The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1906-03-10
CORPORATION
TEST CASE
Complaint to Be Made
and Basis CT
Appeal.

fPpOuss
An agreed case for testing the cor
poration exhibit law has been prepar-
ed by E. G. Peters, Attorney General,
for the Territory and r. w Breckons
for the respondent. Benson, Smith &
Company, Limited, the well known
drug house. backed by action of the
Honolulu Merchants Association, has
entered the breach as respondent to
fight the law. 1t has in fact struck
the first blow by refusing to file an
exhibit of its affairs for the year 1905
when directed in writing by the Treas
urer Of the Territory so to do.
Suit will be brought in the District
Court of Honolulu against Benson,
Smith & Co., Ltd. to recover the penal
ty for mfsdemeanor in doing business
as corporation without having COM
piled with the provisions of law. This
penalty is a fine not to exceed FIVE
thousand dollars. but, notwithstanding
the maximum amount. special juris-
diction in such cases is given by law
to district magistrates.
MIR. Peters will present a sworn COM
plant, alleging the following facts,
here much condensed from the legal
phraseology:
DECLARED FACTS.
That Benson, Smith & Co.. Ltd, was
on Dec. 20. 1905. and now is corpor-
alton existing under the laws of the
Territory of Hawaii, and was estab-
lished and is existing for purposes
other than eleemosynary, religious.
literary or educational, it's articles of
association being annexed and made
part of the complaint
That on Dec. 20. 1905, A. J. Camp
bell was the duly qualified and acting
Treasurer of the Territory of Hawaii
and on that date in writing directed
Benson, Smith e. Co., Ltd, to present
to him, on or before the 31st day of
January, A. d. 1906, full and ac-
curate annual exhibit of the state of
affairs of said corporation as of and
on December 81. A. D. 1905, such eX-
hibit to be made in accordance with
and upon a blank form of exhibit an
nexed and made part of the COM
plant The form of written direction
to the corporation is quoted, including
this excerpt from the Revised Laws of
Hawaii:
"Section 1855. Annual Exhibits. Ev-
cry corporation not eleemosynary, reli-
gious, literary or educational, shall
annually present a full and accurate
exhibit of the state of it's affairs to
the Treasurer at such times as the
Treasurer shall direct"
For the rest the direction required
Benson, Smith &r Co., Ltd. to comply
with the provisions of law as quot
ed by presenting to the Treasurer a
full and accurate exhibit of its af-
fairs as previously mentioned.
THE OFFENSE ALLEGED.
1t is further to be presented by de-
ponent that George w. Smith, Sam
uel L. Rumsey. Alexis Jean Gignoux,
James c. McGil. w. c. McGonagIe
nd James A. Kennedy, all of Homo
lulu, etc, at Honolulu and within the
jurisdiction Of the District Court of
Honolulu, on the first day of Febru-
airy, A d. 1906, 'Unlawfully did do
business as q corporation under the
said name of Benson, Smith & Com
pany, Limited. and did hold them
selves out to be a corporation under
the said name of Benson, Smith d
Co, Ltd, without having complied
with the provisions of law in this,
that they and each and all of them, on
said 31st day of January, A ID. 1906,
did fail and neglect and refuse to pre-
sent 70 the Treasurer of the Territory
of Hawaii, as by law prescribed ana
required, and as so directed by said
Treasurer as aforesaid, a full and ac-
curate annual EXHIBIT of the state of
affairs of the said Benson, Smith 81
Company, Limited"
BASIS OF APPEAL.
Respondents will reply at the outset
by demurrer to the complaint, and if
this be overruled by Judge Whitney
the respondents will appeal directly to
points of law;
First That the said District Court
erred in overruling the defendants de-
murrer to the said complaint.
Second. Because, under the facts
established in said cause, the said Dis
trict Court should have held and de-
termined that the said defendants
were not guilty of any crime under the
laws of the Territory of Hawaii
Third. Because the penalty pre-
scribed by Section 2566 of the Revised
Laws of the Territory of Hawaii. has
no applica ton whatever to a failure
on the part of any corporation. or any
officer thereof, to file the exhibit re-
CURED by Section 1856 of said laws;
and that no penalty. as prescribed by
Section 1865, can be inflicted for such