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

earnings that would indefinitely poet
pone any prospect Of dividends on the
common stock and reduce It's value %
waste paper. Il is true we have
mnch more water under the agency 0f
Alexander e Baldwin than We did
under our previous agents. which
ought TO show IN larger crops from
the same area In cultivation result
ing IN Increased economy, but this.
advantage cannot possibly onset the
cut In the tariff that must confront
and affect prices hereafter reaching
even large part Of the coming crop,
Of the MeBryde plantation Under
the new trust deed the $4,000 for the
sinking fund payable annually must
be paid ont of yearly net earnings or.
lie accommodating against future earn
ings when III ever. they come. Though
the plantation might have million
dollars worth Of property not covered
by its bonded debt, II cannot legally
apply dollar out Of Snoh property to
the 5000 sinking fund. the payment
of which Is all concentrated on net
earnings so that every dollar Of il.
whether so intended or not. In fact
does service in blocking and indefi-
nitely postponing dividends on both
the common and preferred stock;
thus directly undermining and de.
str0ying the market or any value Of
the stock. This situation coupled
with the conversion Of time loans that
could have been let alone into de-
mand loans, and the inhlbitiOns
against Kauai Electric borrowing any
money make the isolation and naked
ness Of McBryde Sugar Company.
Limited, to meet the crucial recon-
-structinn period now cnnfrouting her.
well nieh complete
L would strongly, favor restoring
the rate Of interest on The bond ise4e
from S to per cent per ennNpi: lf In
return We can get id 81 this incubus
OF $50, 700 hdr annum I'd Be paid OF
Of net earnings substituting therefor
the provisions Of the old bond issue
for 8 sinking fund of 10 per cent Of
the yearly profits, provided fuFther
that Alexander & Baldwin, will guar.
antee i loan aup to $500. 900 to be used
except &c otherwise expressly author.
lied by stockholders after payment Of
our Hosting debt to our agent. IN keep
Ing the plantation aiioat and running
during the next Ave years ID this
way compensatin0 McBryde stock.
holders for the $4,000 lost to them
as q resource by retiring the Kauai
Electric bonds and $3.50. 900 that the
Kauai Electric Company should be
able to borrow on its guaranteed year.
" rent. net over ali deductions re-
ceived from the Mcbride Sugar Conn
pany. Limited. and which Is cut OF
under the provisions Of the new trust
deed, and also, FOR what we should be
able to borrow on the sugar factolssI
stock. owned by the McBryde Sugar
Company. Limited which has been e..
empted from We operation Of the new
bond issue
Ipmaks the above as 9 nggestions
but would be willing to eccept any
other method Of procedure that VIII
secure HE results and protection 10
the stockholders Of the Mcbride
Sugar Company, Limited
The critical condition Of the fnan-
ces igf the Mcbride pool and the. Ncf
Bryde estate, limited and otlier con-
alterations, compel me to ask Tor an
extremely prompt reply to this de-
mand which you win please eofnmu-
siicate to r. H. Trent, my agent. IN.
Honolulu, who has instructions TO
cable the same to me here n San
Francisco.
Having to act on hearsay as to the
contents Of the new trust deed, the
foregoing statements are made sub
ject to correction, II the terms Of the
trust deed are HI any particular differ.
ent from what assumed in writing.
this letter, and Of course without pre-
judice
Yours truly,
tsigned W. 4. KINNEY.