The Hawaiian gazette., 1917-08-07
STORK SYSTEM IS
subject OF PROBE
Company That Was To Pay Huge
Dividends Meets With
Set-b2cks \ +


the best cottage at the Pierpoint Hote
during the winter Of 1915 10 and al
terward registered at the Seaside as H
r. Proctor Of Denver, made many trip
10 the Coast and TO Maui, but resolute
ly, and withal affably and entirely sue
cesshtlly, kept his business strictly t
himself. II was generally understoo,
that he had something or other to d.
with stocks" and there knowledg'
ended. "- &c.,,
Miss Alice shagsr, until lately stem
ographer for the Associated Charities
was his sister'in.lsw, and he brought
his wife with him. tall woman, will
wonderful head of red hair that
aroused almost as much speculation
among the women as her husband !
reticence did among the men.
Wei, at this interval of time II
transpires that Proctor was promoting
the Stork System Of Saving and Sup
ply, Ltd, guaranteed to pay twenty PEI
cent the first year, thirty per cent tn,
second year and forty per cent tn,
third year. He seems to have beer
pretty successful, too, judging by tn,
interest in his resignation from tho
company displayed by the good people
Of Maui, who now own virtually all o.
the 100000 worth of stock for whiel
the company was incorporated.
j., p. Roseerans, manager of Paii
store and one Of the directors in tn,
Stork system, has just returned u
Maui, after thorough investigation
the company affairs. He reports tina
the company Is far from dead, but tina
II has met with set backs, which will
defer payment of the promised divi
dends. , ...
Proctor Resigned
With Proctor were associated Charlie
B. Han, formerly commission mer
chant in Honolulu, and J. J. Corell
They were agents of the Stork System
under contract for FIVE years to pusl
the business of the system on tn,
Coast, for return Of fifty per cent o.
the earnings. Then Proctor resigned.
His resignation shook the company
badly, but Mr.. Rosecrans, as quoted By
the Maui News, Is authority for tn,
statement that il was perfect lega
resignation, for which he cannot bt
prosecuted, because the contract bind
ing him was non-negotiable. The lat
est issue Of the News continues.
Stock Held on Maui m ,...,.
1.-THE company was organized anf
incorporated last winter with capita
Of $4,000, all paid in, and with SOM
les shareholders, practically all Maui
people. Proctor, Hall and Corell went
TO the mainland last spring, but short
ly after reaching there Proctor severed
his connection with the concern, leav.
ing Hall and Gorell to swing it alone.
Nothing Crooked .q-,I, ..f
EtI made II my business to run dowT
al suggestions that Proctor or anyone
else had been crooked in the matter OF
promoting the company, said Rosec
rams, and TO that end i traced thing
back TO their origin in Leavenworth
Kansas. The copyrights and other Il
ties which the company bought are al
bona ilde. There is nothing wrong ex
eept that Proctor broke his coutrac.
and there Is nothing legally wrong il
that. e. ....
- But II handicapped Charlie ane
Jim Hall and Corell). They possibly
made mistake in leaving Colorado
where the scheme was known and haS
been established, and taking it into AZ
entirely new part of the country. They
we're also handicapped for lack OF
working capital, .. e.
What Company Is 49,
s.The Maui people who organized the
company paid $4,000 for the copy.
rights for scheme of getting paid
for furnishing new customers to re
tail merchants and to banks. II IL
something on the plan of the well
known trading stamp idea. The com
pany brought family as a new Gus
toner TO merchant. For all pur.
ehasea the customer received script
Furnished by the company to value
of Ave per cent of the purchase. This
script was accepted by bank as cash,
credited TO child as a savings ae
count, drawing four per cent interest.
and not removable from the bank until
the child became fifteen years of age.
Proctor, who is a malihini, who
brought the plan TO the Islands in con-
nection with c. b. Hall, of Honolulu,
claims 70 have bought the full rights
to II for Sl25,000 from the originator
who had II in successful operation in
about sixteen Colorado cities He kept
$4,000 of the stock in the new com
pany as his share for floating the en-
terprise, and it Is understood disposed
Of most OF II before leaving the Terri
tory. t',.r ... '..'.. Fl
Hail and corell Stick ~
y Roseerans denied emphatically ri
mors said 10 be current in Honolulu
70 effect that Hall and Corell had
'thrown the company down also
They have been at heavy expense, he
declared, and have been up agaius
IL but are still game. They plan tC
employ a force of high grade men and
70 push the work vigorously. Tn,
company now has under confederation
a suggestion TO give the agents high
or share OF the proceeds than the one
halt Originally agreed TO.
r Under the original contracts, the
agents guaranteed 10 return to the
eompany dividends equal to twenty
peuent OF the capital stock the frsr
year, thirty percent, the Second year,
and forty percent the third year.
Did Not Sec Proctor
"MF Roseerhns states that he did
not see Proctor during his trip and does
not know where he is at the present
time. la Leaving the eomnany how