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Sow Advertising Seeds and Reap a Harvest of Business By
Steamer Tabled
The magnet draws the steel,
the newspaper ad If well writ
ten, well displayed, offering
timely goods at proper prices
and published In The Bulletin
draws the trade.
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From 8. F.
Peru . . ,
Alameda .
For 8. F.
Alameda .
!
BULLETIN
. .W.-toir. 12-
Mar. 15 '
...vV
" Peking
.Mar. 1S&
From Sydney.
WNOiflJ
Aorangi
For Sydney.
Mlowera .
ADVERTISING I1N SUNDAY BULLETIN
-VJ'-..
Vol. I. No. 7.
12 PAGES HONOLULU, TEIUtlTORY OP HAWAII, 8UNDAY MAROH 190212 PAGES
Puioe 5 Cunts.
First National Bank of Hawaii Springs a Surprise
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Anglo California Men
Will not Talk of
. Action,
, PREPARING AN ANSWER
TO COOPER'S LETTER
History of Local Institution's Business
In Hawaii and Origin of
Troubles With Bank
On Coast.
Attorney J. Alfred Magoon, who.wlth
Attorney J. J. Dunne, represents the
Anglo-California bank of San Francls
io In the First National bank contro
versy, was one of the first to observe a
notice pasted on the door of the bank
yesterday morning, to tho effect that
the board of directors had decided that
the advertised meeting was not neces
sary and would therefore not bo held.
This notice was a surprise to Mr. Ma
goon, although, as he afterwards stat
ed, it had been Intimated to him a day
or two ago that President Cecil IJrown
would call the meeting off.
Yesterday afternoon the office of At
torney Magoon held a number of gen
tlemen Interested In Klrst National
ttnnV mntiprs. nml the action of Presl
dent Drown was discussed at great
length. Mr. Magoon stated, however,
that no official meeting wns being held
In legard to the matter, and that mere
ly an Informal discussion of affairs was
taking place. Others present also In
sisted that nothing more than an Infor
mal discussion was going on. It was
nimored on the street, however, that
the gathering In Mr. Magoon's office
was of an official nature and that the
stockholders present had proceeded to
elect their own board of directors, not
meeting In the bank for the reason that
the bank had been locked and there
was no way of gaining nn entrance. Mr.
Magoon could not give out anything for
iiiilillfinrlnn no hp una nctlnfr as the lc-
gal leprescntatlve of the San Francisco
ban,:
Brown's Action Was Expected.
"There is absolutely nothing of In
terest to give out," said Mr, Magoon af
ter the meeting In his ofTtce. "We have
taken no action as the result of the
railing off of the meeting of tho board
of directors of the bank. As far as this
gathering In my office is concerned, It
In just a discussion of matters pertain
Ing to the bank, and there have been
similar meetings for almost a week
fast. I can hardly say that the action
of the board of directors In refusing to
go on with the advertised meeting Is
unexpected, for I understood a day or
so ago that It was probable that Mr,
Drown would cancel the meeting."
Colonel Macfarlane- was seen by a
Dullctln reporter nt the Hawaiian Ho
tel shortly after the meeting In Attor
ney Magoon's office. He would neither
deny or admit that there had been a
meeting In Mr. Magoon's office tor the
purpose of electing a new board of dl
lectors. "t do not want to appear discour
teous to the press," said Colonel Mac
farlane, "in refusing to discuss the af
fairs of the First National Bank at th
present time, but, as I have placed thi
matter In the hands of attorneys, I am
in a position where It Is Impossible for
me to speak concerning my plans or to
give out any Information."
"Will you make a reply to President
Brown's letter?" was asked.
"Why, of course," said tho Colonel,
with a smile.
Speculation on the Street.
Before the notice cancelling the
meeting of the board of directors was
posted on the bank door speculation
wns rife ns to what would be the out
come of the affair. It Is said that Pres
ident Urown and Secretary Cooper be
lieved that they held the majority of
the votes until the arrival of the So
noma from San Francisco, when It was
learned that Colonel Macfarlane had
tecelved additional proxies.
Those opposed to the present board
of directors declare that (he calling oft
of the meeting was a clear case of cold
feet. They say that President Urown
and Secretary Cooper knew that they
would be beaten and took this method
of aoldlng the Issue, determining to
hold on by all technicalities they could
bilng to bear.
