The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-02-18
SURPRISE
IN COURT.
.Wundenberg for
Kona Sugar Co.
Receiver.
DAMON WAS
TURNED DOWN
Receiver Agreed Upon by Parties
to the Proceeding Not Salts
factory to Court.

| Fred w. Wundenberg was yesterday
appointed receiver for the Kona Su-
gar Company by Judge Humphreys.
The court refused to appoint S. NJ.
Damon, the man agreed upon by all
parties to the suit, on the ground that
he was disqualified as being a creditor,
and further, because his business
engagements were such that the court
did not believe he could give the mat
ter the attention which the court
thought it deserved.
The suit was called up yesterday af-
lternoon, after the jury had been excus-
ed. Mr.. Hankey appeared in behalf
of the complainants, McChesney &
Sons, and Mr.. Silliman represented the
defendants, the Kona Sugar Company
Trust Company.
Mr.. Hankey read the complaint, fol-
lowing which the answer of the Kona
Sugar Company was read by Judge
lSilliman.
The defendants admit nearly ev-
Ierything in the complaint excepting the
amount of Indebtedness, $1S9, .05,
which it leaves the plaintiff to prove.
Defendant denies that some of the les
sors of the land held by it under lease
have threatened to take proceedings to
forfeit the leases granted by them.
| Defendants admit the necessity of a
receiver, but deny that the contract of
October l. 1898, mentioned in plaintiffs
bill of complaint constituted an equit-
able lien in favor of plaintiffs upon all
or any of the crops of this defendant
during the term of the said contract.
| Mr.. Hankey then presented his petit
ton for the appointment of the re-
ceiver, the defendants agreeing to it,
as signified in their answer. Judge
Humphreys thereupon asked if the at
torneys had any one to suggest for the
receivership, and Mr.. Hankey stated
that all the parties to the suit had
agreed upon S. NJ. Damon for receiver,
in which statement Mr.. Silliman con-
CURED.
II cannot establish the precedent
said Judge Humphreys, "of appointing
a creditor as receiver. Under the rules
of law Mr.. Damon is disqualified from
acting. 1 have looked up the ques
him.
Il agree with the court replied Mr.. |
Hankey, that it is not usual to ap |
point a creditor as receiver, but ac- |
cording to this proceeding Mr.. Damon |
is not creditor The parties to this |
suit are DESTROYS of having a receiver |
appointed who can go outside the usual
duties of that position, and incur fur
Their debts to carry on the plantation"
Il have no doubt of the ability of
Mr. Damon to secure the funds need
ed" said the court, "but I cannot see
my way clear to appoint him. though
his appointment is desirable on that
account. 1 know, personally, that Mr..
business engagements are
such that he cannot give this matter
the personal attention that it requires,
and the duty would necessarily be dele
gated to his clerks. 1t is a we'll set
tied principle of Jurisprudence that a
creditor cannot be appointed, and I do
not believe that Mr.. Damon could give
it the attention which the court should
exact"
Judge Humphreys then said he would
appoint Fred w. Wundenberg as re- 1
ceiver, and fixed the bond "a $4,000.
An order was made in accordance with
that decision, the court adding the
bond provision himself.
Judge Silliman suggested to the
court that some explanation of the
courts ruling was due Mr. Damon
Judge Humphreys then repeated his
former ruling to the court stenogra-
oher, but added that he didn't wish it
by reason of this that the
court was making an apology or ex-
Olanation of its action.