The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1907-11-13
sSO8747O

A lot Of people gathered at the Ha-
waiian Realty & Maturity Co. Office to-
day to learn how they stood.
A statement given out this after
noon at the Office of the company
shows that the company is liable for
$2S,O29 to paid-up subscribers who
have the right to their money on de-
mand or sixty-day notice, largely the
former
Total liabilities, including subscrb-
ers who are booked as not in good
standing, amount to about 100000
though this fact was not included in
the statement which goes on to show
that to meet the $3.50 admitted liza
bilities the company has less than ST.
900 in bank, about $500 out in mort
cages and land for which i claims it
paid $21, $40, chiefly in stock of the
company Another item is the elastic
proposition of expenses" which has
not yet been figured.
The business of the Hawaiian Real
ty and Maturity Company, which now
threatens loss to hundreds of poor
subscribers, was thoroughly exposed,
and the Legislature was warned
against it, over two years ago. The
above is the concluding paragraph of
a report on it to a House Committee,
on April 10, 1905 At that time it was
showed that the membership had
amounted to 3,447, mostly Hawaiians,
and that more than hair of this num-
Der had lost their membership and
forfeited what they had put up.
The following are parts of Expert
Gilberts report, giving the warning
| ignored by the legislature and the
| subscribers:
The system Of accounting is defec-
tive and inadequate; the books do not
disclose the true financial position, and
general balance of them has not been
taken since the company commenced
business. 1t is evident that the system
has been arranged and the books kept
by some one who is not conversant
with the practice of accounting.
THE books consist of a ledger, cash
book and journal of the ordinary type;
stock certificate book in the usual
form; a rough book of original entry
for recording Withdrawals, loans and
repayments, which are added and
transferred to the cash book once a
month; a rough book of original entry
in which are entered the total amount
of daily receipts from dues. There is
also a register of members certificates
a book specially made for the purpose,
having columns for the date of issue,
number, name, address and rs columns
for the installments
The Manila agency has a balance
at debit of $S,396. 81, and the informa-
ton concerning this is unsatisfactory.
1t was explained to me that the agent
at Manila is William S. Webster, and
that business is transacted through the
Manila branch of the dongkong and
Shanghai Banking Corporation. The
books show that somewhat more than
Ih0 clllOullL SIdlGu has DGtu IGlulllGu 10
Manila, some small sums having been
received from there. AS vouchers were
not available for these advances made
to the Manila Agency, the manager OBJ
tanned for me from the First National
Bank of Hawaii a statement of ex-
change upon Manila purchased by the
company in 1904, which amounts to
$3.50. 90, the difference of $3.50 be-
ing presumably for the cost of ex-
change. / have also seen a second of
exchange for $4,000 in favor of Will
liam S. Webster at Manila, sent in
1903 through the Bank of Claus Spree
kels & Co.
This money ($2,396 81 is said to
have been entrusted to the Manila
agent for the purposes Of investing in
real estate securities; but what dis
position he has made of it | am I'M
able to say, not having seen any vouch-
ers or correspondence to account for
it, except the evidence that the re-
mittances mentioned above were sent
through the banks The head Office at