The Hawaiian gazette., 1918-04-23
TRENT INSTRUCTED
10 PROCEED Upon .
cUSTDDIiN'SPLAN
Only, Slight Modifications Made
ITO Permit, Larger Holdings
III. IiI'NeW Company
BONDS WILL Be TAKEN .
IMPAIRMENT FOR STOCK
II Hoholulans Do Not Want
Il shares Custodian Has Said
a, He viii Take Them Up

r. ~ e. 49,, 81 -
InstEnctions to proceed with plans
FOR che sale Of the entire property and
going business Of H., Hackfeld & Com
pasy, Limited, to new corporation
which tslto be formedGto buy these for
essh were received yesterday by R. H.
front, representative In Hawaii of the
custodian Of alien enemy property,
from A. Mitchell Palmer. There are
aoms blight notifications which the
eastodian mas approved, most important
Of which IL the number Of shares in the
new corporation which can be allotted
to q single subscriber. In no other inn
portaDt aspect are there aIy changes
from the. plan that was outlined TO the
present directors, and the proposed new
directors OF H, Haekfeld & Company at
the meeting which was held Thursday
afternoon.
:, II was at first proposed by A. Nit
chell Palmer TO limit the number Of
shares which might be allotted to 100
shares TO Subscribers other than share
holders in the present company and in
the case Of holders of stock in the
present company TO an equal in value
Of their present holdings not to exceed
500 shares. In this. Mr.. Trent saw diff
Families which he pointed out to Mr..
Palmer in wireless messages. He
showed him the practical impossibility
Of finding say $50 persons in the Isl
hnds who would be in a position to take
100000 Of the new stock. Following
his suggestion the modification is that
shares may be allotted up to 1000 or
$500 shares. :, Ali ailotments will be
to approved Subscribers only and there
IA 20 change in the requirement that
such stockholders in the new company
must be citizens Of the United States.
Bdtdb Are Acceptable
{, Subscriptions to the stock of the com
psny which is to be formed ore to be
bald, for either. in cash, in United
States bonds or in the stock of II.
AAekfeld. 4 Company. Mr.. Trent WINS
infetmed yesterday that United States
kdHds win be received in lieu of cash.
THUS itSis clear the plan which was
tSla.to the; directors, old and new, Of
He Haekfeld q Company, was in no
Miass tehtatiye nor was, il o n,feeler ;.
II is the plan upon which the, represen-
tatise of the custodian here is to pro-
cttissnship Requirements
Relative to the provision which makes
citiSeuship requirement for the hold
ing Of shares or the having Of interest
n SBhafes of the new company, it has
been pointed out that this will prevent
thu purchase of stock by subjects of the
sdSnations resident and in business
here or by any, firm or corporation
which may have foreigners as members
or D. shareholders. II is learned this
matter was brought to the at
tenti6D of Mr., Palmer recently in
Washington and specific instances men
tiOiied Of individuals who would thus
be barred from participation in the new
company, To this the custodian re.
nlied that he did not care. The United
States government, he said, was not
taking the stock away from enemy sub
iects to- transfer it to the custody of
any other foreign nation. no matter
how friendly. 1t was to insure a hold
in" Of the COMPANY which should be
entirely American during the period of
the war and for three wears thereafter
that the forfeiture of stock to the gov
ernmnht during the war period and lat.
ar to the company was provided.
Take or Leave
Some criticism of the government =
proposal was heard yesterday and some
objections were raised on various
grounds. One Of these was that there
would be difficulty in floating the
amount Of stock required to float the
new company unless the limit was rails
ed. This was answered IN part by the
increasing of the number Of shares lin,
tied TO q single subscriber. But the
real answer to II Is the provision in the
plan which says the custodian will take
for the government the residue of caui-
tni stuck In the new company left after
the Honolulu pnblie hae subscribed. In
other words IL Honolulans do not want
tha stock the government will itself
take 1t up. Take IL or leave it is the
wav the proposal appears.
ohie"t'o"s Answered
Another point raised was the, pos
s'hle bar";nT fra-r ownership of stock
If AoRe II ~" lo-"l corporations which
have foreign stoc" oldera A strict in
fermentation would seem tn bar such
comranieR hut there might be a differ.
ant INTERPRETATION nut on il in consid
Grafton thRt such compe are strict
" American concerns. Otherwise indi.
VidnHl UrpmhsrE of Such corporations
could subscribe for themselves only.
ANain II was said the chief asset Of
the COMPANY was its AGENCIES and that
in frw of these did Hackfeld & Com.
PAW hold a controlling interest. The
plantation compn MES would want as
UuEapse OF the management being IN
~" r'"'ht hands. r" this il was ans
wered that the stockholders of the new
company would elect the directors and
siI control the officers and mana cement
np1 would nPturally name the, best, oh
trinable for their own interests. Self
interest Of the stockholders would in
""r" care for the interest of the stock
tr'Ierr In The plantation comnanies
NhHrTis" there would he the dancer
~ the lasi"g Of tho agencies of the
~n"p""ieo th" most important part of
-" univ" business.
Cnon~os Unlikely
T'o"" I" little Likelihood OF any i'm.
NCrtapt revision or change in the plans
""t' hove been Bnnnnnced for hero.
They apparently follow the program