The Hawaiian gazette., 1911-03-31
BIG M'BHVDE STOCK
ISSUE IS VOTED
COMPANY WILL PLACE bnLrIoN
ON MARKET AT PAR VALUE
OF TWENTY DOLLARS

An issue Of a million dollars worth
Of stock preferred. Of which $s00,O0O
is to be marketed Immediately at par,
was authorized yesterday morning at
the annual meeting Of the MeBryde
Sugar Company of Kauai The meet.
ing was held in the offices Of Alexander
& Baldwin, and tho vote TO issue the
stock was unanimous after statements
had been made by J. p. Cooke and w.
A. Kinney. Mr.. Kinney's statement
was as follows:
cit is proposed to authorize and
issue $4,000 shares Of preferred stock
on the par value Of $40 each, such stock
to be entitled to a preferred dividend
of per cent per annum, the same to
be cumulative, and said stock to have
the right to vote on an equal footing
with the common stock, but to have no
right to participate in any other profits
or dividends whatever, its dividend be-
ing fixed at Z per cent per annum, and
the balance of dividends to go to the
common stock whatever the amount;
10000 shares of the preferred stock to
be sold at par as soon as possible to
Iliquidate and pay off the floating in
ldebtedness of the McBryde Sugar Com
pany, which on the last day of Decem-
Der last amounted to about $725, 600,
due the agents, Alexander & Baldwin,
limited, and $4,000, due the First Ma
tional Bank, This will leave MeBryde
Sugar Company free to apply her earn
ings in excess of her operating expenses
and the dividend due on the preferred
stock to any purpose or object that the
stockholders of the company see fit to
devote the same, including dividends
on the common stock.
".The McBryde Sugar Company, it is
expected, will show a profit this year
over and above all operating expenses,
including interest on its floating indebt.
edness, and it is believed that the
plantation should continue to do as well
in the future, barring some vital change
the sugar industry in Hawaii.
'The controlling stockholders have
figured out that they may have to wait
FIVE to seven years while the floating
Indebtedness is paid off out of the
profits before they can expect divi-
dend, unless they can by one stroke
issue preferred stock and place the
property on dividend-paying basis in
the near future.
"The plan is to offer the preferred
stock in the first instance pro rata to
each stakeholder, according to his OF
her individual holding, for term of
sixty days, all not 50 disposed of to be
then disposed of at par as the board
of directors shall decide.
s'The issuance of the preferred stock
eliminates any enforceable claim or
debt against McBryde Sugar Company,
Limited, except its obligation upon
bonds.
s'The stock will not be sold for less
than par, and no discounts or commits.
sions will figure in the transaction, so
that the McBryde Sugar Company will
realize par value on every share of
prferred stock issued under the forego-
ing plan. No stockholder will, of
| COuIst, DC COmpelleu To Ldk0 Tue pre-
ferred stock, it being merely a mat
ter of election on his or her part
whether they shall do so or not.
'tThe preferred stock can be ex.
! changed for common stock at any
time at the election of the individual
holder thereof, but the exchange once
made becomes irrevocable. T"
Directors and officers were elected as
follows at the meeting:
Direetors-H. P. Baldwin, B. +. Dill
bingham, D. P. R. Isenberg, w. A. Kin.
ney, J. P. Cooke, e. E. Paxton, John
Guild.
officers-H. P. Baldwin, president;
/ B. F. Dillingham;, first iee-president;
d. P. r. Isenberg, second vice-presi.
dent; J. P. Cooke, treasurer; r. E. Pax
ton, secretary; D. B. Murdoch, auditor,
Alexander & Baldwin stand ready to
take the preferred stock at par and
the scheme of establishing the planta'
tion upon a dividend paying basis in
the near future is assured.
Report of Manager
Manager VIM. Stodart IS report said;
f'The past year, with the exception OF
three months in summer, has been cold
and rather nnfavorable for cane, but
l am pleased to state that at no time
| throughout the year have the crops suf,
| fered from lack of water.' A table