Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-06-23
F. E.THOMPSON :.
RAPS FIELD ON
MACFAR|LANIlECO
In Detailed Statement to liz.
CenSe Commission Goes Into
Finances of Corporation


CT the license commissioners yester-
day The letter is as follows:
Honolulu. June u, 1915.
The Honorable Board OF License Com
missioners, 49,
Honolulu.
Gentlemen: -.
Acting upon the suggestion of your
chairman. am addressing your honor
able board in regard to issuance OF
wholesale liquor license to the Mac
fariane Company. Limited. g.. "
had expected to return from Kauai
on the w. G. Hall on Saturday morn
ing, thus enabling me to be personally
present at your meeting, but because
OF the inability of the Hall" to load
sugar at Ahukini was detained until
Sunday morning. w.. + F..
In the sale 10 S. Tchlyama and as
sociates, Of whom DR.. Haida was one,
the agreed price was $4,000. the bust
ness to be free and clear of all indebt
edRess, or the purchasers to assume
such portion of the indebtedness as
they saw fit and reduce the purchase
for that amount. DR.. Haida and his
associates put up $4,000 of their own
money and borrowed $4,000 from the
Honolulu Brewing & Mailing Com
pany, Limited, thus making $21 900
which they paid to me as trustee for
the owners Of the Macfarlane COM
pany's stock. There were certain
debts of the Macfarlane Company.
Limited, amounting to about $17, 900,
the principal creditor being Fleisch-
manntC Clark Company of San Francis
co, which were due within few
months after the sale, and it was
agreed that the $21 900 paid by DIR.
Haida and his associates should be
devoted to taking up the short time
creditors accounts, amounting to
about 1000, as they matured. That
was done. Scout OF the $4,000 re-
ceiEed, $1,000 or Whereabouts went
into, taking UP outstanding indebted.
ness OF, the company, and $4,000 was
distributed among the holders and
owners of the stock. At the time of
the sale, there was a note of about
$1,000 of the Macfariane Company,
Limited, which Bishop & Company,
bankers, were unwilling to carry I'M
less It had the personal signature of
all of the sellers, and was secured col
literally. In selling to Ichiyama and
associates, we agreed to permit our Sc
curities and our names to stand back
Of the $1,000 note, the purchasers
agreeing to take the same up at the
rate of $500 per month to pay interest
thereon. The difference between the
amount paid by Ichiyama and associ-
ates in cash, namely, $4,000, the
amount of debts assumed by them, and
the balance to make up the sum of
$4,000 was $4,000 That sum was d.
yided into four notes, each for $4,000,
made to me as trustee The notes
bore interest at the rate of per cent
per annum, and were payable two
years after date. The notes were di-
vided into four pieces in order to make
1t possible to distribute one to each
one of the original owners of the stock
Mr.. Bartlett was the only one who
asked for his note, and it was handed
to him. In order to avoid personal liza
bility en- note which held simply as
trustee, / Endorsed the note to Mr..
BaTtlett without recourse to me.
What he did with the note subse-
quent to my handing it to him thus in
dorsed, do not know excepting from
the books of the Honolulu Brewing &
Mating Company, Limited, which
show that at meeting of it's board
of directors, some time in February.
1914, as remember 1t, the note was
taken over by the company at its face
value. The money was, of course, paid
to Mr.. Bartlett. No other member of
the original owners of the Macfarlane
Company, Limited. participated in any
moneys received for that note which
was the personal property of Mr. Bart
lett The other three notes are still in
my possession and have never been de-
livered to their respective owners.
Til business of the Macfarlane Com
pany, Limited, was mismanaged by the
new owners who attempted to work
on insufficient capital and were unable
to meet the obligation to pay $500 on
the Bishop & Company note and were
also unable. to pay interest on the
notes for $4,000. In order to make
~ ROSSAUsG tSI TIC ne" O"HcIS "
on the business, / reduced the re-
quirement Of inventory of stock from
$4,000 to $4,000 and then agreed to
let the business be reorganized as set
out in report of Ambrose j. Writ,
copy of which is attached to the orig
inal Of this letter. filed with the COM
mission. who upon request Of the pur-
chasers made a complete examination
CT the business. The purchasers would
net attempt to make any move along
the line CT air, Writ suggestion. anu
thereafter, en- November 20, 1914, |
notified them that because of condi-
ticn broken, | was going to sell their
stock as provided in collateral agree
ment Representations we're then
made of plan of reorganization and
the sale was withdrawn on January %.
1915 (no effort having been made to
carry out any plan of reorganization.
The stock was again put up for sale BY
notice, the date of sale being post
pcned from time to time at the re-
quest of the purchasers until they
came to me in 4 body and said they
were unable to continue, when the
stock was sold Tho stock of tho COM