The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-08-23

ty-holders of the Hawaiian Tramways
Mr.. Pain stated that he was perfect
" willing 10 retire from street railway
and management; that the
bOnd-holders abroad should be repre-
scented by three trustees, residents OF
the Hawaiian Islands. and that these
trustees should be members eX officio
of any company operating the proposed
street railway. He was willing the
Rapid Transit Company should operate
under their own charter or under the
Hawaiian Tramways charter, or any
new organization that might be formed
to carry out the intentions above eX-
pressed. and build. operate and control
a single rapid transit system for Ho-
nOlulu, thus avoiding the expensive du-
plicatiOn of systems paralleling each
other and the general misfortune that
follows a railway system which is not
thoroughly comprehensive.
1T was proposed to reimburse the
Rapid Transit Company for all their
expenditures up to the time of these
suggestions: there was, however, no
provision for a purchase of the Rapid
Transit franchises for the reason that
that company was presumably not or
ganiZed as a speculative enterprise, but
simply to furnish the public needed ia
cilities.
Under this plan there was no call
on this community for money. 1t was
believed that in the course of fifty
years the difference between the actual
present valuation of the Hawaiian
Tramways and it's capitalized value
would be entirely absorbed by the in
creased population, area and valuation
of the city of Honolulu, as served by
the large amount of capital the pro-
posed bOnd-hOlderS would have in
vested.
In fact, the injury to property and
business on King street by the diver
sion of street railway travel would be
many times greater than the amount
(S225, 900 to S25O,O00) which the Rapid
Transit people seemed to think Mr..
Pain demanded in excess of the value
of the property and franchises of the
Hawaiian Tramways. In fact, proper
ty on two blocks fronting on King
street might be injured to the extent
of 100000 by diverting business.
"A memorandum practically covering
the above was submitted to several gen.
tlemen interested in the Rapid Transit
Company, not, however, with the in
tention that it should be considered
proposition, but as opening the way
toward negotiations for a settlement.
However, these gentlemen submit
ted it as proposition to the directors
of the Rapid Transit Company and by
them it was rejected so positively that
ceased.
personally, l had not and have not
a dollars interest in this matter and
4 6noX To hlsIY ,cr
about a condition in the street railway
service that will harmonic with the
natural avenues of the city and keep
business where it naturally belongs;
that is, on King street and its vicini-
ty. as we'll as Fort street.
These competing systems must
prove a loss to the public if they make
any returns of profit to their owners.
'The Rapid Transit Company stipu-
lated that they were to be allowed to
earn per cent on their capitalization;
hence the following estimate was made
of the results to the public in case two
competing systems were inaugurated,
in the following language:
CAPITAL AND DEVELOPMENT
WASTE.
IF the fight is engaged in, let us
note the consequences, IOr Ine SySleuS
cannot be inaugurated for less than the
figures given below:
1.-The new investments required will
be at least:
Hawaiian Tramways-$500,0 900 at
per cent NEUTRALITY-SUSPICIOUS.. S25, 0OC
Rapid Transit-$55O,O 900 at s per
cent 44,oot
Total income required on new
investments SOP ,OOt
"On the old investment:
Hawaiian Tramways-$475; 900 at
| per cent Szo, 'o'
| T"Note-This total of S92,750
would be sum the companies
would earn at the least net
amount they should obtain from
the public.l
!, On the proposed consolidation
the total charges would be SOD, 40
IL Id