The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1884-06-11

A special meeting Of the Honolulu Chamber o
Commerce was held on Wednesday morning. Jun
9Th, to receive the legal opiouion Of Mr.; Preston
in regard to the Bill to incorporate the HaSaiial
| National Bank.
Mr.. Preston's letter, with notes and opinion
| was as follows:
HoSoIuIu, June srd, 1854
| W. W. Hall ESQ.
Secretary of Climber Of Commerce,
Dsgr Sir: Herewith forward notes and opinioi
on the legal effect Of the National Bank Act, a
printed.
It appears 10 me that powers asked for, nigh
cause the formation of so dangerous character
commercially, as to prevent all outside competition
the exemption from license fees and taxation De
ing such discrimination IN favor of the Cor
poration, as to preclude other persons continuing
business The loss TO revenue, would be 50 grea
that heavier taxation might be required.
The incoporators may not have in tended ths
effects alluded to- but in my opinion the Act clearly
gives the rights, powers and immunities have
mentioned Yours Truly. EDWARD PoREsTS
An Act to incorporate the Hawaiian National
Bank
Sections /, ., and g. 1t does not appear from
these sections that the proposed Incorporators and
Directors are stockholders Subscribers for stock
or that 1t Is even Necessary that the Directors
should be stockholders.
Sections 4. The term current or lawful money
of the Kingdom is explained by Section q TO be
" gold and silver coins of the Hawaiian Kingdom
and the gold and silver coins Of the United States
oeCIlOu .. Limit OF NADlllty-lue llhDlllll VI
stockholders Is not unlimited in the ordinary and
legal meaning of the expression.
The section merely provides that each stock
holders Is to be liable for his proportion of the
debts, and 1t may be that only few Of the Stock
holder would turn ont TO be solvent-so that the
creditors would suffer TO the extent Of the deficiency
occasioned by the insolvent shareholders
Section 6. d-This subsection gives unlimited
borrowing powers.
s-By this subsection the Corporation may lend
any moneys deposited or borrowed without any
security whatever.
g--It is not within the scope Of ordinary bank
ing companies, who ought not to hold the socu-
rites mentioned, except security for advances.
This subsection, as drawn, would cover the right
TO speculate in stock, &c.
to These subsections empower the eorpo-
ration to carry on every business, whether whole
sale ,Or RETAIL TO carry the cOasting trade, to
purchase franchises for railways, DC, and TO run
aud manage the same, and generally to carry on
business in all parts of the Kingdom. to act as
Trustees, DC, for any person or estate, and by
Sec II it is provided that the Corporation pay in
lieu of all taxes imports, aud licenses Except taxes
on real estate,l one per cent upon the average
annual amount Of circulating notes delivered TO IT..
The Corporation thereby escapes the Bankers
license all wholesale, retail and spirit licenses, all
coasting licenses and taxes upon personal property
And by the same Section IL, the money received
by the Government for the authorized tar is 10 be
applied not for the general purposes Of the Gov,
eminent, but towards the cost of dies, plates and
printing the notes to be issued by the Corporation
so that it may be the case that no revenue what
ever would be derived from the tax.
SEC. S-Ihe circulating notes to be issued under
this section are to be equal in amount to the par
HliHe of the bonds deposited.
If these bonds are payable in U. S. gold coin,
then it is my opinion, following the decision Of
the Supreme Court, these notes should be payable
In u. 5. gold bat by Section 10 this construction
does not appear TO be contemplated, customs
duties are not to be paid by these notes. neither
principal nor interest of the public debt.
The Act seems 10 contemplate the right of the
Corporation 10 reissue its notes, although no e1-
press provision Is made for that purpose.
SEC. ISIS in cuutrayentiOn Of the existing laws
which are not expressly repealed, and II is not
imperative on the Minister of Finance to take Sc
curity for public money deposited, the corporation
may have the of the government funds, and
may issue its own notes in payment of government
debts, which notes can only be realized in case Of
default in payment, by the proceeds OF the bonds
deposited rs security, which sale may be delayed
for nine months after default, and the bonds can.
not then be sold under par.
And this time and procedure may be extended
by legal proceedings.
The bill contains no provision for register of
the stockholders, for inspection nor for the publ
cation of any statement Of its and liabilities.
The corporation L. perpetual and the amount Of
property real and personal which 1t may own at
any time Is not limited, as Is necessary in or
binary corporations formed by charter and there
is no restraint upon the amount Of debts il may
incur or owe at any one time, Is also required
in ordinary corporations.
The only power Of inspection contemplated by
the bill is the inspection by the corporation Of the
government books and the penal clause section Is
appears TO apply only to government officers and
not to the officers of the corporation.
EDwAHD pRrsroS