The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1909-07-11
EXTENSION IS
NOW FINANCED
Money Ready for the New
Branch of the HiIo
Railroad.

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. +. 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 for, 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
for going on with the actual work of
construction almost Immediately and
the dirt will begin to fly within the
next month. c.. II. Kluegel, as stated
elsewhere, has accepted the position
of Chief Engineer of the Hilo Railroad
Company and of the 0. R. & 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. It 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 eulverts
to be constructed have already been
made and this'will greatly expedite the
work. 1t has been finally decided to
reduce by fully half, the number of
steel bridges originally thought to be
necessary Concrete culyerts 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 to
Hakalau as now designed is IL per
cent-which means that the track win
virtually be level.
The following is the agreement sign
ed by the subscribers to the bond is
sue:
We, the undersigned, hereby agree
with B. F. Dillingham;, Financial and
Constructing Agent of the Hilo Rail
road Company, and each with the
other, that we will take the amount
of six. per cent 1920 year bonds of said.
Hilo Railroad Company set opposite
our respective names, on the following
terms and conditions, to wit:
1st Bonds to be issued in accord
ance with the general terms and con-
ditions set forth in prospectus issued
by said B. F. Dillingham;, dated Janu-
airy l, 1909.
End. Bonds to be paid for at .95 per
cent of their face value in four quar-
terly instalments beginning with July
/, 1909, or earlier at subscriber S OPP
ton. Interest at the rate of per cent
per dHuulH Will DC aliOWeu IFOm bu0
date of each payment, upon the amount
so paid.
3rd. The undersigned to receive a
commission in common stock of said
Hilo Railroad Company, fully paid up,
and equal to 10 per cent of the par
value of the bonds hereby subscribed
for, respectively.
4th. The said bonds shall be de-
livered not later than September /,
1909, pending which scrip viii be is
sued, if desired.
5th. The undersigned further agree
that for a period of one year from July
1, 1909, none of the bonds hereby sub
scribed for shall be sold to others for
less than 95 per cent of their par value.