The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1899-06-02
REASONS FOR REFUSING NEW
RAILWAY FRANCHISE.
Given in Writing over the Chief Execu-
tive's Signature-Not Compatible
with Public interests.

President Dole states his reasons for
declining to grant a franchise to the
new Hilo and Honolulu railway enter
prise in the following words:
on the 18th day of April the Hilo Rail
road Company entered into an agree
ment with the Minister of Interior, un-
der a charter of incorporation of the
same date, for the construction of rail-
roads on Hawaii including a line
through Hilo, Hamakua and Kohaia.
Within a few weeks afterwards n
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, were 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 be
granted.
Neither company offers financial
guarantees other than forfeitures under
their charters.
From the information furnished by
the promoters of the proposed second
company and from the arguments of
their counsel, the impression is produc-
ed that they do not contemplate the
probability of two rival roads through
the districts mentioned but rather that
they may first occupy the ground and
thereby discourage and perhaps defeat
the project of the earlier company.
Grave doubts exist in my mind as to
the public utility of new franchise un-
der the circumstances. The objections
are as follows:
The grant of one franchise with au-
thority under the law to summarily ac-
quire private lands for the use of the
line is a serious prejudice and incon-
venience to private land holders, but Is
justifiable by the benefit which accrues
to the public from the construction and
operation of a railway for carrying
freight and passengers, But the added
inconvenience which the construction of
two lines through the same locality
would involve, does not appear to be
justified on the ground of the benefits
conferred by their construction and
operation.
The Hilo Railroad Company has been
in existence less than seven weeks ami
in that time has by it's prompt and Wig
orous initiation of the work under its
franchise given every evidence of good
faith. It's charter members enjoy the
confidence of the public and include
men of experience in the promotion and
management of similar enterprises in
these Islands. To grant new franchise
over part of the route for which it has
obtained a franchise and has entered
into an agreement with the Government
to construct and operate a railroad so
soon after the date of it's charter, with
out any hint of suspicion of negligence
or delay on it's part, would SAVIOR of a
want of fair treatment of this company
by the Government.
The failure of the second company to
have their proposition before the Gov
ernment. previous to it's acceptance Of
the proposition of the first company,
was their misfortune. Certainly the
opportunity of considering both prof.
ects at the same time would have been
most valuable; but the proposition that,
after carefully and deliberately nego-
tiating contract with a company to
buid a railroad through a specified To-
cality, the Government should immedi-
ately use it's discretion to embarress
such enterprise and put obstacles in the
way of it's success, does not appear to
me to be in the line of the public inter-
| ests.
| Upon these grounds l decline to con-
sent to the proposed agreement.
SANFORD B. DOLE.
| Honolulu, June 2, 1899.