The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1918-03-15
NEWS FROM MADEIRA
PRODUCES TROUBLE
Publication Of Favorable Mes
sage and Withholding Of Cor
rection Stirs Brokers

There il question as to whether II
will again be posted on that sheet and,
indeed. there is strong possibility
there win be no yellow sheet on which
II can he posted.
Investigation Is to be made by the
Honolulu stock and Bond Exchange
relative to information which was
not given given out by J. Harris Nc
KrnHie. secretary Of the MADEIRA Com.
panv The committee which will in.
vestigatr Is composed OF J. L, Fleming,
william Williamson and william Simp-
sOn
Error Important '.-'.
II Has the omission Of the prefix
Gun" in telegram to Mckenzie re.
opivpd in the middle Of February that
il ut the base Of all the piiikia rs to
MADEIRA and the trading in 1t. That
prefix belonged before the word salts,
factory and made all the difference no,
tween satisfactory and "unsatis,
factory
That was the beginning but to this
was added the fact that some twelve
days later Mckenzie received q cor.
rection to the message The company.
through him as secretary. had given out
the first message but did not give out
the second, the correction. Mckenzie
$ reported as saying that when he had
received the correction IL was too late
and he was expecting almost any day o
cable which would tell of the run that
ras to be made March l.
Sales Go Forward
Meantime the company had gone on
through its broker in selling treasury
stock and on the strength Of the mes.
sage of February IT,, the one in which
the prefix cum was omitted, there
vas good buying. The message telling
If the result Of the run which was re.
ceived on Tuesday would have meant
the stock would have been selling at
ten cents or better yesterday had the
correction been given out, it is com.
Dlained. but under the circumstances
he stock was not quoted.
Telegram As Received
On or about February, Is the follow.
'ng cablegram was received by the Ma.
era Mining Company: vE4.
a. Harris Mackenzie, Results for
the first half of this month will be
very satisfactory. Will mot clean up
until March !. Values very much i'm.
proved in last two days"
This telegram was considered good
news by brokers and investors alike.
Had the "uu' appeared before "satis.
factory" its complexion would have
heen altered.
Correction Not Told
It is reported that Mckenzie says he
wrote to the mine end quoted the tele
ram and after the receipt Of his letter
the message correcting was received
This news II is admitted he did not
give out. and he in reported TO say
-elative to it that upon it's receipt II
vas TOO late. -, ]
Meantime treasury stock was sold by \
he company through Harry Armitage. 1
10 his connection with The \
taIes there are developments which r.!
fleet to his credit and against the com. 4
pany. = Armitage claims that under an |
agreement made about the time the /
was formed he was to have
'een tn" broker to sell the treasury
stock. However, he claims, the Water |
house Trust Comnahy sold about no.
900 of the $4,000 shares of treasury
stock. When he complained Of this he !
WIS IOlu W sell the VI
hia own discretion II is some Of this
10000 OF 10000 shares that he sold
'fter the receipt Of the February Il
message.
Armitage claims he could have re-
'ress in n suit against the company. II
he saw FIT TO brine it, for commission
~ all of the stock of the treasury
hich was sold through other brokers
than himself. II is a fact that after
the receipt of the February message he
aold none of his own holdings and the
'ales he made were for the company.
He did not hear of the correction any
more than did the other brokers. and
# he had known of the mix. up he
would have been more apt to unload
his own stock at higher prices rather
than to put out more stock from the
treasury.
Armitage said yesterday afternoon
he had orders for several thousand
shares he could fiji at ten cents. but he
was not filling any Of these orders un.
der the present circumstances.
The demand for explanation started
Tuesday when the report of the Feb,
ruary cleanup was received
Yellow Sheet Trading
There IL undoubtedly a deman nd from
some sources to lieut. out" trading in
stocks. There have been uh.
fortunate developments in several ~
these unlisted stocks. There was Tip.
perRry first, not now quoted. Next
came Mineral Products now selling uh,
der five cents share with some as
seSsments paid and others still to be-
paid. And now it is the MADEIRA cpl.
sode.
Prospectus
The prospectus on the MADEIRA Com
pany was glowing one and wasl
signed by some of the more prominent |
business men Of the financial district. |
among them R. W ShingIe. It assert.
ID thev had q devrIuDrd mine. II set |
forth the reasons why other similar |
did not succeed and prom. 4
sed management to avoid such mis-. !
axes.
Relative to trading IN unlisted 1
stocks on the exchange one of the
prominent brokers said yesterday he
vas opposed TO ahoh'hing the practice.
orn rtiae Defended
"People will huv such stocks" he ,
I'D. "TheV g" 10 their brokers to !
IuV or to sell TIL" hrohrr must do the !
work for them. II there j. daily trad.
~" AVID dolly GNin2 It quotations,