On the other hand It Is said that
President Drown came to tho conclu
sion that his position Is secure as it
now Is and that the advertised meeting
was wholly unnecessary. Therefore,
feeling that the meeting could have no
other result than to create additional
discord, the board of directors decided
to call It off.
CASHIER COOPER TO
ATTORNEY MAGOON
The Anglo-California bank people
feel rather amused at the action of the
local bank's president, but are pepar
Ing, through their attorneys, an an
swer to the letter sent yesterday by
Cashier Cooper to J. A. Magoon. ot
which the following Is a copy:
Honolulu. II. T.. March 8. 1902.
J. A. Magoon. Esq.. Attorney for G. W.
Macfarlanc, Honolulu.
Dear Sir: If you will refer to the no
tice calling for a meeting of the stock
holders of this bank to bo held this
day you will see that one of the ob
jects for which the meeting was to bo
held was "tho election of directors for
tho ensuing year. If necessary."
The directors now do not deem It
necessary to elect or vote for director,
upon the ground that the directors
were all elected at the annual meeting
held January 14, 1902, and as there Is
no other business requiring action by
the stockholders, you aro herely not!-
BOARD OF DIRECTORS' NOTICE,
Capital $500,000.
Cecil Brown, President.
Mark P. Robinson, Vice President.
W. G. Cooper, Cashier.
THE FIRST
NATIONAL BANK OF HAWAII,
At Honolulu.
Cable Address
Honbank, United States Government Depository
San Francisco.
Liebcr's Code.
Honolulu, H. T., March 8th, 1902.
The Board of Directors havin? decided that it is not necessary to hold a meetinc (or the election of
Directors, as the Directors had been elected at the Annual Meeting held January J4th, 1902, therefore the
meeting called for this day will not be held as advertised, it being deemed unnecessary.
By Order of the Board of Directors.
W. G. COOPER,
Cashier.
fled that no meeting of stockholders
will be held this day.
The principal reasons upon which
the directors base their action are as
follows:
1. That the conclusions nr opinion
of the Territorial Attorney-General
that all proxies, being powers of attor
ney, require under our Territorial law,
to be stamped with the Territorial
stamp, affects tho proxies produced
by G. W. Macfarlane at that meeting,
ond rendered them useless.
2. That at that meeting, after the
proxies produced by G. W. Macfarlanc
had been ruled out, no attempt to have
them stamped was made, nor wns any
offer to vote his stock or that repre
sented by him made at any time during
the progrccs of that meeting, but he.
after having been asked, refused and
abstained from voting, thus waiving
the right to vote, If he had any; and. If
Lo had the right, losing It by refusing I
and abstaining from voting. !
3. That as the National Banking j
Act does not require n majority of all
the stock to be present at a stockhold-1
era' meeting, nor a majority of all the
stock to be then voted, In order to
make valid the meeting anil election ot I
directors, the meeting held January 14,
1902, was a legal meeting, and th'j
hoard of directors then elected hold of
fice for tho ensuing year.
This Is communicated to you by or
der of tho board of directors, as their
action taken at a meeting held by them
on the 7th Inst., after business for the
day had closed. Respectfully yours,
W. O. COOPER, Cashier.
SOME INCIDENTS IN
THEBANK'S LIFE
For nearly three jeais the National
Dank of Hawaii lias been conducting
business In Honolulu without any In
terference, either direct or Indirect,
tiom the Anglo-Cnllfornlu Dank of San
Francisco. It was only upon represent
ations being made ot existing differ
ences between tho cashlet and the
president that the San Francisco Insti
tution stepped In to stop trillion. These
differences were first reported by Cash
ier Cooper, who had been sent here bj
the Anglo-Cnllfornla because he was
known to bo a good and efficient bank
clerk.
Upon hearing these reports the An-glo-Callfornla
bank felt that Itvsliould
have representation upon the Doard of
Directors of the local Institution, both
on Its own account nnd In the Interests
of stockholders on the mainland, who
bad become investors through Its rep
rcsentatlons. Accordingly Col. George
W. Macfarlane was sent here by thj
bank with such mainland proxies as It
possessed.
