The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1896-03-19
OPINION OF TIE couRr.

OPINION OF THE COURT.
This matter comes before this Court
loon several appeals from decree and
rulings OF the Circuit Judge, First
Circuit
The petition shows-that plaintiff
and defendant are Hawaiian cOfpora-
tons dOiag business in Honolulu
that defendant is indebted TO plaintiff
in the sum OF S51S4 S. that the bust
ness OF defendant is managed by q
bOard OF directors elected NJ an annual
meeting for one year, which board ap
points manager; that the said board
consists of five officers, president,
vice president, treasurer, secretary
and auditor, 8. z. Graham being
secretary and treasurer, aud also the
menager that said manager has re-
Gently left the country secretly, leav-
ing ''defendant's affairs In q very un-
satisfactory and uncertain condition
and that 3 minority only OF said board
Of directors are now in the country :"
that defendant has made no return TO
the Minister OF the Interior since July
J, 1893; that there is now no legaiiy
appointed manager and no lawful
board of directors in the country TO
manage defendants affairs, take
charge OF the PROPERTY or appoint q
.,,d hsi;a1o s" tHst 5afon5ant
is insolvent and If now wound up
would be unable TO pay its debts In
full but that by careful management
Of its affairs and continuance OF its
business there is strong probability of
its being able TO meet its obligations; -
that IL receiver is appointed with
authority 10 take charge Of the pro-
perty, collect accounts and carry on
business as necessary from time 20
time, sell property under the direction
and authority OF the Court the in
terests OF all concerned will be best
conserved. And 10 is prayed that
defendant be summoned, that g re-
ceiver be appointed, and for such or
iefs and DEGREES in the premises as
shall be needed in the circumstances,
etc.
Summons was issued on January 8,
1895, returnable forthwith. And a
notice TO appear addressed TO J. s.
Walker, auditor, and J. d. Holt, vice
president, was filed the same day.
Upon this is endorsed their admission
of service.
On January 8, 1895, the matter was
heard, the two directors named being
present besides representatives of
nearly all or the stock in the defend
ant corporation, and upon evidence
being taken in support of the bill and
on consent and request of the two di-
rectors and repr esentatiVes Of over 230
of the $50 shares, Cecil Brown, Esq,
was appointed receiver.
The receiver at once took possession
of the property of the corporation,
and carried on the business, adver-
tised for accounts, made collections,
and received offers for the purchase of
defendants property. Upon the 5th
of February, he filed report showing
debts of over $4,000 and assets COM
prising a lease from Mrs. Moorhead,
horses, carriages, feed and other para
pharnalia of a livery stable, for which
he had received an offer In a lump
sum of $500. He asked for authority
TO sell the property, pay the expense !
Of the receivership aud distribute the
remainder Of the purchase price among
the creditors pro rata, first paying Mrs. /
Aoorhead the full amount of rent due
her. Upon the Sth of February he
fled further report stating that he
had been offered by two parties $3.50 /
and asked for instructions. Upon this !
IA order was made that the property !
be sold st public auction on the upset |
price OF $3.50. This sale has been !
postponed from time TO time.
On the 23d January, 1895, papers !
were filed IN the Circuit Court in !
equity entitled 90. ". Mcdonald,
Margaret Moorhead and All Hin We. /
Club Stables Co. Ltd. etc. and Cecil |
Brown, receiver" Although by the /
title it would appear to be different
action, it has been treated ell through /
So 3 motion IN THE case and will be 40
regarded. Leave is asked to enter |
proceedings in bankruptcy against
the Club Stables. The motion is sup. /
ported by affidaYits showing that Nc
Donald and All Hin are general cred 1
itOrs and that Mrs. Moorhesd is emit !
tied TO five months rent In arrears
The motion for bankruptcy proceed /
ings was denied, as We're motions sub /
made for leave to distrain
to quash the proceedings and for per- I
mission TO the receiver to raise money
TO pay the rent. Appeals were taken /
TO this Court by Mrs. Moorhead,
Messrs. Mcdonald and All Hin from
the orders overruling such motions
Except the last and the order OF sale
and from the order of appointment of
the receiver.