The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-05-20
A NEW RAIL ROAD
The Promoters Ask for a Blanket
Franchise.
DESIRE TO ACQUIRE MUCH
Side Lines include Steamer Opera
ton, Brokerage - Lighting
Water WorkS-Ice Making.
BEFORE COUNCIL.

The promoters of the proposed "Hilo
and Honolulu Railroad" Messrs.
Browne and Gehr and Thomas r.
Walker, were given a hearing by the
Mr.. w. o. Smith appeared as their
attorney.
L. A. Thurston and F. M. Hatch were
also present, representing the "Hilo
Railroad Company" the one which has
ALREADY been chartered.
Mr.. Smith addressed the Council on
behalf of the new company. He stated
in substance: That Messrs. 'Gehr and
Browne represented responsible people
abroad; that they had come to the
Islands to secure franchise to con-
struct this road, not knowing that any
one else was interested therein.
He claimed that the fact that a fran
chise had already been granted TO an
other company which had begun work
and incurred expenditures should have
ne influence with the Government;
that the franchise granted to the Hilo
Railroad Company was not exclusive
and II was nothing to the Government
whether both or either Of the railroad
companies could run profitably; that
the public would get the benefit of COM
petition and therefore the Cabina
ought TO grant the franchise.
He admitted that personally he did
not believe there was business enough
to make one road pay, much less two,
but claimed that no one could tell what
was going to happen in the future,
when there might be business enough
for more than one road.
The franchise asked for does not
provide for any penalty if the road IS
not constructed, but simply requires
that location of the road shall be made
within one year and completed with
in three years thereafter or the fran
chise forfeited.
Upon inquiry whether or not the
promoters were willing to provide pen
atty in case the road were not begun
and completed as indicated, Mr. Smith
replied that he did not consider that
necessary.
PRESIDENT DOLE'S ANALYSIS.
President Dole pointed out that the
franchise requested, allowed the COM
pany: To deal in real and personal
not limited to the railway
object of the company:
To deal in water rights and ad-
juncts;
To deal in and operate telephone and
telegraph lines;
To deal in and operate electric pow
er and electric lighting;
To deal in and operate water works
and pumping plants for using and
selling water power.
To manufacture and sell ice and Op-
crate refrigerating plants;
To build, deal in and operate steam
ers and sailing vessels between the
Islands and from them to foreign ports
for freighting and passengers.
To own and deal in shares of other
corporations;
That there was no limit to power to
borrow money;
That there were no provisions for
filing in January. annual statement OF
receipts and disbursements;
That the company was allowed free
us of Government water for "Operat-
ing the railroad. and for furnishing
power for any OF the uses set forth in
the charter during the fifty year term
of same; all of which were powers not
granted to the existing company, and
which would give the new company d
blanket franchise enabling it to engage
in any and every business.
He stated that the policy of the Gov
ernment had been against allowing
franchises of this character where the
Government had any control over It.
He asked Mr.. Smith if these other en-
terprises were the main object in view
or whether the railroad was the main
object.
Mr.. Smith replied that the railroad
was the main object and that the pro
moters had no desire to ask for what
was not fair; that the reason why the
location Of the business of the company
was stated to be the Hawaiian Islands
instead Of any particular locality there
in. was. because they wished TO include
the right TO make through contracts
for transportation of freight from the
plantations TO San Francisco.
HILO RAILROAD OBJECTS.
On behalf Of the existing company,
Mr.. Thurston and Mr.. Hatch made
brief statement. They stated in sub