The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-01-16
COURTS
MUST Be
ARB|TER
Bank Matter Is
To Be Taken
There.
STAMP TAX LAW
WAS REPEALED
New Directors Reflect Old Officers
of the Institution and Desire
TO Stand Firm.

A T THEIR meeting held yesterday
ia afternoon the directors of the
4 n First National bank of Hawaii,
chosen on Tuesday, reelected the for
mer officers of that institution These
are Cecil Brown, President, and Walter
G. Cooper. Cashier.
In the interest of the mainland stock
holders Of the bank. whose proxies he
held, but was not allowed to vote at
the meeting of Tuesday, Col. G. w.
Macfarlane yesterday retained United
States District Attorney Dunno to pre-
pare a bill in mandamus to have de-
clared null and void the action - the
stockholders meeting and to compel
the holding of another meeting.
AS "a result of the ruling of Presi-
dent Brown that the proxies of Col.
Macfarlane were not legal, in that they
were not stamped according to law. IT
was developed yesterday that the in
ternal revenue, or war tax law, OF
March 2, 1901, omits mention OF the
matter of proxies and powers of at
peals the former law under which the
tax was collected This view OF the
matter has been taken by many of the
plantation firms and their proxies are
being received without the revenue
stamps. Collector Chamberlain does
not interpret the law at all, but he
submits the law and several circulars
which, though unofficial, are issued by
firms which are in close touch with
the Treasury Department, and all of
these say that the points in question
We're specifically repealed.
President Cecil Brown said yester-
day afternoon that while he might
have made mistake, that he was not
as yet convinced, and would certainly
stand by his ruling until there had
been decision by the court. He had,
he said. no doubt as to the illegality of
the proxies, because of the absence Of
a power of attorney accompanying
them, and also from the fact that they
were not dated. There could be no 9TH
er meeting, he said, within thirty days.
Mr. Brown further said that 1t nad
been suggested that the matter could DC
settled by the directors resigning, but
that this would not be done. He said ac-
cording to the law and the ruling or the
Comptroller of the Currency, 1t was not
necessary to have a majority OF the
stock TO procure an election in Ma
tional bank. The fact that he voted less
than $500 shares could not be urged as
against the perfect legality Of the cleo
tior held. He said the old officers Of the
bank would not give up their places un-
til the courts had decided the matter, in
the contingency that the other side might
want to take up the matter and take le-
gal action
It is expected by Mr.. Dunno, the Unit
ed States Attorney who has been re-
tained in the case, that he will have his
bill ready to submit at once, perhaps
today Dir. Magoon is In the case as as
sociate counsel. The most important
feature of the matter, owing to develop-s
nents yesterday, appears to be. that the
case will come up In the United States
District Court. Should there issue
mandamus compelling the officers of the
bank to call another meeting, it Is as
serted that the court VIII direct that il
shall take the form entirely OF a substi-
tute for the meeting Of Tuesday. in effect
declaring that no meeting was held upon
that date. SO that there will be no
change in the alignment of the forces
as they were drawn up on that day.
Should this be the case, ii viii not aHai
that two orders for stock OF the oank
have been placed in San Francisco. in the
interest of President Brown, and thcse
are said TO have been filed, and the
stock is alleged to be now on the way
down here, so that II there Is hs'd a
meeting as of February 14th. the slorh
win be taken from the shares represert-
- ~, r. " Nacfarlans and added 10
the list of those in the control OF MF
Brown, while If the court shan hold tna'
there was no meeting heid on n, yd'lSa1y "a -;
1lth. and that such meeting shall De he.I.
then there VIII he just the same a. ls.t1- "
button Of forces as Of Inesosy, %,t,l z,Iarsr-
rrgf
lane. o-,,a5 las. o.
- - his position and replied that
having placed the case in the l,,. nands 7, o. o.
an at2orney. he could not DISCUSS II a.
.-...i......a m nag "a