The Maui news. [volume] (Wailuku, Maui, H.I.) 1900-current, 1922-04-11
Hawaii Grand Jury
Sees Need Of More
Strict Banking Law

Constructive criticism of the bank
ing laws of the Territory especially
in connection with the affairs of two
institutions at Hilo and suggestions
for some changes in the laws, espe-
cially regarding to an increase in ex-
aminers and for a closer supervision
of banking affairs is contained in the
report of the grand jury which at
Hilo indicted three officials of the
Peoples Bank and Security Trust
Company. The suggestions are of in
terest to communities other than Ha-
wall.
The report of the grand jury is
given in full below:
To the Hon. Homer L. Ross, Judge
of the Circuit Court of the Fourth
Judicial Circuit of the Territory of
Hawaii:
The Grand Jury of the Territory of
Hawaii duly empaneled and sworn in
and for the Circuit Court of the
Fourth Judicial Circuit respectfully
presents this its final report on the
matters and things which have been
brought to it's attention during this
March-April session of said Grand
Jury:
With the assistance of the Attorney
General of Hawaii we have investi-
gated a large numbers of matters con
nected with the affairs and manage
ment of The Peoples Bank, Limited,
The Securities Trading Corporation,
Limited, and the Plantations Securi-
ties Company, Limited, and as a re-
suit of this investigation the Grand
Jury has found the following true bills
against the following individuals all
Of which true bills are presented here
with:
Cd Herbert A. Truslow, embezzle-
ment.
(2) Herbert A. Truslow, embezzle-
ment.
(3) Herbert A. Truslow, embezzle-
ment.
(4) Herbert A. Truslow, embezzle-
ment.
60 Herbert A. Truslow, embezzle-
ment.
CO. Herbert A. Truslow and
James w. Russell, embezzlement.
60 James w. Russell and Her
bert A. Truslow, embezzlement.
(S) Herbert A. Truslow, embezzle-
ment.
(9) Leslie Forrest, forgery.
(1O) Leslie Forrest, forgery.
CID Leslie Forrest, gross cheat.
(12) Leslie Forrest, gross cheat.
The Grand Jury found no bill
against the following named persons
in the following cases:
Cd James w. Russell, embezzle-
ment.
(2) Leslie Forrest, embezzlement.
The investigation which was con-
Quoted by the Grand Jury in connec,
ton with the foregoing cases and the
said banking and other financial insti-
buttons discloses a lamentable state
OF affairs and under the circumstances
as disclosed it is extremely difficult
for us to keep within the limits pres
cribed by your Honor's charge to this
jury. The necessity for comment up
on conditions which have so serious
ly affected the financial and business
life of this community is so apparent
that we do not feel that the occasion
should be allowed to pass without
(within the limits laid down by your
Honor) calling the attention of the
public to those conditions and to the
vital necessity that some steps be
IohCh W prevent d recurrence OF the
same.
Two Years Too Late
From the Investigations which this
Grand Jury has conducted it is ap-
parent that the condition of affairs
in these institutions which existed
more than two years ago and the
methods of conducting business were
such as, if known to the proper pub
lie officials and bank directors, could
have been corrected and the wreck of
these institutions averted.'
Under the instructions given us by
your Honor it is not within our PROV
ince to criticise or comment adverse
ly upon the action or conduct of any
person, whether public or private, ex-
cept by way of Indictment.
We are convinced, however, that
there must be something radically
wrong or inadequate if the laws of
this Territory, or the enforcement of
the same, will allow a condition of
affairs such as has been disclosed
here to go OF unchecked for a period
of two years and over.
1t is a condition which encourages
criminality in those having the funds
of the public in their custody and con-
troll.
More Examiners
We are informed by the Attorney
General that the laws of this Terri
tory provide for only one Deputy
Bank Examiner whose duty it is to
audit and examine the affairs and
conditions of all such Territorial fnan-
cial institutions twice each year and
at Suph Otbar times &C the 1'rpo eurfr
of the Territory may direct. 1t is also