The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1889-05-10
THE AMERICAN REFINERY.
Gel It's Chartcr-Witncssc who Knew
Nothing.

the name Of the people to secure the
forfeiture Of the corporate franchise
Of the American Sugar Refining
Company Of San Francisco, on the
ground that it had entered into an
illegal combine, or trust" began
before Superior Judge Wallace on
April 10th.
The following summary Of the
evidence is from the Examiner:
Mr.. p. G. Jones, whose deposition
was taken before his departure for
Honolulu, stated that he originally
owned fifty shares of stock in the
American Sugar Refinery Company,
representing a par value of $4,000.
In February, 1888, he met John Z.
Searles Jr. of New York, to whom
he delivered his fifty shares, Searles
promising that he should receive in
lieu thereof seyeuty-fve shares of
what were mentioned as trust certi-
hcates," issued by the Sugar Re
tiners' Company, the value OF these
certificates to be 81, 800. The prom
Use was carried out. the certificates
being deposited with the Hawaiian
Consul in New York to Jones' credit,
and finally sold for him for the sum
named. $500 In the meantime
he had received three dividends, the
first of IL per cent. upon the par
value of the certificates, the second
- and the third per cent. The
witness said that he had handed his
stock to Mr. Searles because he
found that all the other stockholders
in the American Company had done
So He thought the only person now
holding the stock of this corporation
was Searles, who had it all.
Ex-President Welch Of the Amer
lean Sugar Refining Company gave
testimony rather more complete in
detail. He had become acquainted
with Searles about the same time
Jones had, and, like the latter, had
handed over his stock in the San
Francisco corporation, 600 shares in
all, representing money to the
amount of $4,000. All the other
stockholders did likewise, and after
SearIes had obtained it all two certi-
ticates, representing $4,000 shares of
the Sugar Refineries Company, of a
par value Of 500 each, were deliv-
cred to Fred W. Zeile, Secretary of
the California Company, having been
issued in the name of two trustees
for the benefit of the original own
ers of the transferred stock. The
exchange was at the rate of one and
One-half shares OF crust" stock for
one share of the original company.
The two certificates were afterward
returned to Searles, and he gave
Zeile a certificate of trust represent
ing the amount due to each stock
holder. These were distributed by
Zeile, and Welch fell heir to one,
which he produced. This certificate
was found, upon examination, to
call for LOO and odd shares-Of a
value considerably, about $4,000 or
$4,000, in excess of what he was
strictly entitled to under the agree
ment already mentioned.
Ex-President WEIGH denied that
the American company had been
financially embarrassed at the time
the stock was transferred, stating
that there was S2,50O,0O0 in the
treasury at the time, which, he con-
sidered, placed the value of the
stock considerably above par. He
stated also that from February, 1888,
the date of the transfer, to January
81, 1889, VIXEN he resigned the Presi-
dency, the American Company had
transacted business on its own
account, buying, refining and selling
sugar, realizing thereby large sums.
He was asked what had become of
this money, but stated that he did
not consider it anybOdy's business
but the cOmpany's. He admitted
that no dividends had been de
clared.
Mr.. Zeile said he sold his stock in
the American Refinery to John E.
Searles Jr., receiving for each share
one certificate and a half Of the Su-
gar Retineries Company. Mr.. Scar
les office is at liz Wall street, New
York. The value Of Mr.. Zeile's stock
was about $4,000. He was careful
not to refer to the Sugar Refneries
Company as a trust.
When the transfer of the Ameri-
can refinery was made to the Sugar
Refneries Company, Mr.. ZeiIe, as
Secretary and Treasurer of the Anne
rican Sugar Refining Company, de-
liverel $3.50 shares of its stock to
MIR. Searles. Fifty shares We're held
out-ten for each of the five Direc-
tors-at Searles' request. Daily re-
ports of receipts and disbursements
of the American refinery are sent to
Mr.. Searles. At the last election he
was chosen a director of the Ameri
can company, and resigned several
weeks ago. r.. II. Sprague was put
in his place, and also resigned after
one meeting. The other directors
are w. W. Montague, w. H.
Diamond, Robert Oxnard aud +. w.
Zeile.
Searles, who held a power of at
torney from the Havemeyers and
others in the trust, voted the $3.50
shares at the last election.
Mr.. Zeile said that since the sale
of the American Reinery's stock to
the trust he had received four divid-
ends as follows: June, 1888, Il per
cent; October, 1888, . per cent;
january, 1889, 4 per cent; and April,
1889, :! per cent.
Notwithstanding he was pressed
by the attorneys and the Court, Mr.
Zelle was unable to state how much
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