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a 'Vs 'Pi. 1 ' ifr ''WJ" , ,. ff,. 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. xMr 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 A . . .&v li X JL . k r f . H T i. T H k. m - I rv i v k3 vJ 1 1 J r X Man 19 Mar. IS 5 ;i ' r r j i, v L ' r. ' H IS NND MBf 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