Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1907-10-17

lOl tunl VUtSllDll, Sent OUT DN lnp local
Chamber of Commerce to various
steamship companies, the American
Hawaiian replied that there was let
Ter on the way treating fully on the
subject In question. That letter has
cen received and is published below
IL will be observed that a most inn
portant part Of the communication
from the Americana Hawaiian Company
is the enclosure of copy of q propos-
nj made by 1t to the Honolulu .Mer-
chants Association some nineteen
months ago. and which appears to
have received no attention whatever
rom that body, so far as the An.
people are concerned. Herewith are
presented President Dearborn's letter
20 the Chamber of Commerce and hig
Former letter to the Merchants Assoc
citation:
New York, Oct. g. 1907
II. p. Wood, Esq. Secretary Honolulu
Chamber of Commerce, Honolulu.
T. II.
Dear Strive are In receipt of your
communication of August Goth. and the
rituation outlined in 1t as to the In.
sufficient facilities for the transporta-
ton 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
oar letter to Mr.. G.. w. Smith, presi-
dent of the Merchants Association,
under date of March 5th. 1906, embody-
ing n proposition for building and OPP
Grating a passenger steamer, which
was made at the request of commit
tee 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 a propo-
sitiOn along these lines would meet
With approval and support, TO our sur
prise and regret II was not even con-
sidered.
Again. at the suggestion of Mr.. C..
VI. Cooke, we, on November Sth, 1906
made n proposition to him along lines
suggested in discussion between us:
and this proposition, too, met with no
consideration.
Answering your categorical ques-
ton, we beg to say that notwithstand.
| ing the present financial situation OF
II worldwide scarcity of money, we
would appeal to our stockholders for
| funds to build suitable steamer If al
! the same time we were in position
/ to assure them of the business exped-
iency Of 1t by the pledging by your
community of substantial amount
Ol money towards the enterprise, as a
guarantee OF your good faith to sup
port It: provided. also, that foreign
steamers were not admitted to the
trade.
We would call your attention to the
fact that within period of seven
years, beginning at the time the Nav
| igation Laws. were first applied to Ha-
wall, we have fully met your freight
transportation requirements with a
! l.eet of new AmeriCan-built steamers
OF the highest type of freighter, to the
cost of about $l0,000,000, 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 he considered by any
one contemplating entering the pas.
! senger business these features pertain.
ing to that particular trade:
|. That there is comparatively
small volume of freight moving from
San Francisco to Honolulu, and al
very low rates;
III. That the passenger rates are
lower than in any other like trade re-
luiring high-class steamers, due to the
fact that they were established Ions
time ago, when steamers of compara
lively small cost were in the service
and any vacant space taken by islanC
passengers was so much gain, the lat
ter feature of which applies to the Pa
ciflc Mail Co. operating larger steam
crs than would be warranted in a dis
tlnct local service, which takes islant
passengers at much lower relativ,
rate than paid for the greater distanc,
to Japan and China; and these steam
ers seem TO be able to meet the pas
Senger requirements from San Francis
GO to Honolulu, due to the lighter tray.
el to the Orient than from It. A loca
steamer, therefore, would have tC
ICOiHDete III tndl uiltClioH WIN tn'
larger Pacific Mail ships.
III. That with the present low
freight and passenger rates high
class steamer should average 200 sa
loon passengers each way to insure {
proper return for the investment, al
we'll as a good number in the steerage
which means that Japanese woulC
have to be taken, and no passes tC
anyone.
~. The cost of operating steamers
mas greatly increased recently on ac
count of advanced wages paid to crew,
and freight handlers, and higher cos
nj all supplies and repairs. AS we ar,
proposing to go into partnership will
your community in business enter
prise. we consider 1t only fair to pre-
sent the conditions we must confront
rs they appear to us from our eXper
fence in the steamship business.
Awaiting your reply with great in
tCrest, ! am,
Yours truly,
G. S. DEARBORN,
President,
March 8. 1906.