The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1900-10-23
GR|LLED BY
HUMPHREYS
KamaIO Promoters Hit
Hard.
ARE accused OF FRAUD
Circuit Court Judge Scores Hustace,
Egan and Foster From the
Bench.

Three we'll known men of the city,
Frank Hustace. j. J. Egan and Frank
Foster. promoters of the Kamalo SUI
gar Company. We're grilled by Judge
Humphreys yesterday when he, an
nounced the decision i'm 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 tampering
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, lin
which 1 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
II until the present day. l 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, l am convinced was
guilty of perjury In his testimony on
the witness stand. l believe that Frank
Hustace. as treasurer of the company,
doctored the company's books.
ION the disposition of the $120.OOO
worth of stock converted by these de-
PENDANTS to their own use / desire to
hear further argument. l am not GER
tain whether the defendants can be
held for the 1000 shares of stock. This
stock at a par value of $50 a share had
been appropriated by the defendants
from the stockholders. OF this about
$40. 900 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
il while the other stockholders. who
also receive benefit from it should get
the profit without standing some of the
expense. / will order the plaintiffs who
have incurred expense shall be REIN
bursed proportionately.
I'm order that l may have further in
formation on the matter Of the $l20 OOl
worth Of stock / will set the time for
arguments at 10 o'clock next Thursday
morning.
The Kamalo Sugar Company was or
ganized year ago by Hustace. Foster
< and Egan. and land was bought on the
[. Island of Molokai The first assess
u ment was paid in by the subscriber
for the stock but after that there came
a stringency in the money market anC
the company got into financial Difficult
ties, Hitchcock and others of the stock
holder then brought suit against tn
promoters asking for an accounting
and charging that fraud had been used
They charged that $4,000 of the fund
r. of the company had been converted b!
the promoters TO their own use out o
= the first assessment paid and that the,
had also taken $4,000 of the stock.
was even charged that the promoter
did not purchase the land until owe
500. 600 worth of stock had been sub
scribed.
Il The attorneys in the case were "
z. 4. Henshall and Paul Neumann for tn
plaintiffs and Robertson and Wilder 70
the defendants.
ESTATE OF A MORMON.
Gam r. woolley was yesterday AZ
pointed administrator with the will ar
nexed of Makanoe (w) by Judg
Humphreys. Makanoe was one Of tn
Hawaiian women who became convert
U" ed to Mormonism and moved from tn
e., NaIla-
Tooele County. Utah, not far from Sa
Lake City. She died there on Dec. 81
1899. and her daughter Hannah Kaaep
Lowe came back TO Hawaii to adju!
the estate. 1t consists of land in HI
n, nolulu and at North Kona, Hawai-
:, valued at S12. 400. Besides Mrs. Low
there are two children who live at Il
leper settlement at Molokai. Bru'
Cartwright was named in Makanoe
viii as executor but he declined TO &C
The administrator was ordered TO Fl
inventory within ten days.
WRIT OF ERROR FOR MURDERER
Chief Justice Frear yesterday order'
n writ Of error 10 issue to the Circu
r. Court Of the Fourth Circuit Court
N the case OF the japanese murderer F
iihara Oreimon. directing the clerk
said court 20 send UP all the recor
70. and exhibits presented at the trial
the defendant in Honokaa last July
c. G. Biting made the applicatio
- AS the Supreme Court will not sit u
ill December next in all likelihood
further respite of the time Of senten
will be granted by Governor Dole.
COURT NOTES.
The accounts of Mrs. Irene Ii Brow
ry. as guardian of f. III. l. Brown a
George I. Brown were approved yeste
day by Judge Humphreys.
]. A. Magoon's motion for the allo'
ance OF a fee of $500 for services re
dered the estate of Isaac Robinson,
lilly minor. was denied by Judge Hump
reys.
When you cannot sleep for coughil