Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1912-10-12
Some of the Interesting Test.
mony Given During
HEARING

m0ny given during the Fisher inyes
tigation was the following, on the las
lday of the hearings. Mr.. L. A. Thurs
ton was on the stand answering qHes
items about demonstrating and Mr.
Fisher took up with him the matter Of
possible evasion of the law agains,
zone corporation holding more than ::
thousand acres of land.l ~
| Fisher: Now, a matter was
brought up here yesterday of the pass
age or this law providing for copart.
nerships between corporations-I be,
| lleve you said you had something to
/ do with it?
Thdrston: No, didn't say so, Mr..
! Fisher
Fisher: Did you have anything tc
| do with it?
Thurston: AS a matter of fact,
knew what was being done, but didn't
have anything to do with it.
copartnership History.
The Haiku and Paia. sugar com
panies on the Island of Maui were
adjacent organizations-one of them
had very large amount of land and
a comparative small amount of water
the other had large supply of wa
ter and comparatively small amount
of land. They were prevented from,
matchmaking and the question was
thereafter investigated as to how they
could work together to make their
respective land and water produce the
most. Then our law was looked into
as to whether or not they could go
into partnership-and speaking from
hearsay, understood that law was
found authorizing the corporations tcl
go into partnership if the charters al
lowed it. Whether there was author
ity incorporated in their charters
don't know, but in pursuance OF that
opinion and of those conditions this
law was drafted and passed by the
Legislature primarily for the purpose
of meeting the situation. Under that
the Haiku and Paia corporations went
into partnership and formed the Maui
Agricultural Company, which Is the
Company that is now carrying on the
copartnership entirely irrespective OF
that because of the attempt to do busi-
ness in this way and as subsequent
act there were other companies taxi
en- into partnership, the names OF
which forget. "z
. Fisher; Did it have any bearing on
this law prohibiting a corporation
from owning more than 1000 acres?
Phurston: 1t had.
Fisher: My attention has been di-
rected to several instances, one OF
which spoke to Mr.. Goodale about,
and others which have been brought |
to my attention by Mr.. Ashford and |
others. A corporation is being form
ed now, at the present time, OF five
companies with the same stockholders
and the same directors, each OF them
having approximately 1000 acres or
and, and then subsequently forming
such a corporation. Was the law pass
I'd, SO far as you know, for use in /
such case as that's that one OF
he purposes for which it was sup
posed to be adapted?
= Thurston: l never heard Of it.
,nly heard of it as being used in this
,ase of the Maui Agricultural Com
)any. AS matter of fact, the nego-
iations for this copartnerships were
extended over several years. It was
With great difficulty that they came to
m understanding. do not know why
I would not be an easy thing to get
round the 1000-acre law. /;
Fisher: Do you know whether or not
he district attorney was consulted?
Thurston: do not. ~4 II
Fisher: Do you know who had to n
o with the drawing of any papers? II
Thurston: 1t was done from the Of
ce of the attorneys of this plantation |
Smith and Lewis. La
. Fisher: Did you make any inquiry 9
bout that, Mr.. Hemenway? Ee
low Law Was Drawn. t
Attorney Hemenway: Yes, under a
tand that Mr.. w. o. Smith and Mr.. t
ewis, as attorneys for the parties in
the Haiku and Paia planta- U
ons, had charge of this general mat v
#, and developed largely the general t
Ian and either themselves or with III
theirs drafted the particular statute il
| question. .I t
Fisher: Do you know whether they n
the district attorney? e
Hemenway: / understand that Mr.. IN
NTH did consult the district attor n
ey, not only in connection with this 81
IL ~
it'll a number of other matters. is
Fisher: Did he consult with him in
s official capacity? .
Hemenway: No, in his private ca T
lcity. b
Fisher: Well, do you know of any p
ses where corporations have been Ia
rmed as these five that Mr.. Goodale m
as asked about and then have sub pl
quently formed a copartnership? To-
Hemenway: No, know of no cases NJ
here the law has been made use of 81
at way other than the Maui Agricul- OF
raj case. w
Fisher: | want to know whether you Ell
ink that law can or can not be sue in
ssfully evaded by forming five cor I'd
rations? tie
l see nothing in that til
W to prevent that being done. m
Fisher: Well, you think it could be
ccessfully done if it was vigorously tn
lacked in the courts? at
HemenWaV. II would he vigorously yC