Honolulu Republican, Volume IV, Number 500, 18 January 1902 — BROWN ADMITS HE WAS WRONG ABOUT PROXIES [ARTICLE]

BROWN ADMITS HE WAS WRONG ABOUT PROXIES

Special Meeting of Directors ot First National Bank of Hawaii. REV MEETING CULED MARCH 8 Correspondence Between Colonel Maciarlane and Present \ President. V UC h lrt;re*t Excited—Principal* W II Have Nothing to Say—Talk Around Town —Parent Bank * Attitude —Apparent Defeat i* Turn ed to Victory —MacFarlane Win*. v. a* a meeting of the presi- ,> ini lit I ' • tors of tjvI -t National Bank of Hawaii at' *i o k y«**t«rday afternoon, fur the purpose of formulating a reI i tho letter of George W. Marti , asking for an answer within (v pour- ;<i h.deiuuud to declare t >te ole’ tton Illegal. Toe meeting was rMled specially : r this purpose. After over an . mi s operation, the follow ins n- ti'.-n nit for publlraiion. the, I ■-i deni ttnaliy mkm wledginc his • rro< i insisting that proxies could, i t>.. h • pled unless stamped. and March sth being set for a new meet-j In*; for the election of directors. Brown surrender* Contention. T* • Klr.-t National Mark of Hawaii. Honolulu. H. T Jan. 17. 15*92. .v. -t- ,1 J. r>unn< J Vlfred .Magoon i r Dillon Attorn* >- for • ij. \V. Macfnrlane: i t . ml : -u: Your communication tin 1 1 ’h instant duly to hand, and I s le. u submitted to the board of cV ,-tiui s ~t a meet tug held this day, j ,i 1 ~m I ireeled to Inform you that uli hoard unanimously came to the i m lusb'n that the un tiling officer ■ unniltt- i nn error in rejecting most, if not all, of the proxies offered by, our ■ lient on the grounds he did. mel have therefore, ordered that nee t•. if another ni«*tU‘g for the Mice- ■ i., ;i i *i should b< given and 1 i\. tiv i the day for said meeting as March Mh, IMB, at 2 pf in |{< s;ie< tfully. >.tue i w g. coopkr. Cashier. Macfarlane’a Communication. Co in-,. • George \V. MacfarlaneV 1. tier 'v 1 . h hrought forth the above reply, is as follows; Honolulu. H T Jan. Ikth. To tfc !’• --b ut and Hoard ofjMrec- • K: M National Rank •>f Hawaii: Tti- undersigned, the owner >.u gool I •s -h and in his own right of thirtythrei i~:5» shafts of the stock of said \ rat Hank, acting liotn u[>on his itti part and on beiswlf of sundry . ’hei tin, k holders of said bank whose., to o; attoruey h- now holds, does • i !,v -eject to and protest against j Inal i.-tain Vrvtended eleuioa of a ~r -I -f Director.' of said bank. ; a;nit ti ;-5 have b.vn hold on January , It. 15*".. tic ground that said i • t •p.ivij.i (bH tgni. claimed to have 'i- »p . f’j as aforesaid, was and i»i wWdly ‘lit g»l’null and void, and of: i tort . t'lwt or validity whatever; and -;t/ undersigned. acting as : •> >th on I - . wn part and on I t-half • said sundry other stock holde - hereby demands that a due.) o;op'*t end legal election of the Board < r In* ;or* of said bank be held as | speedily as compliance with the pre | i. •> \ legal formalities of said,’ elect' ;■ an he had; and said under-j -•'cute, acting as aforesaid. demands . ; :im > « an answer to this demand : • ii he tens of forty-eight HB> 1 .mi - next hereafter »taming; and if i v tl i-.i said time herein limited, no | rriNWtr shall be received from you , - >h fa.lure to answ r will be taken !■> the «ader»igned and construed to, ' a refusal upon yonr part t« com- j y with thl* dvinand Sheuld yqu j ■ fit", r fall to comply wdi thU| uiut the "undersigned will forth v ; i;> r- soft to hi* legal remedies. C. W MACKAKI.VXS f By H - \l’r .U 'TS in v>ct. J. J Dunne. J, Alfred Magoon and" T ! IHllcn. > v j

