The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-09-02
SCHUMAN IS
IN CONTROL.
Territory Stables
Once More In
Court.
MANAGEMENT IS
NOW IN QUESTION
Contest for a Majority of Shares
Which Was Won-Question
Of Agreement.

Once more the Territorial Stables
Company is in the courts, and this time
there promises to be battle royal. or
nearly so, at least The affairs of the
| company, which have been quiet since
last spring, were made prominent Satur-
day evening. when G. Schuman, the larg-
est individual stakeholder, was served
with the papers in an injunction suit
brought by John Andrade, to prevent him
from selling any portion OF certain
stocks. covered by an agreement between
them. which was made for the purpose
of keeping the control Of the company in
their hands.
The action taken means that there will
be a change in the management of the
company, unless the suit holds and the
agreement is sufficient to prevent Schu-
man from taking action. 1t reveals
impossible of continuance, and a fight
for the control of the company wherein
twenty-five shares of the stock played
an important part. In fact if the holder
of the shares had not sold them Friday
at par, he might now have four times
that sum for his holdings
The Territorial Stables were incorpor-
ated in Jun, 1900, for $50, 600, there being
1,5OO shat 5 of a par value of $40 each.
The building was erected upon land
leased from the Kapiolani estate. While
the control of the stock was in the hands
of Schuman and Andrade, the list of
stockholders included the Kapiolani es-
tate, e. A. Mott-Smith, Paul Isenberg,
c. Brown, r. w. Anderson, H Jaeger,
A. NJ Brown, o. Sorenson, w. H. Nc
IEerney. j. d. McInerney and others.
The stock of Andrade and Schuman was
put into a partnership and neither was
to sell without the others consent, and
the management was to be under An
drade for two years
There was never much harmony In the
company. John F. Colburn was the first
to make trouble, when he brought into
court the matter of Schuman. who was
the promoter, taking 1856 shares of the
stock out of the treasury at par. Col
burn said the Kapiolani estate was ready
to pay at a premium of 81 share There
was an agreement that the stock should
go to the estate at that price, but this
did not affect Schuman's holdings. as he
went into the market and secured 1S5
shares to replace those sold at SIT a
share, so that Colburn practically made
Schuman present of 1855, while the
treasury of the company benefited by
s1S5
Recently there was contest for the
control of the company. Colburn asked
Schuman to buy or sell, but the latter
declined. as he said he had friends IN
the company and could not sell out IN
der them, as they had come into 1t upon
his representations Then the matter
went into the street, and shares went
up to mar. When SchJman had virtual
control the suit was entered and the pa
pers served upon Schuman and the Off
man said yesterday:
Almost from the start there was a
disposition on the part of Colburn to try
and control matters in the company.
When he found that l had taken the
stock at par, he instituted SUIT. On the
day that had the us shares transferred
to me, there was another transfer Of
seventy shares I had purchased He
thought it was all treasury stock, and as
he wanted it and l could make sorne-
thing on it, let him have the whole 1S5
shares. The stockholders met and ratj
fled the arrangement.
In order to hold ourselves together
and myself made the agreement
referred to In the papers. We have been
in operation for fourteen months and are
no further ahead than when we started
Many of the stockholders look TO me as
the responsible man, on account of my
representations. Lately / came to the
conclusion that perhaps the management
might be at fault. I believe that Mr..
Andrade Is an excellent man, but this is
a big enterprise and it has not succeeded.
So I went to him and suggested that we
both get out, saying that I had pur-
chaser. He agreed with me that neither
of us was making any money, and that
we should sell. Then he said the agree
ment was off This was on Tuesday,
but Wednesday, he said he would not
sell So I concluded that the only way
to have a change was to get control.
that the agreement was ab-o-
gated, and went ahead. I believe that
Mr. Colburn is back of Andrade. / had
a desire to get out when there seemed
to be a desire to have me out, but now
that there seems to be such earnestness
to keep me in, I believe that 1t would
not be fair to get out at all, and l shall
stay according to my present plans"
Schuman has ten days in which to an