The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1913-12-12
SHAREOWNERS
OF NJ bRYDE
IN SESSION
Meeting Of Sugar Plantation Com
pany Is Called to Take Action
on Charges of Mismanagement
Made Against Alexander G.
Baldwin, Agents of the Com
pany, by w. A. Kinney.
From Thursday Advertiser }

The called meeting of the stockhold
ers of the McBryde Sugar Company,
Ltd. was held in the chamber of com
meree rooms yesterday morning at ten
o clock, with more than one hundred
stockholders present. The meeting was
called to consider and take action on
the charges of mismanagemcnt made
against Alexander d Baldwin, Ltd,
agents for the McBrydc plantation, by
w. A. Kinney, the latter having served
notice upon the agents Of his intention
to bring suit in the California courts
for damages and an accounting.
kinney's 5 suit seems to be based on
two major premises, the establishment
of the rights of minority stakeholder
to legal participation in the policies of
the management of a corporation, and
the determination of the rights of an
agent TO change the sequence Of mort
cages or Indebtedness against prop
erty, to the alleged disadvantage of the
| mortgagor.
Alexander & Baldwin s case is that
! in all instances their every endeavor
was TO rehabilitate the alleged impaired
credit of the McBrvde Sugar Comnany
and that their every eudeayor has been
to favor the company even To tbe go.
lious dctriment of their own interests
Kinney's Letter Read.
After the meeting of stockholders
had been called to order the letter of
w. A. Kinney to the. officers of Alex
ander \ Baldwin and the B. +. DiIling.
u na". 'omPany' uateu san francisco,
"'i'ehIper - lpI'' was read
q pIlei ol Nlhhey letter Is as foi-
'oTS' ,
ne uuihahoS damases IN the sum OF
TiV,So"o us result OF Alexander q
'"'H"'n aiIesou uhlaWiui acts, mat
o,iJ.'n ,'.',.. u ma iis, ne SAYS, rendered apso-
iu'o'S "oFthicSs lhe oo95 shares or Me-
rguo StoyN Wnlch ne heia on tue date
Vi 'ne McprHue poollhg agreement, De-
~ i'o'' AieAahder bald-
"in "I"er tn9 pooHhg agreement con
.I",'eu WIN Nlhhey TO take the con-
'io' VI mc"iy"e ana l's eoiiaterai com,
pJ"an,a ] m 81 a. o'mon'i % ploee'.ioh ana
and. by Implication ia avoid hank.
| ruptcv n,oceedings apoinst tbe man.
| tation.
Kinney g specifie charoes in sunnort
| of the above alterations are first that
| the apeuts systnm,tiroIIv coptr.ctad
the credit and borrowing conncitv of
| McBrvde bv taking mn the sl50 600
| bond issue of thc Kauai Electric Com.
pany and a 10000 loan secured Inv
| Kauai Electric Comnany stock cborG.
| ing these sums against the nIontotion
ON omen account and tba+ nv tbis No.
| ton this Kauai Electric Comnonv stock
automatically became n lien of the
main Mc3ryde bond issue and eouId
not AGAIN be used os colloterol for rails.
| ing funds. Also that only $1,000 OOO of
ureferred stock of the $500 900 author.
| ized was issued and no preferred stock
was left in the treasury as an emer.
gencv asset. Also that unnecessarily
heavy improvements were made far the
| Kauai Emit and Land On as soon as
it began to make profits. tbus making
| il impossible 10 use the assets of this
subsidiary comnany as collateral on
which 60 borrow funds for MeBrvdo
! o+,o. Ausoo.;o
A'so' ne states, tue agents haVlhg
become shatehoiuers IN the Matsoh
NaViS9tioh Company they reduced the
port ehliSes apH expenses ehargeaple
ei"n rai,n;n,, -" a. Sip ;"a 'S ,fiPr3a .nSrrI
subsidiary. the Kmai Railway con
many to the imnoirment of the diW.
dend earning CAPACITY of both the rail.
vny company and McBryde plontotion.
He also charges that Alexander a Bald
win used the McBr,-le stock holding in
the Sugnr Factors Company TO their
own use and benefit instead of in the
interests of McBryde. particularly in
the matter Of depreciation.
Kinney also alleges that in the re.
funding of the 80 900 900 bond issue of
McBrvde plantation the agents in their
new decd of trust provided for n nav.
ment of $50. 900 per annum sinking
fund 10 take precedence ahead of the
preferred stoc,t, thereby DESTROYING the
market valuo of tbe latter. lie also
uraes that the payment of this $50. .OOO