Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-09-20
. HILO RAILROAD
:. :: TOBE SAVED FOR
::::::.::]ONNERS0F BONDS
CONTINUED from page one)


; % senting the owners Of the $1,000 90
bond issue OF 1901 and the other tn
500, COO bond issue Of 1909.
80 For several months these gentle
men have beer working on the plaI
20 of bondholders' protective agree
ment, and have now concluded thei
labors. The agreement constitutes
the following gentlemen a committee
10 represent the bondholders:
A. w. r.. Bottonlley OF the bankinl
house of Bishop & Co; A. n. Camp
bell OF the Henry Warehouse Trus
Co, Ltd: J. r. Gait Of the HaR altar
80 Trust Co, Ltd; A. Lewis, Jr OF thu
Bank OF Hawaii, Ltd; e. !. Spaldinl
=. or the Bank or Honolulu. Ltd: Johr
Warehouse OF Alexander & Baldwin
Ltd, and z. r. wodehouse Of T. II
Dayies & CO.. Ltd.
sThe Hawaiian Trust Company
Ltd. has been named as depository.
leyss The parties OF the third part are
70 be all OF the owners Of bonds of the
Hilo Railroad Company who desire t.
avail themselves OF the provisions OF
the agreement and who deposit theiI
bonds with the depositary. J: r. Gaft
OF the Hawaiian Trust Company, Ltd
IS the presiding officer Of the commit
tee. A. r. Judd Of the Guardian Trust
Compan, Ltd, has been appointed b.
the committee their executive secre.
fary. 49, 20.
III the coupon interest DELINQUENT
since April /, 1915. is not paid by the
railroad on October /, 1915, the agree.
gIent authorizes the committee TO take
such action as they may deem adyis-
able TO cause the trustee under each
OF the bond issues TO take possession
Qf the property, or TO cause a receiver
Ito be appointed by the court and to
cause the property of the railroad TO
be sold In case OF q sale the commit
lee Is authorized for the bondholders
to bid at the sale - 50
Organize New Company. j. ~ Z
80 Should q sale result In the COM
niittee's buying the road, they are
given authority by the bondholders
&c organize q new company to take
over the railway, with capital of
such an amount as the committee
shall in their absolute discretion think
lit, paying for the property:
aeTeA First mortgage per cent
xbonds OF an issue Of such an amount
MS the committee shall determine, but
not exceeding $500 900.
n Seven per cent paid UP and
worcestershire preferred stock of an
Issue Of such an amount as the com
1Iittee shall determine
&C. Six per cent non-cumulatiye
lfeferred stock OF an issue OF such an
amount as the COMMITTEE shall deter.
= mine.
ID Common stock of m issue of
sech an amount but not exceeding the
cum OF 500, 200 and either paid UP or
assessable. or partly paid up and as
10 the balance assessable as the com.
wittee shall determine.
II the committee find ii desirable
TO purchase the railroad and form a
-.ReW company, by the agreement they
are given authority to exchange the
bonds and cDuppns deposited with
. Them for securities OF the new com.
. pany In the following manner:
~(a) The owners OF bonds of 1901
issue are to receive the new 5 per
cent bonds at par to an amount of go
per cent OF the principal Of the bonds
deposited by them, and are to receive
the per cent preferred stock at par
4 10 an amount OF AZ per cent of the
- IdF tdiuc VI tue pTtuClphi OizluS pOuuS
deposited by them, and also to the
n full amount OF the interest on those
bonds from the date up to which In.
terest has been paid thereon to the
date when the s per cent preferred
stock may be issued. 80
I'd Similarly the owners of the
1903 bonds viii receive bonds and
stock. only as to them the proportion
q viii be so per cent In each case. :.
81 1T VIII be noted that IL the railroad
should under the new company be
2 able to earn dividend Of Z per cent
ION the 7 per cent preferred stock, the
present bondholders viii then receive
hby such dividend and by the interest
coupons en- the new bonds substantial
.sly the same amount which they are
NOW entitled to receive from their 6
- per cent bonds J ~
"As il is not known by the commit
tee how long il will take to carry out
1.-The plans suggested or whether or not
the purchase OF the railroad will be
nade BY them and a new company
Nformed, or what the costs of these
various matters will be, the agree
ament is so phresed as to enable the
committee to raise funds among de-
Npositing bondholders to pay the CON-
tmittee's expenses. The limit of the
assessments is made SIS per $1,000
tbonds deposited. 1
The agreement gives the commit
tee ample powers to employ the as
sistance necessary to carry out the
fagreement. 49,.
6ondholders May Withdraw.
The agreement may be amended
upon due notice to the depositing
bondholders; the bondholders not
agreeing to the amendment are per
mitted to withdraw upon paying their
proportional share of the cost in
tcurred. It is provided that the COM
mittee may add to its membership and
may fill vacancies. In such matters
their action must be unanimous.
a when so per cent Of all of the
bondholders of the Hile Railroad Com