The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1900-11-07
(From Saturdays Daily)

Not only must the Kamalo promoter,
| return the $4,000 which Judge Hum
Iphroys says they Incorporated, but
hey must also restore to the company
tie paid up stock, $4,000 worth in all
ahich they took to themselves to repay
Them additionally for the arduous labor
of forming the company.
4 week ago Judge Humphreys an
bounced his belief that Frank Hustace,
j. J. Egan and Frank Foster, the three
Promoters, had defrauded the Kamalo Su-
ear Company of $4,000 of the company 5
funds and yesterday he went further ana
said that the three promoters We're guilty
Of fraud in voting themselves the sl2O, 600
of paid up stock which they cut away for
their own use likewise.
The decree in the case was announced
orally from the bench yesterday morning
10y Judge Humphreys and in the course
Of it he again grilled the three defend
ants. saying that they mad been guilty of
a fraudulent conspiracy in appropriatinS
tue stock and the money.
The evidence in the case" said Judge
Humphreys, "conclusively establishes the
allegations of the complaint that there
has been a fraudulent combination and
conspiracy to appropriate the sum of
money and the stock to the uses OF the
defendants. The evidence goes to show
that both appropriations were part and
yarcel of the same unlawful transaction.
THE appropriation was made by n pre-
tended resolution. By 1t the three de-
PENDANTS, who were in control, made an
of stock and money which
they had no right to do. The defendant,
riustace, was in charge of the books of
: H.. n slrrnndpr
them to the office of the corporation. 1t
appears that Hustace and the other de-
PENDANTS had resigned and that their
had been elected, and Hus-
faces refusal was based on the ground
that the corporation was indebted to him
In the sum of 5000. 1t is probably due
to this fact that the plaintiffs had no
knowledge of the wrongful appropriation
,f the $4,000 worth of stock.
THE complaint alleged all that was
! Aown of the Illegal transactions of the
and the other facts developed
during the course of the trial, so that IL
ecame known that there had not only
been misappropration OF the $4,000 in
money, but that the defendants had TAX
on likewise the $4,000 of stock. In the
{ omplaint was n prayer for general re-
lief, and II is clear that If the plaintiffs
are entitled to the $4,000 they are also en-
tiled to the return of the stock. The
que SllOu IL NHtllltl Nity tdil NC given
Judgment for the stock under the prayer
ior general relief.
II have reached the conclusion that ur
Ter the prayer for general relief ] could
not award them the stock and n motion
having been presented for amendment OF
the complaint so as to allege this wrong
full conversion and appropriation OF the
itock. l now sustain this motion.
THE evidence is as conclusive on the
ne point as the other, and 1t would be
waste of time to put in further testimony
and | now render decree for the plain
IFS for the s35, 600 in money. and direct
the defendants to return the sl2O,WO or
stock or the value of that stock at the
me of its conversion.
81 say now, az I said before. that not
only was there n fraudulent combination
and conspiracy here, but that the testi-
nony of the defendant Egan WAS marked
" the most willfu and fragrant perjury.
rhe combination was n criminal partner
IMP to fraudulently appropriate and con-
ert to the use of the defendants the as
lets OF the corporation"