Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-07-30
GRAND JURY REPORT ON SALOON
OWNERSHIP HERE IS MADE PUBLIC

torney, and was advised that neither
Mr.. Bartlett nor Mr.. Waterman had
any standing as owners, and that Mr., |
Bartlett could not recover from him |
in any suit at laI.
That he was the sole owner of the |
license and could do as he pleased |
with the saloon, and that Messrs- |
Bartlett and Waterman could be !
thrown out of court on any claim to
ownership.
the law, as Mr.. Lynch acted upon the
advice, sold the saloon for $4,000,
keeping the entire proceeds.
"Mr. Lynch then, through his attor-
ney, demanded the cancellation of the
note and mortgage given to the brew
cry, claiming that he had paid same,
he being sole owner of the saloon, and
that all moneys paid to the brewery
we're to apply to his Indebtedness.
Bartlett Paid Balance.
"Mr. Bartlett then realized his posi-
ton as silent partner and was evident
ly convinced that he had no legal
claim, consequently paid the balance
due on the note in favor of the brew
cry, something over $1,000, and can.
.celled the note and mortgage, return
ing same to Mr.. Lynch. H..
at must be remembered that Mr..
Bartlett and Mr.. Waterman had been
receiving each one-third Of the profits
from the Pacific saloon for four years,
and naturally Mr. Bartlett called upon
Mr.. Waterman to make good one-half
of the amount paid the brewery on &C
count of the note given by Mr.. Lynch.
This liability was repudiated by
Mr.. Waterman, thereby placing him in
full share of the profits, but standing
none Of the losses.
The above transactions cover the
financial dealings of the Pacific saloon
as near as your committee can ascer.
tain.
"As regards the Fashion Saloon and
its license -
I'VE are unable to find that there
is any one interested as owner in this
saloon except Mr. Cornyn, the holder
of the license ..:s-.
From the profits which he made in
the Pacific saloon he was, with finan.
cial assistance, able to buy this saloon
from Mr. Davis, and from all the evi.
dence obtainable does not divide his
profits with any one. but is steadily
reducing his Indebtedness. .-..:.
Regarding the lease of this prop
erty. ...=- ...*.
The original lease was from the
trustees of the. Campbell Estate to K.
Matsumoto, which is recorded Liber
800, p. no..
In September, 1899, Matsumoto
leased the saloon premises to J.. T..
Sculiy, recorded Liber 800, PIP. 49,
491. .4ss -. !. -
"In August, 1910, Mr.. scully trans.
ferred the lease to Mr.. D. H. Davis
and in January 1912, Mr.. Davis trans.
ferred same to, Mr. Cornyn, same be.
ing recorded Liber 1853, PIP. 110-112.
In November, 1913, Matsumoto sold
his original lease to Mr.. c.. G. Bart
lett for $4,000, recorded Liber 1896,
p. 142. 49,. 49,.
Bartlett Owns Lease. $751;. -. j.
THE lease lis now owned by Mr..
Bartlett but n subject to the terms
and conditionSfof the lease from Mat.
sumoto to Mr. Scully and later trans.
! ferred to Mr.. Davis and then to Mr..
Cornyn, Mr.. Bartlett receiving from
Mr.. Cornyn a. rental of 1925 per
month. = --.-~ :
we have investigated and inquired
into the ownership of other saloons
and cannot find any evidence to show
that other than the holder of the IL
cense is in any way interested as a
/ partner. ~. T.. l.. - -. H.. hi
I'VE believe that the majority OF
the saloon owners are to more or
less extent assisted financially by the
brewery as well as the wholesale
liquor dealers, but the transactions
are on a loan basis, the mortgages
appearing of record. -. -. -
The liquor commissioners were
acquainted with practically all of the
transactions mentioned in this report,
In the face Of which they saw no rea-
SON why the various licenses should
not renewed or transferred to other
! owners. 1872. ..-..... --.. il.
The license commissioners are in
! absolute control of the situation. They
can make license valuable or other
wise by insisting that the holders of
the license comply with, not only the
law, but all regulations adopted
by the commission.
The cancelling of one or two Ii.
censes for evadihg regulations would
soon teach a holder of a license that
there was some value to the license II
he conducts his business properly; on
the contrary il he does not, the license
wouldn't be worth the paper it is writ.
ten on. ,..
There should be no need of a
grand jury Investigation into the
liquor business; the liquor commits.
sioners are the judges, and they
should stop any questionable transac.
tons by refusing to renew licenses
where such evidence is proven to
their satisfaction.
We understand that the transac-
tons related in this report are not of
criminal nature and no action can
be brought against any of the parties
interested. At the same time it is
conceded and admitted that they are
somewhat irregular, but within the
law In this connection we respect.
fully recommend that the liqror law
be amended so as to authorize the
LIQUOR commission tn roouiro GA -