The sun., 1918-11-01
BIG GERMAN SUGAR
CONCERN Is SEIZED
Owned Many Hawaii Planta-
lions and Department Store
in Honolulu.
WAS PROPAGANDA AGENT
One Leading Official Pleaded
Guilty to Sending Sup
plies to Raiders.

The H. Haclefeid Company, German
concern which owned many sugar plan
tations in Hawaii and the largest de-
partment store In Honolulu. has been
taken over by the Government, 1t was
announced yesterday at the office OF
A. Mitchell Palmer. Alien Property Gus
todian. The company. which earned
100000, has been reorganized under
the name OF American Factors, Ltd. The
stock has been sold to $40 residents OF
Hawaii, who submitted proofs of their
loyalty. The company will be admin
istered by trustees until three years
after the war, when stock certificates
will be distributed among the owners.
The Americanization OF the H. Backfeld
Company was another step in the cam
paign OF the Alien Property Custodian
to crush out whatever powerful German
interests remain in American industry.
quasl-judicial inquiry IL about to be
started by Mr.. Palmer and Albert l..
Becker. Deputy state Acknowledgement,
to unmask those important German con-
Germs which have evaded seizure up to
this time by concealing their true owner
ship behind dummy stockholders
Propaganda as Side Line.
The Hackfe,d company was an i'm
portant link in Germany's dominance In
the sugar industry. and served moreover
as the central distributing agency for
German propaganda in the Pacific. The
company produced from 20 to 80 per
cent. Of &fawaii's sugar. In 1917 Its plan
l. M 20 n
sugar.
The company owns or controls the
Pacific Guano and Fertilizer Ltd, which
supplies phosphates to Hawaiian sugar
growers. q line Of steamships which car
ries phosphates from South America to
the Hawaiian Islands. and the b. f
Ehlers Company OF Honolulu, owners OF
department store which has branches
| IN New York and San Francisco.
The company was controlled by ]. #
| Hackfeld, German. He went to the
Hawaiian Islands many years ago. He
built up the business, which I've incor'
porated under his name with the aid Of
the German kartel system. The officers
, OF the company were Hackfeld, George
Kodiak and J. F. c. Hagens.
In January. when the Government
turned it's attention to the Hawaiian
sugar situation and the II. Hackfelt
Company. Hackfeld was in Germany ant
| Kodiak in San Francisco, where h
pleaded guilty in the Federal courts O
having violated the neutrality laws b,
| fitting out ships to carry supplies 4
German raiders in 1914.
Blanket Proxy Provided.
The bylaws Of the company provided
that in case Of the absence OF any OF tn
officers the next in rank might take an,
action he thought necessary, with full
| authority.
January 10 Hagens sold II 900 share
OF the stock OF the company to si'
American citizens These with the hold
ings OF Hagens. some German natural
lied Americans and one American fam
lily constituted the control of the com
pany.
Mr.. Palmer persuaded the American
who bought stock of Hagens To rescin
their action. He organized America
Factors. Ltd, withea capital OF 5000
shares at par value Of $50, n tota
Capitalization OF $4,000 900. The capt
talization was calculated IN relation t
the assets of the company. The com
Ipany had undivided profits and reserve
amounting to s3.924s33.
Stock was onered TO the public 1
Hawaii. No one person was permitte
TO buy more than 500 shares, The sub
scribers received stock trust certificate
which will he exchanged for stock Gel
tificates three years after the end of tn
war
l. The trustees named by Mr.. Palmer. a
residents of Honolulu, are George SheI
man. r. a. Cooke, F. c. Atherton. c.
J Hemenway, Richard II. Trent, 4. w.
Bottomley and G. T. Wilcox.