The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-05-30
4 AUO IS
ALLEGED.
Broker 10. Wood
Accused by a
Client.
STOCK PURCHASE
WAS MYTHICAL
James Bsrgstrom Says Wood Has
Victimized Him on WaiaIua
Stock Deal.

j. G. Wood, who was formerly a
stock broker in this city, and VINO is
at present making a tour of Europe,
has been made defendant in a suit
brought by James w. Bergstrom, who
charges fraud, to cancel a promissory
note, and applying for an injunction
from the First Circuit Court prohibit.
ing Wood from negotiating the promis-
sorry note, which amounts to $4,000, and
to compel him to return five shares of
Waialua Agricultural stock and SIX
teen shares of the Bergstrom Music
Company stock.
The plaintiff states that on or about
May 20, 1899, Wood was engaged In the
business of stockbroking IN Honolulu,
and that on that date plaintiff employ
ed defendant to purchase for his ac-
count, rs shares of paid-up stock of
the Waialua Agricultural Company at
a price not to exceed $500 a share, and
that thereupon it was agreed between
petitioner and defendant that upon the
contamination of such purchase petit
toner should give defendant his prom
issory note for the purchase price
thereof, with interest at per cent,
payable semi-annually, the note to be
paid two years after date, with the
privilege of extending the same one
year, and that Wood should hold as
collateral security the said twenty-five
shares of Waialua assessable, and six
teen shares of paid-up stock of the
Bergstrom Music Company.
Wood notified Bergstrom on May 20
that ne had purchased twenty-five
shares of Waialua stock at 5000 per
share, who thereupon delivered his
promissory note for $780, together
with the other shares mentioned.
Wood did not deliver the twenty-five
Waialua shares, but defendant peliev-
ed Wood was holding them as collater-
al security on the note.
Petitioner alleges the truth to be,
that neither on the Goth of May, 1899,
or at any other time whatever, did
defendant purchase for or on account
of petitioner said twenty-five shares of
paid-up stock of the Waialua Agricul
tural Company, at 5000 per share. But
this petitioner alleges that said alleg-
ed purchase of said twenty-five shares
of paid-up stock of the Waialua com
pany was false and pretended, and that
the acceptance of said pron1issory note
and collateral security of petitioner by
defendant was fraudulent on the part
of said defendant"
Bergstrom states that relying upon
Woods statement, and believing that
the purchase had actually been made
on his account, as alleged, he duly paid
the interest on the note up to and In
Guiding the payment due on November
20, 1900. In the month of November,
upon paying the installment OF interest
due on November 20, to the Hawaiian
Trust and Investment Company, which
was the agent of Wood, who was then
| travelling in foreign countries, he was
| in formed nv the "a
there were assessments due upon the
shares of Waialua Agricultural stock
! held by the agent of defendant as COLI;
! lateral other than the five shares of
assessable W1aiaiua stock upon which
Bergstrom had duly paid the assess
ments.
Then, for the first time, Bergstroin
states, he examined the shares of stock
so held as collateral by Wood, and sup
posed to have been paid-up shares of
stock purchased for Bergstrom ana
| found that the stock as represented by
| the following certificates: Ne. S39, of
five shares, issued to Wood July S, 1899,
five assessments paid; No. S62, for ten
| shares of paid-up stock of the Waia-
| lua company, issued to Wood July. 19,
1899; No. 1901, for ten shares assessa-
| BILE stock issued to Wood January 2,
! 1900,s with five assessments. M4iia8
On May 90 1899, the market price OF
| paid-up shares of Waialua. as shown
| by the published reports of the Homo
lulu Stock Exchange, was 1925 asked.
| On July s, 1899 the market value OF
assesSable shares was 105 bid, and 1917,
asked. of paid-up stock, 1929 bid, and
| $50 asked, and that upon that day
| there was twenty five shares of said
assessable stock. so per cent paid-up
at 1914, and that upon July 10, 1899
| the market price of paid-up stock was
14S bid and 1521s asked.
| BergStrom, upon being advised of his
| rights, elected to repudiate said pre-
tended purchase of stock FOR him on
| May 20, 1899, and gave Wood due mo-
tice of such election, and requested
the immediate return and cancellation
/ of his promissory note for $1,000, and
the return of interest paid thereon, and
the additional security Wood refusing
to aecede to Bergstroms demands, no.
titled Bergstrom to that effect, which
1 was received by the petitioner on April
%, 1901.
He says there is danger that defend
ant or some one in his behalf may
negotiate the promissory note to a
bona fide purchaser for value without
notice of the equities existing between
the parties or that Wood may bring
an action for the principal, or some
one may hypothecate the five addition
al shares of Waialua and sixteen
shares of Bergstrom music shares, and
Bergstrom therefore asks to have the
same returned, together with the
promissory note and the interest he
1 hoe o1raadv maid amoJptfY,o fo Ss0O