The morning call., 1893-11-24
CLAUS SPREcKELS ACCUSED.
The Youngest Son Charges There
Was a Conspiracy.
DEPRIVED OF HIS SHARES.
Lawsuit Over the Hawaiian CONNER
cial and Sugar Company-Unne.
cessary Bonds Issued.

A formidable suit was filed with the
County Clerk yesterday afternoon by H.
A. WOolley for G. A. Spreckels against
the Hawaiian Commercial and Sugar Com
pany, Claus Spreckels, j. d. Spreckels. A.
j. Spreckels, w. d. K. Gibson, M. ii.
Weed. Philip NJ. LiIienthal and Meyer
Ehrman, for an accounting and for dam
ages.
The plaintiff. c. a. Spreckels, claims to
be the owner of 900 shares in the Hawaiian
Commercial Company, 200 of which stand
in the name of Claus Spreckels and $50 in
the name of II. l.. Dodge. Mr.. Spreckels
has demanded that the certificates for these
shares be transferred to his name, but
alleges that the defendant corporation, lat
the instance of the said defendants, Claus
Spreckels, j. d. Spreckels and A. b.
Spreckels. and pursuant to G fraudulent
conspiracy" have refused to make the
transfer.
On May 20, 1885, the defendant company
issued 100 bonds. the payment of which
was secured by mortgage executed aud
delivered 10 Philip n. Lilienthal and
Meyer Ehrman. The whole of these
bonds were sold to the defendant. Claus
SpreckeIs, after which 200 bonds were can
celed. leaving, however. Claus Spreckels
the owner OF more than two-thlrds OF these
instruments. 1t is claimed that no meet
ing of stockholders was ever held author
iZing the Issuance of these bonds. nor was
the consent of persons holding the larger
amount in value of the company's capital
stock obtained as required by law.
1t is further claimed that no certificate
in the matter of the said pretended bonded
Indebtedness was ever signed by the
chairman or secretary OF any meeting of
stockholders, nor was any such certificate
filed with the County Clerk, as required
by law. Claus Spreckeis is alleged TO have
had full knOwl edge OF these facts at the
time.
The affairs of the Hawaiian Commercial
and Sugar Company are set forth in the
complaint 1t is stated that on October l,
1892, the company was and has ever since
continued TO be solvent, possessing assets
of the value of $3.50, 900, consisting OF real
estate valued at S770. 500; tools and uten-
sls, valued at SIS. 367 so; horses. mules and
wagons, valued at S41,371 66; furniture,
valued at S1790 50; buoys, lighters and
harbOr frontage, valued at S9267 96; the
Hamekua ditch. valued at 1886 90; build
lngs and i'm provements. valued al $685.
800 So; steam plows, value S53, ,504 IS; mill
buildings. valued at S1.050 410 SO; an asset
known as the construction account, valued
at S3Sl, ,355 48; fencing, valued at $685.
2S2 28; the Pun Meme reservoir. valued al
S17,55 75; the Scotch mill, value $3.50;
the kapalan reservoir, valued at S35. 7S9 81
the Waikee ditch. value S171, ,997 81; rail-
road valued at S3l4.7 .755 70; the Camp No.
Reservoir, valued at S2342 40; cash on
hand at tie cOmpanv's office in San Fran
cisco. amounting to S663 81; stock of goods
IN the kahului store. amounting to S94,-
233 II; cash on deposit with w. G. Irwin
d Co. of opolulu, amounting to $780,
10 OIL; an account known as the Planta-
tion Office account, amounting to $40, 691 o. :;
ha Ian IN
SAT, 709 rs. And against this formida BILE
array of assets the company is said to have
had no more than $1,000 in outstanding
liabilities.
The complaint then alleges that it was
quite unnecessary to issue the bonds in
question. Claus Spreckels, j. D. Spreck-
els and A. B. Spreckels were in full con-
troll OF the c0mpany's affairs. and are
alleged to have cOnspired together TO de-
fraud the stockholders. using the Issuance
OF these bonds as a means to that end.
Claus Spreckels is alleged to have caused
one John A. Buck to pretend to loan the
sum Of 100000 in cash TO the company,
The truth being that MIR. Buck neither ad-
vanced the money nor had the money to
advance.
Claus Spreckels, as a partner in the firm
OF w. q. Irwin & Co., is stated to have
caused that firm to make default in pay
ment OF an indebtedness OF $50 600 to the
Hawaiian company in pursuance of his
fraudulent policy, although the firm was
well able to meet the demand. This was
in October, 1892. In addition to this the
sum of S15O,0O0 was expended in unneces-
sary repairs at the instance of the three
defendants Spreckels. and large stores of
merchandise have been purchased without
any just cause or reason therefor.
The main cause CT complaint lies In the
bonds, or, as they are styled, ''the pre-
tended bonded Indebtedness" of the COM
pany. The defendants are alleged to have
willfully caused the Hawaiian company
to default in payment OF interest on the
bonds, and to have caused Messrs. Lilien-
thai and Ehrman TO threaten foreclosure
on the company's assets, and it is even
alleged that Lilienthal and Ehrman have
been requested by Claus. j. d. and A. B.
Spreckes to bring a foreclosure suit in
the courts Of the Hawaiian Islands. By
this means the company's property is in
danger of being lost, to the extent in value
of S4.000.0O0.
Wherefore the plaintiffs ask for an in.
junction restraining the bondholders from
proceeding in the matter until the COM
pany's affairs are thoroughly Investigated !;
for transfer of the shares named in favor
OF the plaintiff, c. A. Spreckels, and for
punitive damages by reason of the nefari-
Gus conduct of the defendant directors.