The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-06-28
A BEAR SCHEME
How KihGi Stock Was Hammered
Down to $40.
A CASE OF MANIPULATION
But 600 Shares Were Used by the
Bold Operators Down TO Bed
rock-oIaa in Hand.

Immediately after the closing. of the
second Board OF the Honolulu Stock
Exchange yesterday there was n sale
OF 1000 shares OF Kihci at siO per share.
This consideration is the exact amount
paid In and the seller l. loser stamps
and interest ON his money. Seller was
one OF the original subscribers.
II Is extremely doubtful IL any more
kihei Is sold at $40. but IL u the cx-
pcctation OF the bear hui To buy today
at $40 and even less.
There will - interruption today of
one OF the boldcst manipulations ever
the first one of magnitude 80 far und-
crtaken here.
The compass of the market will b.
well understood and the ease with
which n scheme for rise or faIl may bc
engineered will be apparent when IL Is
stated that I<ihci has been forced from
SIS n share To- sI0 by the use of but coo
shares.
i II Is only about ten days ago that
the hui which launched the bear move
ment began operations actively. KI-
hci was selected ON account OF It's pop
ularity amongst both investors and
spectators and on account of its wide
distribution II IS held. ia its assess
able issue. by hundreds upon hundreds
Of people. including many who make NO
observations whatever beyond reading
the daily quotations. Kihei was firm
~ established in the confidence of the
public. but IL was particularly vulncr-
able for the reasons presented. No
other security Is so generally held by
strangers to- the country. to the plan
ltation business and to the methods of
nipulators was To- ease the stock down
gradually till il touched siO or below.
purchase heavily. then force n rccov-
cry or rally by throwing out blocks to
urcs. The thing has been done on the
coast and ali over the Mainland with
all sorts Of stocks time after time. bat
had never before been carried out
here. II was fresh and pretty locally.
The GOO shares used were placed in
the hands of five or six Of the brokers
known as husticrs. The first day they
offered at a point or two below SIS.
THE market for assessablcs Nas q trifs
shaky at that period and nervousness
was produced at once. This continued
two or three days. Then for . frw
days the pieces of the 60 Wcrc offered
at SIS.
From the SIS mark the master
stroke was made. The brokers wer.
instructed. in the usual confidence. %
offer. both on the board and privately.
To sell "a Sis. to take under cDnsidera-
ton any offer and report 60 owners
Now u began tD d~rlin. nicely and the
hui members pattsd themselves on
their respective backs. II was n pretty
thing for an outsider To- watch. lt is
the belief that not a single broker
knew how he was being used by the
combine. The hui people are young iE
years but they are keen. have money
and have had considerable experience
in deals 81 variety. They knew whai
they were doing. The stock would ~
offered at SO IN two board rooms uu
Fort street and in public and private
places between sessions uf the cx,
changes. Bids would - made and re-
ported back to owners Sales followed
as low as si2.50. si225. The hammer
ing down continued with the wee bioci.
of 600 shares. but the lover cxtrcm-
titles get cool quickly in this market
and some of the holders outside the hui
HH=sHa