Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-01-20
Continued from page one)

| ing points. A low chuckle did pass
! around when the prospects of COM
mon stockholders for dividends, in
certain hypothetical circumstances
suggested by Kinney's ideas, were re-
ferred 10 centuries rather than years.
In recapitulating the work Of the COM
mittee, the chairman stated that the
testimony attached TO the report made
$50 typewriter pages.
! Approval was voted to an itemized
bill amounting to 1852 for expenses OF
the committee.
CHARGES Discussed at Length.
The report submitted by the inves-
| tigating committee is lengthy and
thorough. The committee is compos-
ed of z. R. Stackable. Richard lvers,
A. N. Campbell, William Williamson
and George w. Smith. The original
committee elected by the stockhold-
ers included Robert Cation and r. H.
Trent but neither Of these was able
&c serve, Williamson and Smith tax.
ing their places.
In so typewriter pages, the CON-
mittee submits a detailed report both
on the Kinney charges and on the
| various financial phases through
which McBryle Sugar Company has
passed. 49,
The report proceeds in the follow.
| ing order: hi ...
/. Organization of committee and
| its course OF procedure.
2. Brief history OF McBryde Sugar
/ Company. i ~
3. History and status Of Kauai
Electric Company, Kauai Fruit &
Land Company, Kauai Railway CON-
pany, and the connection of these
companies with McBryde, together
with a short discussion Of the opera
ton of the whole. '..:... .~...,.
A. Synopsis of charges preferred
by w. A. Kinney against Alexander
& BaSiwin, each charge being follow
ed by the findings of the investigating
committee.
! S. General remarks and sugges-
tions. III
6. Connection of Mr.. Kinney with
the plantation. VII. Hi ..
Z. Summary. III. ~
The committee reports thai il has
held 81 regular meetings and many
informal meetings. Letters were
mailed to ali the stockholders asking
for information and suggestion. It
was not considered necessary to visit
the property as no charges had been
preferred against the physical condi-
ton OF the estate and as no member
Of the committee hail visited McBryde
when the present agents took charge
- n n
make useful comparisons.
McBryde History. rs
McBryde's history covers approxE
raately four pages Of the report. The
main feature Is that the extraordinary
difficulties under which the planta,
ton has labored are emphasized, par
ticuIarly its water-supply problems.
The financial problems, resulting from
its water situation were discussed.
The report says: Probably by far
the largest percentage s(of crop losses)
can be attributed to the failure OF the
initial water supply. If inefficient
management has influenced these
shoWings to any extent, then the re-
sponsibility therefor must rest with
the directors. The agents. in accord:
ence with the terms of their agency
agreement were financial agents only
all had absolutely no voice in the
MANAGEMENT or policy of the planta-
ton" This refers to the 10-year per-
iod from 1899 to 1909, and is followed
lby a statement of the financial obi
cations on the plantations when, at
that time, Alexander & Baldwin be-
came the agents, succeeding I. II.
Davies & Co. This statement shows
that at the end of 1909 there were oh.
legations aside from capital stock
amounting to 5000 $3.50.
The discussion of Kauai Electric
Company, Kauai Fruit & Land Com
pany and the Kauai Railway Company
is then taken up. The explanation is
rather too involved for summary but
the following quotation from the COM
mittee's report is petinent:
"Messrs. Alexander G. Baldwin, Ltd,
in accepting the agency of McBryde
Sugar Company, Ltd, and Of these
subsidiary companies and in thereby
assuming obligations in excess or
$500, 900 entered into an agency agree
ment which, in view of the risks being
taken by them, was extremely favora-
bly to the McBryde Sugar Company,
or. as pointed out by them. was as
favorable as the agreement enjoyed
by the Hawaiian Commercial & SUI
gar Company, a plantation with
large cash surplus.
Takes Up Kinney Charges.
Next the committee takes up the
Kinney charges, discusses them and
makes its findings. In doing so the
committee says:
1T wishes it understood that it is
not expressing an opinion upon any
legal point involved"
The charges are then taken up in
the following order:
Charge 1.-Contracting preferred
stock issue, whereby said issue as
originally authorized at 100000 was
recklessly cut down to 100000, leaV.
ing no preferred stock in the treas
ury available as an asset in an emer-