The Hawaiian gazette., 1903-03-13
K0HALA AND
H|LO PLANS
(From Thursdays daiiy.)


All negotiations were declared of
yesterday in the matter of the proposed
contract between the stockholders of
the kohala and Hilo Railroad and Will
son, Lyon & Co., of San Francisco.
looking to the immediate construction
by the latter of the line. President
Gehr, OF the road, gave as the reason
Tor the laying aside of the proposition
that certain other matters looking to
the same end were not yet settled
The stockholders of the company
looked into the matter thoroughly and
ut the meeting yesterday morning came
TO the decision that 1t would not take
Up the proposal at this time. The ten
tative contract which had been con-
sider"d at previous meetings was there
fore laid over, and 1t is not believed
Will be renewed. The determination
was reached by the representatives of
the majority Of the stock here, and 1t
is now understood that Philip Peck will
row push his negotiations for the Sc
curing OF the cash for the building of
the line
The proposal of the contractors who
own the kona-kau road was one based
on the construction and Financing Of
TIE road as well. They were to COM
contract was signed. and were to re-
ceive nothing until ten miles OF the line
WAS built, equipped and running. Pay
ments for building were to be on the
completion OF ten-mile lengths built.
For the first thirty miles to be con-
strIcted. the payment was to be I'm
tonds at the rate Of $50, 900 a mile, and
the last thirty miles was to be at the
rate of $4,000 mile. This would be
at the rate of $4,000 a mile for the
entire system of the road, the line to
be constructed, equipped and placed in
running order
The contract, as well. called for the
pooling of control Of the stock, prac-
ticaily in such shape as to give the
contractors the management of the
road for three years, so that there
would be guaranteed a continuance of
the management under which the prof.
was initiated. The operation of the
road up to the limit of time was to be
under the charge of the contractors,
and their only pay was to be the S.
'Vo,ooo of the bonds, thus giving the
road over to the company at the end
OF tie three years period in running
order and equipped.
Mr.. Wilson. of the contracting COM
Pan!' said last evening that the only
mitch in the agreements seemed to be
the demand on the part of the company
for a bond of $500 in addition to the
building OF ten miles of road before
nny payment was to be made. This, I'm
The opinion OF the San Francisco men.
was excessive. They held that the con-
structior of the ten miles of road would
mean an expenditure OF more than the
bonds then to be paid, $780, 900. as the
equipment was expensive and would
mean almost as much as to equip the
eEtire line of road. 1t was for this
reason that 1t would be only business
mat the control would be assured in
lheii hands until the work was done.
IN addition to this proposition, the
firm made an offer to con-
struct the line on a cash basis, but the
representatives Of the company were
not ready to accept the offered con-
tract, and there the matter now rests.
II is the belief Of local business men.
VINO have agreed to take up some of
the bonds, that the offer to finance the
me at this time was the most valu-
ible portion Of the contract offered.
me Following correction of the word
is Oh the announcement of the nego-
iations was received yesterday:
Honolulu, March II, 1908.
Editcr Advertiser: The article in to-
Jays Advertiser to the effect that ne
,otiatiohs were or are pending for
wilson, Lyon & Co., or their repre-
entatives' to acquire the franchise or
light of way of the Kohala and HiIo
'iiiway Company is misleading. No
uch negotiations were had, and If
hey had been proposed would not be
ntertained by the Kohala md Hin
railway Company.
Ihe proposition made by the gentle
ien representing Wilson, Lyon & Co.
'as one of construction, which has not
cen accepted. Sincerely,
J. w. JONES,
auditor kohala and Hilo Railway
Company