The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1894-12-18

Olies of cities, such as street railways,
gas, water, electric lighting, the tele-
phone, ETC., and the municipalities
get rid of nine-tenths of the political
corruption.
The proper mode OF dealing with
franchises is for the cities, under COM
petent authority, to make out and
condition them, and then, il it is not
desirable to operate them directly, to
sell them at public auction TO the
highest bidder, and this for very
limited period-fifteen, or at most
twenty years.
Have the suggestions set forth in
the foregoing, il true, any application
in our own little country? Manifestly
but little. Our insignifieance, the
small extent of our territory and pop
ulation, the occupation OF our people
being chiefly agricultural, and the
absence of cities of any importance,
preclude the possibility for the pres
ent, and, perhaps, for an indefinite
time in the future, of any abuse OF
natural manopolies. However, the
beginning we have made does not
show remarkable foresight upon the
part of the Government in its own
behalf, or in behalf of the taxpayers.
A thirty-year franchise was granted
in Honolulu to a tramway company
of the most obsolete pattern, and
what does it get in return? More
than $300,000 worth of stock was
issued, together with $150,OO0 worth
of bonds, and the corporation pays
taxes on $63, 1000, or 5000 year. Those
"practicap' managers of corporations
may smile at the egregious Ignorance
of the plain, unbusinesslike man who
asks by what process of legal or eco
nOmic legerdemain this vast sum has
gone out of existence.
l have no doubt that, had the Gov
ernment today the same franchise to
dispose of, it might sell it to a COM
pany to put in electric cars, clean, ex-
peditious and quick of service, and
income to be turned over to the treas
ury. The Bell telephone company
was organized some years ago, with
a capital of $4,000, and not
long after the Government gave
a charter to the Mutual company,
with, / believe, a somewhat larger
capital. Anyone with any fore
thought, and with the slightest know
ledge of corporation management,
might have predicted at the time
what has now taken place-the piling
up of more than double the capital
necessary to do all the business and an
increase of the rate to pay for it all.
One of the large shareholders in the
Bell, who is also one Of its officers,
informed the writer that with an ex-
ira expenditure of $4,000, making
100000 in all, that company could
have done all the service, and with
economy of management would have
paid 20 per cent. per annum at pres
ent rates. 1t is now understood that,
at the beginning of the new year, the
two companies will unite, with stock
of $40, 900, raising rates to So for .pri-
vate residences per month, and for
stores $5, thus increasing present
rates 80 and 63a per cent. The Gov
ernment should never have granted
but one franchise, regulating the
price for telephones at present rates.
Following Professor Scott's paper
there was a general discussion of the
subject in hand, after which the atten-
ton was turned to the bounteous col
lation prepared for the gathering.
The members returned to their homes
at the usual early hour.