The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-07-05

and their assigns pledge sixty naes Oh Tue apa
stock of HOLSTER Drug Company, Limited represented by
49, As and 46, on the terms and Tor the
purposes following VIZ collateral security for the payment
promssory and all other notes and demands
i which Bishop hold may hold against me 50
long as they shall said security; and with full authority
on and their assigns to collect assign OF
said security any part thereof
any such demand shall be over
Ndue and unpaid" x
The said certificates endorsed in blank before
9ol delivery to Pledge certificates issued nor
was this transaction recorded books of the The
said paid and there now due thereon the
sum of 1924 said has been allowed
We to by the administrator
The questions presented in this IN the
first
the No claim of fraud made pretended that any
transactions did the
edgee good denied that Winter had perfect
legal right pledge certificates of stock collateral
security for the payment Of borrowed in the
he behalf of the administrator that
the pledges by their ach and neglect forfeited claim
they might have had hold said stock by failure
comply with of the Territory That
Section 2o6 the Civil 1897 each of the pledges
present certificates held the officer
of the HOLSTER Drug Company Limited and to have
certificates issued in the the Pledge and that failing
this void and that the legal title said
lions remained Winter and his death vested
from his PLEDGES have stand
secured and preferred creditors but surrender the
securities and take their the other
creditors of said estate
The follows: "Whenever the capital stock
of divided shares the certificates
thereof issued the may by
dorsement and delivery of the certificate The endore shall
be entitled certificate upon surrenderng the old
and And such transfer shall be valid between the parties
thereto until such certificate shall have been obtained
sub the transfer shall have been recorded the books of the
the poraton show the date of the transfer, the
that thereto their place abode and description
lister the shares transferred" Civ. l.
ooo conended by the administrator that
tended protect the creditors of the stockholders well the
ana creditors of corporations and that the extending credit
~ stockholders had right rely the stock books of the
h corporation obtain reliable information to the amount
stock such owned 1t possibly sufficient answer to
the this that under the law of this Territory the
hr public has right inspect obtain information
ecu from the stock books private corporations such books being
"open for the inspection of the stockholders and creditors
creditors the corporation and of individual stockholders
res' Civ /. 1897, Sec. 2021.)
There decisions opinions whose judges
entitled to great that support the contention of the
administrator this but the decided weight of authority
and the better impe adopt the more liberal con-
ruion, the keeping with the commercial freedom
of the and expressed by the Supreme Court of New York
follows cit has been settled by repeated adudcaionE that
between the parties the delivery of the certificate with
assignment and power endorsed passes the entire title, legal
and equitable in the shares, Notwithstanding that by the terms
of the charter bylaws of the corporation the stock de-
transferable only the books that such provisions
intended solely for the protection of the corporations and
be waived asserted pleasure, and that effect
given them for the protection of the corpoaion that
they do not incapacate the shareholder from parting with his
interest, and that his assignment, not the books the
legal title the stock subject only such liens claims
corporation have it. and excepting the right of
voting at elections" Mcneil Tenth National Bank,
Y. Angel and Ames Corporations, Sec 354;
H. IN Toy nIIoareU AeeiUue