The Hawaiian gazette., 1918-03-05

shares Of Mr.. Haelsfeid In Haekfeld a
CO., the resident vics;president and
manager Of the company here was en-
spowered to vote the Hack stock.
That meant that Mr.. Hagens held vot.
ing control so long as GeorR Rodiek
was not In the Territory. Rodieki was
expected back on any boat and IL was
essential, II he were not to control the
Reorganization it must be carried
through without delay. At this time,
and practically ever since, the firm was
denied the right 10 use the cable or
wireless for communicating with the
mainland and the loyal directors. were
Unable TO learn definitely whether Rod.
iek was on his way back OF not Mrs.
Rodiek had written that she and her
husband would be 10 Honolulu on Janu-
ary IL. The organization then, It, was
decided. had to be completed by the
eleventh If 1t were to be completed
Mt oil.
Acted In Good Faith
Acting in good faith and believing
that their loyal intentions to American,
izs the corporation to the possible limit
OF the law would be recognized by Mr..
Palmer, the reorganization was put
through Such attorneys as Judge
Stanley, M. F. Prosser, Henry Holmes,
Judge Frear, Frank Thompson and 9th,
ers we're consulted and all endorsed
the. plans as legal. United States At
torney Huber was likewise consulted.
~ order that the federal government
might be kept apprised of the moves.
Following the reorganization, a weed
ing out of German heads Of depart
nients was inaugurated, even some n at
pEaliEed Americans being dropped. A
pledge Of loyalty to the United States
was drawn up and every employee was
required to sign or explain why Prior
70 the presentation of this pledge, F.
W. klebahn, in charge Of the shipping
department; Bertram Won Damn, head
Of the insurance department, and Carl
DuRoi manager of Ehlers & Co., were
permitted to resign, A few under en-
ployes, in whose loyalty there was not
complete faith, were discharged. Later,
Christian Castlsdyk, German, manager
of the important branch at Hilo, was
let out, his place being filled by an
Ameriean-born manager.
2 As, owners of twenty-five percent of
the stock of The Pacific Guano and
Fertilizer Company, the Hackfeld d.
rectors desired to replace A. Fake, the
manager, by another. The holders of
the majority stock voted down this
proposition, however.
Progress Hampered
4 Reorganization Of the many impor-
tant subsidiary corporations was de-
layed, due to the failure of Washing
ton to give official recognition to the
new directorate and due to the fact
that the cable and wireless privilege
was not given back to the firm, thus
making IL practically impossible to re-
move doubts; apparently carefully cul-
tured by local opponents to the new di-
rectors. Various side issues were in
jeeted into the question, going so fur as
to make Washington believe that the
arrest Of II. H! Trent on a charge of
sstiminal ibel had, ibseH insp rcd W Mr..
Hngens, q ludicrous perversion. Of the
truth but sufficient to eomplicate things
in the eyes of the custodian in Wash,
ingtnn. 3. = ; NO. - q ~ ~,
4 while lacking ' recognition them,
selves, the new directors were forced
to. 60 slow I'm waeding emit suspected
employer while this delay was used
against the directors to :, prove their
lack Of sincerity in their .Americanizng
plans. ~ ". a. t.',-,..
Mads Deaf and Dumb
Governor Frea1 who went to Wash,
ington to aexplainl.and clarity the sit,
uation, was : unable to- communicate
With hiss principals here to explain to
them what Misunderstanding he found
and what, the custodian desired, while
it was equally impossible for the direc,
tors here to reply promptly to what de-
layed cables finally came through
from Washington or to advise Mr.
FreaF of the local situation.
Failing to secure any satisfactory
understanding, and knowing that the
original ruling of the custodian was
that he conldI recognize no after wal
reorganizations except such as were
carried out in cooperation with his of
flee, the directors have decided 10 Gun
scramble as far as possible and give
the custodian a free hand.
At the same time, the new directors
in their statements, make it plain that
they continue to believe that they have
acted as loyal Americans, in good faith
and wholly within the law.