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

tne ~ plantation, which would
nareupon receive the oeneh. u Avn
'att sbipments, as we'll as any ~
iends which might accrue. Tue go" go
, , to disposing OF inc 80 "a
~ c,ors Company stock, not only
!. i a valuable asset, put pc
'Hu Il meant an increased income
tho company every year. In aao
.:n,, 70 the heavy advances wnlca na ao
go heen made, including *oL'u
= 80 70 release the stock neia y!
= nahoehoe Sugar Company, tne
$50 loaned the sum OF SOL .Sz" On
oSe roo shares of stock whlcn MI
In wanted to sell and hao the
.ln ,ogother with the 732 SHARES
or;gfnaIly issNed placed IN the IN
~ the Hawaiian Sugar Comp IF
ordor to comply with the oy-ia" ~
tha Sugar Factors Company III
n In sugar Company to receive az
o. Sanefts of Crockett snlpnna l.i
80 referred to, as we'll as any oIsr
Sonds which might accrue On III
StacE Further assessments on lnAo
So stoch have since been paid, makins
~ to..l amount now advanced on ~
tne tota % this stock 1884, A divl-.
Sou a ~ six per cent is now pelns
Ia ia hv the Sugar Factors COMPANY,
7 a a-o;to5 of which McBryde receives
s aai1aI oa Nv reason of the agents az
yancing up to $152.4oo TO save u,.ae
s,;ear Factors stock, the Mcnls =. =
Suear company Is now aheao Oh Ia
Same AT least $63,5oo on CrYeAs s.
sS;n,nonts and dividends, net OF In.
s s charges on its Sugar Face ''i :
se 'yra arc not referring to this trans.
-, in a boastful spirit,-h Wa Is
a;n,riy GOOD business for the plahla
ssnr n,e represented, the example nav
mo already been set by our pfeus !
c 80 Messrs Thee -He1isdllaa the
enormoiis, oyerdraft and risks con
nected herewith, we at once placed
McBryde Sugar Company on the samo
basis as the other plantations we rep
resent, including Hawaiian CONNER
ciaf Sugar Company. The interest
rate ON oyerdraft was reduced from
seven to- six per cent, the commissions
on sugar sales from three to two per
cent and on merchandise purchases
from Eve to two and one-haf per
cent. all of which effected a saving
to the plantation of at least SIS, 900
per annHm. Il. - ,ssss.s.sz
Following the, financial history Of
Sugar Company. We now
come down to the beginning Of lsll.
on December 31st, 1910, the direct
and indirect obligations, other than
bonded debts, Of McBryde Sugar Com
Dany weer as follows: - 5..
j. 5 a.. .$723,23f.5l
Kauai Electric 90. Notes % 100000.
Sugar Factors Co Stock 152, 400 %
Hawaiian Trust Co. Special
h Account :. .s..:.;,. ...:.. o,t ts;,eSl.
4. !. Y H. $956, 366.7s
(Above does not include Kalaheo
mortgage of $75.0001. H.. ..=..<
The outlook for sugar prices at the
beginning of thafEear 1911 was, good;
as matter OF fact, the average price
81 sugar for that year was I. 453c. per
pound. Considering this outlook ana
with the increased water supply, re-.
duction In interest and marketing
charges. etc, it was estimated that
Mcbride Sugar Company would make
/ profit of from $3.50, 900 to 5000, 90
d 1911. and the agents we're entirely
satisfied with the heavy overdTaft
originally issued placed In the
which they were carrying. Us
As 10 the Preferred Stock. *51 re-.
In March, 1911, Mr.. Kinney ap-
us with the proposition OF
ssuing preferred stock to take up the
loating debt At that time It would
lave required $500, 900, including the
Sauai Electric Company,s stock notes,
which he proposed to liquidate by an
ssue of per cent cumulative stock.
Ne desire to explain just what this
meant to the agents provided they
lad any such designs on the pianta-
ion as Mr.. Kinney charges them with.
Jnder the agency contract as II then
xisted, so long as the total obliga-
ions of the plantation exceeded $3.50.
90, the agents could, on six~months,
Iotice, terminate the agreement and
nforee, the collection of their over
raft by foreclosure sale. The total
at4that time was approx
nateiy $500, coo, or $3.50, 600 in excess
L the $3.50, 600 limit. In order to have
revented the possibility of foree1os-
re under the original contract, 1t
,ould have been necessary for the
at that time to have
aised from some source the sum of
550, 900. -...*-.,. INK /
Mr.. Kinney in making this propo-
ition, assured us that the stock would
e placed on the outside and that we
Iould not be expected to take share
{ said stock. We Immediately gave1
ur full support and cooperation to
he scheme and offered to take half
the proposed issue. Mr.. Kinney
ndertook the financing of the remain
Grand after a few months effort de-
Jared his inability TODD So In the
leantime it became evident that the
rofits would reduce the debt from
BOG, 600 to $4,000 by the end OF the
ear, SO that it would be necessary
} issue only 100000 instead OF $500
DO as originally planned. We, how
yer, still agreed to take $500, 900 pro.
ided the remaining 500, 900 could be
eeured. After making the most siren.