The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1890-08-04

is is made.
The further explanation of Mr.
Scarle, jr., indicates that the in
siders will take care of themselves.
The Trustees, in their official capa-
city, edo not propose to accept any
of the responsibility in the matter
of reorganization" This is to be
left to n committee Of stockholders,
appointed by the Trustees, and it is
safe to wager that the Trustees
themselves, or their business ASSOC
Ciates, constitute said committee the
names of which have not been given
out. Meantime winding up order
and distribution of assets is TO be
secured by Searles from the Brook
lyn Court, and thus remove all le-
gal obstacles to the contamination
of the contemplated operation.
Past experience Of the swiudling
methods of the Sugar Trust leaves
little room for speculation as TO
what that operation is likely to be.
Having squeezed the specializing
public dry in Wall street, cinched
the American people in the price of
sugar, turned thousands of men
with families into the streets to
starve during an Indictment winter,
paid themselves enormous salaries
for managing the business of closed
refineries, having also divided heavy
dividends on SS5,000,000 fictitious
capital or "watered Stock" and
transferred the best refueries to in
d,vidual members of tue Trust by
hocus-pocus process of sale and de-
livery, it is only rational to suppose
that, constituting the only possible
buyers, they should be able to
"sc0op in" the balance of the Trust
property at nominal prices under
the order Of forced sale which Mr..
j. L. Searle, jr., Treasurer Of the
Trust, has applied for.
This is not pleasant news TO many
island people doubtless, but they
must have been prepared for it for
some time past. And if they suffer
they have cut the rod for their own
backs. When the Sugar Trust I'M
dertook TO "down Spreckels" they
locked hands with the Trust in that
famous wrestling bout of brains,
skill and capital. But Spreckels
has ''downed the Trust" and the
Hawaiian planters are precisely
where they started minus the Cali
fornia Sugar Refinery, however, for
which they received the now prac-
lically valueless Sugar Trust certi-
ticates in payment, and which Have
meyers and Elder have sworn be-
longs to them and not to the Trust,
an allegation under oath, by the
way, which Judge Wallace would
not believe, but which will assured
ly prevent the California Refinery
being sold and distributed as part
of the Trust property.
And the outsiders have no remedy
or redress. The Sugar Trust was
not Incorporated. 1t kept no re.
cords or books, and therefore can.
not be compelled to disclose It's
business. The end has come sooner
than was expected. But the dlsso.
luton of the Sugar Trust was lnevi.
table from the start Of its fight tc
ruin Claus Spreckels and the mora
sense of the American people. II
Hawaiian planters continue to
swing by the tail of the Sugar Trust
now that chance of escape from
their unfortunate position is pre-
sented by the legal steps taken tt
wind up its business, they deserve
the worst that can happen to them
But the instinct of self-preservatior
should cause them to break away
from such uncertain and unscrupu
lous allies.
SAN FRANcIsco, July 26.
The following despatch has beer
published to-day. 1t modities Il
some extent the foregoing comment
that is, the members of the self
constituted committee of the new
organization are named, but the
scope of its operations are not de
fined, and the circular must be in
terpreted by Mr.. Searle's suit II
wind up the business of the Trus
and distribute its property as ex
planned by himself. The object o
the committee ostensibly is TO re
organize for the purpose of protect
ing the property of the Trust which
however, is first to be distributed
To whom! If the object of tn
manipulalors of this deal is simpl
TO exchange Sugar Trust certificate
for stock in the new incorporate
: share for share, the winding-up sui
was unnecessary, because TIL
, Courts decided that the Trust itsel
, had no legal standing, and the trus
: tees in their defence pleaded that
: was not an incorporation, kept nei
, ther books nor records, held n
} meetings, and was governed by
simple agreement among its mem
, bers. That being the case, it doe
: not need decree of court To enabl
the business to be wound up, and
) the reorganization proceedings ar
t dictated by an honest intent all tha
e is necessary is to call in the Tru'
e certificates and issue corporate
a stock instead. But 1t will be founC
4 when the operation has been con
/, pletcd, that the property will hay
? shrunk so considerably that I'll
: issue of corporate stock for certil