The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1922-01-13
Irrigation Co.
To Float Issue
$75O,OOO Bonds
East Maui Corporation Securi-
ties are Offered Through
Hawaiian Trust Co. and
Bear Seven Percent
ASSOCIATED PRESS,

Honolulu Jan. 10 Announcement
was made yesterday by the Hawaiian
Trust Co., of the issue of S75OOOO
first mortage 7-per-cent gold bonds by
the East Maui Irrigation Company.
Ltd The bonds are dated February
l, 1922 They are due January 81,
1897. The Hawaiian Trust Company
is trustee and has underwritten the
entire issue, which will be offered to
the public on and after January l.
The bonds will be in denominations
of $1,000 and $500; interest payable
semi annually on August l and Feb
ruary l.
This bond issue is considered one
of the best which has been offered to
the public for many years, as it has
definite term and the security back
of it is such that it makes it first
class bond
All of the fee simple property.
water licenses, leases, bitches and
reservoirs belonging to the East Maui
Irrigation Company, valued in excess
of S2,000,000, together with an uncon-
ditional joint and several guarantees
of the Maui Agricultural Company and
the Hawaiian Commercial and Sugar
Company, are security for the bond
issue.
Sinking Fund
1t Is provided that the Company is
to have the privilege of paying any
and all of the outstanding bonds at
par after five years. The trust deed
provides that after five years the IT.
rigation company may pay into the
trustee the sum of $4,000 annually
as sinking fund to be applied to-
wards purchasing the bonds of the
company.
AS soon as practicable after the 1st
OF February but pending the delivery
of the definite bonds an interim GER
tificate will be delivered bond pur
chasers by the trustee. The selling
price will be par and accrued interest.
Alexander d Baldwin stated yester-
day that the funds derived from the
sale OF the bonds are to be used in part
for repaying advances made by the
plantation companies in connection
with the relocation, enlargement and
extension of the main ditch system;
and for the purpose of completing the
work When completed all of the
main tunnels will be enlarged to a
height of feet. They are to be ce-
mented throughout, and whenever the
nature Of the rock formation requires
it the roof is to be supported by solid
concrete arches. The open bitches
will be widened and deepened and are
to be lined with reinforced concrete
their entire length.
Will Increase Cane Area
This enlargement of the carrying
nan will a
which bring the water out at a new
high level, will not only increase the
irrigation supply of mountain water
for the plantations but enable them
in time to bring a considerable area
of new cane land under ditch. The
plantations will save an increased
quantity of storm waters.
The ditch improvements will be fin
ished early in 1928 so that the planta-
tions will be enabled to lay plans for
increased acreage next year. In con
nection with the increase in volume
of water delivery plans are being ma
tured for extensive hydro-electric in
stallations.
During the rainy periods the excess
waters will provide power for operat-
ing all of the pumps. The steam
plants will be retained, but there will
be big saving over present consump-
tion of oil fuel whenever there is
heavy rain in the Nahiku ditch coun-
try.
1t - anticipated that announcement
will be made that the whole bond is
sue has been oversubscribed long be
fore February l, although the formal
listing of subscriptions is to begin on
that date.