Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-01-08
B0EAKWATER
COMPANY HAS
GONE UNDER
Big Federal Ccntract at HiIo
Involved IN Philadelphia
Collapse
LORD GETS WORD TO
CLOSE DOWN THE WORK
Another Chapter Written in a
Chain of Financial Misfor-
tunes-Future in Doubt

The Breakwate- Company, of Phil
adelphia. with important interests in
Hawaii, has gone into the hands oil
2 receiver, throwing the big contract
Tor the Hilo breakwater up into the
air higher than ever.
L. J. Lord, president of the Lord.
Young Engineering Company and re.
Gently appointed manager of the Hilo
work for the Philadelphia concern,
has received cablegrams giving the
Information that the big eastern com.
pany has collapsed and instructing
Linn to shut down work on the Hilo
breakwater contract. The first cable.
Gram says that the company has gone
into the hands of receiver and the
EecoIsl asks him to forward a state,
inent as TO the local debts, expenses
and other financial matters.
This latest chapter. in the fortunes
and misfortunes of the Breakwater
Company Is not exactly a surprise 10
Gally. Many months ago the Phila.
delphia concern was practically taken
over by an eastern trust company,
which was handling some OF its bonds
Wood, yice-president Of the Break
water Company. and the man who
came TO Honolulu more than two
years ago and underbid all others on
the Hilo federal contract In Hawaii
IL has been believed that Wood 'bit
off more than he could chew" on the
Hilo job and that this was the begin
ming lof the, Breakwater Company's
chajl Of financial misfortunes.
The Hilo work is far behind the.
terms Of the contract. The work has
been reorganiKedttwo or three times
the last time being when Mr.. lord
was made the local manager. He be,
gan vigorously on the new deal and
was making good progress until told
10 close down the work. '.... i.
II is estimated that the Breakwater.
company is "outr on the Hilo job.
about S350,O00., In fact, 1t is SO badly
involved that the chances are, accord
ing to well-informed people here, that
1t does not dare to let go. 1t will go
through with the building of the
breakwater in order to save as much
as possible out of the chaos.
II is also conjectured that the bond
holders of the company now in re-
ceiYer's hands will see that the work
here is completed, even If at heavy
financial loss. They will lose every
thing IL the contract is dropped,
For this reason there does not
seem much chance of any other con-
tracing concern getting the compile
tion OF the job. II the contract is re-
advertised, which seems possible, the
Breakwater Company will underbid
any competitor in order to keep the
work in. its own hands and salvage
its fortunes so far as II can do so.
The Philadelphia company is an
immense concern occupied almost en-
tirely with breakwater work 1t has
a large number Of federal contracts
on the mainland, totaling eleven or
twelve million dollars, and its various
plants are valued at quite 100000.
1t Is probable that the company will
not 60 out Of business entirely but
will be reorganized possibly after the
common stock has been frozen out, ,"
and will continue carrying on its
work.
Mr.. Lord will go to Hilo on Satur-
day and attend to the closing down of
the work there and at the Kapoho
quarry, from which the rock for the
breakwater was to be taken.