The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-07-30
SUIT OVER
LUMBER
Reply of lnman,
Poulsen &
Co.
PLAINTIFFS OF
HONOLULU
Oresonians AIIese That Hawaiians
Did Not Live Up TO Their
Agreement.

Poulsen & Co. have fled an answer in
I, the State Circuit Court to the suit of
the Pacific Mill Company. of Honolulu.
for s162,721 damages for alleged breach
of contract to ship Oregon pine lumber
| to Honolulu. The plaintiffs also COM
plain that the capital stock of their
company was to be increased from s12,-
o00 to $4,000 at the instance of Inman,
PouIsen & Co, that a lease or certain
railroad lands was effected. and it was
arranged to sell Oregon pine lumber
! in the Hawaiian Islands, and that they
sustained the damages alleged because
Inman, Poulsen & Co. repudiated the
contract.
in the answer is entirely different from
the allegations of the complaint, The
defendants contend that they are the
losers, and that the misrepresentation
all came from the other side.
1t is stated in the answer that in
July. 1901, the Pacific Mill Company
solicited Inman, Poulsen & Co. to join
with it in the establishment of lum-
ber-yard in Honolulu, representing to
Innnan, PouIsen & Co. that there was
ber-yard, and superior facilities for
carrying the lumber from ships to the
yard; that it could do SO for from 81
to 81. 40 per 1000 cheaper than any lum-
Der firm in Honolulu, and it was pro-
posed TO extend the capital stock to
$50 600. the shareholders to retain their
s12, 600 of stock, which was to be declar-
ed paid up, and the balance of S3S,0oo
to be subscribed for by parties in Ho-
nolulu, and by Inman, Poulsen & Co.
1t was further proposed, so 1t is
averred, that subscriptions for at least
one-hah of the stock would be secured
in Honolulu, from contractors. archi-
tects and parties who would be of as
sistance in disposing of large quantities
of lumber, all of the 900 to be put
into the lumber business as needed.
The answer recites also that Inman,
Poulsen & Co. sent an agent to Homo
lulu authorized to enter into negotfa-
lions with the Pacific Mill Company
looking to the establishment of a luin-
ber-yard, any and all arrangements to
be conditioned upon the Pacific Al1l
Company having net assets OF the value
of $40, 600, having a large and profitable
business and superior facilities for
handling lumber Of the kind mentioned
in the proposal. 1nman, Poulsen q
Co. were to name one employe to be
elected a director, who should manage
the business OF the numbering depart
ment, and it was further conditioned
that plaintiff should increase the capt.
tai stock to $4,000, obtain bona fide
subscriptions TO its unsubscribed CAPT.
tai stock OF s23, 900, subscriptions to be
obtained from contractors. architects
and parties who could assist in selling
large quantities Of lumber, the sub
seribers to be responsible persons. and
subscriptions to be paid in one, two.
three and four months.
Innlan, Poulsen & Co.. it is asserted.
upon compliance with these conditions,
would subscribe fer $15, 900 of the stock.
to be paid for IN Oregon pine lumber,
the Pacific Mil Company TO pay cash
for every alternate cargo shipped TO 1t,
the other cargoes TO be applied to said
subscription.
1t is further alleged that after various
iuvestiga tons, Inman. Poulsen &c Co.
ascertained that the Pacific Mill Com
claimed by ST. or valuable assets in ex-
cess of its existing indebtedness. and
that the company was insolvent. That
if failed 70 obtain bona fide and re-
sponsYbIe subscriptions TO its capital
stock in the sum of S23.000 before the
date agreed upon, September l, 1901. or
any subscriptions save and except
small portion. 1t is also stated that
the subscriptions were not called for
or paid in one, two, three and four
months, except q few, and that none of
the other conditions was complied with
Jnman, POulsen & Co. aliege that con-
sequently, on December 16, 1901, the ne
gOtiations were terminated.
Fer further and separate answer IL
is averred that on December 10, 1901, at
Honolulu, Inman, Poulsen & Co. Offer
ed the Pacific Mill Company the car
goes of the schooners Joseph Russ and
G. w Watson, consisting of 29,776 feet
of redwood, 6,46S feet of redwood. $780,
600 cedar shingles, and considerable
lumber (Which is described) at certain
stated prices, which were much less
than the terms mentioned in previous
negotiations, and the Pacific Mill Com
pany refused to purchase the cargoes.
For the purpose of verifying the
statements made by the Pacific Mill
Company regarding its assets, 1nnan.
Poulsen & Co. allege that they sent
three agents at different times 10 Ho-
nolulu at an expense of $500, and that.
relying upon other representations
made. the two schooners We're sent to
Honolulu. BY reason of the failure of
the Pacific Mill Company to comply
with the conditions referred to. il is
asserted that a loss was suffered on
the lumber OF $1,000. that a loss was
sustained on account of having TO can
eel a charter of $500. and that. alto
gether. Inman. Poulsen & Co. lost $1,000.
for which Judgment is demanded. Cake
& Cake appear as attorneys for the
defendants.