The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1915-09-21


terest due on April !, the period o.
grace on which expires on October ]
was Amounted yesterday. This plaI
provides for the organization Of . new
company to take over the road for tn,
bondholders primarily, with the right'
of the present preferred stockholderi
and the creditors Of the road recognized
as moral obligation upon the new cor
poration,
Under the Encouragement as outlined
the bonded indebtedness Of the road i.
TO be cut down to $1,000, 900 from the
present outstanding bond issue Of a.,
100000, with the bondholders to receive
the difference between the new bond
issue and the ones now outstanding in
preferred seven per cent stock. Inter.
est on the new bonds is to be placed
at Ave per cent. it
Such a Encouragement win cut down
the fixed interest charges from $270,000
q year, as at present, to $4,000, but
the seven per cent on the preferred
stock, IL earnings permit il to be paid
in full, will bring returns to the stock.
holders equal to the present rate Of the
bonds they hold, namely six per cent.
Practically Certain
The eommitte@t to represent the bond.
holders, as named in the plan outlined.
represent directly or indirectly sixty
per cent of the present bondholders,
which makes il practical certainty
that the plan will 60 through. The
plan becomes effective when sixty per
cent of the bonds are deposited under
il with the Hawaiian Trust Company,
which Is named as the " Depository. Y
For several months, committees rep
fesenting the holders Of the two. out
standing bond issues, the 1901 issue of
$l,000,000 and the 1909 issue of $3,.
SOC, 1000, have been at work on the plan
for the protection Of the bondholders,
and these committees have, In the plan
outlined in yesterdays announcement,
nominated committee to represent ali
the bondholders in the reorganization
scheme. t-st.s.t =, ..i . ..&.r.,@E
Representative Committee -, s.
This committee is composed Of A. W.
T. Bottomley Of the banking house Of
Bishop & Co.; A. N. Campbell of the
Henry Waterhouse Trust Co.; J. R.
Gait Of the Hawaiian Trust Co.; A.
Lewis, Jr. Of the Bank of Hawaii; z.
j, Spalding of the Bank Of Honolulu:
John watefhouse Of Alexander & Bald.
win, and z. II. Wodehouse Of T. H..
Davies & Co. ID =, yss,.g." *. ~a
When the bondholders to the number
representing sixty per cent of the
two issues shall have deposited theis
bonds with the Hawaiian Trust Com
pany, thus authorizing the committee to
act for them, action towards taking
over possession of the railroad under
the deed of trust by the trustees shall
be taken, or receivership will be ap-
piled for, pending the sale of the road.
Authorized to Purchase 49,
~t'In case the committee shall pr
chase the said property Of the Hiio
Railroad Company, says the draft Of
the Bondholders' Protective Agree.
ment,' the committee is authorized
under it, "to organize and incorporate
a Joint stock company under the laws
Of the Territory of Hawaii for the pur-
re- of acquiring the said property so
purchased by the committee pursuant
to this agreement and of operating
Herewith and with any other property
il may acquire, a railway on the Isl
and of Hawaii, with capital of such
an amount as the committee shall, in
their absolute discretion, think fit, the
form and contents of the articles Of
association and by laws of the said new
company to be such as the committee
ShaII, in their absolute discretion, de-
termine. The price 10 be paid for the
property so acquired by the said new
company from the committee and the
manner of payment shall be such as
the committee, In their absolute discre-
ton, shall determine. Payment, how
ever, may be made as follows: 49,
Bonds Of New Company l.ffes gt,.Ht
"(a) BY the first mortgage Ave per
cent bonds of the said new company of
an issue of such an amount as the COM
mittee shall determine but not excs-1-
ing two million FIVE hundred thousand
dollars ($2,500,000). Such bonds shall
be secured by first mortgage on all
of the property of the new company.
Preferred Stock Glass A
"(b) BY the seven per cent paid
nm and non. assessable preferred stock
Of the said new company of an issue Of
such an amount as the committee shall,
in their absolute discretion, determine,
but that shall not exceed fifty per cent
of the par value of all of the bonds go
.HNIOsibou WIN ,Ino uOpObibdIyJ anu ANU
the full amount OF the interest on the
said bonds 80 deposited from the date
up to which interest has been paid
thereon 10 the date when the said pre-
feffed stock Is issued. The dividends
on the said seven per cent preferred
stock shall be cumulative and such pre-
ferred stock shall be preferred both as
TO assets and dividends;
Preferred stock Glass B
"(cl BY the six per cent non.cu.
mulative preferred stock Of the said
new company of an issue of such an
amount at its par value as the commit.
tee shall in their absolute discretion
determine, but that shalf not exceed an
amount which shall be equal to the TO-.
tai amount of the unsecured debts with
interest thereon at the rate of six per
cont per annum, up to the first day of
October, 1915, and the par value of the
outstanding preferred stock of saii
no Railroad Company. Such stock
may be issued either paid up or assess.
able or partly paid and as TO the bal
ance assessable as the committee shall
in their absolute discretion think pro
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