The transactions at tho January
meeting are still fresh In tho publl
mind, but can be briefly recalled by the
following analysis ot the vote:
Shares represented , . . .0000
Shnies voted for old board , 2068
Shares ruled out for Illegality.... 2292
Shares not represented by proxies. 107
Shares ruled out for disagreement
of trustees , "00
Shares present but not voting 3.1
MAINLAND PROXIES
HELDAS ILLEGAL
Picsldcnt Drown ruled the 2292 votes
Illegal because they consisted of prox
ies not stamped accorded to. United
States statutes. Col. Macfarlane pro
tested.
The disallowed 500 votes belonged to
the estate of the late James Campbell,
of which the trustees are. the' former
Mrs. Campbell- (now Mrs. Sam Parker),
Cecil Drown and Joseph O. Carter.
Col. Macfarlane prior to the meeting
LEGAL ELECTION IS
DEMANDED OF BANK
The following notice was scned on
the officers of the First National Dank
on January 16, 1902:
Honolulu, 11. T., Jan. 15.
To the President nud Doard of Direc
tors of the First National Dank n'.
Hawaii:
The undersigned, the owner In good
faith and in his own right of thirty
three (33) shares of the stock of said
National Dank, acting both upon hli
own part and on behalf of sundry other
stockholders of said bank whose power
of attorney he now holds, does hereby
object to and protest against that cer
tain pretended election of a board ot
directors of said bank, claimed to have
been held on January 14, 1902, upon
the ground that said pretended elec
tion, claimed to have been held as
aforesaid, was and Is wholly Illegal,
null and void, and of no force, effect
or validity wtatevcr; and said under
signed, acting as aforesaid loth on his
own part and on behalf of said sundry
other stockholders, hereby demands
that a due, proper UjUdJegal election of
would best be served by the removal of
Mr. Cooper, who, he felt, had been dis
loyal to the Institution that sent him
here Mr. Cooper wns accordingly not-'
Ifled and was told that his stock would
be purchased by tho San Francisco
bank. I
Meantime Mr. . Brown and "'foop.r ' President BfOWn DeCideS
iiaa arrangea ineir uiuiuuiwvo uuu,
w hen told ot the contemplated removal
of Mr. Cooper, Mr. Drown said that he
would stand by Mr. Cooper and either
remain or leave with him. Thereupon
Mr. I.lllenthal offered to purchase Mr.
Drown's stock, but the latter declined
tho offer unless other local stockhold
ers were also cared for in the same
way. To this Mr. l.lltcnthal demurred.
Thus matters continued until yester
day, when the community was surprls-J
cd by seeing, pasted upon all the doors
ot the bank, the notice' which appears
at the head of this article.
I The Anglo-Callfornla bank people
now claim, so It was rumored yesterday
, afternoon, that as the meeting called
I for yesterday, had not been held, It was
necessary that another thirty days' no
tice be given of tho meeting. This Is
rendered necessary by the Federal stat
utes regulating the conduct of all Na
tional banks. -
To Stand by His
Cashier.
4
HOW STOCK WAS VOTED
AT JANUARY MEETING
San Francisco Institution and the
Seligmans of New York Ask
Representation on the
Directorate.
the board Of dlrectors'brsald'ljank be
held as speedily as compliance with the
preliminary legal formalities of said
election can be had ;and said under
feigned, acting as aforesaid, demands
scned on Messrs. Drown and Carter a from you an answer to this demand
letter from Mrs. Parker signed by her within the term of forty-eight (48)
trusteeship name of record "Abigail hours next hereafter ensuing; and If,
Campbell" Instructing' them to vote' within said time herein limited, no
the trust shares only for nn adJourn. answer shall be received from on.
ment of not less than thirty dnys so sucn lanure co answer win i uirpii uy
that she might be 'in Honolulu nt tlw
time of tho meeting. Mr. Carter want
ed to vote according to this order, hut
Mr. Drown refused assent and as pics
ldcnt ruled tho stock out on the ground
already tilated.
Col. Macfarlane at the clco of tho
January meeting filed the following
protest:
"I wish to enter my protest against
the legallt) of each and every step of
the proceedings of this meeting, which
thorlzed by law. Tho conduct of tlu
chairman Is an attempt to prevent cer
tain stockholders abrojd, whom I rep
lesent. from having any representa
tion at this annual meeting and to de
prive them of their rights. I give no
tice now that this meeting will be de
clined Illegal ns soon as I ran take tho
necessary steps to do so."
the undersigned nnd construed to be u
refusal upon your port to comply with
this demand. Should you refuse or fall
to comply with this demand the under
signed will forthwith resort to his le
gal remedies.
