The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1876-07-29
The Hawaiian Hotel.

AuS HAWAIIAN AAOtSA
We understand tina, Mr.. Allan Herbert has sent TO
the Committee Of the Legislature which had in
charge the investigation OF the affairs Of the Hawai-
ian Hotel the following letter, which. it appears TO
US, will be of public interest
TO TIE COMMITTEE OF THE LEGISLATIVE ASSEMBLY
on THE HAWAIIAN HOTEL.
GenHemsn-I have seen by the COMMERCIAL AD-
vERrIsER that your committee have reported TO the
legislature now in session as follows
"YOur committee regret to report that such in
vestigation has been unsatisfactory, and that no
time your committee could give 10 the enquiry would
enable them TO arrive at a satisfactory explanation
Of the position Of the concern. Your committee re-
port that it appears to them the only part Of the
business which has paid, has been the bar aud bill
lard room, and your committee cannot but express
their surprise and dissatisfaction that the stables and
boarding department have been carried on at a loss;
the more so that your committee were informed by
both Mr.. Herbert and Mr.. Bush that il was thought
advisable to rent the house lately occupied by Mrs.
Macfarlane at a rental Of 5000 per annum, and that
a profit has been realized upon that; although the
other portions Of the department have not paid
expenses. Your committe further report that one Of
the three billiard tables belongs to Mr.. Herbert, and
that he has charged and been paid S25 per month
for the use Of it,"
1 regret exceedingly that my own attention had
not been drawn to these points especially. previous
to the report of the committee, SO that I might have
explained them and made them clear.
1t must be apparent to you that it is impossible TO
separate one department Of a hotel from another, 10
as to say that one part pays q profit and another
does not. If the bar and billiard room appears to
your committee to have made a profit. it is my
~boarders, in a large degree, and those who frequent
the house to associate with my boarders, that have
used the wines, ale and spirits from my bar; SO like
wise it is my boarders that use my lodging rooms,
and their board and lodging together with other ac-
conmodations constitute what the hotel furnishes its
customers. If l have hired Mrs. Shows cottage at
& rental of 5000 per year and made q profit on 1t
for the hotel, it has been my labor. care and the
board furnished by me, as well as the lodging, that
have made the profit, and it must be apparent to
you upon reflection that the cottage could not sup
port the hotel, and that there could be no profit
derived from renting it, and simply re-renting it
without board or attendance.
Your committee have imbibed the idea that the
stable is a losing business. / beg to subjoin to this
an account, by which you shall see that the business
has purchased and paid for stock to the amount Of
$5,076.50, against which there is a debt Of S564.03.
Showing thereby that the business has been profta-
bic enough to nearly pay for its entire stock. With
regard to the billiard table referred to in your report,
l subjoin a sworn statement Of Mr.. Bush's, which
the books will verify, If you please to refer to them
again. 1t will appear from that statement that only
$50 per month is charged for the table, and Of that
it will be perceived /, by my bargain with the gov
eminent, pay one-half.
The department of government having the hotel
in charge, has hitherto declined to take the table in
question, to the account Of the furniture Of the
hotel, and the tables earn a profit for the establish
ment, as is set forth in the report Of your ommitte
/ do not therefore think that any one having any
knowledge Of the cost Of the table and the expense
of keeping it in repair. will think the charge for
rent too high.
The bar and billiard room has a credit balance on
the books of the hotel Of S14.6S3.25.
The hotel has earned and paid into the Treasury,
over and above expenditure, 8 ,559.95. Property
in the stables SIS, 076.50, less S56403 S4.51247.
Has paid out of the receipts for furniture now on
hand s3,76S27.
Has erected structures and made other improve
ments costing s. .452Os 6.
You will readily see therefore that the committee
has fallen into an error in reporting that other por-
tons of the department,-by which / suppose lie
meant other than Mrs. Shows cOttage-haye not
paid expenses, and will see that not only expenses
have been paid, but something besides from the
earnings.
In addition TO this il must be remembered that the
hotel has paid into the Public Treasury in actual
cash