The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1916-08-25
They Agree Practically To Wipe
Out Large Indebtedness II In +,
i dustry Is Reofoahized ~
BISHOP ESTATE 4lRNs Il.
over t I N, I o., $1,000 1000,
Hackield &, Co. offers Debt Of
100000 For 5000 and W?
4. Castle Cancels $4,000 !,

The shareholders OF the k0na To-
bacco Company met att Castle 4 with
ingtonls once yesterday afternoon,
pursuant to call of President w. r.
Castle, TO consider the reorganization
propagation which he offered. This
company suspended operations three
years ago after the 1913 crop had been
harvested and cured and since then no
CROP has been grown awaiting the dis
l,osai Of the product. IA :. ..
Original Capital $4,000 r. ..#.
The company was organized insMay,
1908, by JAG. Smith, and was origin
ally capitaiized at $4,000. Since. then
the company has passed through many
lvieissitudes, The first crop failed be-
cause Of drought. A fair crop followed
in 1909 and was sold at prices up to
one; dollar and twenty-five cents a
pound for the best wrapper tobacco
grades. As q result of the excellent
feturns, the company increased the cap
ital stock TO 100000 early in 1910 and
planted the largest crop so far grown
in any one year in the Islands, more
than 100000 pounds Of cured leaf be-
ing harvested, 4. ...,,,I' a.s.t
Many Manager Engaged s-
3 AT the end Of 1910, Mr., Smith was
succeeded BY Joseph Daniels as man.
ager. He cured the 1910 crop, pre-!
pared II for market, and personally
conducted its sale. The plantation got
a new manager in 1919, p. C. Daniels,
md another in 1918, George Schrader.
who in turn was succeeded by fifth
manager; but, because of the failing
finances of the concern, no further
crops were grown. ,,,r.', . 80. .s,,,' -,
y In the meantime the capitalization
Of the. COMPANY. was increased to,
$250, 900, about $4,000 stock being
issued. H. Hackfeld Il Co. took the
agency for the plantation in 1910 and
have repeatedly made heavy advances
to help the industry over difficult
Heavy Blow Falls in 1919
The most serious blow the plantation
had was the Joss of its fermenting
house late y leI2 together with the
entire lSlq Sand il912 crops of leaf
tobacco. -
At this time the company is so heav.
lily indebted to H. Hackfeld & Co. and
W. R. Castle that there is no hope of
working. its way out without a com.
plete Reorganization. Tobacco grown
at the plantation has sold at prices
ranging from ten cents to ~. dollars
and fifty cents a pound. For this rea-
son, because very high prices have at
times been secured the original share
holders and promoters of the enterprise
are not satisfied to entirely discontinue
operations
Owners and Agents Magnanimous
Mr. Castle told the shareholders that
H, Hackfeld & Go. have offered to
write off their entire debt of about
100000 against the company for q
cash payment Of $4,000. The B. p.
Bishop Estate, owning the lands on
which 'the Kona Tobacco Company is
located, have offered to sell the share
holders the land on which the com
pany's buildings have been erected for
$1,000, and Mr.. Castle told the share
advances of nearly $4,000 provided
they will subscribe sufficient capital in
new company to again undertake the
production Of crops.
Castle Proposition Accepted
After discussion il was decided to
accept Mr.. Castles proposition, he
agreeing to at once make the cash pay
mentS asked for by II. HackfeId & Co.
and the Bishop Estate. He said that
as only seventy per cent of the stock
was represented at the meeting, the
stock could not sba retired by mutual
agreement, and foreclosure proceedings
will therefore have to be taken. This
process will wipe out the company and
its debts in about three weeks.
Mr.. Castle Recommended that J. G.
Smith be employed as manager of the
new tobacco company to be formed
after the mortgage has been foreclosed.
de also stated that arrangements are
in progress, through the kindness of
Alexander & baldwin, to procure a Su-
matra expert tobacco curer. The
shareholders appointed ways and
means committee. consisting of A.
Haneberg, g. q. Ballentyne and ]. @.
Smith to proceed in the rcorganiza on
on their behalf