The sun. [volume] (New York [N.Y.]) 1916-1920, 1919-02-12
AUTHORIZE CUBA
CANE MORTGAGE
Stockholders Vote for Issue of
1875, 100000 Bonds on the
Company's Property.
NO CONCRETE OPPOSITION
Acrimonious Discussion Begun
by Share Owners Not in
Favor Of Project.

With three-quarters Of the total out
standing preferred and common stool,
voted by Alfred Jaret.ki as representa-
tive of the management. tho stockholders
OF the Cuba Cane Sugar Corporation
yesterday adopted a resolution authorize
Ing the directors to execute q mortga &c
on the corporations property and fran
chises to secure $4,000. 900 In bonds
which will be issued by the corporation.
Contrary to general expectations, the
opposition to the proposed mortxage and
bond issue did not develop in any con-
crete way and mercy appeared In the
form of some rather acrimonious discus
sion and few pointed questions on the
part Of few OF the shareholders not In
favor Of the proposal.
While discussion on the matter was
unlimited. II was a foresone conclusion
that the proposition would win. for ia
retzki announced at the outset that he
represe nted the ma nlgement and that he
had proxies representing rs Der cent. of
the total outstanding stock of the COM
pany. only two-thirds Of the stock was
necessary TO bring about tho adoption of
the resolution.
Prior to the passage OF the motion
authorisng the mortgage and bond issue
an amendment was offered hy Frederick
W. Kelsey. q stockhoider, providing that
a committee to Be- composed Of three
preferred stockholders. and two COM
mon stockholders, all OF whom should
be preferably small stockholders and not
identified with the mana &c ment in any
way, be appointed. That committee
would be instructed. under the resolu-
ton. to make an investigation into the
affairs of the company from its organi-
nation to the present time and report
nndinys at a special meeting to be called
by the president.
Jarstzki stated that he was opposed
to the resolution and would vote his
proxies against It. He said that under
an agreement with large preferred stock
holders arrangements had been made
for an Independent audit of the COM
panS. With reference to the options on
property. which had been purchased by
the company and whbrh Kelsey's resoiu-
ton would authorize the proposed COM
mittee to investigate to discover IL any
one had made profit at the expense Of
the corporation Jaretzki declared that
OIL optioIls Udu Deen purchased LOT the
company and that no one had made any
pnaht whatever on them. The amend
ment was defeated.
The original motion giving authorize
ton for the mortgage and bond Issue
was then put before tho meeting and
was carried by a vote of 1854 against
200. Another motion was made by stock
holder that a committee he appointed to
thn floating debt OF the cor
poration to determine what its items
were. &C. hut the chairman ruled the
motion out OF order.
The resolution. as adopted does not
provide any specific form of bond. nor
are the maturity. interest rate. terms.
&c,. set forth II merely authorizes the
directors to mortgage the properties and
franchises of the company in the amount
OF SIS 900. 900. and all details connected
with the proposed issue of bonds are left
to the discretion OF the directorate. il
was intimated that the plans call for
the retirement prior to maturity of about
So per cent. Of the entire issue by serial
feature or sinking fund. The tentative
plan provides for an accelerative sink
ing fund for retirement into which must
be paid a percentage of profNs after
allowing for interest, depreciation, pre-
ferred dividends and at least $4,000. 900.