The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1909-11-27
CONSPIRACY
CHARGED AGAINST
SPRECKELS

~.
Conspiracy" was a word frequently
heard i'm Judge Muraskys court yes
terday when Matt l. Sullivan and Sid
ney NJ Ehrman were arguing anent
the defendants demurrer to the com
paint Of Rudolph and Claus A. Spreck-
els, executors, against the Oceanic
steamship Company and the Union
Trust Company for the removal Of the
/ last named rs the truuee of the
Oceanic's bonded property. Rudolph
Spreckels volunteered few remarks,
but the Court did not arrive at any
decision
1t is alleged in the complaint that
John d. Spreckels, the Union Trust
/ Company and the Oceanic Steamship
/ Company have entered into con-
spiracy to depreciate the bonds of the
latter by allowing default to be made
in the payment Of interest, and for the
purpose it is alleged, of allowing some
of the conspirators to purchase the
bonds at a nominal figure.
Sullivan, speaking on behtlf of the
executors or the will of the late Claus
Spreckels, said that the John d.
Spreckels interests owned 1893 shares
of the capital stock of the Oceanic
Steamship Company, and that John d.
Spreckels was also a. director in the
Union Trust Company.
| ACCUSES JOHN d. SPRECKELS.
1--WE say that John d. Spreckels
used his position as said director in all
matters affecting the Oceanic Com
pany," said Sullivan. He and Adolph
b. Spreckels are owners of practically
all of the stock of the John d. Spreck
els Brothers Company and large hold
ers of Oceanic bonds"
Sullivan argued that John d. Spreck-
els, as president of the John d. Spreck-
els Brothers Company, and also OF the
Oceanic Steamship Company, could not
transact business with himself, and
that therefore tne bonds of the latter
we're void on their face.
IF that sort of argument be true"
responded Ehrman, then the First
Federal Trust Company's bonds-and
mention it only by way of illustra-
tion-ought to be void, since Rudolph
Spreckels is president of the company
and also of the First National Bank,
which advanced the money"
THAT is not a correct statement,
said Rudolph Spreckels, jumping to his
feet. The First National Bank did
d, not loan any money on the First Fed
eral Trust Company's bonds. The
bonds were hypothecated with an East
ern bank"
SAYS NOTES ARE VOID.
The debts claimed as those of the
Oceanic Company Sullivan continued
are largely in excess of the real debts.
The notes, amounting to $l,70O,00O, by
the John d. Spreckels Company, are
, void. The Spreckels family owns ma
, jority of the Oceanic stock, and there
, by has been able to waive the payment
of interest on its bonds every SIX
months. That disqualifes it for APP
= pointing a successor to the Union
Trust Company as trustee of the Ocea-
mic Company's property The in
evitable consequence will be that the
year or so be worth less than 500, No
body will buy bonds when the interest
is not paid especially when it is in the
interest OF a majority of the holders tC
waive payment. 1t is the purpose Of
the defendants to depreciate the bonds
so that they may acquire them at no
minal figures. They say that we
have not made a specific allegation
This is a specific charge of fraud thai
we have made right here. If it is moi
sufficient to warrant the removal OF {
trustee / don't know what would be-"
Ehrman interrupted to remark thai
there was not an allegation Of fact il
the whole complaint, and that a charge
of conspiracy was not good at law un
less the manner of the conspiracy wa
set forth.
The failure to pay interest depreci
ates the bonds" said Sullivan. THE!
will inevitably shrink from $4,000 0
to 81 900 900 in a few years"
And yet you allege that the vessel
put up as security are worth $2,770,000'
said Ehrman.
Yes, that is the milk in the cocoa
nut retorted Sullivan, IF they bu,
the bonds for one-tenth of their value
they get the ships for practically moth
ing"
The court took the demurrer unde
advisemenJ,