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

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earnings that wuld indefinitely post.
: pone any prospek of dividends ON the
common STOCK a. reduce its value 20
! Aas.e paper It's true we have
Mucn more waternndsr the agency OF
Alexander e BaIwin than we did
under our prevfhs agents. which
ought to show in5arrer ernns fror,
the same area inlcultiyation result
ing In increased economy hut this
4utahtage cannot pssibly Offset the
, cut In the tariff TIT mnsf confront
and affect prices hreafter rearhing
even q large part 4 the coming cron
OF the McBryde pantation. Under
the new trust deed tlA $50. 900 for the
sinking fund payable annually mnst
be paid out of yearly ct earnings or
lie accommodating agains f,,tnre earn
lngs when, II ever. they ,ome. Though
the plantation might haze million
dollars worth Of property lot covered
by its bonded debt. 1t cannot legally
apply dollar cut Of such pr,tkrty to
the $4,000 sinking fund. the payment
OF which Is all concentrated 81, nat
earnings so that every dollar Of If
whether so intended or not. In fact
does service In blocking and indefl.
nitely postponing dividends on bon
the common and preferred stock 5
thus directly undermining and de-
stroying the market or any value or
the stock. This situation coupled
with the conversion OF time loans that
could have been let alone into de.
mand loans, and the inhibitions
against Kauai Electric borrowing any
money make the isolation and naked
ness OF McBryde Sugar Company,
Limited, to meet the crucial recon.
struction period now confronting her.
well nigh complete. ~ 49,
/ would strongly favor restoring
the rate of interestron the bond issue
from 5 to s per cent per annpm: II in
return we can get rid Of this incubus
OF $4,000 per annum to be paid oiit
OF net earnings substituting therefor
the provisions Of the old bond issue
Tor sinking fund OF 10 per cent Of
the yearly profits, provided fuFfher
lfftat Alexander & BALDWIN win Guar
during the next me $780,, & 80,
way compensafing McBryde stock
holders for the $4,000 lost to them
as resource by retiring the Kauai
Electric bonds and $150,000 that tht
Kauai Electric Company should be
able to borrow on its guaranteed year
sly rent, net over all deductions re
ceived from the McBryde Sugar Com
panv. Limited, and which Is cut OF
under the provisions of the new trus
deed, and also, for what we should b,
able to borrow on the sugar factors
stock, owned by the McBryde Sugar
Company, Limited, which has been ex.
empted from the operation Of the ney
bond issue.
make the above as suggestion
but would be willing to accept an,
other method Of procedure that VII
secure like results and protection t
the stockholders Of the McBryd'
Sugar Company. Limited.
The critical condition of the llan
Iees Of the McBryde pool and the Nc
Bryde estate, limited, and other con.
siderations, compel me to ask Tor ar
extremely prompt reply to this de
maud which Enila viii RIeaAe eomTnu
|nicate to r. III. Trent. my agent, IN
Honolulu, who has instructions Il
cable the same to me here in San
Francisco. .5
Having to act on hearsay as to tn,
contents Of the new trust deed, the
foregoing statements are made sub
ject to correction, IL the terms Of tn,
trust deed are in any particular differ
ent from what / assumed In writing
this letter. and Of course without pre-
iudice s
Yours truly, s.
(Signed1 w. 4. KINNEY.