The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1912-11-19
SUPERVIS0R-ELECT
UNDER INDICTMENT

(Mail Special to The Advertiser)
HIL0, November l5.-Over on the
Kona side of the island the grand iuries
have gotten into the distressing habit
of indicting county supervisors, or at
least, near.supervisors. At the last
term of court, Joel Kaniania, who was
formerly a supervisor, though he is now
n lieutenant of police, was noIcted for
the embezzlement of county funds, the
offense being alleged to have taken
place when he was a supervisor. Now
the news comes from Kailua to the eff
feet that last week Judge Matthew
man IS grand jury returned Just one in
dictment, and that was against young
Julian Yates, who was only couple
of weeks ago elected to represent the
Kona districts on the board of super
visors during the coming two years.
The offense with which Yates is
charged is comparatively new one in
the Territory, being covered by stat
ute passed in the last legislature, of
which Yates was a member, which re-
lates to the "protection of purchasers
from fraudulent conveyunces of per-
sonal property"
The matter grows out of the troubles
of the firm of Yates and Whitmarsh,
which went into the hands of re-
ceiver few weeks ago, after it had
been doing business in the automobile
livery line for several years. Yates is
alleged to have borrowed on a mort
gage on the machines without notifying
the mortgagee Of the existence of q
prior mortgage.
On August IA, 1911, articles were
drawn up whereby the partners for
mally formed copartnership, the prin-
cipal capital of which was Stevens
Duryea and White automobile, which
were contributed jointly.
According to one version of the af.
fair, Yates had given n mortgage to
the Volcano Stables on December II.
1910, for the amount of $2500, with
both cars as security for the loan. On
this loan $3.50 is said to be due, or it
was still due few days ago In add.
ton to this Whitmarsh and Yates both
gave mortgage to the Won Hamm-
Young Company for 1887, on which
there is, or was until recently, $3.50 due,
the Stevens.Duryea ear being the Sc
curity for the loan,
The real trouble is alleged to have
started about September 10, 1911, when
Yates is said to have given mortgage
for the amount of 1926 to Mary X.
Bertelman, of Waiohinu, without the
consent or knowledge of his partner.
AS security for this loan he is alleged
to have given all his interest in the
partnership which included, as shown
by an inventory, both the Stevens
Duryea and the White autos. On this
loan the sum of about 5000 is, or was
I'm tltf 1ttn -. ,n., II
nor interest having been paid.
Now, it seems, Bertelman says that
Yates when he made the mortgage, did
tell about the mortgage which the Vol
cano Stables held on the cars, but not
of that which the Won Hamm- Young
Company held on them. He is also
alleged to have failed to obtain from
the Volcano Stables statement in
writing showing that that corporation
consented to further mortgaging of the
two machines.
The statute under which Yates is in
dicted contains numerous sections re-
lating to various forms of violations
thereof. 1t is probable that the Yates
case comes under the following:
ga mortgagor of personal property
who sells or conveys the same OF any
paIt HllHOnb tnt cuHbtHt Oh
the mortgage in writing, and without
informing the vendee or grantee that
the same is mortgaged, shall be pun
ished by a fine of not more than one
hundred dollars or by imprisonment for
not more than one year,
Troubles between the partners, Yates
and Whitmarsh, came to a head on Oe-
tober %, when Whitmarsh, through his
attorney, Claudius Mcbride, instituted
suit against Yates before Judge
Matthewman, asking for the dissolu,
ton of the partnership, that an ae.
counting be ordered, that receiver
be appointed, and that an injunction
issue against Yates preventing him
from collecting further debts owing to
the partnership. The prayer for the
injunction was granted, as well as that
for the appointment of receiver, r.
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