The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1899-06-06
Petition for The Second Franchise
is REJECTED.
DECISION BASIS IS PRESENTED
President Dole Sets Out sound Rea
sons-The commandments
Right Of wsy Troubles.

ing 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
vored 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 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 charter of incorpora-
ton of the same da:e, Tor the construc-
ton of railroads on hawaii, including
a line through Hilo. Hamakua and Ko-
hala.
Within 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, 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 b.
granted.
| Neither company offers financial
guarantees other than forfeiture under
their charters.
From the information furnished by
the promoters of the proposed secont
company and from the arguments o.
their counsel. the impression is pro
duccd 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 ant
perhaps defeat the project Of the ear
lier company.
Grave doubts exist in my mind as Il
the public utility of new franchise
under the circumstances. The objec
tions are as follows:
: The grant of one franchise with au
thority under the law to summarily ac
quire private lands for the use of tn
line Is a serious prejudice and incon
| yenience to private landholders, but i
Unsuitable by the benefit which accrue
to the public from the construction
and operation Of railroad for carry
ing freight and passengers. But tn
added inconvenience which the con
struction of two lines through tn
; same locality would involve, does nc
, appear to be justified on the ground G
the benefits conferred by their con
g., struction and operation.
The Hilo Railroad Company ha
: been in existence less than seve
weeks, and in that time has by II
0 prompt and vigorous initiation Of th
5 work under its franchise given ever
r evidence of good faith. Its chart'
' members enjoy the confidence of a
!, public and include men of eXper!cnE
in the promotion and management
y similar enterprises in these Island
T. TO grant a new franchise over pa
of the route for which 1t has Obtaint
= franchise and has entered into q
T. agreement with the Government
construct and operate railroad, !
i soon after the date of It's Charto
- without any hint or suspicion Of nogl
Al gence or delay on its part, would saw
y. of want of fair treatment OF th
N company by the Government.
J. The failure Of the second compaI
to have their proposition before Il
Government previous TO its accep,an
OF the proposition of the first compln
10 was their misfortune. Certainly q
opportunity Of considering both pro
g. ects at the same time would have be,
n. most valuable; but the proposttil
5 that, after carefully and deliberate
o, negotiating contract with compal
'e To build railroad through a spocih
~ locality, the Government should b
IA mcdiatcly use It's discretion To rmbu
We rass such enterprise and put o0starl
" In the way Of It's success does NOT "a
v, pear ia me to be- In tho line Of the pm
a DE Interests.
a. Upon these grounds decline lp .'
sent 10 the proposed agreement
~ SANFORD ~ DOLE
honolulu June Z? 1899