The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1892-12-20
A PUBLIC BENEFIT.
Communicated

At present no company or person
can operate an electrical plant and
furnish electric lights for public
use A bill is now being considered
by the Legislature in reference to
electric lighting. 1t is modelled on
laws in force in large cities OF the
world where altogether different con-
ditions exist from those which pre-
vail IN Honolulu. In certain large
centers of population franchises have
been granted to electrical companies
in which 5 per cent. of the gross re-
ceipts are turned over to the corpor
alton treasury, in addition to the
regular taxes OF the company.
In the bill now being considered
by the House it is proposed, in ad
dition to the regular property tax, to
levy a further annual tag of 5 per
cent. Of the gross receipts.
This was Mr. Thurston's idea. Be
cause a company in New York or
Chicago could stand per cent.
franchise tax he very strangely
jumped to the conclusion that com
pany here sh ould be saddled with the
same load A little reflection will
show the absurdity of such provi
sion.
The United States Company buys
its material on the pound; it does
not freight its goods 500 miles and
pay insurance, freight, custom dues
and duty. etc.; it has an efficient
supply Of skilled labor at hand, and
has every convenience for carrying
on it's work. The United States
Company will place as many lights
in one block, as can be placed in the
whole city of Honolulu; in fact many
buildings in the United States con-
tain more lamps than will be needed
in Honolulu ten years to come. All
these points are in favor Of lower
running expenses; the United States
Companies can furnish light at a
much lower rate than is possible
here. Sometimes water power is
utilized in running the dynamos,
which!still further reduces the cost;
in other cases natural gas is used for
fuel at very small cost.
The point is that American electric
light companies work~under much
more favorable circumstances than
are possible here. It will be ut
terly impossible to manufacture
electricity in Honolulu as cheaply
as in Chicago or Buffalo. Any
one of ordinary intelligence should
see this. And as the charges
for lights here are to be very reason
able, it seems odd to require loca
company to pay the same income
tax as foreign corporations under
more favorable surroundings. To re
quire company operating in tbs
midst Of the Pacific where only {
limited number of lights can be used
to pay the same per centage as com
pany in city of half million or E
million inhabitants.
Certainly the Government her,
should permit company to engage
in this work; but the law should b
framed in reason. 1t is not givins
the matter proper consideration t.
fix the income tax at 5 per cent. sim
ply because that is the amount pail
in other parts of the world. On tn
other hand, many franchises hav
, been granted in which the incom'
tax is placed at 2 per cent.
The Legislature is encouraging
new industries; coffee, ramie, pine
apples, ETC., are protected, taxes re
mitted, duties taken off, and ever
inducement held out to these il
dustries. Yet, when company Pre-
poses to enter into another line an
manufacture and distribute electr
! city; to build up a business whic
will benefit all and furnish employ
ment to many; which adds to th
taxable property and brings us nor
of the benefits and comforts of civi
: ization, it is proposed to saddle tn
thing with 5 per cent. income tax
It 1t is not right; this country nee6
such enterprises; this country is NJ
prosperous enough to commence tn
= wholesale taxation. In place of TO
tering new Industries, it is propose
d in addition to the regular taxes,
add further tax of 5 per cent.
This may appear wise in the MIND
of some, but it is not statesmansh
g it is not policy. 1t does not fost
new enterprises nor does it encouras
capital to seek investment. The ide
y is good one for cities like Cinci
r natl or st. Louis, but not a sensib
,e or rational one for Hawaii with
black eve. n