The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1908-08-25
HOW kENTWELLs LOOTED
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is doing his best, however, and urging
payments where parties are able to pay.
f'Of the notes secured by mortgage
the receiver believes that he can col
lect in full the mortgages executed by
Mahoe, Luka, Henriques and Rice. The
mortgages of Kaaikaula and Keliikipi
are almost worthless, and the receiver
doubts if on foreclosure the property
would bring enough to pay the ex-
penses of advertising and the auc-
tioneer's fees.
The liabilities of the company are
50,9l5.5O.
Operations of the Company.
"'The powers conferred upon this
company by its articles of association
are very extensive. Its chief opera
tions, from the very beginning, how
ever, were as follows:
:. Persons were invited to invest in
the company their savings at the rate
of two dollars per month for which
they were to receive one certificate
with four coupons of $4,000 each at
taehed. After the payment of seventy
five monthly instalments, the certificate
'matured' whereupon the investor was
entitled, upon giving certain notice to
cash each of the four coupons for $50
each. or to receive in all 5000 for their
investment of $50.
E'The certificate provides for fines
and penalties for hardness in payment
IF monthly instruments; provides fur
Their that in case payment shall be neg
lected or refused before $40 has been
paid in, everything paid in shall be
forfeited to the company; and in case
Of such delinquency after the payment
of $40, the investor shall be entitled
to receive fifty per cent of the amount
paid in by him. The certificate also
provides for the investment in a GER
tain prescribed manner, of the funds
received from subscribers When the
payments were made, they were enter
ed in a small book kept by the in
weston. a&&a
.'In the early part of the history
of the company, things went very
smoothly. The only thing the eompa-
ny had to do was to receive the money
which it always did very carefully. but
it never lived up to its agreement to
invest the moneys in the manner pre-
scribed in the certificate As viii be
seen hereafter, the books of the COM
panv are practically valueless for the
purpose of showing the receipts and
expenditures of these moneys. 1t seems
TO be clear. however. that the moneys
received. found their way with little
delay, into the pockets of L. K. Kent
we'll and Annie Holt Kentwell. his wife
When the company was first start
ed several people subscribed to the
capital stock and shares of stock were
issued to them. Although the books
are almost silent on the subject. when
the money was received from sub
scribers. a part of it, at any rate, was
paid to the owners of capital stock
and the shares of such owners surren-
dered, and there is now very little of
the capital stock outstanding. as It'll
would seem. Again, it has been point
ed out above that L. K Kentwell (who
was always the manager and moving
spirit of the company and his wife,
conveyed to the company certain lands
for the sum of nearly $4,000. 1t seems
that capital stock to this amount was
issued to Annie Holt KentweH and J..
\. Kentwell, and as the subscriptions
above described accumulated. the com
pany purchased the Kentwell stock
which was cancelled and retired The
company established an agency in Ma
Mia and commenced its operations
there. one Webster being in charge. It
had not continued very long, however,