The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1918-04-19
Only American Citizens Can
Hold Stock During War and
Three Years After
Plans of Custodian Told Present
and Proposed New Direct
ors At Meeting

+ H. Hackfcld & Company, Limited, is
TO pass out Of existence A new cor
poration is to be formed which will buy
for cash and take over the entire prop.
erty and tn" going business of tho
present corporation. This new cOrpo
ration is certain to be n thoroughly
American concern for the period of the
war and at least three wears thereaf ter,
for stock in it can he held only by
AmerEnn citizens during that period.
D Plans for the formation of the new
company were discussed at n meeting
which was held yesterday afternoon, at
I tended by the present directorate of the
corporation, the one elected last Jan.
uary when n reorganization was at
tempted, and the 1--WE who are to be
elected to the directorate at the meet
'Iing of the stockh0ldPrs Of the company
which will be held Tomorrow.
Elimination from the business world
of II. hackfeld & Company and the ere.
alton to take it's place of an entirely
new company il the purpose of the
custodian of enemy alien property.
There is to be no unsnarling or un-
tangling to free thr company from
possible faint of German ownership,
in whole or in part. Instead of this
the government viii cut the knot. Tn,
resulting job will be full and complete
and the requirements are to be drastic.
Meeting Held Yesterday.
Some days since R. H. Trent, repre-
of no nf
envy alien property. received wireless
from A. Mitclh'II Palmer giving instruc-
tlOIs az to the course which is to be
pursued relative to II. Hackfeld &
Company. These instructions he read
to the meeting yesterday and by those
present they were discussed. After
thes-meeting Mr.. Trent said the recep-
ton. of the message by the old and the
new directors was highly gratifying:
All showed a high spirit Of patriotism
and each and every one promised full
and hearty cooperation in the carrying
out Of the government $ plans.
Instructions Explicit
Instructions from Washington pro
vide that the present corporation shall
sell for cash its entire property and go
ing business to new corporation which
is to be created to make the purchase
and to carry on the business. The new
company shall be capitalized with com
mon stock which shall fairly represent
the value of the entire property of the
present corporation. The cash for the
purchase of the property and the going
business will be realized bv Offering
for public subscription he stock in the
l., Il
who are American citizens are to be al.
lowed to subscribe to the stock in the
new company to the same amount as
their holdings in the present company
but others than American citizens are
not to be permitted to enter into the
! reorganization.
May Forfeit Shares
The charter and by laws Of the new
company are to provide expressly that
in cRse any shares or interest in shares
therein shall be acquired by or on ao-
count of any person or persons other
than American citizens during the per.
iOd of the war and for the period of
three years after the war is ended such
shares or interest in shares shall be for.
felt to the government if the contin
gency shall arise during the war and
to the company if it shall arise in the
three year period after the war is
ended
In the event that not all of the stock
in the new company is taken by the
subscriptions of the public, the Gus
todian will take over and supply the
requisite cash for the balance.
No Foreign Holders
Under the terms of this dissolution
aud the formation of the new company
any resident alien enemy who is stock
holder in the present company VIII not
become a stock holder. in the new COM
pany. Not only this, but the possibility
Of an American citizen securing such
stock aud holding it in trust for the
period Of the war il avoided. should
such an action be detected during the
war or for three wears after the war
ends the stock would be forfeit, either
to the government or to the company N
the ease might be-
| 1t will be noticed, too, that the re-
| stTictiOn against foreign ownership Of
stock applies not alone to enemy aliens
bat to all non citizens. Citizenship is
made a prerequisite for ownership Of
or interest in the shares Of NE new
company.
Disposition Of Proceeds
What the custodian will do with the
money he receives for the enemy Athens,
the >nlmr Of their holdings in the pres
ent company, he does not announce. Me-
does not say that he will invest It IA
! Liberty Bonds nor how much ul II VIII
! Ia, t,,I in !,
He takes and holds such money uudrr
the law aud will administer il ~ he
does other property similarly coming
into his hands.
Neither does the mrssaF" say how
the value Of the present holding, 81
| the company and its going business Is
to be determined. There is noth,n~ III