The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1900-03-06
OPINION OF THE COURT BY FREAR. ].

This bill in equity brought by the under the will
of the late H. A. p Carter for instructions the disposition
TO be made of stock dividend between life and
maindermen.
The facts uncontesed and shown by the bill answer
and evidence follows The by his WILL which
probated December So 1891 making certain specific be
quests devised and bequeathed the residue of his to
plaintiffs trustees hold thereof in trust for each
of the defendants and the plaintiff Geo r. Carter the income
thereof be paid him her for life and after his death
the said Onesxth go his her heirs part of this prop
ery consisted of SIS shares of stock in Brewer Company
Limited, Hawaiian corporation with a capital stock Of $780,
600 divided into 5000 shares of the par value of S00eac On
December 81 1892, year after the will probated bal
of the profit and loss $22 2337 and during
the next years ending December 81 1885, the earnings
of the company amounted 69940 making total of
$16O4,933s6 profits of which, during the PERIOD $780,
600 OO9) paid in cash dividends 1868 written
off as bad debts $350O00 carried account and $780,
600 paid stock dividend hereinafter set forth leaving
$685. 1868 the balance of profit and loss Oco
@ TO- 1898, the corporation adopted the following resolutions
THAT the capital stock be increased to one million dollars
($1OOOOOO December 81 1898, and that stock dividend
of $4OO0OO be made pro the shareholders December
26 1898. That fractional shares be issued That any fac
ona shares existing December &C. $685. be sold forthwith at
public auction for the benefit of and all old cer
Gates of stock be called in for the purpose issuing new
uniform certificate for old stock The holders Of
SIS shares of the old stock entitled shares of the new
stock issued dividend In 1896 the shares sold at $3.50 each
in 1897 at $780, in 1898 from $500 $780, and in January
1892 after the increase in the capital stock from 1855
$3.50
The question is whether the stock issued as a dividend
should be regarded part of the corpus of held
by the trustees for the remandemen the life bcnefcares
receive only the income thereof during lives or whether
the stock itself any part thereof should regarded
to be delivered to the life benefcares under the will
The Circuit Judge from whom the appeal held
that all the stock should go the life tenants.
There lack Of authorities upon this question but il If
doubtful there any question in regard which author
ties are in greater conflict.
Questions of this kind usually mGer wills deeds
which give property in pay the income thereof
to for life and his death the principal
corpus to another The question therefore primarily que
ton of the construction of the will deed with view
to acertanng the nson of the grantor That in
tenton will be given effect if in conraventon Of
law Of course the of the trust cannot interfere with the
internal management of the corporation when in what
form dividends shall be declared But he may direct whom
they shall go when they have been declared whether they
ordinary extraordinary cash stock and whether they
have been earned by the corporation before after the
Of the trust All the authorities agree upon tlis.
But usually the of the does contemplate
traornar dividends whether cash stock have in mind
the particular period during which the profits Of which they
earned and therefore he makes special
regard them He usually in the present case directs