The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1882-10-04
Won XVII No II
Supreme Court OF the Hawaiian Isianas-
In Equity.


cello-.
uY THE COURT.
ivy bills IN cqrity were FLED by TIC pel-
TONERS. In the FIRST one 1t is alleged that the
petiucaers arc the lawfully appointed assign
ecs m bankrruicy Of Thcrnss Spencer Of Hilo,
Hawaii, who was adjuised bankrupt on the
18Th CT February, lsSl that since about the
year 1850 said Spencer has been engaged IL
- business Ct suEsr planting in Hilo; that
tTcu that date @ the filing q the bill the real
estate q said Spencer has been subject 70
various mortgages 70 the fun value; that be
las also owed large amounts Of unsecured
Debts and that from $50 be has been insolv-
eut that % the Sgb Of November, ls65, Chas
y. Spencer, brother cf said Thomas Spencer,
purchased @ trac, Of land called Waipuralei,
situate in HilC, Hawaii for $3.50 an9-that the
purchase was IN fact made by Thomas Spencer
and the consideration paid by him, but the
deed taken 10 the name Of Chas. y. Spencer 50
that the land might not Dc answerable for the
det.s % Thomas Spencer that Thomas Spencer
has had possession and c5utrcl Of the land to
the present tine; that IN July, 1876, Thomas
Spencer took out Q ROYAL Patent for the land
and paid The Government communication there
chs ih1i Charles y. Spencer gave to Thomas
Spencer az irrcyocable power Of attorney,
.
mortgage, or otherwise dispose Of tine prem
is1s, ard also 70 possess and enjoy the same,
and that by = secret and unrecorded deed
dated the 18th Of December, lS76, Thomas
Spencer as the attorney Of Cbas. y. Spencer
conveyed tie said ahupuaa Of Waipunaiei for
the consideration Of II 90 10 Thomas Spencer
Do, who Is alleged 10 BE- the Legitimate son Of
Thomas Spencer, then aged about seven wears;
that In ISIS tie said Thomas Spencer As
guardian II Thomas Spencer IT,, made lease
@. tie said premises which IS now held by L.
r. Hind Of hchal5, that So far as tie legal
ttlG Of this land was iu c. y. Spencer. he held
. as trustee for Thomas Spencer and SO far as
The legal title rs nov in Thomas Spencer Jr, It
IS as trustee for Thomas Spencer; that 81 the
tine the deed was made 90 Thomas Spencer IT.,
Thomas Spencer was the owner Of the land.
thai no valuable Consideration was paid fOl it
by j. Spencer j.; that as I. Spencer vas then
and lad been for long time ils0iygnt, the
transaction was fraudulent as % his creditors
and Intended TO conceal his own interest
therein, ard g. put it in @ condition so It could
not be levied upon by his creditors.
The bill prays or q discovery Of the titles
and papers and Of certain material facts. that
G, \. Spencer and /, Spencer il. may he de-
creed 20 hold the premises as trustees Of ThCs.
Spencer, that the deed Of December 18th,
ISIS, &c IbCs. Spencer II. may lie declared
void Is to the creditors Of Tics. Spencer and
that e. y. Spencer and Thcs. Spencer il. may
he ordered 70 convey their title in the estate
90 the petitioners, etc, etc.
Tie second bin contains similar allegations
IS TO the appointment Ct the plaintiffs, As
lssisuets in bankruptcy Of Thomas Spencer
that Ia September. lS77. Thomas Spencer
purchased az auction Of the Hawaiian Govern
ueut O tract Of land az Laupahgeh0c for Sl,llO.
containing 6s lilo acres aud caused the Royal
Patent for sane to be made In the name Of
IhCs. Spencer jr.; that said Thomas Spencer
was thea and for a long tine hsd been ins5lv-
enti that 20 consideration was paid by Thos
Spencer Ir., that the money paid for the land
Wls IhCs, SpsuCcrs, and the conveyance /
taken IN tie name IF Thomas Spencer IT,, in I
order g dstIaud the creditors Of 7. Spencer
The bi.l prays iJr The same relief. substau-
TALLY, IS the first BILL 7. Spencer answers !