A* s.v-m It was known that Fre* € „t C‘ »sl Brown had surrendered. :.U fmt nrioii that proxl c s should he ; -fatr.'f! before they ecu Id be accept- • 1 in i had piirtkaily acknowledged miT’sk n position. considerable .• »is ■ xrtteil a* to writ the . ~r l wen Id be in the matter. The F. -• National Bank •* a large B j. r •- ? affa'Ts of the T-ftPor- an 1 the of the : ank ar- tu a iarge extent, the inter ♦-?f < f t .ie whole < mmunity. More i r by the preaeat diffl- , ;i'BD v i!d ordinarily be MipCcdonel Macfarlane -tnic to Mono lu * p>- mt visit to perfect ~ r»a n finan al arrang-'meats which «oa)d r - .It in a material easing up of the r.! .n-y market and which, v uM !•-: ; an« w impetus to certain r- w ar.d important enterprises. Macfa'iare Will Talk. Co. r.el Macfariane was .-eea last r g t but expressed the determination • 3 • h« w at present have nothing to -ay for publication in regard to (■•• pre- r.t I ffiraltb - in The First' National Hank of Hawaii He had ;he answ> r of ’he president and direc-' • of th- First National to hi* com-' mu.iiiation of the 16th instant in his nan! an! expressed satisfaction that President Brown had seen his masral;' an 1 had decided to remedy it as tar •v-.ibb* Colonel Macfariane; a:! that the ra- was now in the ;, a!l ,» ► at’orn* > - and h" lid not i ar< to give itiv thing out for publb.a---t ~n a t |»- sent that mignt possibly • mbarrt -s the work of his attorneys. \Vn- n asked concerning his mission t• :. and whether the National Bank) affair would interfere with plans In tegard to the floating of the bunds of th*- Kona Sugar C< mpanv. the Col en*d -ti.l t hat h' - would plac- no ob«;acs’ - in (he way of the rnnsumma t >n of these plans, but. on the con ion he would assist the Kuna Su car Ci.i;.; utiyi. financial sch me with* the First National Bank, by every means m his power, as leng as It was a sound banking proposition. He us j , rted also that as far ns personall- 1 t>s w»-re concerned, he would in■ilg In no action of a vindictive or \ittip"rniiw nature, his whole intenr n and ambition being to work for a m ny and the best interests of the First National Hank ami such mo j« ■: a— i,« happ ned to he engagt d in Brown Claims Merc Votes. It was reported yesterday that P . lent Ceil Brown received from j toe Col si. ptr yesterday's steamer, j 1.-. u .- ha • s more of purchased -p cl: <f Th- Fir;t National Bank which* will be voted at the meeting railed i r Mari h s This report na’uraily: created some stir among his per ; M«nal friend*. Th general opinion seem d to be that these shuns, if inib t| they were received yesterday, could not in- voted. It is said that this >to< k was not on the books In the name of Brown wh- n the transfer hooks were closed As Mr. Macfarlancs cotes, which were ruled out. represented a majority of votes r ml as the proceedings of -hat meeting wen null and void It is the same as if th* meeting had never been held: con--quern!.- the votes as rep resented by the s-.ock transfer books at that d« can not be chang-d. thus iiiaintrini:;g a .-.talus quo ante, at bast this ,-ccms to be the unanimous <•pinion of the business community. This question is one that will probably not tip decided until the annual meeting is held over again in March, the last meeting having been acknowledged to be Irregular. President Brown would have nothing to sav In the matter yesterday beyond the assertion that the special meeting of directors had unanimously decided upon the answ. r of Colonel Macftrlane published above. It Is hinted by Mr. Brown s friends that, n twithstanding the fact that he has acknowledged his mistake and that a new meeting had been called., he is nolding something up his sleeve cud that he will not acknowledge de teat without an effort to maintain his present position. Pres.dent Brown's Position. It was generally conceded around town yesterday that President Cecil Brown, of the First National Bank, had done the only thing left for him t '.> i-v , allmc asp . al n;-« ti.tg and surit ndt. ,ng his posit on in regard to the proxies held by Colonel Macfarlr.ne, unless, indeed, he had resigned his position as president of the bank Colonel Macfariane had retained I’nited Stales District Attorney J J ni and Att rneys J. Alfred Mag -a and T. J Dillon, and t.ie matter was about to be brought up in the Federal Court, the expectation being that the Federal Court would immediately declare the meeting at which j the proxies were turned down to he null and void. The wife ones prophesied that this a 'lon on th part of th? Federal, Court wouM not become necessary a? th*y anticipated Mr. Brown's surrender as far as the proxies were con eerned. as he would have nothing • Ise to do in the face of the law and the repealing of the tve-nue tax on proxi- s. It has bon learned that an appli cation for a writ of mandamus would n-t hxve been the only action com menced in the F deral Court Presld< at Brown's surrender c f yesterday, however, put* an «nd to action in r urt for me present. It is said that the diffleu’ty ia The

First National may soon come fn an end It Is not expected that J- F. } Morgan will necessarily become president of the bank, but it is believed that-some me aec-piable to both the ttoc-kboiders on the mainland and the stockholders here will he electedIt •*. generally admitted that To lone ? • Vacfarlar.e Is at present master of the situation. and !t I# well und-r--lood that that gentleman is too broad mind d to take any advantage of bis p sition to g-t even." a! though It is not dooUed for a momer' tfiat he win ve to it that th fc affairs of the bank are running smoothly and to the satisfaction of all eon- mod fore a« return.- to San Fran' *o t is und-rst od that the ifomLa Bank of San Frane;«co and i»ndoa the parent bank, will allow no pc rscnalities to interfere with ih r rcicdurt of business and that irrega ’aritie' of any kin 1 will aot be »ol' rated It ia expected that harmony wili reign n The First National before very l ag. Colonel Macfarlane is said to b»* absolutely sure of his ground oed there he will remain "on top. - Mr. Cecil Brown is equally confi ient.