Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-07-14
SEEK TO FORCE
|eUANDHOIH
BANKRUPTCY
Conspiracy to Gain Possession
Of Grand Hotel Property and
"Freeze Out" the Minority
Stockholders Hinted in Pro-
ceedings Instituted in Fed.
eraI Court BY Alleged Local
Creditors Who Seek to
Block Foreclosure Sale

Block Foreclosure Sale
Procsedinss TO force the Grand Ho-
tel Co, Ltd. Of Waikiki, Maui into
bankruptcy were begun in federal
court yssterday afternoon on behalf
Of three purported creditors. 3. w.
Quinn, local plumber; Teyes & jos
qutn, q tHcnoluiu firm, and Levi
Strauss & Co. Of San Francisco. The
alleged claims Of the three creditors
amount 70 3le75.33. Deputy q. 8.
Marshal Silva left Tor Maui last night
TO serve the papers. ~. a. MI
The object Of beginning the pro-
eeedings at this time apparently was
20 block foreclosure sale Of certain
of the hotel property scheduled TO BE-
held at noon today ct the Watiuku
court house. According 20 the peti.
ton Of the alleged creditors. the fore
closure right was granted By the Maui
circuit court TO c. d. Lufkin. who ID
said to hold . mortgage on certain Of
the hotel properties.
In the. proceedings filed yesterday
Levi Strauss 4 Co. claim the hotel
owes them Sl0ss.63 for merchandise;
=. w. Quinn seeks the collection OF
an alleged debt 81 $244s, and Teyes
q Joaquin claim Indebtedness by the
hotel In the sum Of S1137.70. II ID a..
legged that the Grand Hotel now car
ries an Indebtedness Of approximately
$4,000 and that the value Of the
property % shout 10000.
The petition now before federal
court % the aftermath 81 several
actions Tor alleged debt filed in the
heal circuit court by e. w. Quinn.
According to the petition, the proper.
" Of the hotel has been shifted about
On ct least twp occasion4 BY mort.
RACES. It @ alleged that On January
80, this year, with Q view to giving
security TO certain purported credit.
ors. Q portion Of the hotel property
was conveyed to one Frank Medeiros.
trustee for the alleged creditors,
which property included that convex.
cd IN Q previous indenture mortAage
70 G. D. Lufkin. But II is ALLEGED
that the second mortgage was not
made Of record until March II, 1917.
Conspiracy Hintsd AZ
Hints Of an alleged conspiracy TO
gain possession Of the hotel properly
and freeze out" tire smaller minor.
ity stockholders. are given IN the pro.
ceedings filed yesterday. IN that Dor.
tion Of the petition which reads q fol.
lows: 81. 4
Your petitioners ars informed
and upon such information believe
and hence allege .. that
the said Q. D. Lufldn and the said
cestui que trnstant under the linden.
ture Of mortgage Of Januafy 50, 1917.
Win other principal stockholders of
the alleged bankrupt, have combined
and conspired together to purchase
said hotel premises and said stock.
furniture and fixtures at said fore.
closure sale &C the least possible
amount and freeze out the smaller
and minority stockholders Of the I'll.
legged bankrupt " s.% - = =
Holders Of Liens Omitted =:
In this connection the petition al.
lleges, IN part, e follows: -. s..
That although they knew Of the
Indebtedness Of said mortgage OF
January 30. 1917, and Of the Hens
filed BY the petitioners herein. .. w
Quinn and Manuel n. Teves and Jos.
Ieph Joaquin, copartners % aforesaid
i they purposeiy omitted them az part
ties respondent 70 said Foreclosure
4 proceedings. but subsequently, and ON
ItolWit, the 2efh day Of June, 1917
|they secured the said Frank Medei
Il ros, trustee. % mortgage In sait
mortgage Of January 80, 1917. and OF
|snid last named date the said Franz
/ Medeiros. 90 such trustee, filed IN th,
circuit court Of the second tudicia
Icircuit Of the territory Of Hawaii, hil
BIN Of foreclosure Of said mortgage
with the design and purpose TO holt
lsaid mortgage and said foreclosur,
proceedings 90 club TO prevent bid
ders upon said foreclosure sale .,
fixed Tor the 1fth day Of July, 1871
Ias aforesaid, from bidding therefor
I'm the amount Of the reasonable yalul
thereof, and the said G. D. Luflkin
trustee and said cestui que trustani
trustee and said cestui que trustent
with said principal and matorft,
| stockholders, have combined and con
spired together to buy the said hote
premises for practically nothing. an,
for . sum greatly less than the reas
onable value thereof and thereby &c
cure said hotel premises and at tn
same time hold agntnst the alleges
BANKRUPT . deficiency Judgment IN IN
|IamOunt Of the deficiency that may re
suit, while ct the same time utilizinl
the weapon Of foreclosure proceed
n ings % Instituted by them rs afore
said IN respect Of the mortgage Q
January 50. 1917. 10 the said Franz
Medeiros, trustee"