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

mart OF Mt, hinu6l ~ PAeAA 80
ing the necessary Improvements LOT
water development was TO sell al par
the 7s2 shares standing in the name
~ the McBryde Sugar Company 70
some other plantation. which would
,hereupon receive the benefit or Crocs
rett shipments, a. well as any dlvl-
dends which might accrue. The agents
ohiected to, disposing OF the sugar
Factors Company stock. not only De
cause II ia a valuable asset. but De-
cause il meant an increased income
for the company every year. In addi.
tior to the heavy advances when haa
already been made, including S6z,zzO
IN order to release the stock held Dy
Iannaboehoe Sugar Company, the
agents loaned the sum OF $6I ,32O on
the 792 shares Of stock which nj.
Kinney wanted to sell and had Ihe
same. together with the I32 shares
originally issued placed in the name
of the Hawaiian Sugar Company IN
order to comply with the bylaws OF
the. Sugar Factors Company Nc
Bryde Sugar Company to receive an
the benefits Of Crockett shipments
above referred to, as well as any diYl-
bends which might accrue ON the
stock. Further assessments on TINS
stock have since been paid, making
the total amount now advanced on &C.
count Of this stock $152 400. A dlFi-
dend of six per cent Is now being
Maid by the Sugar Factors Company.
Iimited, of which McBryde receives
q144.O0. BY reason OF the agents al.
yancing ND 10 $152. 400 to save the.
sugar Factors stock, the McBryde
Sugar Company is now ahead OF the
game at least $63 500 on Crockett
shipments and dividends, net OF IN
terest charges on It's Sugar Factors
stock loan.
We are not referring to this trans
action in q boastful spirit was
simply good business for the planta-
tion We represented, the example hav-
ing already been set by our prede-
cessors, Messrs Thee. Il. Davies e
Co, Ltd.
Now Charges Were Reduced.
IN the way Of reducing charges, We
would only state that on taking over
the agency, and notwithstanding the
enormous oyerdraft and risks con-
neefed thereWith, we at once placed
Mcbride Sugar Company on the same
haeis as the other plantations We rep
resenfs Including Hawaiian CONNER.
cial e Sugar Company the interest,"
rate on overdraft was reduced toll
seven to six per cent the commissions
on sugar sales from three TO Two PET
cent and on merchandise purchases
from Ave to- two and one-hai1 PET
cent. all Of which effected SAVING
to the plantation Of at least $25.OOp
per annum.
ss FoIloTing the financial history Of
Mcbride Sugar Company, we now
coyne down Is the beginning of 1911.
On Decembef s1st, 1910. the direct
and indirect obligations, other than
bonded debts Of McBryde Sugar Com.
Dany weer as follows:
Oyerdraft -. .....e $723,2sl- 5l
Kauai Electric Co. Notes. 75,00Q.O0
Sugar Factors Co Stock. 152 A00,pV
Hawaiian Trust Go. Special
Account - 8 S, 81, ss.-s.-.
- $3.50, s66.7s
fAboye does not include Kalaheo
mortgage of SIS 000l
The outlook for sugar prices &c the
beginning Of the year 1911 was GOOD !
as 4 matter Of fact the average price
Of sugar for that year was 4.455c. per
mound. Considering this outlook and
with the increased water supply, re-
d,ction In interest and marketing
charges. etc, it was estimated thai
MeRryde sugar Company would make.
4 profit Of from $50, 900 to 500, 90
IN 1911. and the agents were entirely
satisfied with the heavy oFerdraft3
originally issued placed IN the.
which they were carrying.
A. to the Preferred Stock.
In March, 1911, Mr.. Kinney ap-
proached us with the proposition Of
issuing preferred stock to take up the
floating debt. At that time II would
have required $500. 900, including the
Kauai Electric Company's stock notes,
which he proposed to liquidate by an
issue Of 4 per cent cumulative stock.
We desire TO explain Just what this.
meant to the agents provided they
had any such designs on the planta-
ton ais Mr.. Kinney charges them with.
Under the agency contract as It then
existed, so long as the total obliga-
lions Of the plantation exceeded s250rl
900, the agents could, on six months
notice, terminate the agreement and
enforce the collection Of their over
craft by foreclosure sale. The total
Indebtedness at that time was approx
imately $500, 900, or S550, 900 in excess
OF the S250,O00 limit In order to have
prevented the possibility Of foretlos.
ure under the original contract, it
would have been necessary for the
stockholders at that time to have
raised from some source the sum Of
$3.50, 900. ~. - - ~ 81
Mr.. Kinney in making this propo-
sition, assured US that the stock would
be placed on the outside and that we
would not be expected tostake share
of said stock We Immediately gave
our full support and cooperation to
the scheme and offered to take half
of the proposed issue. Mr.. Kinney
the financing of the remain
der and after few months effort de-
niarod his inability to do en- In the