The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1920-08-27
Bond Gets More Time
Preparing To Fight
Cables Has "Ample" Capital And will
Contest Foreclosure OF Island EleC-
trio Mortgage-Deal With Homo
lulu Company Hits SnagS.

Those who thought that Maui's
troubles with the Island Electric Com
pany were ended when the Hawaiian
Electric Company of Honolulu, agreed
to shoulder the burden or who be-
lieved that the starting of foreclosure
proceedings by the bond holders of
the company meant the beginning of
the end of the local utility concern,
are probably due to an unpleasant
disillusion. In short, neither event
uality now seems at all near of reali-
zation.
When the foreclosure suit was file1
Thayer, trustees for the bondholders,
it was the generally expressed belief
that Robert E. Bond, president and
virtual owner of the Island Electric
in brief, that he had virtually reach
ed the end of his rope. 1t even look
ed as though the suit would be per-
nlitted to go by default, and that the
ordered sold by the court to satisfy
the mortgage against it,
But last week, wher. ,ne matter was
called in the local circuit court by
Judge De Bolt, an affidavit was filed
by Bonds attorney, Clarence H.
Olson, of Honolulu, together with a
cablegram from Mr.. Bond, in Berkeley
praying for continuance. The peti-
tion was granted by the court, after
due consideration, and the time for
filing answer was continued until
Thursday, September g.
"AmpIe Capital" Says Bond
Bonds cablegram to Olson is as fol-
lows:
Don't permit default. Get ex-
tension time. Verified answers
setting out good defense in mail
leaving San Francisco, Wednes-
day, august 1s.) Ample capital
assured If foreclosure decree( is)
deferred sufficiently to complete
necessary arrangements.
(sisned) BOND"
Consequently, as far as the mort
gage foreclosure is concerned, 1t
looks as though Bond is expecting to
put up a fight, and if he loses to be
in position to buy the property in.
There is about $4,000 in bonds out
standing against the property.
Hawaiian Electric Fooled, Maybe
When the committee of Maui citi-
zens which had been working to Or
ganiZe a new company with local CAPT.
tai to build another electric plant, de-
cided to suspend operations and to
permit the Hawaiian Electric Com
pany to buy Bonds franchise, it was
evidently the idea of the officers of
the Honolulu concern that they could
quickly close a deal with the Island
Electric head on a satisfactory basis.
The directors of the company voted
approval of the plan. It's manager, f.
E. Blake, who was on the Coast, got
in touch with Bond, and cabled his
firm that Bond was willing to sell out
for approximately $4,000. 1t was
given out that Blake had an option on
the property.
This was more than two months
ago. Blake came home, and apparent
ly some sort of deadlock immediate
ly developed Richard A. Cooke, pres
ident of the Hawaiian Electric, while
. Gin Wailuku about two weeks ago,
stated that his company had been un-
able up to that time to close with
Bond, and he seemed altogether un-
certain as to the outcome.
1t is said that the disposition of the
new diesel engine unit, which arrived
nearly three months ago for the
crippled company, just after it had
been placed in the hands of re-
ceiver by the court upon the institu-
tion of foreclosure proceedings, is the
hook upon which Bond hung the deal
up. The Honolulu company does not
want the machinery and objected to
taking it off Bonds hands, is the re-
port.
No End In Sight
But whatever the cause of the mix
up is, it seems clear enough that Wal
luku and Kahului are long ways yet
from having any electric service save
that supplied by Mr.. Bond. or course
through the consideration for the com
munity of the Hawaiian Commercial
& Sugar Company, the public is at
present getting good lights for almost