O. W. MACFAItl.ANi:.
lly his attorneys In fact,
J. J. Dunne, J. Alfred Magoon and T.
I. Dillon.
I claim are arbitrary illegal and unau-
BANKER LILIENTHAL
ACTS AFTER ARRIYAL
NATIONAL BANKLAWS
RATHER PECULIAR
The present directors of the First
National Dank ot Hawaii are: G. T.
Waller. Aug. Dreler, L. I.. McCandless.
Cecil Drown and Mark P. Robinson.
They are acting under the National
banking laws of the United States and
t not under State or Territorial laws,
and, should any litigation ensue In
connection with the existing difficulties
It will necessarily be conducted
thrauKh the Federal courts.
A pecnlfar'lty,of "the- liwregulatfng
National banks Is that all stockholders
are liable to depositors for the full
amount of their paid-up stock. For In
stance, if a stockholder has stock worth
S10.000 which Is fully paid up, he Is
still liable to tho payment of another
$10,000 should tho assets of a bank at
any time fall to realize enough money
to pay the depositors. Dut, of course,
nothing of this sort is anticipated In
connection with tho First National of
Hawaii. This point was prominently
developed In the Investigation of th
affairs ot the Seventh National Dank of
New York, less than a year ago.
L0CALST0CKH0LDERS
FAVOR DIRECTORS
After Mr. A. N. Llllenthnl. of the
Anglo-Callfornla bank, arrived at Hon
olulu, ho conducted an Investigation
nnd decided that the bank's Interests
A majority of the smaller stockhold
ers of the bank are In favor of leaving
tho directory as It has been since the
Incorporation of tho Institution, ns
they think that Drown and Cooper are
tho right men In tho right place.
Among the large depositors of the bank
the present condition of affairs Is very
satisfactory and as the matter rests, In
case ot the election of a new president,
there is liable to be a separation of the
bank and the First American Savings
and Trust Co., which will remove Into
a building ot Its own and stsrt a gen
eral banking business which under Its
charter It has a right to do. In fact. It
Is learned that one ot the reasons tor
leaving unchanged the old banking
rooms and vault formerly occupied by
the First National In the Campbell
block, was with a view to the contin
gency that It would be advisable at
short notice to have a banking room to
go to In a hurry.
Tho Anglo-Callfornla bank, on tho
other hand, desires representation on
the directorate. It has loaned consid
erable money In Hawaii through the
First National, which has hitherto al
ways received tho unquestioned sup
port of the Anglo-Callfornla bank of
San Francisco, and of the Seligmans of
New York. Two better backers It could
not have. Desldes this It Is the deposi
tary of United States funds In the terri
tory. The stock of tho locnl bank consists
of 5000 shaics of tho pur value of 1100.
The Anglo-Callfornla people claim to
have more than half the stock, and a
clear working majority over 2500
shares. This does not Include the
Campbell block of 500 shares.
There was considerable competition
between the rival factions In the bank
to secure two lots ot stock held on tho
mainland. One was a block of 150
shares, owned by C. A. Spreckels, who
Is now living In Paris, which went to
the Anglo-Callfornla bank. Tho other
was a smaller block that arrived here
by the Sonoma, and which was also se
cured by the San Francisco Institution.
NOW SISAL FIBER TAKES FRONT RANK
and rope bundling the Filler product with Dnltlmorc regarding machinery
and keeping 10 salesmen on tho road. fur the company This Is of- purely
They proposed to take stock In tho Ha- technical InteVest. A Mr. Tod 1 In New
Diversified Industries are become
mote than a dream In Hawaii, it must
be admitted by nil who note the prog
less of the Hawaiian Fibre Company
Limited. Yesterday afternoon the un
nual meeting of this corporation was
held at tho office of Its president, Cecil
Drown. There was a tone of triumph
in the whole pioceedlngs. Kverythlng.
by black and white demonstration Indi
cated an early Intimacy of profit with
Baby
Pictures
This Is our specialty. We
havo made a careful study of
baby photography and pride our
selves that no ono can compote
with us In this line
In after years you will value a
portrait of baby and be glad you
havo a pictured story of tho
child's growing
Come now for a sitting.
