The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1888-09-11


become of this f7O4 6s 3d., and requesting
| them to pay it over to Mr.. I. H. Davies,
Liverpool, to which they replied on the
| 18th April, as follows:
LONDON, 18th April, 1888.
HIS Excellency the Hon. w. L. Green,
Minister of Finance, Honolulu.
Dear Sir:-In reply to your letter of 9th
March, we duly paid over to Mr.. Arm
strong the balance of the account due in
respect of interest on deposits of the Ha-
walian loan, and hold his receipt for the
same.
The general account having been closed,
we did not think il necessary to send you
a separate account for this transaction, but
do so now, accompanied by Mr.. Arm
strong's receipt.
We are consequently without funds to
admit of our making the payment to Mr..
T. H. Davies of Liverpool, or of repaying
ourselves the balance of Ell lbs. Id. due
on the annual interest account OF the
bonds
The reference to this subject has drawn
our attention to the fact that a clerical
error was made in the letter advising our
charge for paying the coupons OF the Ha-
waiian bonds which was put at per cent.
1t will be manifest that such charge on
so small sum will not pay office ex-
penses, and, although in this case we shall
make no change, you will please note that
our charge in future will be 2& per cent.
We must also point out to you that it is
not customary to remit for payment Of in
terest in bills to be discounted.
Although we have charged no commits
sion IN this instance, We could not waive it in
future; but, as rule, the cash for interest
ought to be in the hands of the agents
reasonable time before the coupons are
payable.
We have the honor to be Your Excel
lency's obedient servants,
(Signed) MATHEsoN & Co.
1t will be observed that Messrs. Matheson
& Co. referred to separate account of
this transaction, but do so now accom-
panied by Mr.. Armstrong; receipt" Sim
gular to say, no account or receipt what
ever was enclosed to me. | have not re-
piled to this letter.
On the 18th June, 1888, received from
Mr.. H. r. Armstrong a letter without
date, of which the following is a copy:
q Great Winchester street, London E.
Sir:-I had at the latter part of last year
the honor to forward to Your ExceIlency
an account received by me from Messrs.
Matheson & Co. showing the accumulated
interest upon the amounts subscribed for
the Hawaiian Government per cent. loan
during the period of their deposit in Lon
don. The amount at credit of this account
was f704 IS. 3D.
l have now the honor to hand to Your
EXcellenCy statement OF account showing
exactly the items representing the DISPOSE
ton of the aforementioned sum, with
vouchers for most of them; and, in doing
So / would explain that the apparent delay
in rendering this statement has been Occa-
stoned by my endeaVors to effect reduction
in some of the charges, notably in the cost
of altering the plate for the amended bond,
and The legal expenses attending such alter
alton. In these endeaVors | have sue
ceeded, and have obtained a reduction of
over f100 from the printers, and the legal
charges | have compounded for so guineas,
one-third of the original claim. The bal
ance of ESP los. Id. have handed back
to Messrs. Matheson & Co., who will doubt
less account to Your EXCellency for this
amount.
Messrs. Matheson & Co. fully satisfied
themselves, with the assistance of their
lawyers, that the expenses met by the ex-
penditure of this money were those spe-
officially authorized and provided for in
Clause OF the Loan Act, and will, SO they
inform me, address Your Excellency direct
upon this subject.
| have the honor to be, Sir, Your Excel
lency's most obedient servant,
(Signed) H. r. ARMSTRONG,
Consul-General.
Together with a statement of disburse-
ments protesting to account for this f704
IS. 3D., and showing an amount at credit
of E152 los. Id, with remark 6 paid to
Messrs. Matheson & Co.." a copy of which
statement is hereto appended. 1t will be
observed that all dates in this account, as
in the letter enclosing 1t, are studiously
avoided. | would further remark that in
stead of vouchers to most of the items"
being inclosed in the letter without date,
there was not a single voucher. | pur-
posely avoided answering this letter, as
did that of Matheson & Co., April 18th,
until placed, as do now, the whole mat
ter and correspondence before a committee
of the Legislature.
l should say that at the end of last year
and with the advice of the Cabinet COM
municated with Col Griffin, of London,
requesting him to endeavor to get accounts
and explanations from Mr.. Armstrong,
but his enquiries have not resulted in any
thing satisfactory. | also requested him
to get legal opinion as to whether suit
against Mr.. Armstrong for the whole or
any part of the f15, 900 would be maintain
Your committee have seen the written
opinion which seems very clear is in accord
with the views of the Cabinet. and indicates
every prospect of success.
Col. Griffin also gives information of pro-
babe cost of such suit.
The proposal of Messrs. Matheson & Co.,
to charge ~ per cent. commission on pay
ments of interest instead of per cent. as |
definitely agreed to in theirs of Dec 31st, |
and further corroborated by their charging |
the account with the Government on Jan. |
81, 1888, with l per cent. commission on |
$1,000 as agreed, seems to be an unusual |
proceeding for a commercial or banking |
house
Respectfully submitted.
w. L. GREEN,
r