The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-01-29
EVANS ASKS LIGHT
ON CUBA CANE co.
Head of Insurance Company,
Owner Of $4,000 Shares,
Wants Information.
NO REPLY TO QUESTIONS
Holds Up Approval of New
$25,OOO,OOO Mortgage on
Sugar Properties.
NO REPLY TO QUESTIONS

Opposition to the proposal Of the
Cuba Cane Sugar Company to create a
$25.ooo,oo mortgage on It's properties.
which has been smouldering ever since
II became known that a special meeting
Of stockholders had been called for Feb
ruary IL for that purpose. broke forth
yesterday when Henry Evans. president
OF the Continental Insurance Company
and other affiliated companies. an
nounced that he would not give the
management proxy for the $4,000
shares of preferred owned or controlled
by his company. He said that his ac-
ton was taken purely for the purpose
OF getting information. But one of the
questions the secretary OF his company
asks in writing to the secretary Of the
Cuba Cane Sugar Corporation is: "Will
we as stockholders be given our pro
rata share OF said underwriting?
Mr.. Evans in statement issued yes
terday said that he spoke for more than
$4,000 shares Of preferred stock. which
Is per cent. of the 100000 shares out
standing. and that Shareholders of Cuba
Cane should have information as re-
CARDS the following points. (which are
being discussed quite generally"
what Mr.. Evans Would Learn.
The points on which he wishes en-
lightenment are:
why the Cuba Cane Sugar Corpora
ton sells its sugar through the Cxarni-
kow-Rionda Company, said to be pro-
duclng as well as purchasing and
selling company, and what the terms Of
the contract with that company are.
who are its owners. &c?
ITO what extent the Czarnikow-
Rionda and Cuba Trading companies
profit by their operations In the sugars
of the Cuba Cane Company?
why It costs 1t is said, 10 cents a
bag more for the Cuba Cane Company
To produce sugar than It does other
we'll managed Cuban companies? This
is important because 20 cents a bag on
100000 bags means s2,S0O.0o0.
rs 1t true that the management Is
extravagant-that comfortable salaries
are drawn by men that are not qualified
to best serve the interests of the share
holders-in other words. does the man
agement play favorites rather than win
ners?
Are the accounting and auditing
methods all that they are said to be,
&C."
One week ago Ernest Sturm. secre-
tary OF the Continental Insurance Com
pany, received a circular from the Cuba
Cane Sugar Corporation asking for a
Proxy to be used at the special meeting
called for the purpose OF authorizing
the issue OF S25,000.000 first mortgage
bonds.
Ernest sturm's Reply.
His reply. which was given out yes
terday. follows;
u am instructed to say that as we
now view the matter we certainly will
not give the proxy desired. We desire
TO know:
What sinking fund provisions are to
be stipulated? What terms are to be
given to the underwriting syndicate?
VIII We as stockholders be given our
pro rata share Of said underwriting?
We have to advise you further that
our stock holdings were purchased be-
cause OF the fact as set forth In pros
pectus on file In this office. that there
was no mortgage on the property. We
felt that in connection with this pro-
posed issue II should be stipulated that
TO dividend will be paid on the common
stock until all bonds are retieed"
To all of the questions the manage
ment and the directorate made no reply.
Manuel Rionda Is in Cuba and Is ex-
pected to remain there until spring II
was learned that the net floating debt
now exceeds s20.00O.000 and that the
banks want this taken care Of In a
permanent way. While the officers and
directors of the company would make no
formal statement, the directors who were
interviewed expressed complete CONF
dence in the present management and
belief that the two-thirds vote necessary
TO create the mortgage would be forth
coming despite the efforts of the op-
position. So far as proxies are con-
cerned. the company says. receipts are
satisfactory"