The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1888-09-07

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 f81 18s. 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 a 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 ~ 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 III this instance, we could not waive it in
future; but, a 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
IL Co. referred to " separate account of
this transaction, but do SO now accom-
,
gular TO say, no account or receipt what
ever was enclosed to me. l have not re-
piled to this letter.
On the Goth June, 1888, received from
Mr.. IL. r. Armstrong a letter without
date of which the following is a copy:
- Great Winchester street, London f.
Sir:-I had at the latter part of last year
the honor to forward to Your Excellency
an account received by me from Messrs.
MathesOn Il Co. showing the accumulated
interest upon the amounts subscribed for
the Hawaiian Government 6 per cent. loan
during the period of their deposit in Lon
don. The amount at credit of this account
was G704 IS. Cd.
| 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 coca
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 t1O0 from the printers, and the legal
charges | have compounded for so guineas,
One-third of the original claim. The bal
ance of tl52 los. Id. l have handed back
to Messrs. MathesOn q 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 5 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 statement of disburse-
mentS protesting to account for this E704
IS. Cd, and. showing an amount at credit
of 1852 los. Id, with a remark " 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. l 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. l 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 committee
of the Legislature.
| should say that at the end of last wear
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,
out his enquire nave not resulted III any
thing satisfactory. also requested him
to get legal opinion as to whether a suit
against Mr.. Armstrong for the whole or
any part of the els 900 would be maintain
able, and with any prospect of success.
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-
bable cost of such a suit.
The proposal of Messrs. Matheson & Co.,
to charge 23 per cent. commission on pay
ments of interest instead of 1 per cent. as
definitely agreed to in theirs of Dec 31st,
and further corroborated by their charging
the account with the Government on Jan
d, 1888, with l per cent. commission on
$4,000 as agreed, seems to be an unusual
proceeding for commercial or banking
house.
Respectfully submitted,
w. L. GREEN
Minister of Finance
Honolulu, Aug. 10, 1888.