The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-04-09
.PAAUHAU SUGAR STOCK,
Rudolph SpreckeIs' Vain At
tempt to Enjoin the
Nevada Bank.
SHARES TO BE TRANSFERRED.
Judge Sanderson Holds That the
Bank Officers Violated No
Agreement.

The suit of Rudolph Spreckels against
the Nevada Bank came TO sudden termi-
nation in Judge Sanderson's court yester-
day morning.
Inc suit was brought by. young Spreckels
to enjoin the Nevada Bank from sending
$500 shares of the Paauhau Plantation
stock to Honolulu to be transferred on the
books of the corporation from his name to
that of the bank. Upon the filing of the
complaint, and assuming the facts therein
stated to be true, temporary injunction
was granted. By its attorneys, Delmas IL
| Shortridge, the bank moved to dissolve
! the injunction, and in granting their mo-
| ton Judge Sanderson decided that the
plaintiff had no cause of action against
the Nevada Bank or against his father
Claus Spreckels.
The case grew out of certain business
transactions between Claus Spreckels and
his sons, G. A. and Rudolph Spreckels.
On January 4, 1894, the father sold to these
sons his interest in the Hawaiian CONNER
cial and Sugar Company for $70000 c.
A. Spreckels also assumed and agreed to
pay mortgage of 100000 then incum-
bering the company's property. BY for
NAL written agreement the $700,000 was to
be paid in two equal installments, one
half on January 4, 1895, and the remainder
on January 4, 1896. The mortgage G. A.
Spreckels agreed to pay out of the crop of
1894. To secure the payment of the $780,
600 C. A. and Rudolph Spreckels pledged
with their father their 200 shares of stock
in the California Sugar Refinery, 333 shares
of stock in the Hilo Sugar Company and
5000 shares of the Paauhau Plantation
Company. The Paauhau stock belonged
to Rudolph and was gift from his father
1t was then valued at $4,000.
In December last Claus Spreckels as
signed the c.. A. and Rudolph Spreckels'
contract and the accompanying securities to
the Nevada Bank. The Paauhau stock had
never been transferred on the corporations
books, and when young Spreckels learned
that the Nevada Bank was about to for
ward the stock to Honolulu for the purpose
of transferring it into its name as PLEDGE,
he brought suit and obtained temporary
injunction. In his complaint he alleged
that in addition to the written agreement
there was an oral agreement on the part of
his father not to have the Paauhau stock
transferred out of the name of Rudolph
Spreckels. The Nevada Bank denied that
there was any agreement other than the
written one, and further claimed that, even
If there had been an oraf agreement, they
had taken the contract and stock without
notice of any such pretended oral agree
ported by the affidavits of Claus Spreckels
and of his two sons, John D. and Adolph,
to the same effect.
From the testimony of Charles S.
Wheeler, Mountford J. and Russell ].
Wilson, William S. Goodfellow, John D.
and Adolph Spreckels, and Samuel M.
Shortridge Judge Sanderson found that
there was no such agreement as the
plaintiff claimed to exist. From the testi-
mony of l. w. Hellman and John + Rice
low, president and vice president respect
lively of the Nevada Bank, the court found
that the bank had received the stock with
out notice of any oral agreement that it
should not be transferred.
From the whole testimony Judge Sander
son found that Claus Spreckels had acted
in the utmost good faith, and that the Ne
vada Bank had perfect right to protect
itself by having the stock in question trans
ferred into its name on the books of the
company, thereby preventing it from being
attached by creditors of C. A. or AdolpR
Spreckels.
1t appeared that G. A. Spreckels was
still indebted to the Nevada Bank on this
contract in sum exceeding $3.50 900, and
that this Paauhau stock was a portion of
the banks security. In view of this large
Indebtedness and of financial troubles
which might oyertake Rudolph Spreckels
by reason of his rumored connection with
the recent Hawaiian insurrection the bank
deemed 1t prudent to send the stock to
Honolulu, to be transferred into it's name
as Pledge. In so doing the court held
that the bank was not violating any agree
ment entered into by Claus Spreckels, but
was exercising plain legal right.
FOR these reasons Judge Sanderson dis
solved the injunction, and the Paauhau
stock will be sent to Honolulu for transfer.