Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1903-04-08

969.l supplies, $7l2O.96; Office furni-
ture. sl3I9O3; fire insurance (paid y
advanced, $S15.06; other stocks (Iiaw.
Tramways Coz, s25OO0; bond expense,
S4O93.O3; suspense account, s342.7T
Grand total. 1851 1890.
Honolulu Mar. "a. 1903"
Under the terms of the above men
toned Section 81, the Rapid Transit
Co. is entitled to issue stock against
this sum. dollar for dollar and % per
cent in addition thereto.
Twenty-Five per cent of 1861 ,769 is
$240 i42. which, added to the original
cost of $751; 69 gives the Rapid Transit
Co the right as of December 81 last.
to issue stock to the amount of 81 ,202,~
Pill
As matter of fact, the company has
not issued that amount, but has only
issued 81 900, 900 of stock.
(D The suggestion in the resolu-
ton that the company has expended a
part of Its earnings in the extension OF
its line is correct.
During 1901 the. net income Of the
company over and above operating ex-
penses was s1t,533,1S.
During 1902, the net income Of the
company over operating expenses was
s56,7S5.3s.
/ Making a total net income to De-
cember 81, 1902, of S6S.31S5G.
This represents the total net profit
of the company since its organization
in August. 1898.
The Company has as yet paid no div
idends. all Of the said S6S,3lS.5S hav'
ing been expended in construction o
the lines of the company.
This expenditure is authorized b.
Section II of said Act 90 of the Laws o.
1898 from which | quote as follows:
Section II. The following charges
shall be lawful upon the income Of sale
railway:
list The expense of a. operating
(2) repairs, go renewals, (4) extern
sions, 90 interest, and (6) every otheI
cost and charge properly or necessarl.
connected with the maintenance ant
operation Of said railway"
You will note that this section spe
cifcally allows the use of income fol
extensions of the railway.
This answers all of the points RAISED
by the resolution.
There is one further point which
beg to address you upon, however, a:
/ understand statements have beer
made to members of the Legislator,
concerning IT, This point is as follows:
II is stated that by reason of tn,
stock having been increased from $780,,
900 to $1,OOOOOO, the government par
tlcipation in the profits over and above
per cent, which II is entitled to under
the statute, is improperly deferred, Of
in other words, that the government
is being done out of its share of the
| profits of the company.
An absolute reply to this suggestion
| is contained in the Section 81 of the
said Act 60 Of the laws of 1898 which
expressly fixes the amount of stock
: which the company may issue and upon
| which IL may declare per cent divi'
( dends. to wit, the cost of the road plus
% per cent more. The company car
issue stock up to such cost plus 20 pei
cent in addition and declare dividend!
of per cent thereon and no more. Il
1t increases its stock beyond such
amount 1t will be violating the terms
of its charter and render itself liabl,
to injunction or quo warranta proceed
ings by the government.
Tho IA.
limit of stock issue permitted by itS
franchise and has no intention of SC
doing.
| shall be glad to afford your com
mittee any further information bearing
upon the subject matter which yor
may desire.
Your obedient servant.
L. A. THURSToN.
President Honolulu Rapid Transit ant
n