Saturday press. [volume] (Honolulu, H.I.) 1880-1885, 1883-04-28
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On Tuesday and Wednesday Of this week
there was brought 10 a hearing, before Chic
Justice Judd, a very important suit in equity
wherein the Hawaiian Bell Telephone Com
pany figure az compliments, and the Onenta
Telephone Company GLimited) Of London
England, and T.. +. Adams Of this city, a. de
PENDANTS. McssrS. Preston and Hatch appearec
for the compliments, and A. s. IIanwcll and
| s. u. Dole Tor the defendants.
/ The allegations Of the bill Of complaint ar,
briefly to the following effect That Samuel
/ Hubbard, the gentlemen a, Whose ins,anc,
our local company was organized, in the fall o
/ 1880, was the agent Of the Oriental Bell Tee
| phone Company Of Boston, and represented h
the promoters Of the local company, that the
/ Boston Company held patents upon all iclc
| phone instruments in the United States, and
that it would be impossible for company to
| engage in the telephone business in Honolulu,
without the consent Of the Boston Company.
| That he proposed to grant to the local com.
pany, when organized, the exclusive right To
use and deal in telephones in these islands,
and guarantee them against competition from
outsiders
That, in reliance upon these Representations
and promises, the local promoters subscribed
for stock in the new company, and agreed 10
issue 10 the Boston Company $40 Of the 1000
shares Of stock into which the capital Of the
company was proposed to he divided. That
four hundred and fifty Of the shares issued in
accordance with this agreement were unpaid
for, and obtained wholly without consideration
and by fraud on the part Of the present defend.
ant company Of London, in whose name the
shares were issued, the latter corporation hay.
ing succeeded to the rights and contracts Of
the Boston Company, before the formal issue
OF the shares now standing in its name, and
four hundred and fifty Of which this bill prays
may he cancelled, while admitting that the
balance 100 sharcs) were duly paid for
Tha, said representations respecting the es.
elusive right to use and sell telephones in this
kingdom were utterly false, and that the local
company has not been nor can be protected
against other importers Of such instruments.
Mr. +. =. Adams is the local agent Of the
London Company, which explains his connect.
ion with the suit.
The answer sets up in defense general de.
NAL OF the above sweeping charges Of fraud
and Misrepresentation, and AYERS the facts to
be that Mr.. Hubbard represented to the local
gentleman referred to that his company held
control of the bell telephone patents, the hand
telephone or receiver" and the Blake trans.
mittcr, used in this city. That, the limit of
his promises Of monopoly to the local com.
trolled by his company, which, he guaranteed,
would furnish them to no one in this kingdom
but the local company. That his company
supplied telephone plant Of more than Sr2oo
value, and incurred an outlay Of about 5000
in sending Mr.. Hubbard and two expert assist.
ants to this city to organize the company and
business of the local corporation. That this
skill, and the said plant, were then available
from no other source, and that such plant,
skilled assistance, and labor, in the formation
Of the company, together with the monopoly
of the genuine Bell instruments in these islands,
and the furnishing Of the same to the local
company at cost price, formed full and valid
consideration for the shares so issued to the
defendant company.
As the decision in the case is still pending
any comment upon the character of the evi.
dence adduced would scarcely be just, at this
juncture. 1t is significant, however, that
whereas only $1,000 in cash has ever been
paid into the Golfers Of the local company for
shares Of stock, t49o shares at $40 each,) the
property of the corporation is now valued at
from $40, 900 to $4,000.