The Independent. [volume] (Honolulu, H.I.) 1895-1905, 1900-10-23
THE KAMALo CASE

AohudhLbs
The charges OF fraud set up by
the plaintiffs in the suit OF II. r.
Hitchcock, ct al, VS.. Frank Hustace,
j. j. Egan, Frank Foster and the
Kamalo Sugar Company are sustain.
ed by the court. This was set forth
by Circuit Judge Humphreys yester-
day when in an oral opinion he said
THAI he would practically sustain
the plaintiffs in every count OF the
complaint against the promoters OF
the company.
The suit was brought some
months ago by Hitchcock and sever
al stockholders acting on behalf OF
other stockholders to compel Egan,
Hustace and Foster to pay back
$4,000 which it was alleged they
took from the funds OF the corpora
ton and remunerated themselves
for the promotion OF the concern.
The judge promised a complete
judgment after hearing argument
on point that he is not yet decid.
ed comes within the scope Of the
petition for general relief. In the
meantime he stated findings already
concluded to the following effect:
"In an opinion which / will hand
down in the course OF few days."
said Judge Humphreys, 81 will hold
that the defendants as trustees are
liable for the $4,000 with interest
at 6 percent from the time that they
received the money, the records
showing this date. | consider that
these defendants, Foster, Hustace
and Egan, entered into fraudu-
lent conspiracy, and such q con-
spiracy could not have been more
clearly established, shown and dem
onstrated except by plea of guilty.
Frank Hustace doctored the books
of the institution and Eagan per-
jured himself continually in his
testimony in this court.
81 desire to hear further argu.
ments over the disposition Of this
$4,000 worth Of stock which these
defendants converted to Intensely es
This matter will come under the
prayer for general relief. In the
matter of the 1000 shares of stock, !
am not certain as to whether the de-
PENDANTS can be held responsible foI
all OF this. One thousand shares
were paid for the land, but l will,
however, hear argu ments upon this
issue also. This suit has been brought
by holders Of the company and it will
not be fair for the plaintiffs to beaI
all of the expense and the others tt
obtain the full benefit without bear
ing any of the expense, l will order
that the plaintiffs who have incur
red expenses in bringing this sui
be paid l will hear the statement
of attorneys regarding the value o
their services. The arguments OF
the other issue will be heard Thurs
day morning at 10 o'clock.
The Kamalo company was organ
lied by Egan, Hustace and Foste
> and lands bought in Molokai, Tn,
promoters turned in to the compsn,
the tract OF land known AZ the Nc
Corriston property for $4,000. 1
seems that they had paid for thi
tract only $25,0OO. To make thei
: profit of $4,000 appear straight
they, entered it on the books of tn,
company as money due as "pro
moters fees"
LII. Dee, chairman OF the financ,
committee, says: "We found evi
dence OF crookedness in August
1899 A close examination OF tn
, books revealed the juggling tina
, had been done by the promoter
, with the McCorriston property
We then brought suit against tn
promoters in September year age
8 The Kamalo Sugar company ha
? been put back just one year b.
? these transactions, but nevertheless
, has an excellent future. The com
! pany has 1856 acres OF land in fe,