Hilo tribune., 1904-08-05
kOUAlA.uiIO RAILROAD
fhe Rails for Proposed lioad Have
Arritpd-prcsident Peek Pleased
With Prospects.

Eight hundred tons OF rails ar
rived in Honolulu last week as part
of the cargo OF the Tillie j.. Star.
buck. of New York, consigned &c
the Kohala-Hilo Railroad. The
cost of the shipment is approx.
mately $4,000, and Immediately
upon discharging her Honolulu
cargo, the vessel will proceed to
Hilo to unload this cumbersome
freight. President Peck is much
pleased to learn of the arrival OF
the first section of twelve miles oil
the road, which will enable him to
begin very shortly the work Of con-
struction. Already sufficient island
capital has been subscribed to put
through this first division of the
line, and it is Mr.. Peck's purpose to
begin operations without subscrib-
ing the entire issue of $500 oo
bonds. Mr.. Peck has received nu-
merous inquiries from foreign
houses and others, asking for OPP
tons OH placing the bonds, which
he has refused seeking rather to
build the first ten or twelve miles
of the proposed road before offering
the entire issue on the market.
The new survey has been about
completed and he hopes to be able
to let the construction contracts at
All early date.
The following article appearing
in the June issue of Farm Loans
and City Bonds" a financial Jour
nal published i'll Chicago, contains
the following summary of the char.
acter of the enterprise as All invest
ment:
THE bonds of the Kohala-H ilo
Railway are considered by the most
conservative men on the islands as
a very choice investment, con-
sidering the management Of the
road and the probable earnings.
The right of way of the road has
been surveyed twice from Hilo to
the port of Mahukona, a distance
of some 100 miles. A third survey
is now being made for final location,
as the steel rails for the first section
of fifteen miles have been shipped,
and the roadbed is to be ready for
ire rails WINCH pIry arrive. 4 ne
prospects for the Kohala-H ilo Rail-
way are full of promise. Next to
Honolulu, Hilo is the largest town
in Hawaii, and is situated on a
large deep harbor. The new road
will start from Hilo, running north
for fifty miles to Kukuihaele, and
tapping on the way twelve large
sugar plantations with an approxi-
mate total yearly output Of 100, 900
tons Of sugar. The experience OF
the Oahu Railway is that as much
freight is shipped to the plantations
as sugar is shipped out of them
AS nothing but sugar is raised on
the plantations, all provisions, hay,
grain, lumber, ETC., have to bC
brought to them. The sugar
shipped from the Island of Hawaii
is at present done by vessels on the
open sea coast, where the water il
frequently rough, 50 that small
steamers which act as tenders t
carry the sugar to larger vessels il
Hilo are often unable for weeks {,
take on or discharge freight, an,
it occasionally has happened tha'
sugar mills were obliged to shu
down, their sugar houses being ful
to OVERLOOKING and unable to hol,
more. From K%ukuihaele the roa,
will extend through the famou
Waiamea plains, a fine distric' G
200, 900 acres. Farmers declar'
that these plains can raise all tn
hay and grain used on the entir
islands when the railway Cal
furnish transportation. Every su
gar plantation may be- likened to
village, as they employ from 100
to 1880 hands each, and thes
scattered populations will form tn
nucleus for a large passenger traffic
This road is to be standard gaug
and laid with seventy-pound rails
There will only be $4,000, 900 {
, these first mortage gold bonds t.
:, NE sold. and they give promise q