The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1890-08-22
SUGAR TRUST SWlNDLE
Outside Certificate Holders 'in
the Soup"
The American Refinery
Not a Trust Asset.
No Exchange Of Certificates fur
New Stock,
SAN Francisco, Aug. 10.

DetullS ID Tue programme VI tne
Sugar Trust which have come 10
hand since the departure of the Ma
riposo's mail confirm all that was
set forth in the last letter on the
subject. 1t appears as if it had
been deliberately planned that the
holders of sugar certificates on the
Islands and anywhere abroad should
be prevented expressing any opinion
on the plans of the Trustees. Suit
was brought in Kings County STU
preme Court (Brooklyn) on the 22d
July, and certificate holders were
required TO file All answer to the
complaint IN twenty days. AS the
first available mail for Honolulu is
by the Australia, August 10th, it Is
clear that the holders of sugar trust
certificates on the Hawaiian Islands
are shut out. Nor are they made
parties to the suit in any way. The
suit is friendly one, brought by
Harry o. Havemeyer, Franz o. Mat
thicssen, John f. Searles, Jr., Ju-
Illus a. Stursberg, Theodore \.
Havemeyer, Joseph B. Thomas,
John Jurgensen, John T.. Parsons,
William f. Havemeyer, William
Dick, and Charles o. Foster, and
the defendants are the Brooklyn
Sugar Refining Company, the Have
meyers & Elder Sugar Rein
ing Company, the Bonner and
De Castro Sugar Refining Com
pany, the +. o. Matthiessen &
Welchers Sugar Refining Company,
the Havemeyer Sugar Refining Com
pany, the Dick & Meyer Company,
the Oxnard Brothers Company, the
Moler & Sierck Company, the Bos-
ton Sugar Refining Company, the
Standard Sugar Refinery, the Bay
State Sugar Refining Company, fine
Forest City Sugar Refining Com
pany, the st. Louis Sugar Refining
Company, the Planters Sugar Re-
fining Company, the Louisiana ST.
gar Refining Comdanp, Isidor
Wormser, Simon Wormser, John p.
Spalding, Henry Il. Reed and NJ.
w. Spalding.
Messrs. Wormser of New York and
Messrs. Spalding and Reed of Boston
have been made parties-defendant,
as representing outside certificate
holders, but they are in the SWIM
and of course will offer no objection
to the Trustees plan of winding-up,
distribution and reorganization.
! 1t will be noted as significant that
the American Sugar Refinery is not
one of the concerns over which the
Trustees claim to have any control.
In fact. it is treated as if it were not
Trust property. This is probably
owing to the litigation in this State,
over the American Reinery's char
ter, in which Havemeyer & Elder
swore that they had bought the con-
Germ for S750,000, the Trust having
given Sl,250,000 IN certificates for
it. 1t does not appear upon the
record that the Trust was paid
S75O,000 in their own certificates,
but this is probable; anyhow. the
transaction shows dead loss 10 the
Trust of half a million dollars, and
the American Refinery disappears
from the assets of the Sugar Trust
as completely as if it had never be-
longed to it. Judge Wallace, no
doubt, does not believe this was a
bona tide transaction, and holds
that the American Refinery is part
of the Trusts assets. The Supreme
Court is yet TO be heard from on the
subject. Should its decision sus-
tain Judge Wallace there would be
something left for distribution after
the Eastern and Southern retineries
have been sold for q nominal figure
to their original owners under an
order of the Court, and certificate
holders are called upon to pecke,
their experience.
| 1t is further clear that the plan OF
reorganization does not contem.
plate taking in outside certificate
holders. The original members OF
the Trust will reorganize as cor.
poration and issue stock, but there
is no intention disclosed to ex-
change such stock for Sugar Trust
"stiffs." This is evident from thu
complaint on file, and explanations
by John f. Searles, jun. After re,
citing the result of the litigation
over the North River Refining Com
pany, the complaint goes on to state
that the other refneries organized
under the laws of New York are
equally liable to have their charter.
withdrawn, therefore to avoid com.
pulsory winding up under suits by
the Attorney-General it had beer
resolved to voluntarily disincorpo'
rate said refinery companies.
The deed under which the Sugar
Trust has operated is appended to
the complaint. The suit is brough,
in Kings County because the prop
erty of the trust is mainly situated
there.
There has been rumor on Wal
Street that the Trustees took hurriot
action TO prevent reorganization
by outsiders, and as they now con
troll a majority of the stock the issu
ance of circular to certificate hold
ers is only matter of form. The,
cap carry their plans through whe
| tho, al,a.a Aa dfs.an, NJ. .,ot