The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1895-07-17

Mr.. EDITOR In a communities
ton published in the Star, a CORE
spondent advocates the adoption OF
general franchise for street rail
way purposes and the sale of the
same to the highest bidder.
The idea is not a new one, but,
unfortunately, under existing con-
ditions cannot very well be applied
to Honolulu.
The people are anxious to have a
frst-clags electric railway service.
1t is simply a question as to how
that desirable state can be best
brought about. Let US examine
the question and understand, if
possible, what such a franchise
would mean to the Government of
these islands and the people of
Honolulu.
By a general franchise the CORE
spondent evidently means one COW
ering the whole city and operated
under one management. If he can,
will he tell US how to accomplish
this object? He must surely be
aware that the principal streets are
already occupied by the tracks of
the Hawaiian Tramways Company.
Does he propose to double-track
these streets-as no general system
can be complete without them-or
does he propose to acquire the
rights of the Tramways Company,
tear up the old road bed and put
down an up-to-date new one?
Let US look into the first PROPOSE
tion-that of double-tracking the
streets. On account Of the narrow
ness of many of the streets, this is
simply out of the question, as the
cars of the two companies would
practically occupy the whole width
of the roadway and the public con-
venience would be seriously inter
fered with. Then again, as the
Tramways Company, under this
arrangement, would not be required
to pay any portion of its income to
the Government, as its contract
does not call for it,would any other
company feel disposed to pay any
consideration for privilege shared
with the Tramways Com
pany?
Clearly then, the general fran
chise means that the Tramways
Company must be got rid of in
some way or other, as two COM
panies cannot occupy the same
street.
The constitution says:
"Article 90, Section 1, All statutes
and enactments in force in the Ha-
waiian Islands at the time this con-
takes effect, not inconsistent
and all rights, actions,
judgments, and .on-
tracts then existing and valid, shall
continue as if this constitution had
not been adopted ."
This brings US to the second pro-
position-the acquisition of the
rights of the Tramways Company
by the Government, so that the |
latter will then control all the |
streets in the city. The bonded |
debt of the company is $4,000 |
and the share debt Is 1926, 900.
Would it be a wise proceeding on
he part of the Government to as
sumo this liability of $475, 900, and
obtain in return the road bed and |
equipment of railway that, for |
electrical purposes, is not worth
,ne dollar, not even as old mate
'ial, as it would cost more to take
t up and ship it abroad than would
De realized upon it? The object of
he Government in making such
purchase would be to sell it again
o the highest bidder at an upset
Price equal to what they gave for
t, $475,O00, and percentage of
he gross receipts of the purchasing
The position of the
would then be this: They
would have paid this large amount
or the privilege of constructing and
.perdtin9 an electric railway in
and they would then
lave to expend at least 100000
more to construct and equip the
Dad, or $S75,O00 and a percentage
# the income for the privilege of
constructing and operating an cleo
rio railway in Honolulu with 90
100 inhabitants.
Now, in so far as the Govern
nent is concerned such an arrange
nent would be very advantageous,
'ut how about the purchaser
t is unfortunate that such a
desirable transaction could not
10 carried to a successful
ermination without consulting
i'm, and as investors in this class
f security are usually prudent and