The Independent. [volume] (Honolulu, H.I.) 1895-1905, 1903-08-26
is NOT YET
I'M ANY
EMBARRASSMENT.
The KapiOlani Estate Can Hold
lis Own Against All Corners.

Much Consideration was aroused
10 the city last afternoon by the an
nouncement in the Star, in large
black type heading, occupying
epsce of 4ax5s inches, "The Bank
Takes Hold" giving the information
that the German Savings and Loan
Society of San Francisco had assum-
ed aud taken over, by its attorneys
here, Smith & Lewis, the charge OF
part OF the business of the Kapio-
lani Estate, Limited, In its Scoop"
it stated that the course adopted
was done to protect itself in its ad-
vance OF a loan of 100000 at the
rate of 65 percent interest per an
mum, the mortgage being executed
on May 81, 1902. The note given
was for six years. The mortg age
deed gave summary powers to the
bank in the event of ten days de-
lay in paying INTEREST when it be-
come due, upon which the bank gave
instructions to its attorneys to take
advantage OF the summary powers
given, which they have now done by
issuing notices to certain tenants of
the Estate to make payment of their
rents to them. No cost will be
chsrgeable for the collections to be
made.
1t is not denied by John F Col
burn, the manager of the Kapiolani
Estate, that they are elk months in
arrears in the payment of interest
and this action on the part OF the
German Savings and Loan Society
is in the natural course OF business
under the right of summary powers
given it by the mortgage deed. The
arrangement was made in an amic-
able and friendly way.
One would think from the SCOOP"
made by the Star with it's scare
head that the Kapiolani Estate was
in bad way, but we have the as-
surance Of it's efficient manager and
representative that the affairs OF
the Estate are in healthy condition
and not in any way embarrassed. He
also said, on being interviewed, that
about $4,000 OF the rent income
was assigned under the mortgage
to the German bank, it being only
a small fraction OF the entire in
come OF the whole estate. More
over, the estate has about $50, 1000
outstanding, besides having over
100000 invested in sugar stocks,
which does not chow that it is in a
bad way.
But the German bank people
have done nothing more than to
assert their rights, They may have
taken the arrears o mean to force
them to make q foreclosure, yet
they do not care to, for in taking
over the collection OF certain rents,
they no doubt feel safe in the in
vestment made by them here. But
some people are Of the opinion that
the step taken may be only intend
cd to annoy and harass the estate
on the part OF the attorneys.
The X ,piolani Eatate has twice
offered to psy up the entire Gsrman
bank loan and wera twice refused.
Once 90 February 4th last, it sent
the following telegram: Can we
pay mortgage and accrued interest
upon the date when settlement can
bs nader And on the 7th follow
ing, it received the following reply:
Directors regret cannot accept
payment" This course necessitat-
ed Mr. Colburn's going to San
Francisco shortly after, ostensibly
on trip to London.
Prior to that time, negotiations
had been carried on WITH certain
parties in London, and who now
stand ready at any time to advance
to the Estate 100000 as soon as the
mortgage to the German bank peo-