The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1918-03-01
.PAXSON IS OUSTED
BY GUS SCHUMAN
and SUIT FILED
Controversy In Company Comes
!, To Head and Manager Is
Discharged BY President
WILL JOIN ROYAL
-. HAWAIIAN. GARAGE
Capital Stock Of Latter Concern
To Be Greatly Increased
and Changes Made

and Changes Made
The discharge Of Sumner 6. Parson
from the Official staff Of the Schuman
Carriage Company, Of which he was
vice president and manager, a reorgan,
ization Of the Royal Hawaiian Garage
Company with. which Paxson Is to be.
come identified, the filing Of a suit
against Paxson, and the prospect of
legal eutanglements over an automobile
agency, involving Honolulu banking
house, we're events that stirred Homo.
lulu's automobile world yesterday.
Rumors Of trouble among the officers
of the Schuman company have been the
subject Of gossip among automobile
men Of the city for some time and
these were confirmed yesterday when
it was announced that Paxson no long,
err was an officer of the company.
schumAn Explains
"I discharged Paxson because his
methods of running the business and
mine did not agree" This was the
terse way in which President G. Schu,
man Of the company answered when he
was asked about the controversy. He
was unwilling to give details Of an.
other angle Of the trouble which, ae,
cordipg to reports related to an over
drawn account in the company's Office
President Schuman stated, however,
that questions concerning the over
drawn account were a part of the trou
Bile. -.
PaHson last night confirmed reports
that he had left the Schuman com
pany, saying he had been intending to
quit the company for some time and
he offered the comment that President
Schuman knew Of this.
PaxBon Gives Reasons
1.-THE original trouble dates back sew.
eral months when refused to dis
charge IN American bookkeeper Of the
company and fill his place with ar
alien enemy" he asserted He said that
he had disposed of practically all Of
his holdings in the Schuman company
and that the sit against him, filed by
the Schuman company, probably refer
red to the controversy over the draw
ing account. - Wv
On this subject he said that detail
If the Schuman company's business
he importation and sale Of mules, had
Neen carried on under an agreement
under which he was to receive Ger
tain percentage Of the sales as com
mission. He had never received this
commission, he asserted.
The suit that was filed in the circuit
"ourt yesterday afternoon by the Schu
nan company against Paxson is based
m the allegation that he is indebted
70 the company TO the extent Of ap
7roximately $4,000. Whether Of no.
his will be followed by other actions
has not been disclosed.
Royal Garage Changes
President F. W. Macfarlane Of the
Royal Hawaiian Garage company con.
firmed last night the report that Pax
son would become an official of that
company and said also that important
changes are to be acted upon this morn
ing at a meeting of the directors Of the
Royal Hawaiian Garage company.
Under the reorganization Paxson, the
president said, is to become a joint
manager of the Royal Hawaiian Gar,
Nge company with George 8. Wells, who
heretofore has been manager of the
company. Another change in the com.
0Rny will be an extensive increase in
he capitalization. 1t was first report
ID that this increase would amount to
$4,000, but President Macfarlane of
he company said the increase probably
would be in excess of this amount. he
vas unwilling to say what the increase
would be.
Other questions that may take the
controversy into court have to do with
the agency for the Chevrolet car. Pax.
son said last night that this agency
vas originally held by c. w. Spitz
automobile man of Kauai. Some months
100 n plan to organize a new automo-
bile company under the name Of the
Hawaiian Auto Sales Company to han.
die the Chevrolet car was proposed
Sni'z and Schuman were to be at the
head Of this company and Paxson was
Interested in it,
Company Never Formed
According to Paxson, arrangements
to form this company were concluded
With mutual agreement, after which
Schuman went to the mainland to ar
dDOul dRcHCS. OpOD
his return after a number of Chevrolet
ears had been ordered in the name of
he new company, PaxsOn asserts, Schu
man refused to sign the papers of in
corporation, with the result that tn"
'Omnany never was formally organized
Within the past several months
number of shipments of Chevrolet
"ars have arrived with drafts at
tached addressed to the Hawaii
IN Auto Sales company, the or
ANIMATION which never was formed
These shipments have been accepted
by Schuman who has paid all the
drafts.
In doing this. Paxson asserts, Schu.
nan has violated a territorial statute
by conducting the business of the com
pany which not only has no charteg
70 onerNte in the Territory, but which
in fact does not exist. In this connec-
ton 1t is questioned also whether the