The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1898-01-18
MI. Dillingham; Makes Strong Plea
for His Company.
BUSINESS MAGISTRATES ROOM
Value of Investments Rests in Sta
Rights and Franchise.

The attitude of this Government in
regard to its obligations entered into
| by the strongest written contract it
! can make,-such contract being fully
authorized by Legis. ative enactments-
| is such as to cause alarm to all vested
rights within the borders of this Re
public.
If a Government can at its will or
whim, set at naught such franchises
and contracts as are held by the Oahu
Railway and Land Company, then
there are no contracts or obligations
which this Government, or it's prede-
cessors have made and entered into
! involving investments in its bonds.
! lands, or anything else, which cannot
! also be set aside, as the spirit may
move such incumbents of public trust
One of the greatest stumbling blocks
this Government and it's people have
encountered in their efforts to secure
money abroad, either upon Government
! bonds, or bonds of private corpora
tons, has been the fear that in a small
country like this, one Government or
Legislature would annul the acts of it's
predecessor. Any Government resting
under the slightest suspicion that such
condition could exist would be re-
garded as unstable, and hence an I'M
safe country in which to make invest
ments.
If this Government wishes to utter
| ~ destroy it's credit at home and
abroad, no surer way could possibly
be found than the course it is onw pur-
suing, in it's attempt to repudiate the
terms of it's contract with corpora
| ton which has been instrumental in
J the development of plantation business
representing nearly $4,000,000; an
amount equal to the total Govern
ment debt, and has itself authorized
an issue of bonds amounting to half
the Government debt. In London, in
1887, the writer shared with the late
S. c. Wilder the misfortune that came
to us through severe shock to the
credit of this country, Immediately
following the so called Revolution"
of that year. We waited patiently for
several months in the financial center
of the world for the revolutionary
clouds to roll by. A syndicate had
agreed to take railway bonds to the
amount of $1,000, 900; ''but they would
await the arrival of one more mail and
then if all was quiet in Hawaii they
| would sign the contract, binding upon
| the syndicate to take the bonds. and
pay over the money as provided. The
| anXiOusly awaited mail arrived and
with it, some fiend cabled to London,
| that the New Government of Hawaii
would repudiate the issue of bonds
authorized by the old Government "
The Government bonds amounting to
ST 1000, 900, had been sold to a syndicate
in London, who of course were obliged
to carry them; but the railway bonds
were dropped, and could not be sold
at any price So much for the effect
of false statement in regard to repu-
diation of a Government contract Now
this Government of the Republic of
Hawaii which prides itself in being
the Best Government this country has
ever had" and plumes itself especially
ability, is proposing to repudiate its
contract with, and jeopardize the cred
it of corporation having vested rights
under its franchise, valued at over
So 1000, 900. To carry out such a policy
would indeed be, to ''sell its birthright
for mess of pOttage." The apology
of the writer for this lengthy com
munication must be the vital impor-
lance of the final issue, of this unne-
ceSsary and unfortunate controversy
to every investor at home or abroad
who holds an interest in this coun-
try. 1t is especially due to every bond
holder and stOckho,der of the O, r.
& L. Co. to have a clear and truth
full statement of the relations now ex-
listing between the company in which
investments have been made, and the
Government seeking it's injury
The Hawaiian Government has
pledged itself in four ways to the oper
alton of the Oahu Railway and Lane
Company, to have, own and enjoy
wharfage facilities
1. BY the general railroad act O.
1878 which allows to railroad com
panies the right to make piers. Jet
ties, stations, sidings wharves. etc
and for that and other purposes ente
upon, take purchase and hold all sucl
lands as may be required"
:. By the special act of 1888. where
by the Government was authorized Il
make the contract for the building TO
this particular railroad on the Islant
of Oahu, which specially provides tina
the Government in its contract nigh
confer upon B. F. Dillingham;. his as
sociates and assigns certain rights in
Guiding specifically the right to con
struct maintain and keep the raiIroa,
stations, wharyes. ETC., as set fort
IN the general railroad act.
3. In the contract made by the Gov
eminent with B. F. DILLINGHAM;. upoI
the strength of which the road wa
built, L. A. Thurston then Ministe
OF the Interior, with the consent O
the Cabient specifically conferred up
on the organizers of this railroad tn
privilege of contracting to operat
wharves; and finally 4th, by its char
ter, also granted by L. A. Thurstor
with the consent of the Cabinet. tn
Government expressly conferred upo
this railroad the right. to own an