The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1907-10-17
new YORK Plan
FOR NEW STEAMERS
AMERICAN HAWAIIAN COMPANY'S
OFFER TO IMPROVE HoNOLULUS
SERVICE TO COAST.

New York, Oct. 2, 1917.
H, P. Wood, Esq, Secretary Honolulu
Chamber of Commerce, Honolulu,
T. H.
Dear Sir: We are in receipt of your
communication of August 29th, and the
situation outlined in it as to the In
sufficient facilities for the transporta-
| tion of passengers to the mainland is
one that has had our consideration for
some time, and which we have made
| a most serious effort to provide for. |
| In evidence of this, we enclose copy
of our letter to Mr.. G. W. Smith, pres
| ident of the Merchants Association un-
der date of March 5th, 1906, embodyins
proposition for building and Operat-
ing a passenger steamer, which was
made at the request of a committee
of the Merchants Association which
called upon us, for which we were to
supply the major part of the capital
/ required; and although we had assur-
ance from the committee that propo
sition along these lines would meet
with approval and support, to our sur
prise and regret it was not even con-
sidered.
Again at the suggestion of MIR. G. M.
Cooke, we, on November Sth, 1906,
made a proposition to him along lines
suggested in a discussion between us;
and this position too met with no
consideration
Ar.u,orirey womb cotegOrica1 ouestiOn
we beg to say that Notwithstanding the
present financial situation of a world
wide scarcity of money, we would APP
peal to our stockholders for funds to
build suitable steamer if at the same
time we were in a 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 with a period of seven
years, beginning at the time the Navi-
cation Laws were first applied to Ha-
waii, we have fully met your freight
transportation requirements with
fleet of new American-built steamers of
the highest type of freighter, to the
cost of about $1O,0O0,000, and that the
two steamers of the fleet especially de-
signed for the local service struggled
along some years without profit before
! oil
There must be considered by anyone
contemplating entering the passenger
business these features pertaining to
that particular trade:
/. 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-
quiring high-class steamers, due to the
} fact that they were established a long
time ago, when steamers of compare
, lively small cost we're 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
! cific 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
} cific 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
| a good number in the steerage, which
/ means that Japanese would have to be
, taken and no passes to anyone.
, W 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
/ proposing to go into partnership with
J your community in a business enter
, prise, we consider it only fair to pre-
sent the conditions we must confront
, as they appear to us from our expert
, ence in the steamship business.
/ Awaiting your reply with great in
} terest, ] am.
, Yours truly,
G. s. DEARBORN,
, President
} March 5, 1906.