Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-04-21
About 100000 Contributed
of Which $849.200 Was
Taken Out of Hawaii

Hawaii has long had the reputation
Of being easy money among the
promoters of all kinds of wild cat
schemes. and local investors have
been "stung" time and again on &C
count of them, but certainly the most
gigantic flimflam ever worked here
was through the now notorious Hida!-
so Plantation and Commercial Com
pany. The report of 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 $4,500.00 to S..
900 900, never had more than a ghost
of a show to realize on their invest
ment.
There are 210 shareholders in Hi
dalgo residing in Hawaii, and their
total contribution amounts to $S49, ZOO,
| 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
0e0. The total collected on account
of this plantation amounts to 1896.
! $50, showing that in this company Ha.
| waiian investors formed much the
larger part
Besides this company, the promoters
had 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 intrfcab-
ly 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
lchagrin. the startling facts brought
icut What will be done in the matter
WIS not decided upon at the meeting,
| but committees were appointed to go
into the matter further with a view
/ OF making recommendations AZ III
Ter meeting Is likely to be held within
a week 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
mot it will be possible to save any
thing from the wreck, is matter of
doubt 1t was stated that by raising
some 100000 to clear up mortgages
coming due in June, that 1t may be
possible to straighten things out, or
there may be a number of other ways
lby which "a complete organization may
be effected, but If there is any such
recourse, it will require further in
lyestigation, and the chances are PROP
tlematicaI.
! 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
after bad. Others were not so sure of
this policy.
Another complication threatens in
the apparent likelihood of open hos.
tilities 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
i The moving spirit in the floating of
these COMPANIES seems to have been
one o. H. Harrison He was the orig.
fnal 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 com.
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 tat least
in many instances) that they had real
~ purchased no part in the holdings
3 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 ir
the general property of the company
In reality these shareholders are in
the position of having simply len
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 o
the concern.
MIR. Heiser all through his repor
differentiated between shareholders
Tin which class are the Hawaiian in
vestors) and stockholders" who ar
select little circle really owning tn
property of the corporation. Original
Iy there were but II of these holder