The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1899-06-03
Petition for the Second Franchise
is Rejected.
DECISION BASIS is PRESENTED
President Dole Sets Out Sound Re a
sons-The commandments
Right Of WsY Troubles.

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 d full attendance OF
the Cabinet, w. o. Smith, represent =
ing the proposed road, was present.
In the discussion Minister Damon IA
vored giving the franchise, as also did {
Acknowledgement Cooper. 1t was OPP
posed by Minister Mott-Smith. After
the members had expressed their
views President Dole decided against
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 a charter OF lncorpora-
ton of the same date, To: the construc-
ton of railroads on Hawaii, including
a line through Hilo. Hamakua and ko-
hala.
| 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
I time, suggested in the papers of the
i --latest application. were more favorable
! to the public than those agreed upon
! with the first company. Upon this
! ground. mainly. the applicants strenu-
y ously urged that their application be
q granted. 1870
81 Neither company offers financial
& Guarantees other than forfeiture under
q their charters.
d From the information furnished b!
y the promoters of the proposed second
q company and from the arguments o.
n their counsel, the impression is pro
81 duced that they do not contemplate
81 the probability of two rival road
sI through the districts mentioned, bu
sd rather that they may first occupy tn
M ground and thereby discourage an
M perhaps defeat the project of the cal
sM lier company.
SM Grave doubts exist in my mind as
sM the public utility of a new franchiS
SsJ under the circumstances. The obJe'
81 lions are as follows:
RI The grant of one franchise with a
aZf lthority under the law to summarily a
I'D ouire private lands for the use OF u
. line is a serious prejudice and inco
yenience TO private landholders, but
unsuitable by the benefit which accru
DU to the public from the construct
L and operation of railroad for carr
e'>' ing freight and passengers. But I
added inconvenience which the &C
struction of two lines through
same locality would involve, does l
Inta- appear to be justified on the ground
the benefits conferred by their Ct
cap. struction and operation.
The Hilo Railroad Company
been in existence less than se'
lotel. weeks. and in that tire has by
prompt and vigorous initiation OF
work under its franchise given ev
evidence of good faith. Its char
,,o members enjoy the confidence OF
! - lpubIic and include men of eXperle
in the promotion and management
similar enterprises in these Islam
To grant a new franchise over 7
of the route for which 1t has o5tai
\ franchise and has entered into
agreement with the Government
construct and operate = railroad.
S1.0O soon after the date OF its char
without any hint or suspicion OF n
! 00 gence or delay on its part, would 81
Of a want Of fair treatment OF
so company by the Government.
800 The failure OF the second comp
-..-. to have their proposition before
Government previous to its accepts
of the proposition of the first comp
- was their misfortune. Certainly
RI opportunity of considering both !
.u ects at the same time would have
most valuable; but the propose
that. after carefully and deliber;
negotiating a contract with conf
TO build a railroad through spec
locality. the Government should
mediately use its discretion TO en-
rass such enterprise and put obst
in the way Of it's success. does no
pear TO me to be in the line OF the
lie interests.
Upon these grounds | decline to
sent to the proposed agreement.
Fcdl. c.>-r0pD mol