The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1902-01-15
PROXY TAX HAS
BEEN REPEALED
CECIL BROWN IS SAID TO HAVE
MADE A FATAL
MISTAKE.
FIRST NATIONAL BANK MEETING
INVALID.
Suit Instituted for New Meeting.
Thirty Days Respite for Both Sides.
Close Fight Expected

| Cecil Brown of the First National
Bank practically acknowledges that a
| blunder was made in throwing out the
proxies of Colonel c.. w. MaCfarlane at
| the stockholders meeting yesterday on
account of their not having been stamp
ed with internal revenue stamps accord
to the War Tax Of 1898. Without any
such intention on their part MaCfar-
lanes party, by a judicial statement of
Judge Humphreys to the effect that he
believed that 4ur. Browns ruling was
good law allowed the challenge to
pass by leaving Mr.. Brown to believe
that he had effectually checkmated the
opposition.
Both sides went home satisfied last
night that they had met, the one with
defeat the other with victory. 1t was
not until this morning that the various
plantation agents became interested
concerning their own proxies and the
Internal Revenue Department looked up
the law.
According to the Act of March Q 1901
amending the war revenue law neither
proxies nor powers of attorney were
mentioned as being liable to the duty
and the legal inference is that the tax
on these specific objects was thereby
repealed. Collector Chamberlain does
not stand as an authority on this sub
run may read for themselves. He has
however circulars dated Washington,
from statistical firms there, which,
while unofficial state positively that
powers of attorney and proxies haveI
been repealed. The plantation agentsI
rapidly came to the same conclusion
and acquainted both MaCfarlane and
Brown with the fact
CONSERVATION, still somewhat incre- !
dulOus Teigned in one camp, joy, afterl
a sleepless night, agitated the other
Colonel Macfarlane hastily got into al
hack and hurried off for private consult
tation. Meantime in the private office
Of the First National, increduHty wasl
giving way to unpleasant certainty OIL
the fact that someone had blundered." ." !
Consultation only verified the fact andI
plans for fresh campaign We're rough-I
ly formulated. In-the case OF the elec-
ton being declared void tghhh sc isi
thought may occur, thirty days will
elapse before a new election, which,
breathing space will be utilized by bOthl
contestants in supreme effort to OBJ
tain control.
The question of stamps was not the
only issue on which Cecil Brown ruled
the invalidity of the proxies yesterday. |
There was the lack of a power of attOr-
ney and the neglect of dating the proX-
les specifically as to which meeting they
were to be used for.
One hundred and fifty shares are now
said to be on their way down here
which will be controlled by Cecil Brown
and another order for 500 more is also
stated to be placed on the coast for the
same side In addition TO this there
remains the uncertainty as to whether
Brown can swing the five hundred
shares of the Campbell estate,
Just what the possible figures each
side will produce are it is practically
inn fn al
possibility, speculator couIu Dull the
First National Bank stock very sue
cessfully by holding a nice little block
of shares large enough to swing the bal
ance. As it is shares are not particular
ly hard to obtain this morning, although
a few hours may make considerable
difference
Cecil Brown this morning said: "II
may have made a mistake. If l did,
why the matter will be fought i'm the
courts and l suppose a new election Will
be ordered and yesterdays made void.
My attention was called to the question 5
this morning by the Eva people and 1 !
have looked up the law. While it is not /
specifically stated that proxies are re- !
pealed / may have made a mistake. Thel [
act reads so differently from the way wei {
have been in the habit of working in {
this legislature. Our form would have /
been to have repealed such and such I
MA JltISs SldllnB LueIQ III Iulls congress- I
goes the other way about 1t and re- [
writes the act. While 1 cannot see any /
thing in the amended acts about powers /
IF attorney and proxies 1 shall cling to
he impression that 1 am still right un- r
iii the court decides differently. Ia
Judge Humphreys yesterday stated ,
hat he believed my ruling was good T.
aw but if any discussion had been rails =
ID about that point or any doubt moot ?
ID, If l myself had had any doubt OF my| =
.orrect attitude / should have the mat =,
er drop and taken up the other cases "
or which the proxies were Illegal the
ack of power of attorney and the de-
ault Of the date. In any case no fresh y
Meeting can be held until the thirty =.
avs have elapsed" II
Judge Humphreys this morning was 81
urprised to hear that his decision as II
D good law could have been in error 81
nd went into Attorney Dunne's cham
ers to investigate, where he was pre-
lmably enlightened. That there is
vely time ahead at the next meetingI q
certain. The feeling said to have Il
cen long existing between MaCfarlaneI %,
nd Brown will not have been diminish Is
d by the last battle which proved only
skirmish,
Just where the trouble started is hard
, say The National Bank law re-
lires that a certain number of dlrec- U
ms be elected from local residents and
acfarlane not being considered a prac- G.
cal resident was left out, which as he M
as one of the most urgent promoters al
few hours may make considerable el
lfhed him al
Stories of fights between the Presi
ant Cecil Brown and secretary w. G.
ooper Of the bank I'm which a great
aal of Californian money was Invested
re stated to have reached the coast al
nd alarmed the shareholders there in pa
present action. Letters We're also ca
mt that reported that the secretary st
as not the man for the position and
as unpopular with the business COM
unity.
CONTINUED on page aveJ ar