The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-08-29

MT. IL. "A. lnurStOn, president or the
Rapid Transit Co., was seen yesterday
by a representative of this paper with
relation to the published statement
made by Mr.. Pinkham that he, with the
approval of the Tramway Co., had
made a proposition to the Rapid Tran
sit Co. to amalgamate the two COM
panies; and an interview with Paul
Neumann confirming this statement
and claiming that the proposition was
fair one.
YES" said Mr.. Thurston, "Mr. Pink
ham did make a proposition which he
called an 'amalgamation proposition,
which in effect was a proposition for
the Rapid Transit Company to sell it's
franchise to the Tram Company for a
nominal consideration"
GIST OF THE PROPOSITION.
''The Tramway Co. has bonds out
standing for $15O,OOO and a capital
stock of 1926, 900, making a capitaliza-
ton of stock and bonds of $475, 900;
although it is we'll known fact that
it's plant did not cost that sum Or any
thing like it.
The gist of the proposition was, that
the Tram Company would turn all of
it's franchise and property over to a
new corporation to be formed, for
100000 in bonds, and $275, 900 in pre-
ferred stock to be issued by the new
company. The Rapid Transit Co. was
also to turn over it's franchise to the
new company and receive preferred
stock to the amount of it's cash expen-
ditures to date, which then amounted
to about $4,000. The Tram Company
was to then secure a loan for the new
company of the money necessary to
put in an electric railway system for
the entire city. The preferred stock
was to receive an annual dividend of
5 per cent.
TRAM COMPANY TO CONTROL.
After Mr.. Pinkham's "amalgama-
ton proposition was completed the
respective representation and interest
of the two present companies in the
new company would have been as fol-
lows:
Tramway Co.-Bonds ........ 100000
Tramway Co.-Stock .... 275 900
Total $475, 900
Rapid Transit Co.-Stock 49,. 1000
Mr.. Pinkham and Mr.. Neumann may
be right. This may be good financier-
ing and a flair proposition" but the
Rapid Transit Directors in their dense
ignorance of arithmetic were unable
to see the point. 1t may be that Mr..
Pinkham 'had a card up his sleeve"
to dicker with, and as compromise
would have allowed the Rapid Transit
Co. to have common stock in the new
company equal in amount to it's pres
ent capital stock, which is 100000.
Even were this so, it would still give
the Tram Co. a clear majority in the
new company of stock to the amount
of $4,000. The Rapid Transit Com
pany was organized for purpose. That
purpose is to secure an up-tO-date cleo
trio street railway system, which shall
be managed with some regard to public
interests and wishes and which will
grow and progress as the city requires
IT, EIe'eH years vi eApeIIeHCe Will
the Tram Company has demonstrated
that it's management has no conception
Of such a policy. The leopard does
not change its spots, and any amalga-
nation which gives the Tram Company
control of the consolidated company
would be breach of trust on the part
of the Rapid Transit Company.
VALUE OF TRAM co.'s PROPERTY.
Again, looking at the proposition
purely from a financial standpoint: