The Hawaiian gazette., 1914-01-23
AGENTS ABS0LVED FROM BLAME In REPORT
FILED by A COMMITTEE APPOINTED to-.
Investigate M'BRYDE SUGAR COMPANY

IN The ana detrocf from Tho ,.aluo ~
~ ~ sn", $500 run 'ne 's'"e ~
'ns ""o'7 P'Vps''y
Preferred stock. .l
'In the opinion Of your committee,
and IN 50 far as Mr.. Kinney and his
friends are concerned, and as Messrs.
Alexander 4 BALDWIN, Ltd, are con.
corned, IL n unfortunate that this stock
was ever issued, although its issne was
"a distinct advantage to the common
stoekholder.
while from the evidence OF Mr..
Kinnay's own letters, written 70 Mr..
IT, p baldwin, the plan originated
with him, and while in these letters he
indicates, as AGENT aud attorney for
the MeBryde stockholders' pool, that
the subscribers for this stock, In his
opinion, would only be taking reason.
able business risk, rs the plantation
had reached such a point that there
vas reasonable business prospect Of
It's being able TO pay its way thercaf-
ter, and in the same letter as he par
tieularly stated, 10 reference TO this
preferred stock. that he and his friends
ASKED 70 nnane,ai nelp - financing the
t;on 20 Al, paids $500 ~, IVY sooi'ela
ter .Sro,sh ~ ,,rd,,,,,, ss'.s NV ,.'e
4 mita eyident th.fth III r,.,l, ~. ~
ths Stso oor m oe,h. 49,. '',s.s ~ ~
them Nh av,,,',, az .sYsN .oN''n "
S.,,I - > - ~ nv 9".'l ,l''.ee uiVl'
tharaaf.o. - Sor ~ """ui" 'hereon
ssTs y
seribers ~ some ~ IA. 49,. w s"D,
forced 10 mako come s.s;fe 49,
der 10 take m H. .,ceh ny 'h. y ~,
for and tbat tbe sess.t; 49, s,ss,l wv
has probahlv serio,,sis y, b ha.Nssn''1,
them on the othar 6aad sa. a,. ,assen
"A rednead the ds1,t ~ NJ .,',iVu TX,
gar Comnanv f';m;,e,1 - 49, ,1s.yus 2u'
snder 4 Pald,,in "a y; ~ sssas. .e,v ~
nnon the MAJ 49,, ~ - nosyliu y,
~ Als~snder 49,. rse NY ausan'age
whst ,has ~ -,.r LllHieeu, az
advantage. M n ~, ~. y .ne way 81
issne ,,r,l,,. sha,. sr'n PIior " lne
nooling aeroersaa. snI' ,oneIset ana
81 th;s nsvme,,t ,,, ~" osuerwise, on,
really anosnted H.. S,to aon ~ ~hien
The. amourt s,hses;,',s y.'','sVo'o.,, Or
than tbemselvcs ~ o'nefs
a $3.50 H
"oins Dlnersnt.
In connection with thus preferred
stock and while Mr.. Kinney, in these
specine charges, makes the statement
that all the income and receipts over
snr ayoVe operating expenses were to
5e maae available for payment Of dlyi-
u w g upon said stock your commit
zee has found IN the papers, resolutions
Ssoy s n',l " tne ISSUE, that the
constrnst;eo III. ev .spssi =, alnerent
and reeeipts oyar .nd 49,. .ns9lhe
expenses nowhera an,oa 1000 of'iaa'i',s
place thereof uet nrafits ~ s, SoS -
and IN this connection, not amman ~
profits or surplus, but simply snet pro.
fits or surplus The same worling e
used in the amended articles Of asso.
citation, so that irrespective of what
was intended, this stock when issned
entitled the holders thereof TO receive
GUY OF the met profits or surplus a
nzed cumulative preferential dividend
~ tne rate OF not to exceed seven per
cent Per annum. There is every evi.
nenee tnat not only Mr.. Kinney and
Paid.;s nus Ply Messrs Alexander 6
ons vaa 49, 49, ngureu tnat y IN any
onerst; ~ nsie was q net profit over
sInk;na M -, ana interest and
~ wa,,,5 ' y" on poI9s' mat such pro.
unon nrsf.ss..i ,..ra ior dividends
common staeL W. W. an1 also upon the
already expressed ~ p on;' onni .u mas
dividend was ~ svs Dp 1871 lp s sasn
following reasons. a''aa'ea' TOT the
c..,..,
..r, pi'ni account
ohnsr tne provisions Of your
a .sn"su articles or association, the
P ~. STOCK when issued to liqui-
Of the pIaptatian .h hoaan indebtedness 9
capital OF the plantat;on ~ sae
be treated as sneh. ami ,-h;ia =
vision provides for tbe navrnan, ~
seven per cent dividend ~ - ~ y
profits or surnIns tbera ~ ny ~
the opinion az vony eomnitt s 'sen' ~ y
profits or surplus since tb;s ;.s ~ ~,
stock. The annual renoTt 80 1o, =,
shows under Assoc Ssh;t - p ~,
and Loss Account ~ SfIs'7t9 = 60 : i ~,
an Installation Account whiah 49, ss.. a.u
can only be regarded az ! pat W. I -
Loss Account. IA sa6o an 90 s a.n
proximately three-ouarteys ~ ,;,,s *
lnlIara sfan,l;.,.t b. =. NJ iivn