The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1900-10-23
CHILLED BY
HUMP HREYS
KamaIo Promoters Hit
Hard.
ARE ACCUSED OF FRAUD
Circuit Court Judge Scores RustaCe,
Egan and Foster From the
Bench.


Foster, promoters of the Kamalo Su-
gar Company, We're grilled by Judge
Humphreys yesterday when he an
nounced the decision in the Kamalo
case. In the course of an oral ruling in
the case from the bench, Judge Humph-
reys charged the three with fraudulent
conspiracy, perjury and tamperine
with the books of the company, crimes
that may bring all three before the
next Grand Jury.
The suit was brought by Rex Hitch
cock and others of the stockholders in
the company against the three promo
tiers to compel them to return the sum
of $4,000 which they as promoters had
taken from the first assessment paid in
by the stockholders and appropriated
to themselves as promoters fees.
II shall hand down a written opinion
within the next few days" Judge
Humphreys said from the bench, in
which | shall hold that the three de-
PENDANTS are liable as trustees for the
sum of $4,000 with interest at six per
cent from the time they first received
! it until the present day. | believe from
! the evidence given by the defendants
themselves that they have been guilty
of fraudulent conspiracy, and this
conspiracy could have scarcely been
more plainly shown if they had pleaded
| guilty. j. j. Egan, | am convinced was
guilty of perjury in his testimony on
the witness stand. I believe that Frank
Hustace, as treasurer of the company,
dOCtOred the Company's books.
| IN I,n Il Of
worth of stock converted by these de-
PENDANTS to their own use | desire to
hear further argument. | am not GER
| tain whether the defendants can be
held for the 1000 shares of stock. This
stock at a par value of $40 a share had
been appropriated by the defendants
| from the stockholders. OF this about
100000 had been paid to Dan McCorris-
| ton and Hugh McCorriston for land.
AS this stock had been disposed of it
could not be turned in as treasury
stock.
Il do not think that the plaintiffs in
! this suit should bear all the expense of
it while the other stockholders, who
! also receive benefit from 1t should get
the profit without standing some of the
I expense. l will order the plaintiffs who
! have incurred expense shall be reim-
bursed proportionately.
I'm order that | may have further in
( formation on the matter of the $4,000
worth of stock l will set the time for
arguments at 10 o'clock next Thursday
morning"
The Kamalo Sugar Company was or
ganiZed a year ago by Hustace, Foster
and Egan, and land was bought on the
Island of MOlOkai. The first assess
ment was paid in by the subscribers
for the stock but after that there came
strinSency in the money market and
the company got into financial difficult
ties, Hitchcock and others of the stock
holder then brought suit against the
promoters asking for an accounting
and charging that fraud had been used.
They charged that $780, 900 of the funds
of the company had been converted by
the promoters to their own use out of
the first assessment paid and that they
had also taken $4,000 of the stock. 1t
was even charged that the promoters
did not purchase the land until over
100000 worth of stock had been sub
scribed.
The attorneys in the case We're w.
plaintiffs and Robertson and Wilder for
the defendants.
ESTATE OF A MORMON.
Sam Il. Wooley was yesterday APP
pointed administrator with the will an
neXed of Makanoe (w) by Judge
Humphreys Makanoe was one of the
Hawaiian women who became convert
ed to Mormonism and moved from the
Islands few years ago to Skull Valley,
Tooele County, Utah, not far from Salt
Lake City. She died there on Dec. 9th,
1899, and her daughter Hannah Kaaepa
Lowe came back to Hawaii to adjust
the estate 1t consists of land in Ho-
nolulu and at North Kona, Hawaii,
valued at $1,000. Besides Mrs. Lowe
there are two children who live at the
leper settlement at Molokai. Bruce
Cartwright was named in Makanoe's
will as executor but he declined to act.
The administrator was ordered to file
inventory within ten days.
WRIT OF ERROR FOR MURDERER.
Chief Justice Frear yesterday ordered
"A writ of error to issue to the Circuit
Court of the Fourth Circuit Court in
the case of the Japanese murderer Flu
jihara Oreimon, directing the clerk of
said court to send up all the records
and exhibits presented at the trial of
the defendant in Honokaa last July.
C. c. Biting made the application.
As the Supreme Court will not sit un-
I'll December next in all likelihood a
further respite OF the time of sentence |
will be granted by Governor Dole
COURT NOTES.
The accounts of Mrs. Irene Ii Brown |
as guardian of +. II. |. Brown and |
George l. Brown We're approved yester- !
day by Judge Humphreys.
j. A. Magoon's motion for the allow
ance of a fee OF $500 for services rem
dered the estate OF Isaac Robinson. a
minor, was denied by Judge Humph-