Rice & Perkins,
PHOTOGRAPHERS.
Oregon Block, cor. Hotel and
Unlsn Sts. Entrance on Union,
mainland markets for the product ol
the enterprise
They woro men of business with nt
least ono possessing technical knowl
edge of tho Industry, being: Cecil
Drown, Denjamln F. Dillingham. Mark
P. Robinson, Walter (J. Weedon, Chns.
H. Athcrton and A. II. Turner, tho last
named manager of tho company's plan
tation ot sUaL
Having given a good account ol
themselves, the directors were ie-elect-d
for tho current year, viz.:
Cecil Drown, president.
ilark P. Iloblnson, vlce-piesldent.
Walter C. Weedon, secietary and
treasurer,
W. G. Ashley, auditor
The reappointment of A. II. Turner
as manager came as a matter of course,
his work commending Itself In tho
highest manner to tho stockholders.
Manager Turner exhibited at the meet
ing a beautiful hank of fiber, made
from one sisal plant and weighing two
and a half pounds. Its thicads aro
very even, flno and strong. The sam
ple will be exhibited tomorrow In n
window of tho Pacific Hardwar6 Com
pany's store.
On Good Foundation.
Secretary Weedon's report for the
annual meeting showed the company
to be upon a financial basis that might
bo envied by many enterprises of cor
responding youthfulncss. As to pros
pects of marketing the product he
says;
"There Is a growing Interest among
the manufacturers of fibers as regards
the outcome of sisal In these Islands
and our correspondence Is Increasing,
especially since the visit of your secre
tary and the manager to the EbbU We.
have received communications among
others from the following: Plymouth
rnrn.n rn Plvmnnth Mnsfl.. tho
largest producers In the L lilted States:
Independent Cordage Co., Toronto,
Canada: W. II. Fltler & Co., Philadel
phia, with whom wo had n personal In
terview; I.ockwood, Taylor & Co.,
Clcvelund, Ohio, largo distributors fur
Fltler & Co.; Tubbs Cordage Co., San
Fianclsco; Daker & Hamilton, San
Francisco; Portland Corduge Co.. Port
land, Oregon; Joseph Hnndjj & Son, I
Now York City, together with the man-j
ufacturers and agents of the machines
manufactured.
nnd a little necessary repairs to our
tank and windmill. This certainly Ik
quite remarkable fpr an entirely niW
enterprise which has taken yearo be
fore returns can be rearh"d. Two
yeais ago some of our shHiholders
were backward and needed much
couching, but all have done '.veil and
the prospective outlook Is very encour
aging. "Regarding the prlie of the raw ma
terial, for sisal baled and delivered In
San Francisco we are now offered nine
true sisal plant. Mr. Dodge predlcled
success for the company. "When It U
remembered," the secretui) writes,
"that Mr. Dodge has been ! spciiallst
In fibers for more thnn a quarter of a
century, and is the author of the .icst
works extant on finer plants, nnd the
leading expert In this count ly, we must
regard his opinion ot Inestimable value
to our enterprise." Mr. WceJon
brought home two numbers of Mr.
Dodge's valuablo reports to the depart-
wallan enterprise If they could set Mr
Filler to Join them, and offered to take
400 tons of tho fiber at 8c a pound at
Honolulu. Mr. Fltler was sen by Mr.
Weedon at Philadelphia, but declined,
on account of the magnitude of hit
present business, to take up any other
business proposition. He, however, do
hired a trial lot ot one tun of the liber
to work up.
Mr. Weedon reports of his visit to
Paterson, N. J., nnd correspondence
York, connected with the Pateison uu"
chine j,.ks1 J renQrtafctir'iielug per
fectlyHtghl! WBui (tir sample! of
HawallalniWiylnR It "certain
ly true slsul" and would find a ready
market One if bis customers f.ir the
machine was at first satisfies with 3 ',3
ce it- fur his fibre, but wns now lio' !ln
out for 10 cents n pound for what he
had In New York. ' "
(Continued on page 8.)
ment.
