The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-08-04
Important Decision Affecting Holders
Of Sugar Stocks.
MUST COMPLY WITH STATUTE
Corporation Treasurer May Rightly
fers Not Being by Endorsement

The Supreme Court yesterday decid-
ed an important controversy which
has especial interest for holders of su-
gar stocks. 1t is entitled Jonah Kala-
nianaole and David Kawananakoa vs.
Walter NJ Giffard, treasurer of Wal
manalo Sugar Company. The case was
heard by the Chief Justice and Justice
Whiting, the latter being the author
of the decision, from which the fol-
lowing excerpts are taken:
The parties appear in this court on
a case stated or Submission without
action
Your petitioners, Jonah Kalaniana-
ole and David Kawananakoa, on the
one part, and Walter NJ. Giffard treas
urer of the Waimanalo Sugar Com
pany, a corporation, on the other part,
respectfully represent:
That they are parties to a question
in difference which might be the
subject of an action before a Circuit
Judge at chambers, and have agreed
upon case containing the facts upon
which the controversy depends and
herewith present a submission of the
same TO the Justices of the Supreme
Court
, The facts upon which the contro-
VerSy depends are as follows:
Jonah kalanianaole and David Ka-
, WananakOa claim to be the owners of
fifteen shares of the Waimanalo Sugar
Company, corporation described in
certificate No. 81 to Kapiolani, by vir-
tue of deed from Kapiolani copy
of hicI icsh
Exhibit "A" and made a part hereof,
and by virtue of delivery of said certifi-
cate from said Kapiolani to said Jonah
Kalanianaole and David Kawanana-
koa and have demanded of said Walter
nj. Glffard, treasurer of WaimanalO
Sugar Company, that he cancel said
certificate and issue new certificate
in the names of said Jonah Kalania-
naole and David Kawananakoa, and
that the said Walter M. Giffard, treas
urer of said WaimanalO Sugar Com
pany, has refused to cancel such GER
tificate and to issue a new certificate
as requested upon the ground that said
certificate is not indOrSed by the said
KapiOlani
The question for the determination
of the court is whether said Walter
NJ. Giffard can be compelled in a prop
Ci dCIici " CdhCC1 Sdiu CCi anu
to issue a new certificate in the names
of Jonah Kalanianaole and David Ka-
wananakoa.'
By the deed annexed, the Queen
Dowager Kapiolani conveys to said
Jonah and David certain real estate,
and also doth ''sell, convey, and give"
to them "all personal property be-
longing to her that is bonds, stocks,
leases, furniture, jewelry, cattle and
horses and all other personal property
situate in the Hawaiian Islands as
tenants in common and for their exec
utors, administrators and assigns for
ever
By this deed and the delivery of the
shares of stock to them, the title
passed and became vested in Jonah and
David
The usual form of transfer of certifi-
Gates of stock to enable them to be reg
istered in the books of the corporation
and a new certificate obtained is by
endorsement or by assignment with
power of attorney to register the trans
fer of the stock.
1t does not appear, in the submission
of this case, whether the Waimanalo
Sugar Company has any bylaw regu-
lating the transfer of it's stock, but
by section 2016 of the Civil Laws, it
is provided that whenever the capital
stock of any corporation is divided in
to shares, and the certificates thereof
are issued, transfer Of the shares may
be made by endorsement and delivery
of the certificate. The endorsee shall
be entitled to a new certificate upon
surrendering the old one. And no
transfer shall be valid, except between
the parties thereto, until such new Ger
tificate shall have been obtained, or
the transfer shall have been recorded
on the books of the corporation, so as