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

common stock will at all times be un
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 $3.3l9, 42l 90
when at least $4,000 of this capita
is represented by profit and less &C
count While this cannot benefit the
stockholder. 1t might result in great
deal of harm. The public in this
territory has some appreciation Of the
value Of the stock as market quota
lions Of the stock from time to time
have indicated, and thereby it 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 it 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
had been influenced entirely by tariffs
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 (common1 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. IRE
spective OF what the capital invested
in the McBryde Sugar Company, Linn.
tied. has been, its future value will
be determined more by its. net earn.
ings than by it's assets. Therefore,
decreasing the capital stock (com.
NOM 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 Getracts, your committee still
feels compelled to strongly redpm-
mend this reduction in capital"
kinney's Hard Work Praised.
In conclusion the committee dis.
cusses the connection of Mr.. Kinney
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. zs->g- 49,. ~ a.. -
Summary. .~.@~ Z
The findings are summarized as fol.
lows: 4
THAT Messrs Alexander G Baldwin,
Ltd, have been accused not with the
exercise of poor Judgment in the ad.
ministratfon 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 ad.
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.
mlttee 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 of
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.
WIZ SWIM III tic HAdIfCIdI dSSlSLdlce
rendered the plantation and its subsf-
diary companies. in the matter OF
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 ample evil
dence that their attitude was through
out inspired by an unselfish desire to
remove every obstacle and render ev-
cry assistance calculated to advance
the interests of your plantation, and.
IN some of these transactions. to the
apparent detriment of their own inter
oSts.
Investigation UphoIds Agents.
1T is not considered necessary to
enter into 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.
mlttee, however, the more closely tho
affairs of your company are investi-