The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-03-19

Il OND1OLDEfS or the hona plan
tation will meet today if all can
get together, for the considera-
ton, not only OF the recent letter of
the directors of the corporation, but
as well to take up the status of their
security in the light of the order of
sale signed by Judge Humphreys. In
the opinion of some OF the leading at
torneys of the city the order OF sale is
not really one for the furtherance OF
the disposition of the estate, but to
prevent any sale, owing to the fact
that under the provisions of the order
few men of money would care to pur-
chase a lawsuit. and that this would
be the direct result of the sale under
the conditions.
Owing to the illness of S. Nj. Damon,
there has been no meeting of the bond
holders, although they were expected
tc get together Monday. The urgency
of the case has appealed to all those
interested, and there is chance that
the meeting will take a wider form
than a mere consideration of details
and that members of the board of the
corporation will be asked to be present
at the meeting of the bankers and at
torneys. This is the more probable ow-
ing 10 the fact that the recent letters
from the plantation contain informa-
tion which is of great value in any con-
sideration of the matter While there
have been made statements that the
laborerS would resist any attempt to
take off the cane until there had been
a full payment of back advances let
ters from NJ. f. Scott and others are
to the effect that the Japanese were
T1aat with fha leading white
to consider what is to be done to help
the plantation. Mr.. Scott has taken
100 OF the Japanese into his coffee plan
tation for the purpose of keeping them
about that they may be ready for work
if the mill is to be started.
The letters of Manager Cowan, too,
say nothing of the possibility OF the
laborers making any trouble, but on
the other hand, he reports that the
mechanics have continued in the work
of fitting up the mill. despite the dis
charge order of the receiver, and the
declaration that there would be no
money to pay them.
One of the leading attorneys OF the
city who has been consulted in the
matter of bonds, said last evening that
he could not understand the order of
Judge Humphreys. He continued: 1T
IS impossible to conceive that the court
should order that a mortgage be
brought into court and cancelled, and
the money put into the hands of the
court for distribution. The mortgage
is a primary lien on the property, and
# there is any sale it must be subject
to the bonds. In fact, if the sale is
had and the proceeds are not more
than sufficient to pay the bonds, be-
lieVe the receiver will have to whistle
for his fees and commissions cannot
see how any court by scratch OF a
pen may confscate the money OF
If that was the law OF
the land you could not sell an Hawaii
an bond for 10 cents on the dollar.
Ever the suggestion that a court wants
to make such a ruling may have the ef-
feet upon our securities. Then, too.
we have Il statute defining the rights
Df a mechanics lien. 1 do not believe
the court can repeal that law by any
lrder I do not think there is any
value to the order. and ii does not in
my way affect my opinion of the worth
Of the bonds"
Another attorney of standing here
and in the States as well, said that he
had never heard of such a ruling. He
said the only debts which We're consid-
cred TO have a priority, in his practice,
we're those incurred by receiver in
oondholders. These were wide, even in
he case of a railroad, it being held by
Missouri judge that a claim for dam
ages. resulting from the operation OF
he line by the receiver, ranked before
he bonds, but that all general indebt-
.GneSs was to be considered after the
ponds had been paid. He said that
le could not remember any parallel
or the order Of the first judge Of the
First Circuit, and that there must be
some mistake in the matter.
Receiver Wundenberg said yesterday
hat the order was meant only to clear
way all mortgages and liens so that
n the event Of a sale he could, under
he order give a clear and sufficient
tile to the estate to the purchaser. He
aid there must be recognized the pri-
,rity Of al receivers claims and that
n the event of sale for n sum less
han the amount OF the bonds, the
mortgage would have to be cancelled
ma the property cleared.
TIE order of the court that all the
moneys resulting from the sale after
he pavrneYt OF the charges Of the re-