The Hawaiian gazette., 1899-06-06
ONE H|l0 ROAD
Petition for the Second Franchise
is Rejected.
DECISION BASIS IS PRESENTED
President D ole Sets Out Sound Rea
sons-The Companies-Probabie
Right of Way Troubles.


urday morning the question of grant.
| ing a franchise to the Hilo-Honolulu
Railroad Company was discussed. II
was finally decided in the negative,
and the railroad does not get the char
ter.
In addition to a full attendance OF
the Cabinet. w. o. Smith, represent
ing the proposed road. was present.
In the discussion Minister Damon ia
vor,d giving the franchise, as also did
Attorney-General Cooper. 1t was OPP
posed by Minister Mott-Smith. After
the members had expressed their
views President Dole decided agains
the issue.
In reviewing the question the Presi-
dent gave his reasons for his action
in the following statement:
On the 18th day Of April the Hilo
Railroad Company entered into an
agreement with the Minister of the
Interior, under charter of incorpora-
tion of the same date. Tor the construc-
tion of railroads on hawaii, includ.ng
line through Hilo, Hamakua and Ko-
hala.
Within a few weeks afterwards a
petition was filed praying for the in
corporation of a new company under
the name of the Hilo and Honolulu
Railway Company, with drafts of char
ter agreement for construction, and
operation and other necessary papers,
the proposed line of railway being
through Hilo, Hamakua and Kohala.
The conditions of construction as to
time suggested in the papers of the
latest application, We're more favorable
to the public than those agreed upon
with the first company. Upon this
ground, mainly, the applicants strenu'
ously urged that their application b.
granted
=, Neither company offers financia
guarantees other than forfeiture under
their charters.
From the information furnished by
{, the promoters Of the proposed secont
their counsel, the impression is pro
duced that they do not contemplate
the probability of two rival road:
through the districts mentioned, bu
rather that they may first occupy th'
ground and thereby discourage an'
perhaps defeat the project of the ear
lier company.
Grave doubts exist in my mind as t.
the public utility of new franchise
Q under the circumstances. The objec
tions are as follows
e The grant OF one franchise with au
4 thority under the law to summarily ac
a quire private lands for the use of tn
line is a serious prejudice and incon
4 venience to private landholders, but Il
justifable by the benefit which accrue
to the public from the construction
and operation Of railroad for carry
ing freight and passengers. But tn
a added inconvenience which the con
struction of two lines through III
: same locality would involve, does no
n appear to be justified on the ground q
=, the benefits conferred by their con
9, struction and operation.
The Hilo Railroad Company ha
= been in existence less than seve
l. weeks, and in that time has by II
o prompt and vigorous initiation OF IN
S work under its franchise given ever
II evidence of good faith. Its chartt
' members enjoy the confidence OF th
!. public and include men of experient
in the promotion and management
v similar enterprises in these Island
To grant new franchise over pa
y of the route for which 1t has obtain'
- franchise and has entered into u
A agreement with the Government
construct and operate railroad, :
VI soon after the date of its charte
~ without any hint or suspicion of ncgl
Al gence or delay on it's part, would say,
v. OF a want OF fair treatment OF th
m company by the Government.
IL The failure OF the second compnr
to have their proposition before Il
Government previous 20 it's acceptanr
OF the proposition OF the first compan
n was their misfortune, Certainly q
a opportunity Of considering both pro
. ects at the same time would have be,
n most valuable, but the proposiIic
rs that, after carefully and deliberate
O, negotiating contract with a compar
We to build a railroad through q specific
%. " locality the Government should r
nd mediately use its discretion To rmb1
We rass such enterprise and put uhs'arI
~ In the way of irs success, does not "a
v, pear 10 nae 10 be- IN tha line of tho uu
Al lic Interests
Il, Upon these grounds decline in ru
sent 10 the proposed agreement
IA SANFORD ~ DOLE
ion0lulu lunr 2 1893