The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1902-01-17
COURTS
MUST Be
ARB|TER
Bank Matter Is
To Be Taken
There.
(From Thursdays daily.)

firsl NullpHal Ddnh 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 of 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, 1t
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
torney. and it Is held by attorneys. re-
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
were specifically repealed.
| President Cecil Brown said yester-
day afternoon that while he might
have made a mistake, that he was not
as yet convinced, and would certainly
stand by his ruling until there had
been a decision by the court. He had.
he said no doubt as to the ilegality of
the proxies, because of the absence of
u 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 mad
been suggested that the matter could be
settled by the directors resignlng, but
that this would not be done. He said ac-
cording to the law and the ruling of the
Comptroller of the Currency, II was no,
necessary to have majority of the
stock to procure an election In a Ma
tional bank. The fact that he voted less
than 900 shares could not be urged as
against the perfect legality Of the cleo
tlon held. He said the old officers of the
bank would not give up their places un-
Ill t1e courts Ua1 decided the matter, IN
the contingency that the other side might
want to take up the matter and take le-
gal action.
1t is expected by Mr.. Dunno, the Unit
ed States Attorney, who has been re.
ta!ned in the case, that he will have his
bill ready to submit at once, perhar
today. Mr.. Magoon Is In the case as as
soc!tt, counsel. The most important
feaIur. q. ,l.r matter, owing to develop
30, D, ~.
case will come up in the United States
District Court. Should there issue a
mandamus compelling the officers of the
bank to call another meeting. 1t Is as.
serted that the court will direct that II
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 wer" drawn up on that day.
Should u !" the case, II will not avail
that two ,.a. stock of the bank
have been l.Iced H. ) n Francisco. in the
interest of President Brown. and these
are said to have been filled. and the
stock Is alleged to be now on the way
down here. so that If there IL held a
meeting as of February l4th, the stock
!. will be taken from the shares represent
ed by G. w. Macfarlane and added to
the list of those In the control OF Mr.
, Brown. while II the court shall hold that
there was no meeting neld on January
l4th. and that such meeting shall be held
then there will be just the same distri-
button of forces rs of Tuesday, with thC
majority in the control of Mr.. Macfar'
lane
Colonel Macfarlanc was asked last ev,
2 ening as to his position and replied fha
S having placed the case In the hands o
4 an attorney. he could not discuss 1t a
all. He was asked II there was an,
. truth In the street report that he wanted
the presidency of the bank for himself
and said: while l have been associs tee
with the late James Campbell, the An
glo-Californlan Bank and others. from
! the first In the matter of the organiza
ton of this institution, l have always re
fused to be considered as a candidate fol
the presidency, and only held a director
ate during the organization period. No.
have no candidate In the strict sense. a.
: mainland people who gave me their prox
les, insisted that / should consult freel!
with the local stockholders, and that {
. selection should be made of a man wnt
would be suitable to the majority. ! ha,
. no Instructions to elect Mr.. Morgan o
; any other man to the presidency. Al
u rumors to- the contrary are misleading
I l have always wanted to consult freel.
= with the stockh elders and act with tn
n maIority-ln fact nominated or vote
II for the election OF Cecil Brown as presi
= dent of the bank every time he has bee
- chosen"
= The consensus along the streets yes
terday was that the president OF th
bank was IL error when he made h
y ruling. The general sentiment was tha
u there would have to be held anothe
meeting. at which 1t seemed to be tn
general opinion there would be a ma jor!
, ~ of votes In the hands OF represent
Q ative of the foreign stockholders. II wa
q the universal opinion that there woul
I be no difficulties encountered by the BAN
n and that the little difference which ha
!. arisen between the parent institution an