The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1907-10-17
AMERICAN
HAWAIIAN co,
Continued from Page one.)

| (OOnClnuSQ from rage One,)
Again, at the suggestion of Mr.. c. NJ.
Cooke, we, on November Sth, 1906, made
a proposition TO him along lines sug-
gested in a discussion between US; and
| this proposition, too, met with no con-
sideration.
Answering your categorical question,
we beg to say that Notwithstanding the
present financial situation of a world
wide scarcity of money, we would ap-
llpeal to our stockholders for funds to
build suitable steamer if at the same
time we were in position to assure
them of the business expediency of it
by the pledging by your community of
a substantial amount of money towards
the enterprise, as a guarantee of your
good faith to support it; provided, also,
that foreign steamers were not admit
ted to the trade.
We would call your attention to the
fact that within a period of seven
years. beginning at the time the Navi-
cation Laws were first applied to Ha-
wall, we have fully met your freight
transportation requirements with a
fleet of new Americana steamers Of
the highest type of freighter, to the
cost of about 10000, 900, and that the
two steamers of the fleet especially de-
signed for the local service struggled
along some years without profit before
receiving substantial support.
There must be considered by anyone
contemplating entering the passenger
business these features pertaining to
that particular trade:
l. That there is a comparatively
small volume of freight moving from
San Francisco to Honolulu, and at very
low rates;
II. That the passenger rates are
lower than in any other like trade re-
curing high-class steamers, due to the
fact that they were established a long
time ago, when steamers of COMPARE
lively small cost were in the service
and any vacant space taken by island
passengers was so much gain, the lat
ter feature of which applies to the Pa
c1fic Mail Co. operating larger steamers
than would be warranted in a distant
local service, which takes island pas
sengers at a much lower relative rate
than paid for the greater distance to
Japan and China; and these steamers
seem to be able to meet the passenger |
requirements from San Francisco to |
Honolulu, due to the lighter travel to |
the Orient than from it. A local steam |
er, therefore, would have to compete !
in that direction with the larger Pa |
ciffc Mail ships.
III. That with the present low |
freight and passenger rates high-class |
steamer should average 200 saloon pas
sengers each way to insure a proper
return for the investment, as well as |
q good number in the steerage, which |
means that japanese would have to be
taken, and no passes to anyone.
". The cost of operating steamers
has greatly increased recently on ac-
count of advanced wages paid to crews
and freight handlers, and higher cost
Of all supplies and repairs. AS we are
TO go into partnership with
your community in a business enter
prise, we consider it only fair to pre-
sent the conditions we must confront as
hey appear to US from our experience
n the steamship business.
Awaiting your reply with great in
crest, l am,
Yours truly,
G. S. DEARBORN,
President.