The Hawaiian gazette., 1909-07-13
EXTENSION IS
NOW FINANCED

The financing of the Hakalau ex-
tension of the Hilo railroad is now an
accomplished fact, the necessary trans
actions having been accomplished by
B. F. Dillingham;, the financial con.
structing agent, through his brokers,
j. F. Morgan and the Waterhouse
Trust Co., Ltd. Out of the $4,000
bond issue authorized, $250,000 worth
of bonds have already been disposed of
and the money paid in. Inc sale of
the remainder of the bonds is virtual
ly arranged Tor, agreements having
been made with various persons to take
100000 worth. The remaining $780,
900 worth of bonds will be placed on
the market soon and it is expected
that they will be eagerly taken up.
The amount which it is estimated
will be expended in the extension of
the road is about $750,000. This, how.
ever, includes not only the cost of
construction work, but also the pur.
chase of rolling stock and other neces-
sary equipment.
Arrangements have been completed
construction almost Immediately and
the dirt will begin to fly within the
next month. C. H. Kluegel, as stated
elsewhere, has accepted the position
of Chief Engineer of the Hilo Railroad
Company and of the o. R. g. L., and
he will be in charge of the work of
extending the Hilo railroad. His as.
sistant will be r. s. Sisson.
The actual work of grading will
probably be done by contract. 1t is
expected that A. A. Wilson will be
the contractor. Mr.. Wilson is now
constructing the two branches of the
Oahu railroad at Wahiawa, but he will
probably be through with that work
within the next thirty days and ready
to begin operations on the Hakalau
extension.
Detailed surveys giving the location
size and length of bridges and culverts
to be constructed have already been
made and this will greatly expedite the
work. 1t has been finally decided tc
reduce by fully half, the number OF
steel bridges originally thought to be
necessary. Concrete culverts and
heavy cuts and fills will be substituted
not only greatly reducing the expense
but also Strengthening the line.
The maximum grade of the line tc
Hakalau as now designed is IL pei
cent-whch means that the track will
virtually be level.
The following is the agreement sign
ed by the subscribers to the bond is
sue:
We, the undersigned, hereby agree
| d III
Constructing Agent of the Hilo Rail
road Company, and each with th'
other, that we will take the amour
of six per cent 1920 year bonds of sait
Hilo Railroad Company set opposite
our respective names, on the following
terms and conditions, to wit:
LIST Bonds to be issued in accord
ance with the general terms and con
ditions set forth in prospectus issuet
by said B. f. Dillingham;, dated Janu
airy l, 1909.
End. Bonds to be paid for at 95 pc
cent of their face value in four quar-
terly instalments beginning with Jul.
J., 1909, or earlier at subscribers OPP
ton. Interest at the rate of per cen
per annum will. be allowed from tn
date of each payment, upon the amour
! SO paid.
3rd. The undersigned to receive
commission in common stock of sal
Hilo Railroad Company, fully paid VI
and equal to Is per cent of the pa
value of the bonds hereby subscribe
for, respectively.
4th. The said bonds shall be DE
livered not later than September ]
1909, pending which scrip will be is
sued, if desired.
5th. The undersigned further agre
that for period of one year from Jul
/, 1909, none of the bonds hereby sui
scribed for shall be sold to others fo
less than A5 nar cent of their mar valnI