The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1900-10-22
fraudulent CONSPIRACY.
ScATHING ANNOUNCEMENT BY
JUDGE HUMPHREYS.
Says Egan, Hustace and Foster of Ka-
malo Sugar Company Conspired to do
Fraud.

Curcuit Judge Humphreys announced
this morning that within the course OF
a few days he would hand down de-
cision in the matter of H. r. Hitch
cock ct al. VS.. Frank Hustace, j. j.
Egan and Frank Foster and the ka-
malo Sugar Company The court an
nounced that in this opinion he would
practically sustain the plaintiffs in
every count made in their charges
against the promoters of the company.
He stated in positive terms that he
believed all three of the defendants had
been gritty of fraudulent conspiracy.
The suit was brought some months
ago by Hitchcock and several stock
holders acting on behalf of other stock
holders to compel Egan, Hustace and
Foster to pay back $685. 900 which it was
alleged they took from the funds of the
corporation and remunerated them
selves for the promotion of the concern.
I'm an opinion which will hand down
within the course of few days." said
Judge Humphreys 81 will hold that the
defendants as trustees are liable for the
$35, 900 with interest at per cent from
the time that they received the money,
the records showing this date. L con-
slider that these defendants Foster,
HuStace and Egan entered into a fra
dulent conspiracy and such a conspi-
racy could not have been more clearly
established, shown and demonstrated
tace doctOred the books of the institu-
ton and Egan perjured himself con-
tinually in h S testimony in this court.
Il desire to hear further arguments
over the disposition of this $120,000
worth of stock which these defendants
converted to themselves. This matter
will come under the prayer for general
relief, In the matter of the 1000 shares
of stock, | am not certain as to whe-
ther the defendants can be held res
ponsible for all of this. One thousand
shares were paid for the land but l VIII
however hear argument upon this issue
also. This suit has been brought by
the plaintiffs acting for other stock
holders of the company and it will not
be fair for the plaintiffs to bear all of
the expense and the others to obtain
the full benefit without bearing any of
the expense. 1 will order that the plain
tiffs who have incurred expenses in
bringing this suit be paid. 1 will hear
the statements of attorneys regarding
the value of their services. The argu-
ments on the other issues will be heard
Thursday morning at 10 o'clock"
This suit has attracted considerable
attention. The Kamalo Company was
organized by Foster, Egan and Hustace
last year and the land was bought on
LIolol1&i. The first a. sessment was paid
promptly but money became tight and
the affairs of the company got into a
bad state. Finally Hitchcock and the
others brought suit for an accounting
and made charges against the promo
ters. 1t was claimed that they had
convertI $120,000 worth of stock, and
$4,000 in cash from the first assessment
to themselves, as remuneration for pro-
noting the company. 1t was also claim
ed that the land had not even been pur-
chased until after over one hundred
thousand dollars had been paid in by
the stockholders. W. A. Henshall, Paul
Neuman and George A. Davis appeared
for the plaintiffs and Robertson and
Wilder for the defendants.