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

warranted. Further than this your
committee sees no advantage in keep
ing the capital of the company. rep
resented by common stock. less stock
in the treasury unsold, at $3.319, 421 SO,
when at least $4,000 Of this capital
is represented by profit and loss ac-
count While this cannot benefit the
stakeholder. il might result in a great
deal Of harm. The public in this
territory has some appreciation Of the
value OF the stock as market quota
have indicated, and thereby il is pre-
sumed realizes that much OF the orig.
inal capital has been dissipated. This,
however, might not be the case with
an investor from Maine or MasSachu-
sets. who might take 1t for granted
that the whole capital. as originally
subscribed, was still represented by
actual assets of the company, and
that the depreciation in stock values
legislation and the low prices now
prevailing for sugar. Such a person
investing in stock of your company,
and thereafter discovering that at the
time of his investment the so-called
assets were composed of one or more
accounts representing no value. would
have a very serious complaint to file
against the company.
Again, it appears to your commit
tee that assets represented by such
accounts might possibly reflect upon
the sugar industry Of the territory. II,
therefore, there are any other &C
counts represented in these assets
which show fictitious values, il is
strongly recommended that the CAPT
tai stock (common) of the company
be reduced in sufficient quantity to
offset the same. so that thereafter
these accounts may withstand the
scrutiny of the most critical. Irre-
spective of what the capital invested
in the MeBryde Sugar Company, Linn
tied. has been, its future value will
be determined more by it's net earn
ings than by its assets. Therefore,
decreasing the capital stock (com-
monl Of the company in an amount
to warrant the pruning that may be
necessary in the assets of the com.
pany will not detract in any degree
from the actual value Of the property.
Irrespective, however. of whether or
not 1t so detraets. your committee still
feels compelled to strongly reo1m.
mend this reduction in capital.
kinney's Hard Work Praised. II
In conclusion the committee dis.
he - NJ
with the plantation, paying tribute to
his energy and the time he devoted to
the work. But, says the report, "the
methods employed by Mr.. Kinney to
obtain money are not methods approx.
ed by your committee" no matter how
unselfish his purpose The committee
saws it is unfortunate that no further
evidence from Mr.. Kinney was placed
before the committee and declares
that Alexander & Baldwin supplied
without hesitation all the Information
and data requested and answered spe.
officially every question propounded by
the committee. , II Nh
Summary. ~. H.. a. - -.
The findings are summarized as fol-
lows: -. .-- +. ..... ~~.-,s.o ~
THAT Messrs Alexander & Baldwin,
Ltd, have been accused not with the
exercise of poor Judgment in the ad.
ministratSon of the financial affairs of
your company, attended by consequent
loss to the stockholders, but have
been accused with the systematic
adoption of policies calculated to adj
vance their own interests, at the ex-
pense Of yours, your committee can
only attribute to the fact that the in
vestment in preferred stock by Mr..
Kinney an his associates has not
proven profitable.
"The evidence submitted to your
committee. and considered by it, as
we'll as the Investigation of the com.
mittee Itself, not only vindicates this
firm fully from any sinister designs
upon the property, but furnishes in,
dubitable proof that while they have
acted as your agents, and in view nf
all OF the circumstances, your inter
ests have been fully protected. In the
terms of their original agency agree
ment, in the matter of the Sugar Fac.
tors stock. in the financial assistance
rendered the plantation and its subsf.
their consent to the issue of PREFER.
ed stock and their subscription to
three-quarters of said issue, in the
amended pooling and agency con.
tracts, in the matter of underwriting
the bond issue, there is annie evil
dence that their attitude was through.
out inspired by an unselish desire to
remove every obstacle and render ey.
cry assistance calculated to advance
the interests of your plantation, and.
in some of these transactions, to the
apparent detriment of their own inter
eSts.
investigation UphoIds Agents.
ut is not considered necessary to
enter into a detailed recapitulation OF
all of the data considered in connec-
ton with these charges, or of the fin
ancial operations relating thereto, as
such details can not help the present
situation. In the opinion of your COM
mittee, however, the more closely the
affairs of your company are investi-
gated the more credit will be reflect