The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1914-01-23
(From Wednesday Adycrtiser.)

'"N|"@
While the members Of the committee
appointed az a recent meeting Of the
shareholders Of the MeBryde sugar
Company, Limited, to investigate GER
tain charges brought against the agents
Of the plantation, Messrs Alexander 4
Baldwin, BY w A. Kinney, a minority
stakeholder, do not undertake to ex-
press an opinion upon thu legal points
raised in Mr. Kinney's bill Of com
plant, they do, in report made yes.
terday, ahsolve the agents from blame
in all the financial points involved and
give to the agents unstinted praise for
the manner in which they have safe
guarded the interests Of the bond hold
ers and shareholders in the Kauai com.
pAny.
The report, which is signed by e. r.
Stackable, Richard lvcrs, A. N. Camp.
bell, VIM. Williamson and George w,
Smith, declares, in substance, that Mr.,
Kinney, as holder Of preferred stock,
desired to bring about a condition under
which the holders Of the common stock
would have TO wait two centuries be-
fore they could realize upon their in.
vestments, whereas under the rear.
rangcment made by the agents, the
plantation would Ne out Of debt with
in forty years.
The committee reported that il could
only attribute the charge Of Mr.. Kin
ney that the agents had systematically
adopted. policies for the advancement
Of their own interest at the expense
of the stockholders to . the fact that
the Investment in preferred stock BY
Mr.. Kinney and his associates has not
proven proftable.n
A Legal Meeting.
This report was adopted unanimously
by those present at Yesterdays meet.
ing, who represented 1l3,067 shares out
Of u total Of 1876, GOA. The number nee
cssary for a quorum Is ,0o3. 49,
The report was yoIuminous one
covering ffty-one typewritten pages
the entire history Of the McBryde plan
tation being reviewed and the allega.
tions Of Mr.. Kinney being taken np
one by one and responded to. The com.
mittee reported that it had gone as ex-
hanstivcly into the matter as possible,
had invited Testimony from every stock
holder and had secured the opinions OF
bankers, managers Of trust companies
and leading business men regarding the
various financial transactions in con,
nection with the share Alexander 4
Baldwin has had with the plantation
The plantation itself was not visited
the committeeman saying that as they
were not familiar with its physical con
dition prior to the changes made by
the present agents they saw no adyan'
tage in making the trip.
The Charges Made.
The charges which had been made by
Mr.. Kinney, in his letters to the agents
and to the stockholders, and which were
found either unsustained by the eyi.
dence or were dismissed by the com
mittee, were:
Charge &c Contracting preferred stock
issue, whereby said issue as originally
authorized at $s00,000 was reclSlessly
cut down to $600,00O, leaving no pre-
ferred stock in the treasury available
as an asset in an emergency. Charge
dismissed
Charge 1.-THE passing of the divi-
dends ON the preferred stock July i,
1918, snch suspension being needless
and uncallcd for and being voted in h
manner showing reckless disregard OF
the rights Of the stockholders (prefer-
red), for the reason that II was an
>nonnced bnt few days before the date
whom such dividends were TO have been
paid, thereby withholding from this
stockholders (preferred) any adequate
warning Of the intention to pass such
dividend Charge nnsustained.
Charge l1l--Loading down the Kauai
Fruit and Land Company with unnec-
essarily heavy expenditure for i'm,
provements as soon as it was making
profits and, therefore, = was becoming
available to the McBryde Sugar Com
pany, Limited,a to raise money upon is
assets and stock in an emergency
Charge dismissed.
Charge IV-The exempting Of the
Sihar Factors stock from the opera,
tion of the deed Of trust, in support Of
tho new bond Issue. Charge dismissed
Charge V-The management and use
as private perquisite Of Messrs. Alex,
ander 4 Baldwin, Limited, Of the stock
holdings Of the McBryde Sugar Com.
pany, Limited, in the Sugar FACTORS
Company, in tho conduct Of the affairs
Of said last named company. including
the control Of commissions, freight and
otherwise also the handling Of the ae-
counts Of the McBryde Sugar Company
Limited, and its collateral companies,
particularly in the matter of desrecia,
ton, to further the interests Of Messrs.
Alexander q Baldwin, Limited, rather
than fhOse Of fha Me- Rrvda Sugar Qon,.
pany. LIMITED, in marked contrast with
the handling of the accounts and de-
preciation BY Alexander & Baldwin in
its management Of its own sugar plan
tatiops, in tho past Charge unsus-
tanned.
Charge Willie reduction OF mort
charges and expenses against the Mat.
son Navigation Company Gao Port All,
ien), thereby emitting down the income