Newspaper Page Text
' ft THE GARDEN. ISLAND, TVEBGAt, JAN. 18, 1921
Walakea homesteaders have the
choice of accepting the terms of an
ultimatum delivered to them by the
Walakea Mill Co. or run the risk of
attempting to sell their sugar In the
open market, probably with Increased
warehouse and freight charges and
at a lower figure than the company
could obtain for them, through Its
affiliation with the California-Hawaiian
Sugar Refining Co., owners of the
Crockett refinery, says the Star-Bulletin
, Tne ultimatum is contained in a
letter written by the mill company
to the attorneys-in-fact far the home
steaders and signed by H. E. Edmond-
son, one of the legal staff ot Theo H.
Davles & Co., agency fori the mill
company, under dato of January 1,
and made public today by Attorney
General Irwin, with the company's
permission. A copy also was sent to
Albert Horner, territorial sugar ex
pert The homesteaders' trustees and
the attorney general agroe that the
offer, which comes in the form of
suggested amendments to the exist
ing contracts between the home
steaders and the milling company
entered Into not quite two years
ago, confers to them benefits which
the . original instrument, . if left un
changed, would withhold. But
Under, that contract, the trustees
contend, the milling company occu
pies a position of fiduciary nature,
to which its proposed amendments
do not live up. The homesteaders, as
matters now stand, are bound to
pay the company 12 per cent on the
value of its physical assets and all
capital otherwise active In the busi
ness. $146,000 For Crockett
By the terms agreed upon between
the Hawaiian Sugar Planters' asso
ciation and the Crockett refinery,
Walakea Mill is assessed $146,000
for 1460 shares in the reorganized re
fining corporation. On this add)
tiopal Investment, Walakea Mill de
mands 12 per cent, 8s stipulated In
the existing contract, aad agrees to
refund any cash dividends it may
receive on California & Hawaiian
stock up to and including 12 per cent,
but not beyond that amount and if
dividends are paid in stock.
Per contra, the trustees contend
that they are entitled to any and all
benefits which may come to them
through the company's ownership of
California & Hawaiian stock, Inas
much as they pay. Interest on that
stock. Or, they offer to buy the
stock outright. These proposals the
company refuses flatly to entertain.
In substance they follow:
1. The trustees of the Walakea
homesteaders offer to pay to the
Walakea Mill Co.. 12 per cent on the
$146,000 Invested In the Crockett re
finery stock for the period of four
years, with the proviso that If the
contract between the Walake Mill Co.
and. the, said homesteaders, should
not be extended beyond the said four
year period, the trustees should have
the right to buy the said stock at Its
par value of $146,000 for the benefit
of the homesteaders. n
2. The trustees offer to pay the said
12 per cent demanded, upon the con
dition that all profits accruing to
this stock, whether In the nature of
cash or stock dividends, should go to
the trustees for the benefit of the
homesteaders, the trustees to pay all
losses, whether arising through stock
assessments or otherwise.
3. The trustees offer to buy the
stock now at Its par value of p1 46,000
for the benefit of the homesteaders.
4. The trustees request until Feb
ruary 15, 1921, within which time to
accept or reject the offer as made.
To amplify further the homestead
ers position, they contend that they
have the same right in the benefits
accruing from their 12 per cent in
terest payments to the company that
an individual borrower would have
to the benefits he was able to earn
from money loaned to him by the
bank. Walakea Mill, they assert, is
like a bank which should demand not
only Interest on the loan,' but all the
earnings the borrower might be able
to make on that loan.
Iron Works Sole Agent
For Johns-Manville Goods
TTie Honolulu Iron
is sole representative
and wholesale distri
butor for trie Johns
Manville products in
the Territory of
THIS QUALITY MARK ON
Tools and Coile'iy
is your insurance policy and the retail dealer k the one
to promptly make satisfactory adjustment.
