The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1893-01-26
ANGRY SHAREHOLDERS.
MONEY INVESTED IN HA
WAII VANISHES.
Stockholders of the Hawaiian
Commercial Company Say
Strong Things.

over elgnt Thousand shares OF stock
in the Hawaiian Commercial and
Sugar Company met yesterday 9th
inst in the law Office of Blake, How
ison & Williams and expressed them
selves very freely concerning the
board of directors, who had permit
ted the affairs of the great corpora
ton to become badly entsngled, says
the San Francisco Chronicle. From
present appearances the once strong
and wealthy company, controlling
the sugar market of the world, is
nearly wreck. The stock which at
one time commanded $45 and $50 a
share has no longer market value.
1t is, in fact, useless for speculative
purposes.
In the last report of the board of
directors, made several weeks ago,
the stockholders were told in effect
that the stock was valueless and the
corporation deeply in debt. The de-
pressing effect of the Mckinley bill
on the price of sugar, and the lack of
water, no rain having fallen on the
Hawaiian islands in a long period,
were the main reasons given as an
explanation for the disastrous turn
which affairs had taken. A financial
statement submitted was intended to
show that in no way could ruin be
averted, and that the stock once so
much sought after was scarcely
quoted at nominal figure. The re-
port came like a flash of lightning
out of clear sky to many of the
stockholders, and out of the general
roar of wrath and Indignation came
demand for an investigation.
1t appears that at meeting held
when the report was ready for pres
entation several of the stockholders
declined to accept the situation and
suggested that an assessment might
be levied and the money thus raised
be used to carry the corporation
through the financial breakers. This
was agreed to and it was anticipated
that the assessment would be about
81 share. The good people who
had invested their wealth in the Ha-
waiian Commercial Company were
Mortified by an invitation to como
forward and yield up SIS share.
This, the directors argued. would
bring $500, 900 into the treasury and
would be needed, every cent of it.
The date on which the assessment
became delinquent was fixed at Jan
uary 9th.
The levy was considered exorbit-
ant, and few days ago number of
stockholders. representing 10000
shares out of total of 100000, met
and appointed a committee to wait
on Claus Spreckels, who is popularity
supposed to have possession of 10000
shares, or a controlling interest in
the corporation, and ask him to with
draw the assessment altogether or
reduce it to 81. As Attorney Will
liams explained to the meeting yes
terday: MIR. Spreckels declined to
listen to paper which had drawn
up with care, and after investigation
of the situation, politely requested
them to vacate his Office. They left"
Mr.. Williams then set forth the
condition of affairs. 1t appeared
from his statement that the bonds of
100000 were a mortgage on the
lands, crops, etc., of the company.
Claus Spreckels was credited with
owning 100000 worth of these
bonds. They will mature in about
two years. On the bonds interest of
$4,000 was due from the company
on October list, and it has not been
paid. The bondholders express a
desire to have their money and
threaten to foreclose, making the
point that the corporation has de.
faulted in the interest.
Mr.. Spreckels also owns, so Mr..
Williams said was the general belief
$4,000 shares of the stock and had
elected majority of the board of di-
rectors, at least, in the persons of
himself and his two sons. The as
sessment had been levied by those
gentlemen and it was a question in
the attorneys mind whether or not
Claus Spreckels as director and a
representative of the stockholders
had not acted in the interest of him
self as bondholder. If the assess
ment were not paid the stock would
go into the treasury. the company
become bankrupt and property val
ued at over 100000 go to the
bondholders for 100000.
ut is a question:" continued Mr..
Williams, ''if we can get the courts
to interfere in this matter. We can
show that by the directors report
the stock is set down as being worth
nothing, and yet an assessment of SIS
is levied. The inference is that there
was no anticipation that the assess
ment would be paid by the stock
holders and that it was levied with
some Interior object"
An anxious stakeholder inquired
what could be done if the bond
holders attempted to forclose for the
defaulted interest.
But there is money enough to
pay the interest" said Jacob Glass
man holly. "Why is it not paid 2"
Then 1T came out that there was
S191 900 in coin available to pay $40
600 interest due. Everybody took part
In criticising the board of directors,
which it was said had not acted in
the interests of the stockholders in
not paying the interest.
If it can be shown that the direc
tors defaulted in the payment of the
interest to injure the stock, we can
certainly prevent this going on" said
MIR. Williams.
Several uneasy stockholders were
treasured when told that if Spreckels
attempted to foreclose the mortgage
under Hawaiian laws he conld ba