Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-07-30


report says IT,. =. =.
r.. FonoIuta. 7. r.. InIy -. 1914
E To the members Of the grand iGry-
Gentlemen. The committee sp-
pointed by the foreman Of tngs grand
jury for the purpose o. INVESTIGATING
The relations existing between TarfdgsI
holders of gefsff Iiquor licenses and
private indfyidnafs beg % slIi3niit he
following report ........ 1919. a
< IN the first place We WISH It Under
stood that the evidence and inforna
ton received By the committee has
been most conflicting, and Il has been
very difficult to arrive AZ any sccfr-
ATE decision
The following however, Is What We
believe 70. be the actual facts, ......
IN 1910 the liquor commissioners
adopted q reg1fiation TO the effect that
no wfolesaIe liquor dealers could be
interested in or hold saloon license
We understand that since that
tine each and every one Of the indi-
vfdpaI applicants for a ssloJn license
have stated to the liquor cormissiGa.
ers that they were the only parties In
terested ID the saloon under. consfd-
Grafton, and the evidence given 70 this
committee was along the same lines
AS the Pacific saloon has figured
conspicnousiy IN the controversy we
VIII consider that first .-...
! Prior to 1910 he Pacific Saloon was
owned BIZ Messrs w. c. Peacock g.
! Co, and the license for same vas Isl
sued in their name In the early
part OF 1910 Messrs Peacock & Co
sold this saloon to Mr. G. g. Bartlett
for the sun OF s9000, and later Mr.
( Bartlett sold half interest in same
to VT. Emil Waterman for $500
! License Granted to eofngn
When application was made to the
liquor commissioners for q saloon IL
cense, Mr. Philip F. Cornyn vas the
applicant for the Pacific saloon The
license was granted to Mr. Cornyn, and
SO far as the commissioners or the
public knew Mr Cornyn was the only
interested party In the saloon
I From July ist, 1910. until July fst
1911, we are led to believe that Mr..
& cornyn was only an ethpsoye, working
on salary.
"on July 1st, 1919. there was co.
partnership agreement. entered into,
! Whereby C. O. Bartlett, Emil Water
man and Philip r. Cornyn became
equal owners in the Pacific Saloon,
/ having each one-third interest
I Mr. cornyn borrowed the money.
| giving the Honolulu Brewery hfs note
/ for 5000, With a mortgages on the sa-
loon as security
I stSrs, - - ,,,s-<.,5 a., ,-r,,,s
ed satisfactory to all concerned, Mr.
Bartlett and Mr.. Waterman receiving
their pro rata Of the profits. being
Itwotbirds Of same, and Mr. Cornyn
Teceiving one-third.
@Mr. Cornyn apparently retained $50
per month for living expenses, the
balance of his share Of the profits be.
ing paid to the brewery on account OF
1t1poh the payment Of this note Mr..
Cornyn held his one.third interest
! clear.
There can be no doubt bot that the
/ agreement Of copartnership was fully
Understood by the three interested par.
titles. a. the terms Of same were con-
\ ycientionsIy lived up to-
I'm 1872 Mr.. Cornyn had an oppof.
tunity to purchase the Fashion saloon,
and sold hfs interest In the Pacific
/ Saloon for that purpose Mr. Bartlett
j consummated the sale and sold the
one-third interest to Mr.. Charles
Lynch for 1900, the brewery lending
! Mr.. Lynch the money on his note Sc
cured by mortgage on the s4loon
ION February, 1912, Mr.. Bartlett
and M. Lynch entered into an agree.
ment whereby upon the payment Of
/ the 1000 note By Mr. Lynch, he,
i Lynch. would then have bis ofie-third
interest IN the Pacific Saloon clear
This agreement gives Mr. Bartlett z
/ two thirds interest in the saloon. VT,
Bartlett having, however, a private
agreement With Mr.. Emil Waterman,
i Whereby Waterman SIN retains one.
j third interest This agreement how.
lever. IS without the knoWledge on
Il Mr.. lynch
Secures note from lynch.
About the time the agreement with
i Mr.. Lynch IS made, Mr. Bartlett se-
enres i note from Mr Lynch for $1,000
secured hy another mortgage on me
saIoon IRIS mortgage was not re,
/ corded. AZ We are told that the note
aid moi represent any Of the purchase
| price ~ the saloon, hut simply to be
held 81 Mr.. fartlett as security in case y
/ 81 any Slip. and ne should not receive
/ his fwo-thirds Of the profits. He tne s1
i could, ii he 50 desired, collect ON This
second note. ~
4 'rrhe agreement between Mr.. Bart
/ left as a two-thirds owner and Mr.
lfyneh. owning onethifd vas apparent
III inliy understood nv both parties
| Wt i,vnctrs affidavit to the contrary
notwithstahding, as the conditions q
same we're always adhered to, TO t ne
| sfie6t tlat twotfftds OF the profits
we're baId 10 Mt. f3attlett. and N i al
| sltiou thereto Mr. Lynch paid a eer,
fain amount from bis ouethifd profit
Il appfy 10 his Indebtedness to the
or sii might te weti 70 state that all
| stnantts paid bt Mr.. lynch we're BY
ehstt pqsabie TO the brewers. Mt,
f,attiett cashihE same and distfibntiint y
Il uffh the