The Hawaiian gazette., 1902-04-22

HIS ACTION
The First Judge
Disapproves
Bonds.

Judge Humphreys has hlsd his decision
disappearing the Investment boz Mcbry De-.
Oahu Railroad aud WalaIua bonds by A.
W Garter as guardian of the Annie T.
] X Parker estate. The total amount with
which the guardian Is charged is Si2.JJu
The court also appoints j. J Dunno as
/ guardian ud llt.m 60 protect the inter
|,sts of the minor when the case comes
W on appeal In tho Supreme Court
The decision II the court Is lengthy.
covering thitty-two typewriter pages. In
| his decision Judge Humphreys says;
! "Thc Investment of the funds Of his
ward in the bonds OF the Waialua Agri-
cultural Co. Ltd, by tho guardian in this
case and particularly the large sum In
vested in the bonds Of the NcBryde Sugar
Co, Ltd, cannot be defended upon any
Iprinciple or authority; the investment in
! the securities OF the latter (McBrydc
company especially deserves to be char
lactorizcd as unauthorized, eNtraVagant
/ limprovidcnt, reckless, and breach OF
trust In view of the guardians admis-
sion that at the time of the investment
he had neither examined an abstract Of
title of the property alleged to be owned
by the company, nor read the trust deed
by which the bonds are alleged To be Sc
cured, and in view of the further aud
significant fact that he purchased by far
the greater part of them from corpp-
ration In which he was a director and OF
which he was treasurer. to-wit: the
American Sugar Company. AS faith
? ful, prudent, diligcnt, cautious, watchful
and conservative Hduciary IL was his duty
to have examined the title to the prop
orty alleged TO be pledged as security
for the bonds in question and To have
carefully and critically examined the
terms Of the deed of trust"
IA. W. Carter is the man who, since
the McBrydc investment was made, was
pronounced by Judge Humphreys as
fit successor TO himself in case he should
, retire from the bench, that statement be-
ing made in an interview.
As regards the Banning case, upon
: which Judge Gear relies In his opinion
sustaining the investment in McBryde
bonds in the Bishop estate, the court
says:
but in so far as the Banning case
holds that a fiduciary may invest trust
| funds in the bonds or other securities of
: private agricultural mercantile or INDUS
trial corporations and that the courts Il
equity and probate In this Territory can
not, without trenching upon Legislative
functions, direct the trustee as to what
securities he may invest in, the court
must and does respectfully decline 20 fol-
, low that decision. The court has never
! considered that the decisions of the 81.
z preme Court of Hawaii antcdatinE lhr
anncxation of the Islands by the Unit /
v States, are binding upon II, barring, of
u course, such decisions ms may have con-
I o.tu.u t ,p,t, ss'', i,o,,, ,tahltsh,a
= 49, ~" w - ." DO, ca ~ - -,
to Reorganze the Judiciary Department
passed by the Hawaiian Legislature in
1892, II is declared that the common
law OF England as ascertaned ny English
'' ~ ,,,,,', ia',, f 10 rIa,,,aii.
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.ai ~ %" - ~ tIa,,aii l,,,i
t a.ateu ~ ~, VA -, ,a,, '
sisi.i ,,.a',1',t ,a,.i'ii,h'5 h, II,
IT. 'n-,t.; ,.,,a, ,rha xi,,,,,o,, -,
- ,,,, I, ,io.tin, 49, ~ Il,
'''s ,,,, -, -, go. h,, ,,,'s, ,rt,,, 49,,
= ,,,.',','s ,.,,h r., &c.. ~, ao.i,a,,i
) h, ,ho CONT In tho Tanning case II
/ ,.a. ,lI,it,Is ~, ~ ,,,,., 80 c,,r 10
l. ,h"ro ma,,, ar,, oonsti,,,Ianoi nr ,t,,,,1
J. 49,, ,.a,';.to,, l., IIn,,aii Iir,t,tr, a., in
n -, - -, -, ,s - - :. 80
n ,oar ,bat s,,nh i,,a.t,,1or,. warn sY.d
t,,at, ,,.,a,, -, =. ~ D.,
nirc 60 or ht, National n..oor
Tho count .on,.nt. .r.o -, III. ,ro
,.isin,, a., -, ,.''st 80 'r 30, ,,no,ao,
D in,, Tho MINORITY hondbo,dor. un -.
= nso ,o ,ha .,oonIo,Ira H.,,,os 90 s,aar
x nian,ot,on. IA 1t. ,,.,,n.Io, "a 81.
P ,naarioan e. Cau,non,, -. iu...noa. -,
s les ,hrn,,,h .,,ot .rnn,,,o,;nn. Than ,ht
! n,,r, 60.
, ..m -. ~ r,. o.., o,,,,,.
" nr,,a. .vnna.. ot ,h, .n,, ,ir,a ,va O.,
= tend to protect with ali Of the safe
/ guards Of law and equity the dependents
:, upon this court. The elamor OF stock
- manipulators cannot move us from our
position; the threat Of promoters inspires
: MS with no terror; the groan OF the widow
L. and the cry OF the orphan does fill us
). with immeasurable pity, and having an
n eye single to their welfare We do not in
il tend that corporations with alleged Sc
curities, having an alleged gilt-edge hut
M back Of grosser metal, shall break into
the vaults OF the court and take from II
y. the funds Of fiduciaries. As matters now
stahu there is pu' one wa! 10 set sucf
funds out Of these vaults, and that Is tc
employ dynamite in liberal quantitie,
when the police are asleep. II the Mas
sachusetts doctrine that q trustee can in