The merchant is authorized to replace, or refund the
purchase price, of any KEEN K UTTER Item that may fail
to give a complete amount of satisfaction.. Liberal, yet
but the service they give warrant this.
tool for ever use and a use for every tool, that's our ruide
adding new tools to the present line au;
every item of usefulness.
guided by tbi Trd 1-5 Mark when buying Sbop Tool. Fuciuf
Took, Pockrt Knivet, ScUsora. Saf.'y Ruors, or
Kitchen nd Table Cutlery.
The company, they argue, is sure
of their 12 per cent, win or lose. It
California-Hawaiian declares a 6
per cent dividend the homesteaders
pay that much less, but Walakea still
gets its 12 per cent, they state. If Cal-1
lfornia & Hawaiian pays 18 per cent,
the homesteaders pay ndthing, but
Walakea still obtains the equivalent
of their 12 per cent, plus an additional
6 per cent, and if the earnings are
allowed to accumulate and then are
declared In the form of a stock divi
dend, the homesteaders get nothing
and Walakea takes it all. Meantime
and moreover, under the terms of the
agreement between the refinery and
the planters' association, it is express
ly stipulated that no dividends are
to be, paid by the refinery for the next
four years. . .
Loss on Sugar Factors Stock
Walakea Mill Company's letter con
tains the interesting statement that
we shall sell our Sugar Factors'
stock at a greatly reduced figure
over that at which we valued it
when we entered Into a contract with
the homesteaders, and shall abBorb
the loss, using what we get for it"
(the stock) "toward subscribing for
the new stock" (in the reorganized
refining company.) It is . currently
understood on good authority that
Walakea Mill and other plantations
paid $200 a share for their factors
stock and will be glad to realize $40
a share on it.
Ten million dollars is the amount
the plantations as a whole are asked
to contribute now to the reorganiza
tion. Persons in touch with the sit
uation say that another $5,000,000
will be assessed at a later date.
Five per cent is the commission to
be charged by the refining company
for selling sugar - refined from Island
raws, but of the total Island crop
there will remain 125,009 tons which
Crockett is unable to handle, and
which will have to be. sold either on
the open market or to other refineries.
LIHUE MILL TO THE FRONT
With the alterations and changes
made In the Lihue Mill since the last
season it Is now running very success
fully and efficiently.
We detailed these Improvements
some time ago while they were in pro
cess. -They have been completed in
a pair ot youthful Filipino thieves
and are now abundantly Justifying
themselves. "These additions and
Improvements put this mill well Into
the front row among the best mills in
the Islands. '
"To mailt Uniform Tiro
ihm worhmmn mutt bm
Chain-Like in Uniformity
Are Miller Tires and Men
, EVJ5NTY per cent of all the American tires are made in
Akron, Ohio. Here motorists know more than the average
about tire materials and methods.
Here the Miller regiment of champion tire builders first became famous.
And here Miller tires outsell at retail every
Mark why this weight of favor is for
Miller Tires among those qualified to judge.
First because of Miller uniform mileage.
Because these tires 99 in 100 outrun
Tires 99 Per Cent Excellent
So Miller Tires are known as Uniform
Tires. Miller achieved uniform mileage by
training crack squads to build uniformly.
These men average 96 per cent efficient.
The tires they build are 99 per cent excellent
That means that less than one per cent
ever need adjustment.
- Miller Uniform Tires are Geared-to-tht-Road.
!' Look at their sharp rubber cogs that pre
vent the wheels from slipping when you
start. . .. .
i The Miller Rubber Co. Akron, Ohio
THE BANK OF KAUAI, LIMITED
Kapaa, Kauai, T. H. i
STATEMEMr OF CONDITION
At the close of buisness, December 31,1 920
CASH and due from banks $74,93.8.33
Loans and discounts 125,460.83
Building, Fixtures, Equipment 1 2,082,35
Other Assets 7,555.51
Territory of Hawaii
. r . r tv . SS
county or rvauai
I, Karle B. Morgan, Cashier of the Bank of Kauai, Limited, do solemnly swear
that the above statement is true to the best of my knowledge and belief.
KARLE B. MORGAN, Cashier
Subscribed and sworn to before me this 3 1 st day of December, 1 920.
. J. MAHIAI KANEAKUA,
Notary Public, Fifth Judicial Circuit, Territory of iHawaii.