The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-11-22
An Old Principle of Equity
Reasserted Yester-
day.
CLAUS SPRECKELS' FIGHT
A Suit Brought in Hawaii by
Gus Spreckels and His
Friends.
ENJOINED BY JUDGE BAHRs.
The Hawaiian Commercial and Sugar
Company Cannot Go Abroad to
Sue Americans.
CLAUS SPRECKELS' FIGHT
ENJ0INED BY JUDGE BAHRs.

There is now pending in the courts of
Hawaii suit brought by the Hawaiian
Commercial and Sugar Company against
Claus Spreckels, involved in which is the
ownership of 5000 acres of land on the
island of Maui. The Hawaiian CONNER
cial and Sugar Company is formed and
incorporated under the laws of this State,
the other plaintiffs, Russell ). Wilson,
Mountford s. Wilson, Charles s. Wheeler,
Rudolph Spreckels and B. j. Hoffacker,
are citizens of this State. and the de-
PENDANT, Claus Spreckels, is a citizen of
this State. The defendant, under these
circumstances, has a right to have case
against him tried in the State of which all
parties are citizens, and Mr.. Spreckels has
invoked the aid of one of the principles of
equity which guarantees this right. He
has secured an injunction from the Su-
perior courts of this City, enioining the
plaintiffs in the suit in the Hawaiian
courts from bringing any proceedings
against Mr.. Spreckels in that far-away
land, and compelling them. if they must
sue, to sue in the courts here at home.
The principle of law and equity which
forms the basis of the proceedings in court
yesterday is that which gives the courts
OF equity IN any country jurisdiction over
the persons of the citizens of the land.
The court here cannot prevent the Ha-
waiian court from trying the case, should
1t wish to do so, and ii that were possible
in the absence OF the plaintiffs, but the
courts of this City can enjoin any one Of
the citizens here from proceeding in such a
suit; and if. in defiance of the courts
yre1t, nv hnt- h0 $1nxy
would all be liable for contempt of the
local tribunal.
The same principle was applied by Gus
Spreckels, about year and half ago, in
his suit against his father to prevent the
foreclosing OF some island mortgages.
Claus Spreckels intended to foreclose
through the island courts, but his son
secured an injunction upon the very rule,
and proceedings had to be transferred to
here.
The suit being brought in Hawaii. al
though apparently only for the possession
OF 600 acres of land, does in truth include
the entire relations of Claus Spreckels to
the company which he formed.
Prior TO 1873 Claus Spreckels went 10 the
ISLANDS to investigate the possibility of
establishing sugar plantation on the
island OF Maui. On his return here he
formed the Hawaiian Commercial Com
pany under the laws of this State, assoc
ciating with himself Herman Schussler,
Ex-Governor Frederick f. Low, William
Babcock and Herman Bendel. That CON-
paDy was succeeded in 1882 by the de-
iendant in the suit filed yesterday
As one of the laws Of the Hawaiian
kingdom was that no foreign corporation
should hold lands in the islands, it was
decided that whatever property the COM
pany procured should rest in the name of
Claus Spreckels, he 10 hold it in trust for
the corporation. One of the possessions of
the company was at that time is 900 acres
of land in the Ahupuaa of Wailulu, held
under lease from the crown. The entire
tract, known as the Ahupuaa of Wailulu,
consists of "a 900 acres.
The crown lands OF the Hawaiian king
dom, and they include valuable acres in
every one of the islands, had two claim
ants. King kalakaua claimed them by
right of royal power, and as the successor
to King kamehameha; the Princess keeli-
kolani, daughter of one OF the Kamehame-
has, claimed by right of heirship. The
Princess was deeply in debt. and in 1880
she sold her interest in these crown lands,
wherever situated, TO Clans Spreckels. He
paid her 1000, 900 of which was in
cash and $4,000 in the nature of loan.
She had been paying II per cent interest
on her debts, but as part of the considera-
ton for the purchase Spreckels assumed
the debts for 8 per cent per annum. This
was personal transaction between Claus
Spreckels and the Princess Keelikolani.
Having purchased an interest in all of
the crown lands, the titles of the crown
and those of Spreckels were continually
becoming entangled. So, two years after
it was agreed that Spreckels would release
all claims upon the crown lands elsewhere
if King Kalakaua would release the
crowns interest in the Ahupuaa of Wal
luku and transfer it to him. This was
done by royal patent and by special act
OF the Hawaiian Legislature in August,
1889. Spreckels then turned over to the
company, on September 25, 1882, all prop
erty he held in trust for its benefit. The
company had by that time been organized
under the name of the Hawaiian CONNER
cial and Sugar Company. On February
81, 1885, Mr.. Spreckels sold to the COM
pany 1900 acres of the Ahupuaa of Wal
luku, included in the tract being the 5000
acres the. company had originally secured
by lease from the crown before the land
itself came into Mr.. Spreckels' possession
The deed to the 1900 acres was made by
Mr.. Spreckels individually under the d.
rection of the company's attorneys, and
was accepted by it as wholly satisfactory
The remaining 600 acres are the ones in
dispute.
which finally led the Ahupuaa of Wailuku
into Mr.. Spreckels' possession were by
him as agent for the company. At the
time of the negotiations with the Princess
Keehikolani and subsequently with King
Kalakaua Mr.. Spreckels was not director
in the company. nor did he act in any way
as its agent. From 1882 until the time the
suit was brought there was never any
question as to first his ownership of the
"a 600 acres of the Ahupuaa and afterward
of the 5000 acres which the company did
not buy.
The complaint in injunction concludes
with the following statement of the events
subsequent TO the transfer of February q.
1885, and OF the points upon which the ap-
plication for an injunction is based:
In 1894 the plaintiff sold and transferred to
c. A. Spreckels his stock and all his interest in
said Hawaiian Commercial and Sugar Com
pany, and said C. A. Spreckels thereupon be-
came, and, as plaintiff believes, has hitherto
continued 10 be the owner of said stock. and
that from that time TO the present the said g
A. SDreckels has been, in point of tact. the
owner of the controlling interest in and power
of said company, and the persons who have
composed the boards of directors of the
same have been named by him. snd
have, in every way, acted in subordination
TO the wishes and directions OF said @
Spreckels- The composition OF said board is as
follows: Rudolph Spreckels, who is brother
and B. ]. Ho1aeker. who is a brother-in-law OF
said C. A. Spreckels: Mountford s. Wilson
Russell J. Wilson and Charles S. Wheeler. who