The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1893-10-11
COURT CHRONICLE.
Geo. W. Macfarlane Scores Two
Points in the Waikapu Matter.

SeO. w. mactarlone scores Two
Points in the Waikapu Matter.
Chief Justice Judd, sitting in
equity at chambers, has rendered an
opinion on the unfinished case of
The Hawaiian Commercial Il Sugar
Company vs.. The Waikapu Sugar
Company. Tho original case was
one of cjectment brought by the
Waikapu corporation against the IL.
&. N >. corporation, which never
came to trial as it was ended by
successful plea in abatement. Sept.
Z, 1891, the Ii. &. Il S. Co. filed bill
for partition of the Waikapu com
mons. As Claus Spreckels held one
half of the shares of the Waikapu
company as trustee for the II. G. ~
5. Co, Geo. w. Maciarlane, owner
OF the other half, applied for and
obtained leave to appear and answer
the suit in defense OF his rights as
an individual shareholder. In
final decree Of the Supreme Court
on Sept. Il, 1893, it was stated that
either party had liberty to apply to
the Chief Justice for any further
order in regard to the partition of
the land.
Mr.. Macfarlane, on behalf of the
defendant corporation, moved Oct.
for the appointment OF three COM
missioners to make equal partition
of the land. Plaintiff asked for fur
| ther time to admit OF an amicable
division. This the Court refused
owing to the decree in question, and
because time would not remove the
deadlock in the Waikapu corpora
ton. Plaintiff objected to the mo-
ton on the ground that Macfarlane
is not now stockholder in the Wal
kapu Sugar Co., supporting this
contention with atfidavits showing a
transfer of ll9O shares of stock to G.
Il. Bishop to secure note, and the
| further transfer of these shares to
Claus Spreckels.
The Court takes up this point,
and shows distinction between a
share owner and share holder. 1t
refers to the authorities on the ques-
ton as to whether the pledgor or
the pledgee of stock is entitled to
vote the stock in corporation. The
authorities differ radically, but the
Chief Justice cannot find a single
case where the naked question as
between pledgor and pledgee-the
stock having been transferred as
security and that fact entered on
the books of the company, both
parties claiming the right to vote at
a meeting of the corporation-has
been decided"
but under the contradiction of
the authority" the Court proceeds
further on, am of opinion that it
is better to follow the acknowledged
custom of this country, and hold
that where the transfer plainl y ap-
pears of record to be as security
only, the pledgor may vote the
stock"
Further, the Court cannot see
how the question of Macfarlanes S
right to vote the stock can affect
his right to proceed with the parLl-
tion under the leave granted by de-
cree of the full Court.
1t appeared by the record that
Macfariaue pledged the stock in
question on Dec 81, 1890, nearly a
year before the bill for partition
was filed, and a note having been
> made Of it on the stock hook of the
) company by its officers, yet no oh,
lection was made to Maciarlane's
appearance as stakeholder OF the
Waikapu Sugar Co.
Independently, therefore, of his
: right to vote it," the Court con
cludes, she has the right to proceed
with the motion for partition i'll the
suit. For this reason | over-rul,
the objections, and the parties may
proceed to nominate commissioners
[ in accordance with the notion"
r +. NJ. Hatch for plaintiif; A. S
Hartwell and G. l.. Carter for de
fendant.
: This afternoon the Chief Justice
, is hearing argument on the Wal
: kapu Co.'S claim on the Hawaiian
= Commercial & Sugar Co. for an ac
counting of proceeds, issues and pro
fits from the land in dispute since
= the beginning of these proceedings