The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1893-12-05
(Continued).
Row in the spreccels Family

ROw in the Sprec8,els Family.
There is litigation in the family OF
Claus Spreckels, the sugar king. G..
n. Spreckels, the youngest son, has
begun it by filing complaint against
his father, Claus Spreckels, charging
that the latter has conspired with
John ID. and a. y. Spreckels and other
directors of the Hawaiian Commercial
and Sugar Company to crowd the
plaintiff and other stockholders out of
the corporation. Allegations of fraud
3 To secure the desired end are made,
with various revelations in connection
with the business OF the sugar COM
pany.
Claus Spreckels ahd the two elder
sons are asked to pay S2,50O,0OO to the
corporation as damages for their
fraudulent conspiracy, and a demand
Is made upon the Court for an injunc-
ton to prevent the carrying out of the
plans.
III. NJ. Woolley is associated with G.
A. Spreckels as a plaintiff, he holding
five shares of the capital stock, while
the latter claims to hold 900 shares.
Philip y. Lilienthal, of the Anglo
Californian Bank, and Meyer Ehr-
nan, another local capitalist, are
hade defendants in the suit, as they
hold mortgage on property of the
company, and the plaintiffs want an
injunction to prevent foreclosure, al
leging that such action is contem-
plated as part of the fraudulent
scheme to require possession of stock.
w. ID. K. Gibson and NJ. III. Weed,
two OF the directors, are also named
as defendants, but in the complaint
they are declared to own no stock,
being merely dummies ia the hands
of Claus Spreckels and the two sons
associated with him.
G. A. Spreckels claims that he owns
900 shares of the capital stock of the
company, 700 of which stand on the
books in the name of Claus Spreckels,
and the other 200 in the name of L. III.
Dodge, but that the directors have re-
fused to transfer the shares to him,
pursuant to the fraudulent conspiracy
to gain control of the stock.
On May 20, 1885, the company issued
100 bonds of $1,000 each, under date of
April ], 1885, and on the same date de-
livered to Philip n. Lilienthaf and
Meyer Ehrman a mortgage to secure
the payment of the bonds. These
bonds were all sold to Claus Spreck-
els, who now holds more than two
IniTd<, 200 havin-'b-- e 81 ucelled.
The bonds are tfC De. . .4tSr. on April /,
1896, drawing zadyr-cent. interest
1t IS alleged that no legal meeting |
of the stockholders was ever held TO |
the bonds, that the required |
two-thirds of the stock was not repre- |
sented by the men who issued the |
bonds or the mortgage deed, that no |
certificate in the matter of the bonded |
Indebtedness was ever filed by the |
chairman or secretary OF any directors
and that no such certificate |
was ever filed in the County Clerks |
Office.
Claus Spreckels, it is charged, had |
full knowledge of the facts.
1t was unnecessary, the plaintiffs
to issue the bonds, and that |
action was taken merely for the pur-
pose of acquiring control of all the
stock. In carrying out the conspir-
acy, it is charged, Claus Spreckels
John a. Buck to pretend
to loan 100000 to the company, and
that the money that Buck pretended
to advance was in reality loaned by
Claus S'preckels to his own company,
the transfer of the money being made
Buck.
Further, the three Spreckels de-
PENDANTS spent Sl50,000 in unneces-
sary Improvements at Hawaii, and
$50, 900 for the purchase of unneces-
sary stock, the object being to use up
the funds so that there might appear
to be a lack of ready funds. Stock in
other corporations was bought for the
same purpose. In October, 1892, it was
pretended that the company could not
pay interest on its bonds, with the in
tention of foreclosing, to the injury of
he other stockholders.
Lilienthal and Ehrman, it is charg-
ed, have been requested by the Spree
ISeIs defendants to institute in Hawaii
n suit to foreclose the mortgage they
hold, so that the property can be
bought for Claus, J. d. and \. b.
Spreckels, there being no law in
Hawaii by which such fraud could
be prevented. The property so mani
pulated would amount to S4,000,OOO.
The Hawaiian Commercial & Sugar
Company, as shown by the plaintiffs,
possesses assets of So, 100000, as fol-
&C.: -
Real eState..-.... SIIO,ooO w
Fools. etc 1887 so
i nd 1nS j