The Hawaiian gazette., 1899-10-31
THE wAlALUA LITIGATION.

tuA VhshLNh AbAVh AVSs
TAe affairs of private corporations
afe ordinarily Of no special inter.
ct to the general public. but the
stnkus of the Waialua Agricultural
Cnmpany has become a matter of gen.
4al public interest for number OF
reasons.
Its stock Is owned by nearly 600 per-
cons. 1t has deservedly been consider
I'd one OF the most promising Of the
esosnt,y fioated plantations, and the
measure to obtain its stock has result
ed In the heaviest litigation ever be-
fore the courts Of this country.
Two sets of subscribers are claiming
10000 shares of stock worth par
value Of 100000 and now worth on
the market about $1,500,OOO. One set
are known as the "San Francisco sub
acribers." the other as the Honolulu
Subscribers" ....
The company has recognized the Ho-
nolulu subscribers. received one assess
mont from them and entered their
names on its books. The San Fran
Disco subscribers have brought thirty
three suits in equity to compel the COM
pany to issue the shares to them and
have secured injunctions prohibiting
the Issuing OF shares to their rivals.
Circuit Judge Perry has just decided
In favor of the San Francisco sub
scribers.
Meanwhile, the company being un-
able to deliver shares, both of the rival
sets Of claimants refuse to pay assess
ments. The company cannot enforce
payment against the Honolulu sub
scribers by selling the shares, because
It Ia placarded thirty-three deep with
injunctions prohibiting 1t from dispos-
ing Of the shares. 1t cannot proceed
against the San Francisco subscribers,
because 1t does not recognize them and
has already recognized the Honolulu
people; and II the shares are issued to
the San Francisco people the Honolulu
claimants threaten to Immediately
bring suit against the company for the
shares which they have partly paid for
and which the company has agreed to
issue to them Meanwhile the expense
a developing the plantation is going
On. Assessments to the amount Of $780,.
80 have been collected and spent. and
Castle 4 Cooke have had to advanc,
the company $325.OOO which is now due
and there is no money in the treasury.
A mill must be erected costing $780,
600. and pumps and railroads to the
amount of $4,000 must be paid for
during the coming year, besides the
running expenses for fourteen months,
At least $4,000 4 month. or 5000, 900,
making a total necessary expenditure
within the next fourteen months OF
81 SIS 900 with no allowance for further
development.
To meet this there is available $400,.
900 not yet paid in by the assessable
stock not in litigation. and during the
course of next year a small sugar croI
amounting to about 100000. The Ed.
tnr of this paper owns no Waialua
stock. Moreover he is a member Of the
Bar and as such is in duty bound to
cheer ON a course which would appear
to promise a lucrative practice to a
large number Of his professional breth-
rem for several years to come. But
leaving the lawyers out of consider
aSion. the best interests OF the stock
holders and the company would seem
70 b servsd by delivering the company
from tie iojunctions now crushing the
life ont Of 1t and the cloud of litiga-
ti0n peading and in prospect which II
allowed to go on bid fair TO involve In
ruin one of the hest enterprises in the
country.