The Hawaiian gazette., 1916-10-17
.k0AA TOBACCOscO.
To Re DISSOLVED
But New Company Starting Debt
BE free VIII Resume Tobacco
a Production ~ .,,&.m .

In another two weeks the Kona To-
baeco Company will have passed to the
special beurp reserved for goodly ef-
forts that have come to bad ending,
bit from it's ashes a strong new enter.
prise will emerge. The South Kona
Tobacco Company win replace IL. y
The last meeting OF the shareholders
IA the old company was held at the Of,
fees Of Castle & wilmington, Thursday
Afternoon. The report OF the reorgani.
Eation committee consisting Of A. Hane-
berg, c. %. Ballentyne and ]. q. Smith
was received and the recommendation
made therein adopted. > n
This report gave 4 resume Of the his.
tory Of the company from its incor-
poration In May, 1908, to the shipment
Of the 1913 crop to market, since which
time the plantation has not been IN
operation. , The committee recommend.
I'd hiatt reorganization scheme pro.
posed by W. r. Castle be adopted and
that his mortgages against the company
be foreclosed .'ar r. X #,Il
: As was stated in The Advertiser last
August Mr., Castle will through this
Foreclosure become the residual owner
Of the entire material property Of the
iefunct concern. This will wipe out.
he equity Of other shareholders but rs
hat has already diminished almost to
The Vanishing point the generous offer
of Mr.. Castle, has been accepted with
feeling Of relief by the creditors and
Shareholders. &c ls.q K
New Company Forming ,..'.' 'st
A new company, which will probably
be called the South Kona Tobacco Com
Pany, will be incorporated with q cap.
tai Of 800, 900. This new organization
will own, at the start, all the real and
personal property formerly held BY the
Kona Tobacco Company, capitalized at
IN arbitrary book valuation of $4,000,
Mr.. Castle to receive paid up stock In.
that sum when he transfers it to the
new corporation. - .... 4 ~
z The remaining $4,000 will be issued
as assessable stock. At the meeting
Thursday one shareholder subscribed
$4,000 and il is anticipated that the re-,
naming $4,000 win be quickly taken
rs there is every promise Of q favorable.
outcome now that the staggering load
IF indebtedness against the old concern
has been wiped ont. .... y Il
There were 1897 shares outstanding
n the old company and the recon-
nendations of the committee were,
unanimously approved by the holders of
.he $500 shares represented at the dis
solution meeting. -
Has Bright Future
During its life the Kona Tobacco
company produced and sold over 300,-
BOO pounds of wrapper tobaccos. The
leaf has acquired considerable reputa.
ion and now has q recognized stand
ng' in the trade. The fact that the
Hawaiian product was a new and IN
tnown quantity whom il was first offer.
ID for sale has been the greatest diff
guilty in the way Of an early success.
Many mistakes were made an is. al
Ways the case where an attempt is
nade'to establish new industries but on
he other hand much valuable informa.
ion has been gained which will not
ave TO be again paid for. The new
company will start work fully equipped
q handle a large output, and J. @.
smith, the original promoter of the In.
iustry will grow the crops, he having
Produced about ninety per cent of all
he Kona tobacco thus far marketed
Alexander q Baldwin have undertak.
On to procure. on behalf Of Mr.. Castle
hxperts who are really experts to assist
n the technical processes which the leaf
must undergo to make il q merchant
able product. The company starts of
With property worth almost the full
value of the capital stock.