70 the first bill, in substance that he admits |
the allegations Of his bankruptcy and the
appointment OF plaintiffs as assiguees; but de- |
mes his Insolvency since 1870 or that his |
estate has been from 1850 to the present en-
elubeIed with mortgages To the full value. |
admits that the land of Waiuunalai was pur-
chased with his own money and pu; in the |
name u Chas. y Spencer, bat not 60 svada |
the payment Of Lis debts, bat that his lTb0s |
SpenceT.s 81 wife might not have control Of the |
l1nc, ard that az the date Of tie purchase |
AN0F, : 1861 be was not indebted e any one, /
vas amply able to Fgy bis debts and was not |
ins1lYclt; that lu irrgy1gabie power Of attJr- |
lgy % sell aud dispose Of the land was given
y me same tine IS the purchase by CLas Y /
>peuccr 80 him. Jut being lost, another one was |
given 10 NCy.N, S7g: admits bis ucssessigu /
90 the land, and that the payment Of the Gov I
eminent Communication was made bv money Of |
i. Spencer j.; admits tie transfer Of the land /
% i. Spencer il. by q. y. Spencer BY Thomas |
Spencer, lls attorney, and the execution Of /
Tie lease IS guardian. denies that Charles y /
Spencer vas his trustee, CT that 7. Spencer II.
Is lis trustee, OF that tie CCuveyauces are |
fraudulent as g. bis creditors, or were intended
70 conceal bis cv-n interest in the premises, OF
% Uut them beyond the reach Of bis creditors
producss the deeds asked for: and, among |
other specific replies 60 iuterrugatori-s, saws |
shat the amount Of his property was in 1876,
equal % the amount Of his debts and 100 per
cent. more, and that It was SO the wear before:
that up % ISIS OF 1879, lis property has
eIuallec tie amount Of bis debts That he
nrst took possession Of Waipuualei l2th Of
December, ls76; flat c. y. Spencer never
bed the premises II t-ust fer him: that C. y.
Spencer never demanded I'll account 81 the
rents and prcfis; that no money was paid to
e. y. Spencer On account cs Thcs. Spencer Il.
Tor tie purchase q the land.
To tie second bin Thcs. Spencer answers
that the purchase ct the land at Iaurzhoehosi
Of the cover neat for 81, no was made with
the money Ct I. Spencer IT,, ard admits, that
n vas ins9ivsut IN ISL, and had been SO fer
. long time before.
Tie tFo cases were tried together and j.
EaS asrsed that the evidence adducei Is 10 he
applied Z ere case q the other. as It nay be
applicable.
The hrst question % issue is whether Th0s.
Spencer vas inso.veai IN 1870, lsT6 OF 1871.
/ feel 70 doubt that he vas fusolvzut. II
have to prove this FIRST bis own sworn ad-
mission. Erlm the records Of this Court it
appears that ILcs. Spencer and Lis uifs's
trustees, under deed Of separation. dated
The seth Of December, ssi, presented to the
Justices Of the supreme Court, al amicable
Submission for a reduction OF the annual allow
1nce agreed to he paid 10 Mrs. Spencer. the
payment Of which was made q charge upon
Hr. spe1ccT's real estate. In tins Submission.
which is sworn % July 9Th lsTE. Mr. Spencer
declares that g by reason Of III success In bus
mess, tbs said Ihos. Spencer is at present IN
s5iFlut, beng indebted In large sums ofI
money, etc" The Court reduced ihc allowance
from 5000 % Sl,5Og. / refer alsa 10 tie
admission Of insolvency 10 the sworn answer
20 the seccud I'LL above alluded to, vhicl d
sot done ~ mistake is strong evidence.
INlrE Is also ID evidence tie -rgs-rrfs III +f7