Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-04-21
About S5,OOO,OOO Contributed
of Which S849,2OO Was
Taken Out of Hawaii

dKen Uut OF HdWdil
Hawaii has long had the reputation
OF being easy money among the
promoters Of all kinds of wild Eat
schemes, and local investors have
been "stung" time and again on &C
count Of them. but certainly the NEST
gigantic nimflam ever worked here
vas through the now notorious Hidal-
ICO Plantation and Commercial Com
pany The report CT Charles G. Hell
ser, Jr., lately returned from Mexico,
where he went as a special represen-
tative of the Hawaiian shareholders,
shows a most amazing example OF
high finance, worked by small cote
RE with other peoples money. 1t now
appears that the investors, who con-
tributed in all some $4,500,000 to So
100000, never had more than a ghost
of a show to realize on their invest
ment.
There are 210 shareholders in Hi
daIgo residing in Hawaii, and their
total contribution amounts to $849. goo,
or an average of $4044 each. Besides
this there are number of persons on
the Coast who purchased shares
through influence of friends here. so
that the total from Hawaiian sources
runs in the neighborhood of $1,000
600. The total collected on account
CT this plantation amounts to 1885,
$50, showing that in this company Ha.
William investors formed much the
larger part.
Besides this company, the promoters
lad two other companies known as
Zacualpa No. l and Zacualpa No. 2,
which have been played in such close
connection with Hidalgo. that the af-
fairs of the three are all but intricab-
~ tangled Considerable holdings in
both Of these two other companies are
also owned by local people.
The report Of Mr.. Heiser was read
to some sixty or more local share
holders who assembled yesterday aft
ernoon in the rooms OF the Chamber
Of Commerce, and heard with mingled
feelings Of incredulity, anger. and
chagrin. the startling facts brought
cut. What will be done in the matter
was not decided upon at the meeting,
hut committees were appointed to go
into the matter further with a view
Of making recommendations. Anoth-
er meeting is likely to be held within
arweek or two to hear what the COM
mittees have to suggest. In the meet
ing were all classes Of citizens, MANY
Of substantial wealth. but also others
to whom the los sof their investment
must be heavy blow Whether or
not it will be possible to save any
thing from the wreck, is a matter of
doubt. 1t was stated that by raising
some $500, 900 to clear up mortgages
coming due. in June, that it may be
possible to straighten things out, or
there may be number of other ways
by which complete organization may
be effected, but if there is any such
recourse, it will require, further in
vestigation, and the chances are prob
lematical.
After the report had been read,
some Of the shareholders were of the
opinion that the best thing to do is to
drop the matter. D. P R. Isenherg
voiced this sentiment in stating that
he does not favor sending good money
dtSSI p1u. OIuClS "SIS UOJ 81 sure OL
this policy.
Another complication threatens in
| the apparent likelihood of open hos
ttlities beginning between the United
States and Mexico, in which event it is
doubtful If anything can be done to-
wards reorganizing the companies.
Weak in inception
The moving spirit in the floating of
these companies seems to have been
one o. H. Harrison. He was the orig
inal owner Of nearly all of the coffee
plantations forming a part of these
three corporations, and after starting
the companies he continued to handle
them practically as though he was
the sole owner. Mr.. Heiser points out
that the method of financing the CON-
panies was faulty in the extreme, al
| though there was just a possibility
that the plan might have worked out
The Hawaiian shareholders learned
yesterday for the first time (at least
IN many instances) that they had real
| ly purchased no part in the holdings
| of the Hidalgo company, but instead
had paid their money for undivided
shares in the possible output of rub
| Der and coffee. Each share sold rep
resented a share in one acre of rub
Der and one acre of coffee, but not in
the general property of the company.
In reality these shareholders are in
the position of having simply lent
their money to the real corporation,
without any security. They had abso-
lutely no voice in the affairs of the
corporation. nor even any representa-
tive on the directorate through whom
| they might learn Of the workings of
| the concern.
Mr.. Heiser all through his report
differentiated between shareholders
tin which class are the Hawaiian in
/ .,Cfnnl. knl6nrc ~ NN.hn