The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1921-04-01
'BONDHOLDERS BUY
ISLAND ELECTRIC
COMPANY ASSETS
Price is Slightly Below Esti-
mates of Indebtedness and
Costs; Report Says New
Company to Form.

Island Electric Company, with the
sale under foreclosure of its franchise
and property passes into the hands of
Mauiites to be conducted in the inter-
est Of Maui residents and the end of
a pilikia that has extended through
several years and has been acute since
last year is in sight.
On the steps of the court house at
noon Monday the foreclosure sale of
the Island Electric Company's proper.
ty was conducted by Commissioner
Blair and was knocked down to d.
c. Lindsay, representing the bondhold-
ers for $34,005. Contrary to former
reports there was no bid offered by
the county nor did any individual ap-
pear as prospective buyer as it had
been indicated last week that there
would be. Commissioner Blair read
the terms of sale, Trustee w. w.
Thayer supplemented the reading with
few words of explanation and f. E.
Richardson explained that the deposit
on the machinery that has been lying
at kahului for months had been for
ieited but that arrangements could be
made by the purchaser of the COM
pany's property to complete the pur-
chase of the engine.
Bidding is Slow
Thayer started the bidding at $780,
600, Lindsay raised it $500 and Thay-
er as trustee made it $4,000. c. d.
Lufkin, also representing the bond
holders offered 1872 100 and Thayer
came back with $4,000. AS Lindsay
advanced the price to $3.50 he in
quired from Thayer for whom he was
bidding and the latter replied as trus-
tee. "As trustee for whom?" inquired
Lindsay. For the bondholders ?"
Yes, for the bondholders and the
company" came the reply. Pm bid
ding for the bondholders," Lindsay
informed him. Thayer, however, rails
ed the price to $4,000 and Lindsay Of
fered $5 more and there the bidding
ceased
New Maui Company
1t is understood that the bondhold-
ers have had a meeting in advance of
receiving advices of the confirmation
u the sale and have made some ten
tative plans which contemplate the
conducting of the business and the
formation of a Maui company with
Maui capital to operate under the
franchise.
The proposed charter for gas and
electric company does not enter into
the situation at this time. If the bill
providing for the charter passes the
legislature it will be necessary to get
it through Congress which may take
time, perhaps year or more and the
provisions of the charter are for a
start being made two years after it
is granted which might make it as
long as four years before start
would be made by such new company.
1t is understood that the machinery
will be speedily put into repair so as
to enable conformation with the pro-
visions of the Island Electric Com
pany's charter for the maintenance
and operation of a plant even though
an arrangement be made where the
greater part of the power would be
purchased by the company from one
of the plantation companies.
The price paid is about $4,000 short
of the total amount due for principal
and accrued interest and the estimat-
ed costs of the foreclosure proceed
ings
General satisfaction at the outcome
is expressed and the belief is common
that Wailuku and Kahului will have
improved service at as reasonable a
cost as is compatible through the pass
ing back of the utility into the hands
of Mauiites.
Advices that the order confirming
the sale has been entered We're re
ceived by ID. c. Lindsay yesterday.