The Hawaiian gazette., 1910-10-04
GEAR ROASTED
BY JOB BACHELOR
Masters Report DisCOuTages
Some Ways of Handling
Estates and Trusts.


Estates and Trusts.
The mismanaging of estates and
trusts is liable to become rather un.
popular amusement if John Marcallino
and Job Bachelor keep up their good
work. 1t is a matter of common lSnowl-
edge that this method of getting rich
quick has in the past been quite preva
lent in Hawaii, but during the past two
or three years the circuit court clerks
above mentioned have, as masters, re-
turned into court some reports that
have made some administrators and
trustees. somewhat shy of appropriating
to their own uses money that does not
rightfully belong 10 them. Still such
things still occur at intervals.
Yesterday job Bachelor, as master,
filed his report in the matter of John
X. Sumner versus "A. V. Gear, and the
report shows the estate of Mr.. Sumner
to Jbe in mighty bad shape. The master
recommends that A. V. Gear be sur
charged with nearly $4,000. AS Gear is,
legally Mt least, bankrupt, it is difficult
to see how Sumner is going to get back
any of the money that the master com
plains has been wasted.
Caustic Comments.
Regarding Gears stewardship, Batche-
lor makes some interesting and caustic
comments. John Marcallino, as the lat
est guardian of the Sumner property, is
the man who brought the bill for an
accounting and it is largely owing to
his efforts, assisted as he was by At
torneys Watson and Thayer, that the
actual and discouraging state of affairs
has been brought to light.
In his report Mr.. Bachelor says in
part:
''said A. v. Gear fled an account ON
the 5th day of September, 1910, show
ing receipts in the sum of $6227.95 and
disbursements in the sum of $6227.95.
That Thayer Loan.
"The item of $1,000, in said account
invested by A. V. Gear with A. F,
Thayer, is secured by promissory note
and an agreement. The terms of the
said agreement are that John K. Sum-
ner furnishes the sum of $1,000 for the
purpose of acquiring titles and deeds
to certain tracts of land in the Philip
pine Islands known as the Friar lands.
1t is agreed that A. F. Thayer, one of
the parties to the agreement will make
all necessary surveys, carry on all bust
ness in regard to the securing of such
lands and report on them fully to A. ".
Gear, attorney in fact for John K. Sum-
ner. 1t is agreed that in eonsidera.
ton of the money furnished and the
work to be done that the said John K.
| Sumner is to receive ten per cent. in
terest on the amount of $1,000, and one
| third of the profits and proceeds of such
lands. Said lands to be acquired in
connection with a tract known as the
"Planters tract, and to be turned
| over with and in conjunction with said
sale.
81 am unable to perceive upon what
basis A. V. Gear, attorney in fact for
John K. Sumner, made this investment.
Upon an investigation of said power
of attorney fail to find any authority
given to the said A. V. Gear to invest.
Even if the power of attorney con-
ferred upon A. v. Gear the authority
to invest, trust funds should not in
any case be loaned ON such uncertain
security. can not approve this in
vestment. and would recommend that
A. " Gear be surcharged with this
item of $1,000.
Invested in Own Company.
''Included in the items of disburse-
ments in the account furnished by A.
V. Gear, attorney in fact for John X.
Sumner, are several items amounting
in full TO $4,000 invested in the Francis
Levy Quitting Co., Ltd. These in
vestments We're made prior to the in
corporation of the said company, the
stock to be issued to said John X.
Summer when the company was incor-
porated, which according to the vouch-
ers filed was done. At the hearing
before the master the respondent filed
the stock certificates, one for 80 shares
and one for $40 shares, par value OF
same being $500. These shares repre-
sent the investment of John X. Sumner
in the corporation. Said certificates
show that A. V. Gear is the president
of the corporation.
ga. " Gear testified before the master
that John K. Sumner knew of this in
vestment, and that the company was
incorporated for 100000, and that in
Guiding the $4,000 of John X. Sumner 4
money Jnefe ndu DetH lbhueu SLOck
amounting to $4,000 OF $4,000. He also
testified that this amount was paid to
the Francis Levy Quitting Company
by the corporation for the stock in
trade.
f'I certainly can not approve OF
trust funds being invested in such en-
terprises of this nature and the same
argument advanced in regard to the A
+. Thayer investment applies to this
one. ] therefore recommend that the
$4,000 invested be surcharged to A. v
Gear, the attorney in fact.
Loan to a Stranger.
, "The account shows that A. v. Geai
loaned to James kirkland the sun
of $685. of John X. Summers money
on promissory note endorsed By
Charles Girdler, due June IL, 1910. Th'
account also shows a payment OF
s2O555 on said note leaving a balane,
Of s4gg.45 unpaid at tie time Of hear
Ing.
"From the evidence addueed at thl
hearing Mr., Gear did not seem 10 know