The Hawaiian gazette., 1904-04-01
FRANCHISES
BEFORE COMMITTEES
continued from page 81

| paid for like service I'm the United
States. The cost of materials is also
excessive, and the cost of coal, which
represents A per cent of the operating
expense. is high. Australian coal is
the only coal available. and is OF poor
quality compared with eastern steam
ing Goals, having but SO per cent of the
value of American steaming Goals. The
following table shows a comparison
made with averages taken from the
Census Bulletin No. of the United
States Census Bureau:
COAST OF COAL IN ELECTRIC
PLANTS.
Average
Tons. Cost. per ton
| Total in
United States. .4,25O,OOo sS,75O,OOO 81. O6
| Massachusetts :. 203. 500 S0S,500 3.97
Honolulu Q9O2) 1916 39,73S 500
considering that the Australian coal
has but 50 per cent of the value of
American coal, the equivalent cost of
coal in Honolulu is 1912 per ton. The
per cent of cost of coal in Honolulu to
the average cost in the United States
is 462 per cent; to average cost in Mas
sachusetts is 24O per cent. In other
words, the cost of coal is four and one
| half times the average cost in the
United States, and two and half times
the average cost in the State of Mas
sachusetts.
The distance from the base of sup
plies requires the company to have in
stalled in it's plant an excessive amount
of equipment and to keep on hand at
all times an excessive amount of spare
parts and supplies.
THE climatic conditions being warm
and moist, and Honolulu located at the
sea level causes an excessive depreci-
alton upon the ENTHUSIASTICALLY
upon the poles, lines, transformers,
meters, and distribution service.
Taking into the consideration that
the investment is large, materials and
labor high depreciation excessive, and
the quantity of coal and supplies to be
kept on hand are great-thus render
ing a large amount of capital unpro
ductive-the committee proposes a rate
of II cents as a maximum rate.
I'm connection with the maximum
rate, the committee proposes that pow
err be conferred upon the courts of APP
propriate jurisdiction, at all times and
upon the petition of any consumer or
the company, to hear and determine,
are reasonable and to enforce the same
by appropriate judgment or decree"
THE GAS BILL.
The favorable report on the gas bill
has also been made, the report having
been drawn by Ex-Gov. Powers, of
Maine Mr.. D. L. Wilmington, of Ho-
nolulu, has been at the Capitol much
of the time during the past week look
ing after the interests of his company
in that legislation and he has been
aided by Mr.. A. b. Browne, a very able
lawyer of this city.
The committee made the same pro-
visions as to reasonable price for gas as
was made for electric light and also in
serted an identical provision for an APP |
peal to the courts to determine what |
rates are reasonable or unreasonable. |
The term of the franchise is struck out
altogether and a new section added CIV
ing Congress the power to alter, amend,
or repeal the act at any time.
POWERS REPORT.
EX-Gov. Powers report on the gas bill |
is much briefer than Mr. Robinson's re-
port on the electric light bill. All of it
of Importance follows:
Honolulu is a city of about 10000
inhabitants A gas company was or
ganized in 1859 which put in plant
but subsequently failed and the COM
pany went out of existence. There lis |
company furnishing electricity for
light Light for the public buildings |
and for street purposes is also fur
nished by separate plant owned by
the Government. There is, however, a
strong demand for the introduction of |
gas for fuel purposes, and also as an
illuminant, in the latter of which it
would come into competition with the |
electric company.
THE act, the approval of which as |
amended, we recommend, was passed |
with but one dissenting vote in the
house, and two dissenting votes in the
senate of Hawaii, and approved by the
governor. AS originally passed by the |
Hawaiian legislature, 1t provided for a |
maximum charge of $3.50 per thousand |
feet and for a thirty-five year fran
chise. The franchise is subject to the
payment of 2h per cent of the gross
receipts to the treasurer of the Terri
tory, and also in case of supplying IL
Eliminating gas to furnish gas free for
fifty street lights the first year and five
more in addition each succeeding year.
Inc press Ol IioIOlulu, VI All parties
and factions, and the prospective con-
sumers representing various occupa-
tons and employments, by petition
have urged the passage of the bill with
out modification, and so far as your
Is advised, there IL no oppo-
sition in the islands to its approval.
But the committee have modified
the franchise by striking out the grant
for thirty-flve years and making II
at the pleasure of Congress,
or of the Legislature of Hawaii. with
the approval of Congress In this con-
nection II may be observed that the
franchise Is, by It's own terms, not ex- i
elusive
THE modification which we have
made with respect to time OF granting
the franchise Is In accordance with the |,
practice of Congress and most of the
states. Thus the act Of April ~, 1900,