The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1899-08-25

way system for Honolulu and suburbs.
Hence there was TO be issued $2150D0
Of preferred ) per cent stock which
should be given to the present securi-
ty-holders OF the Hawaiian Tramways.
MIR. Pain stated that he was perfect
" willing to retire from street railway
construction 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 ofiicio
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
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 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. It was
til; tI,aA To- lx
years the difference between the actual
present valuation of the Hawaiian
Tramways and its 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 bondholders would have in
vested.
I'm 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 s250,0O0) 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 $500 900 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 a
proposition, but as opening the way
toward negotiations for a settlement.
,t.,,Nst
ted 1t as proposition to the directors
of the Rapid Transit Company and by
them 1t was rejected so positively that
negotiations ceased.
Personally. had not and have no,
a dollars interest in this matter ant
no interest except to endeavor to brins
about a condition in the street railwa!
service that will harmonic with tn,
natural avenues of the city and keel
:. business where 1t naturally belongs
1 that is. on King street and its vicini
ty, as well as Fort street.
These competing systems mus
| prove loss to the public II they maxi
any returns of profit to their owners.
THE Rapid Transit Company stipu
lated that they were to be allowed I,
earn per cent on their capitalization
hence the following estimate was mad
of the results to the public in case TIVE
I competing systems were inaugurated
in the following language:
CAPITAL AND DEVELOPMENT
WASTE.
IF the fight Is engaged in, let u
I note the consequences, for the systems
: cannot be inaugurated for less than tn,
figures given below:
The new investments required vii
be at least:
Hawaiian Tramways-S5OO.OO 900 at
, per cent ................... .$25 90,
. Rapid Transit-$55O,O 900 at s per
) cent .................. 44,OO
D Total income required on new
)| investments 500 90
, ION the old Investment:
: Hawaiian Tramways-$475. 900 at
: per cent ...................$ 1923, 75
ITal .................... W., 10
" t"NOte-This total OF $92,75O
would be a sum tho companies
would earn at the least net
: amount they should obtain from
: the public.l
On the proposed consolidation
the total charges would be .$53,7 10
The saving to the public would
De ................. .$SS,VV
1T may be further said on the con
solidation plan and investment OF
, sum equal to the above-$l. $50 900
there would be fifteen to twenty mile
more track available for extension, de
velopment and public accommodation
than II the contest Is inaugurated.
II regret to be called upon for an In
, terview on public matters. but consen
] to this In hopes II may lead toward
sensible conclusion In street railwa
matters, and the public be thereb
I, benefited and capital act on the sam
J lines experience has brought about Il
! the larger cities throughout the coun
: try"