The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1902-07-25
M'BRYDE BONDS
ARE ALL RIGHT
SUPREME COURT DECIDES ON
IMPORTANT APPEAL FROM
HUMPHREYS.
DISAPPROVALS OF INVESTMENTS
PARTIALLY. SUSTAINED.
Bonds Not Objectionable But Some
Were Wrongly Purchased-Heavy
Decision Against Mark Robinson.

The Supreme Court today decided The
appeal from Judge Humphreys deci-
sion in the matter of the Annie T. K
Parker estate. The court reverses
Humphreys decision as far as the cri-
ticisms of McBryde and other bonds
are concerned, but sustains Humph-
reys in disappearing a purchase of
$4,000 of McBryde bonds by guardian
A. w. Carter from the American Sugar
Company, because Carter was treas
urer of the company from whom he
bought. The investments in McBryde
Oahu and Waialua bonds are otherwise
approved by the Supreme Court, and
the form of the bonds is declared to be
a proper commercial form.
The decision will have a more i'm
pOrtant effect on other estates than
on the case in which it was rendered.
Judge Humphreys has under advise
ment the matter of an investment of
| 100000, by Mark p. Robinson, trustee
of the Robinson estate, in bonds of the
Hilo r. r, Company. Robinson is
! treasurer of the railroad company.
Judge Humphreys announced when
| the matter was before him that he
! would not approve or disapprove the
/ Investment until the Supreme Court
settled the question involved, by a de-
cisiOn of the Parker estate appeal. 1t
/ is now expected that he will hand
down a decision disappearing the in
vestment the circumstances being the
same as in the Parker estate, and or
| dering Robinson to repay the 100000
into the estate, with interest from the
date of the illegal investment.
The decision is by Galbraith as act
/ ing chief justice, Associate Perry and
| w. A. Whiting, Chief Justice Frear
having been disqualified. All concur
in the opinion of the court, written by
Galbraith Perry adding a short opin-
ion of his own, with regard to the con-
tinuing force of Hawaiian Supreme
Court decisions that were rendered be-
fore annexation. The syllabus of the
decision is as follows:
Guardians or trustees in ch!s Teri-
tory are not restricted in the invest
ment of trust funds to public securi-
ties or real estate mortgages.
| Investment of trust funds in the
bonds of private industrial corpora
tions may be made when such bonds
are amply secured by mortgage deed
of trust on real estate and personal
property, and are regarded with favor
by prudent men seeking investment Of
their own funds.
"The condition in a trust deed secur-
ing bonds requiring the assent of a ma
I JOIlly Ol the " COlilPS
the trustees to proceed TO foreclose foI
default in the payment Of interests on
the bonds does not in, the absence Of
express stipulation ingthe deed take
from the minority or single bOnd-hClder
the right to pursue the usual remedies
in a court of equity.
l0''This majority consent clause Is not
a delegation of authority by trustee
who buys such bond.
"A purchase of bonds by guardian
of a minor from corporation Of which
he is the treasurer and director il
voidable at the election of cestue qu'
trust"
The investments which Humphrey
disapproved were $26,960 in McBrydt
bonds, $4,O5O in Waialua bonds, anC
81, 500 in Oahu bonds amounting tC
1872, $40 in all The Circuit Judge helC
that the bonds were not proper because
a bond-holder could not foreclose eX-
cept upon vote of the majority of the
holders, This was held to be a defec
in the security, and also a delegation
of the authority of the trustee of tn'