Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1911-03-22
RAPID TRANSIT
IS UNDER fire
President Peck Asked Search
ing Question BY Delegates
at Meeting.

Link McCandless and l.. Tenne.
Peck, president of the Rapid Transi
company, furnished the fireworks of
long drawn-out meeting yesterday aft
ernoon in connection with the Rapit
Transit's application to the Legislator,
, for new franchise The meeting wa.
a gathering of delegates to the Contra
Improvement Club, and both Mr.. Nc,
Candless and Mr.. Peck were present a
the invitation of the club.
They FLASHED over statements as t.
the sale of stock of the Rapid TRANSIT
company. and on this point they gave
exactly opposite statements. McCand-
less in the course of his talk said:
THE first issue of stock, 100000 OF
common stock, was paid for dollar for
dollar by the shareholders The next
100000 of preferred, was sold at 50
per cent
THAT is not true" Mr.. Peck inter
rupted. Every share was sold at par
for cash-every single share"
1T was not" declared McCandless.
Il was a stakeholder then myself l
was present at the meeting where it
was sold, and | and Judge Magoon
| asked twenty-four hours time to see
if we could not get better price, and
we were denied the time"
! MIR. Chairman" said Peck, the
books will show that the stock was
sold at par. That is absolutely the
case"
| McCandless again repeated that he
and Magoon tried to get time to hunt
| for better price than so per cent, and
he said, a little later, Il will swear
| upon my solemn oath that l was pres
ent at the meeting when the directors
| voted to sell this stock at so per cent %
Meeting a Long One.
The meeting lasted for two hours,
and Mr.. Peck was on his feet most of
that time, either in the course of the
statements that he gave or to answer
questions. Some twenty delegates at
tended, President e. A. Berndt presid-
ing.
Presidenf Berndt first called upon c.
w, Ashford, but the attorney said he
would talk later Il want to hear Mr..
Peck first" he said, land | particularly
hope he will tell US just what stock
why the company is asking this fran
chise eighteen years before the present
franchise expires"
Ashford and Peck had various filings
at each other during the entire meet
ing, Ashford talking of 'jokers," high
finance" and privileges" and Peck re-
torting once, Il am not here to wrangle
with a special attorney who is en-
ployed by a client to fight the Rapid
Transit company"
President Pecks first statement dealt
with the company's need of getting the
new franchise now. He said that the
company up to date has not put dol
lar into the sinking fund to provide for
the interests of the shareholders, that
very little provision has been made for
the bonded Indebtedness, more than
100000 of bonds still outstanding, and
that instead of putting the profits into
dividends or sinking fund, the COM
pany has consistently put them into
permanent improvements. Answering
questions, he declared that of the ST., |
100000 that the road has cost, one
third has come from the pockets of
the stockholders, one-third from bonds |
and one-third from reinvested profits.
Questions Are Asked.
Attorneys w. w. Thayer and Ash
ford asked questions as to the provf-
sions of the charter for a division of
profits with the Territory, and Peck
explained, backing up every statement
by reference to the charter and fran
chise, that the company has to divide
only the excess of profits over per
cent, and that before this is reached,
10 per cent. is set aside to the stock
holders.
Our consistent policy of putting the
profits back into improvements has
prevented us from putting aside sink
Ing fund.-" he said, "and we must be-
gin now to put aside more than $780,
300 year. We are asking this fran
ehise now because if we are not as
5ured of existence after the present
franchise expires, we must, to protect
our stockholders, begin to establish our
sinking fund and stop making the i'm
and extensions"
Mr., Peck went on to explain the boz
nus that the company Is Offering, two
md one-half per cent. of the gross re-
,eipts, beginning in six years. This .
will amount to at least 100000 by the
line the new franchise becomes oper
tive" he stated. He also explained
Why this bonus can not begin until
917, stating that the deed of trust
hat secures the bonds prevents any
,rior lien being placed on the revenues
If the company, but that in 1917 the
company expects to retire it's bonds,
nd then the two and one-half per cent. I
will begin to operate
Want to Get at Facts.
The delegates evidently wanted to
et some idea as to the actual cash S
invested by the shareholders them
elves in the company, and several I
uestions We're asked in this direction.
he matter of extensions was also $
aiken up, and Ashford and Peck had $
sharp tilt when Ashford asked If the }
still has $1,000 balance from Q
he amount publicly subscribed for the g
.aimuki extension. Both Peck and
Iahager Ballentyne denied 1t. a
Col c. J. Mccarthy voiced a vigor- p
US kick on the twenty minute SER v
ice on the Beretania line, and Harry a
IL