Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-01-20
CHARGES OF kinney NOT SUSTAINED
NTHE REPORT TO STOCKHOLDERS

date when such dividends were to
have been paid. thereby Withholding
from the stockholders tprefeTredD any
adequate warning Of the intention to
pass such dividend.
Not Sustained.
This charge is not sustained The
committee finds that the passing OF
the dividend was justified, stating that
the agents were unable TO give much
advance notice of the passing of the
dividend, which depended largely on
the fluctuating price of sugar and that
the preceding annual report Of the
company should have prepared the
stockholders for suspension of the div
idend, as it showed practically moth
ing as surplus.
Charge lIl.-"Loading down the
Kauai Fruit & Land Company with
unnecessarily heavy expenditures for
its improvements as soon as it was
making profits and therefore becoming
available to the McBryde Sugar Com
pany. Ltd, to raise money upon its
assets and stock in an emergency"
Dismissed.
This charge is dismissed. The COM
mittee says, after some detailed dis
cussion: ''The query arises, How is
the McBryde Sugar Company, Ltd,
to use the stock of this company, be-
longing to individual stockholders, as
security with which to borrow mon
ey? Should McBryde exercise its op-
ton OF first taking over the stock pri-
or to December 81, 1914, it would ap-
parently cost the plantation larger
sum to exercise this option than could
possibly be obtained upon the stock
afterwards, il used as collateral"
Charge Nv. The exempting of the
Sugar Factors Stock from the opera
ton of the Deed of Trust, in support
of the new bond issue
Dismissed.
This charge is dismissed. The &C
ton Of the agents in exempting the
stock Is upheld as good financial
policy.
Charge v. The management and
use as a private perquisite of Messrs.
Alexander & Baldwin, Ltd, of the
stock holdings of the McBryde Sugar
Company in the Sugar Factors Com
pany. in the conduct of the affairs of
the Sugar Factors Company, etc.
Not Sustained.
This charge is unsustained. The
committee goes into it very fully, say
ing in part:
1T appears to your committee that
the advantages enjoyed by the plan
tations owning this stock consist of
actual dividends paid by the Sugar
Factors Company upon the stock and
in allotments of sugar for shipment
to- the Crockett refinery, which adj.
Vantages, have been enjoyed by Nc
Bryde as fully as by any other stock
holder With sugar realizing the
same gross price, Crockett shipments
net the plantation approximately 81
per ton over and above the net re-
turns received from eastern ship
ments."
The committee also says that in
the case of McBryde accounts, Alex
ander & Baldwin have not written off
to depreciation annually as large an
amount as they have in the case OF
other of their own plantations which
were in better financial condition.
Charge VI. Reduction of port
charges and expenses against the
Matson Navigation Company at Port
Allen thereby cutting down the in
come of Kauai Railway Company,
when Alexander & Baldwin became
interested in the Matson Navigation
Company.
Not Sustained.
This charge is msustained. The re-
port finds that Alexander & Baldwin
were stockholders in the Matson Navi-
cation Company when they took over
the McBryde agency in 1909 and that
the reduction of the port charges was
not Influenced by its holdings in the
company.
The committee here makes a sug-
gestion that the charges of the Kauai
Railway Company in the past have
been too low, stating that new rates
are going into effect with January l,
1914, and if these do not prove high
enough there should be an increase OF
rates throughout.
Charge VII. Giving over execution
of said trust created under said pool
ing agreement (referring to the stock
pooling plan) to the personal eXecu-
ton and performance of J. P. Cooke
with no adequate check or review, and
charging many irresponsible reckless
and unauthorized acts in the name of
& Baldwin by J. P. Cooke,
Wallace Alexander, E. E. Paxton and
Walter F. Dillingham;.
No Decision.
There is no decision on this charge.
The committee says:
Whereas no specific act is named
as having been done in the name nt
Alexander & Baldwin, by ]. P. Cooke
in violation of the trust created under
the stock pooling agreement, and
without authorization, etc, your COM
mittee does not attempt to answer
charge"
Charge VIII A. This relates to
the legal authority of the board of d.
rectors to pay $4,000 per annum on
account of the new bond issue. Kin.
ney charged that it violated a resolu-
ton of the stockholders. The COM
mittee holds that it is a legal ques-
ton and makes no decision on it,
B. The SuDerSeding of the trustee