'"Vour secretary has had application ( ccnts per lb., or $180 per ton, nnd. If I Thc independent Cordage Co. people
to know It wc would furnish land and may ,e permitted the suggestion, It is ut Toronto Canada, were exceedingly
plants to small farmer settlers, and that wo hasten ns rapidly as practlca- pleased with the samples shown them,
tako off their fibre and work It out for, ije the placing of our macnlncry nnd especially tho tensile strength whn
them when we have machinery run- the taking off of fiber. I bcllevo we cominrC(1 wth Manila fiber recently ro-'
iiiug, uuu ui iw icnim. i urn ui mo nnvo practically soivea me prouicm or CPVP, Thev nsked thc je.-utarv tu
I nm of the
opinion that this Is worthy the consid
eration of our company."
Prior to his eastern trip Mr. Weedon
visited tho plantation, and since his re
turn had been down with Mr. Sachs.
Tho plants showed excellent growth
und the secretary has no doubt that the
soil ot the location Is adapted tu the
life and character of tho true sisal
plant.
Deterring to his report as treasurer,1
Mr. Weedon thought thc stockholders
would find it showed grntlfylng result!.
At tho first annual meeting, February,
1899, they were owing In orcour.tsj
1C20.CC, and had available 1300 In un
collected assessments, leaving a debit
of 1320.60. Passing over Intervening de
tails, tho report for 1902 shows .1 bank
balance of 1222.25, assessments directly
duo but 150, while only (865 remnlns to
make the total capital stock of 125,000
fully paid up. I.nst payments are part-
being due from trie 1st to tne
what to do with the thousands ot acres
of waste and unplowable lands of these
Islands." I
Of a total expenditure of (7291.55 tor
the past year, (3021.75 wns for wages to
laborers, and (1100.95 salaries and trav
eling expenses ot officers, Including the
manager. I
Market Investigations, )
Mr. Weodon presented a long leporl
on his Investigations tTpon the main
land Into sisal and Blsal machinery.
Having previously sent some of the
company fiber to Charles Richard
Dodge, special agent on fibres In the
Department of Agriculture, Washing
ton, D. C, he began coircspondenre
with him nnd heard from bltn In (Vu
nda, suUequently meeting him ut the
Pan-American Exposition, Dnffalo. Mr.
Dodge carefully Inspected threo sam
ples, also photographs of plants und de
scriptions of soil. He pronouneed the
namo n price for the prodiut delivered
at Honolulu or Vancouver, ealng liny
were ready to engage tho entire output
ot this company nt good, fair prices, i
At Milwaukee, Wisconsin, Mr. Weed
on visited Lindsay Dros., tha largost
distributors of binder twino In tho
United States. They told him tho de
mand for sisal hemp wns far beyond
the supply, all through the Western
States the farmers preferring the tlsai '
twine. Their factory manager, fl. F.
Holmes, reported to them thai the sam
ples were very superior, th middle
growth of wonderfully good quality
nnd, though the oldest growth ot four
or flvo j ears was rather conreo at tl.o
butts, tho wholo exhibit wis very lino
and tho factory would take all tho fiber'
of such quality the companj could
raise and pay big prices for It. Lindsay
Dros, had 1.000,000 lbs. of sisal twine
on hand, yet would not fix any price
nth nf March Tho secretary says: ' nber of excellent q'uallty, comparing It for tho coming season owing to short
,.. x. ... .., 0...1 it,., favorably with anv ho had over seen, age of tho supply
i"1h in,ii,.,tn ,ilroeH and was of opinion that our coral lands At Cleveland. Ohio. Lockwood, Tay
is the weeding contract now going on, e wonderfully well adapted lo the
YOUR HEALTH
IS CONCERNED
lor Co. are large distributors of 'wines
Wet weather generally means wet
feet, and wet feet Invariably means
cold. A cold menus woll, we won't'
go any farther but It's obvious that
what you need most at tho present
time Is
GOOD PAIR OF RUBBERS
Wo havo a stock of tho best men's
storm rubbers made; extra heavy roll
ed edge around tho solo as a protec
tion to the seam, and all of the best
material $1 BUYS A PAIR.
and saves many more dollars In Doc
tors' bills and enforced absence from
business,
Manufacturers Shoe Store
I05T FORT 8T.
1( ... ., ... , ,
L
"-
in !! ifll tm in i Kii T II iiniMiirs il ' 1 1 ii"iii I ! I ' "ui i1
