Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-12-10

near. When the oyefdraS Was seoal-
cried into preferred stock, this direct
interest charge disappeared. thereby
educing McBryde's cost per ton anu
the factor OF safety Tor the
in crucial times Ike the
present.
As above stated, the issue or pre-
lerred stock was proposed carry Ia
1911, but owing to the various oiIh-
,ulties and delays encountered. II was
aot contaminated until the last day
of that year. es iii
Deal TO which Mr.. Kinney Objects.
During the latter part OF 1911, be
fore the preferred stock was Actually
issued. the proposition of refunding
the outstanding. So. 000, 900 issue Of
per cent 1920 year bonds by an issue
of a like amount Of 5 per cent 1870
year bonds was receiving considera-I
ton by the agents. This is the par
ticular deal In which TO Mr.. Kinney 9
mind, the cIoyen hoof Of the agents
becomes fully visible In a direct at
tempt to- obtain ownership OF the as
sets and property of McBryde Sugar
Company, Limited. After having eli
minated the interest on the floating
debt as a direct charge against the
cost of production and after having
reduced marketing and other charges
against the plantation as far as pos
5sible, the agents were still desirous
of reducing the heavy interest charge
ON the bonded debt, Of $4,000 per
year against the. company. Az before
stated, 1911 was a year of high prices
and prosperous conditions and the
time seemed opportune for converting
the existing issue of bonds into new
issue at lower rate Of interest The
plantation was not in a position 70
reduce the amount OF outstanding
bonds, and in order to make Il an
Iinducement to bondholders TO ex
change the old bonds for the new az 9
lower rate of interest. two tn naeHetffe
lie 's---sy nau. ~ the tinle an out
saandIng pond Issue OF SlS0;0O0 OF
Donas - aturIng n March, 1916. The
PROPERTY OF THIS ompany, as You well
Know, e absolutely vital to the well
rare OF MeBryde Sugar Company Linn
tied, and could very properly be add
go TO the security OF the McBryde
ponds provided its own bonds were
pald Inc agents having liQuidated
tneT aeDt Dy the preferred stock -.
s ~ look np ana retired the Kauai
I.lsclrlc company bonds, SO that the
STOCK oI tne company unincumbered,
could pc added to the security Of thar
pIoposea Dond issue cumulative
sihklng Iund q 10Y. 900 per annuIn out
u pr0lts was provided which. how
ever, meant only Sso,O00 after deduct
Ing lne saving IN interest At the time
lhe mater was taken up, the financial
condltlons. were 50 favorable that It
49, 49, eApec,ed the. larger portion Of the
Donus Mould PC excnanged by the hold
80, ano tne agents agreed to under
wIlse sne entire issue az par and with
O y cnaTslng any commission there
l ~. put speIore the ldeal could be car
req gut local financial conditions be-
san y lIshten up. SO that most OF.
.ns ,iolusIs pTeleFFed the cash to TAX
r ~. bollus al sloWer rate 81 interest.
! lls IscssslsaleQ the agents. contrary
- ~ l aoa eApec1allons, taxing over ST.
i, ! 49,, :, s..s Donus u order 70 put
s.,e ueai lnrougn.
'onangs in situat'ofl.
. 80 aDove stated When the refunding
psOgosltlon was taken up the general
e ..sall = we very different from
Y VA .nsy e On the then rul-
.ss pllsss " sugar u was easy to-
nssl tnaI the pro1ts would be sufH-
49, o.snt = pus ASIDE the sinking fund.
~ aIsloenas on the preferred stock
!, ~. =, soilis , III 20 the common stock
. $3.50 3. !. = needIess 20 call your
800 nslon V the great change in the
y = saaslon aIlslng from causes entirely
1919 s ~ gut control ~ Mt. Kinney
=. ,ns plssent Is e crucial period
~ = Is 81 pan allonss especially those
I, lns McFryae class. The test Of
! .e.l, - g not e plantation can sur
we depends to g large extent on
1, ~, = ~ y reducllon can pc made
: ZIG cost OF producing sugar Its
I NJ 's.ll power depends largely on
ms , ,s, the assets OF q Hianta
,.on IKE McBryde are yalueless for
IofFOWlHS purposes unless Ii can rel