The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1914-04-24

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belonged to the corporation or innei
lcircle.
The acreage certificates of Hidalgs
carry an interest in an undivided aret
Of one acre Of rubber and one acre Of
coffee and also a proportionate interest
but no equity in the implanted areas
Hidalgo Extensions certificates and
La zacualpa No. 2 were different from
either Of the preceding.
History Of Harrison Properties.
Shareholders win note, . says. the re-
port, that the first company formed b.
y. III, Harrison was the La zacnalpa
Rubber Plantation Company. ineorp6r
ated September s, 1899. Splendid re-
turns were being anticipated from this
property about the time HidalRo was
formed and about two Years later In
1908, a dividend Of, 5000 per share WA
paid. The company, nevertheless, was
compelled to borrow money fromaits IN.
,cption and while the dividends. were
actually made SO far as the production
Of rubber was concerned, the company
had TO increase its borrowing in order
TO Distribute the same. ma
f'By the time Hidalgoa Plantation
and Commercial Company was formed
in March 1904, the La Zacualpai Rubber
Plantation Co. (No. ID had obtained
large sums Of money in this manner and
financially (zacualpa Noi1) was at this
time already in a dangerous position.
20. III. Harrison admitted that the
Hidalgo Plantation and Commercial
Company was formed largely upon the
hopc that the profits aeeruing to the
stockholders (not shareholders) won1d
be sufficient TO make up for their losses
sustained on the La Zacualpa No. i
project and enable them TO clear this
company Of debt ~. ~
Consequently the, IIidalgo Planta,
ton, and COMMERCIAL Company was inn.
mediately brought into close touch fin.
ancially with Zaeualpa No. 1. The pro-
ceeds Of the shares sold ut prices pur,
'posely made relatively high instead of
being devoted to the purpose for which
they were intended, were used to pay
OIL the pressing obligations and interest
on Indebtedness of Zacualpa No. 1.
Apparently il became evident that
the profits from Hidalgo would be in
sufficienf to allow the promoters 10 re.
habilitate their finances, so ON February
u, 1908, the La sZacualpa Plantation
Company (zacualpa No. ~ was started
and the heavy sums received from the
sale Of its shares also went into the
common fund, to be used for paying
claims absolutely necessary of adjust
meht. ~ ss#.
~ would be difiicult TOT follow all
these operations, for money was needed,
the first source available was drawn
upon and this method has been con.
tinued up to the present moment. A
thorough acquaintance with tho facts,
however, is necessary and this may only
be secured through comprehensive
statement of actual happenings which
follows:
Harrison's Connection With Companies
go ii. Harrison the original owner
Of nearly all the coffee plantations
forming part Of these organizations
and since tho Incorporation Of the com
panies tho managing head, has treated
the corporations practically as his own
private property. He has further con.
sidered them as a large unit, one TO be
used for the, benefit of the other, Dor
rowing on the lsissets of one to fnanee
The operations Of the other. Has eon-
suited no one in his activities aud has
ruled as an antocrat in all matters of
physical or financial nature pertain
ng to these organizations.
Methods Followed.
1T naturally follows that at the
present time the interests of the several
companies are 70 interviewer that the !
lebt now existing against the proper.
les has necessarily TO be treated as |
IN obligation Of all the companies. The
proportion of debt applicable TO each |
corporation is vague and cannot be as. |
ertained with any degree of accuracy
Without a complete audit OF the books |
rom the formation oftZacualpa No. II. |
ar. Harrison g personal books have
leen used IN eonjunction with those Of |
he several companies and If an audit I
undertahen it should cover these as
roll, s7 laG 8.t ~ N .5I rs |
so. III. Harrison excuses this con. |
.ition of Loose accounting methods
With the statement that during the con, /
ract period It was purely theA com.
any's affair and that details were not
cemed essential until shares inatured.
H"Al expenses Of the TapchuIa Of
zee and the interest on all indebtedaI
ess is treated as a charge against the
hree companies. IL is apportioned
qually among them irrespective. Of the
act that the obligation Of Hidalgo and
'aenalpa No. 2 were largely broughti
bout through the inability Of IIar
iRn and associates 10 carry out their
ohtract on zaeualPa No !, without
large sums Of money.
"The Indebtedness OF Hidalgo ap-