The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1920-05-28

electric enterprise, would, today, be
worth we'll over 800, 600. 00,-and the
further sacrifice of increasingly valu-
able Honolulu realty, besides some
$25, 900 Of borrowed money and the in
vestment OF some 100000 Of the
little individual savings of about $50
comparatively poor people, a great
many of them on Maui, every cen of
which must presently be made good
to them through the now perfectly
possible immediate success of the
electric enterprise.
Therefore, the responsibility for
making good the money of these Is
land Investment Company sharehold-
ers on Maui and elsewhere is now
placed squarely on those who have
proclaimed themselves able and eager
to add their ample capital to that al
ready invested in the enterprise, and
who have recently assumed unto
themselves the responsibility of per
fecting the electric service, but who
mistakenly think they must first
wreck the fortunes and sacred prop
erty rights of these many original
Maui shareholders and those others
who have, IL the truth were know,
dedicated their all and yer eight
years of mental and physical anguish
to indicating their faith in the cleo
trical possibilities as well as in the
inherent fairness and good sports
mansnip of the people of Maui.
Copy, herewith, Of a letter mailed
out in April by a San Francisco
broker to his friends, gives a very
fair and accurate statement of facts.
1t was written before a word was re-
ceived here of the activities described
in your newspaper. With this letter
and your newspapers before me, /
have sought to study the facts from
a moral viewpoint as high as you
would choose for YOURSELF, were our
positions reversed, and with only the
kindliest of feelings and motives. In
the light of such wisdom as | have
thus far been able to a%pprehend, there
has come to me the idea that no loss
can occur, eventually, to any holder
of stock either in the Island Invest
ment Company, or in the Island Elec-
trio Company, if say 100000, or
complete control, of the $67, 100000
common voting stock of the Island
Electric Company be sold at par to
the Maui consumers, and the entire
remaining $27,000.00 of common stock
be donated to the treasury of the Is
land Electric Company to be re-sold
(also to the. Maui consumers) for the
benefit of the Company's treasury, at
par. This would enable the Island In
vestment Company to liquidate all its
indebtedness $4,000 to $4,000 Of
which is owing to the electric COM
pany) and thus would further swell
the cash of the electric company, it.
self, to nearly $40, 000,-available for
investment in the third and much
larger Diesel power plant now being
negotiated for; the second being pay
able for in easy installments out of
depreciation reserves as earned.
The resulting financial condition of
the electric company would ~thereupon
be approximately as follows:
ASSETS
Present physical properties
at greatly deprecated
(not replacement) values 5 100000
Equity in No. 2 Diesel plant
arriving in Maui about
June 5th, 1920.-...--...... 9,25O.OC
Deferred assets (balance
due on No. 2 Diesel con
tract, to Offset Contracts
Payable given below
among liabilities) .......... 1s,OOO.OC
Cash =. $4,000
Accounts Receivable ...... 100000
Merchandise and other in
v~entories 2,7OO.O(
Franchise, Commissions and
Discounts. and Going
= ma mr.