deposited
there for payment of the interest due
this month and according to the inter
terview with F. S. Samuels, assistant
to President John D. Spreckels of the
Oceanic Steamship Company, publish
ed in The Recorder yesterday after |
noon, no money to pay the July in
terest will be forthcoming for the |
reason that there are no funds for this |
purpose in the companyS treasury. |
This constitutes the default. The COM |
pany has six months from the time |
If default in which to pay the inter-
est, falling which, the bondholders at
he expiration OF that time may bring
foreclosure proceedings to acquire the
of the company in satisfaction
or their claims.
Besides the outstanding bonded in
lebtedness of 81, 100000, the Oceanic
Steamship Company has a cash in
lebtedness of rising $1,500,000, which is
lue John D. Spreckels & Bros. Com
,any for money advanced. The
Spreckels are said to be also the larg-
st owners of the bonds, SO that the
Ctal amount due them is believed to
,e close upon $4,00O,000. AS against
his vast Indebtedness are principally
he five steamships of the Oceanic line,
which if put up for sale would not
n all probability bring anywhere near
hat amount. There are rumors of an
Intended sale of the steamships to the
japanese
The financial condition of the COM
any seems to be hopeless. The relief
by the passage of a ship sub
idy bill by Congress has vanished for
year at least, for that matter has
zen put over until the next Congress
ssembles. The company is rapidly
osing money in the operation of it's
me The stock, last quoted at $3.50
'er share asked, is now absolutely
alueless, for the entire property must
% to the bondholders and j. D. Spreck-
Is & Bros. Company, who have ad-
anced 81, 500, 900 in cash to secure their
laims.
There has seldom been a more COM
lete wreck of a once prosperous busi-
ess enterprise.