The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1909-02-05
RAPID TRANSIT AND H|LO|
R. R. co. EXEMPT !
CONTINUED from Page One.)


was followed and articles of associa-
ton duly fled with the Treasurer.
They were referred to the Attorney
General, who eas then W. .. Smith.
who took the position that a railroad
company was not engaged in the
mercantile, agricultural or manufac-
turing, or buying, selling, leasing or
otherwise dealing in real estate and
buildings and that consequently it
could not incorporate under the Az
tlcles of Association statute; but must
apply to the Treasurer for the grant
of charter, with the consent of the
""es'dt nt. under the above mentioned
Section 2542. This opinion was sup.
ported by PresidenI Sanford Dole and
Deputy Attorney Genera, E. P. Dole.
The Rapid Transit Company accord
ingly applied for charter which was
granted to it by the Treasurer with
the approval of the President.
Shortly after this the Hilo Railroad
Company, wishing to incorporate, fol-
lowed the above precedent and applied
to the Treasurer for charter which
was granted with the approval of the
President
The Supreme Court has now con-
strued the same law exactly opposite
from the construction placed thereon
by the President and Attorney GEN
eral of the Republic of Hawaii.
This reversal of the former position
has no bearing upon any corporation
formed under the second method above
mentioned, viz; Incorporation by Ar
ticles of Association.
Meme of the plantation or other mer-
camille corporations are affected there
by, as none of them are acting under
granted charters.
Whatever may be the status of other
corporations the Oahu Railroad & Land
Company, the Rapid Transit Company
and the Hilo Railroad Company are
not affected by the recent decision of
the Supreme Court for the following
reasons:
was incorporated under special act of
the legislature of the Kingdom of
Hawaii which act is of as much effect
as the general law above referred to.
, The Rapid Transit Company and the
Hilo Railroad Company might have
been affected by the decision but for
the fact that they were incorporated
during the interregnum between an
nexation and the passage of the Or
ganic Act, by reason of which fact a
question was raised as to whether or
not their charters were legal. an opin-
ion of the Attorney General of the
United States having been given that
the sale of public lands and granting
of franchises were acts of sovereignty
which the local Hawaiian government
had not the power to exercise after an
nexation had taken place.
In consequence of this point and to
clear thu cloud from their respective
franchises, both the Rapid Transit
Company and the Hilo Railroad Com
pany applied to Congress for ratif-
cation of their franchises as expressed
| in their charters.
Congress responded to this request
by inserting in the Organic Act that
subject to the approval of the Presi-
dent .. all franchises granted
| by the Hawaiian government between
| the 18th day of July, 1898, and the
22th day of September, 1899. care
hereby ratified and confirmed -
Subsequent to this, President Nc
KiIley specifically ratified and con
| firmad the franchises Heretofore
granted by charter to the Hilo Rail
road Company aId the Rapid Tr9nsi
Company.
The status of these two companies
therefore, is that their respective cor
po1ate franchises, as expressed in thci
resnective charters, have been specific
ally granted by the Congress and Pres
| ident O.. the United States
LORRIN. 4. THURSTON.