The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1911-03-24

The meeting was presided over by
Emil ncmdt, chairman % The central
improvement commiilo. he called upon
| g. w. Ashford, a. ono ~ The opponents
Of tho franchise extension, 10 mako a
statement lie refused p0inthlnnk, but
called upon Mr.. Peck 10 answer a quea-
tion as TO how many dollars had been
maid 20 the stOckholdera, then demand
ing 10 know the reason why the com.
pany should be asking for franchise
10 1850. lie wondered, he said, why it
was not left 20 their grandchildren 70
take up for themselves when the time
came.
Mr.. Peck, in his reply, said that he
was present ne the guest Of the i'm
provement committee, He believed it
to be composed Of fairminded citizens
and representatives Of the various dis
triets which sent them as delegates to
the committee. He represented a pub
lie service corporation and was serving
the public. He did not propose TO en-
gage in a wrangle with a special attor-
ney employed to fight the Rapid Transit
for the benefit of an individual, and
who was apparently trying to get citi-
zens to pull chestnuts out of the fire
for him. He stated that he had no
confidence in Mr.. Ashford in the pres
ent instance as a bona fde questioner.
The situation was, he said, that the
Rapid Transit has been in existence for
one-third Of its franchise life and one
| fifth of its corporate life. The cOrpor-
ate life is nil if the franchise be re-
moved. If the franchise be permitted
to expire its cars would probably be
used as are many of Pains mule cars
today-as chicken coops. The company
had more than fulfilled its obligations.
The franchise had been public docu-
lment all these years and should have
been read and understood by all present,
but only nine confessed to having read
it over. He stated that although one
third of the franchise life had gone by,
the company had not laid aside one
dollar so that it could get back its in
vestment. Every dollar belongs to the
shareholders. Although not dollar
had been laid aside, so far, it must be
done before the franchise expires. The
property represents an investment
throughout of $l,920,000 in round num-
bers.
In answer to a question by Mr.. Thay-
er, Mr.. Peck referred him to section
S52 of the franchise, as it appears in
the Revised Laws, which gave the sys-
tenn under which the company operated
and under which the eight per cent.
feature figures. As to the financial
dealings of the company these were all
aboveboard. There had been no secret
meetings and everything passed through
the hands of the Governor, superintend-
ent of public works and the territorial
treasurer. The capital was raised, one
third from capital subscribed, one-third
from the sale of bonds and one-third
from earnings. The stockholders put in
about 100000. The lawful charges
under the section above referred to are
expenses of operation, repairs, renew
ais, extensions and all things connected
with the maintenance of the road. The
legislature told the company to build
the road. If it makes over eight per
cent. of its cost, the excess is to be
divided equally with the Territory.
No Promotion Rakeoff.
Mr.. Peck stated that there was not
,, share transferred for promoters re-
ward and he cited the names of Mr..
Ballentyne, Mr. Lowrey, Mr.. Fisher and
Others as those interested in getting
. the franchise and none of them obtain
ed q share for promoter 8 rewards. Mr..
! the company could not at any time put
a lien upon the property because of the
a bonds issued, and these are to be called
!. in in 1917.
' AS to what the company proposed to
q do IN return for the extension of its
!. franchise from 1929 to 1850, he stated
q would pay abolt $4,000 a year max
AaAn g
q There was some discussion about the
s amounts subscribed by Waialae and
q Palolo and Manoa for the extensions
{ into those suburbs, Mr.. Ashford declar
r ing they should not have gone upon
the books of the company as assets
Mr.. Peck and Mr.. Ballentyne both
asking what should have been done
d with them. In comparison with the ole
: mule lines, Mr.. Peck stated that tht
n former company paid 500 in one yeai
. for taxes while the Rapid Transit pay!
o $4,000 per year.
y Mr.. Logan wanted to bring the mat
!; ter to a focus for something on which
d the committee could work and Offered
/ to move that the explanations of Mr.
u n Peck concerning the financial obliga
. tions and plans of the company wer,
I oatisAacboAS- MI. Dcibub tA planet
" this was not altogether necessary as i
!, was only the intention to have tn
y delegates receive explanations and re
~ port back to their clubs. Representa-
:, tive Towse talked at some length il
y his desire to get facts and something
|. tangible.
Mr.. MeCandless at one stage of hi
talk stated positively that certain
"a stock Issues were offered and sold 70
I. so, whereupon Mr.. Peck positively as
4 serted that the shares were sold at pal
m and in this he was backed by Mr.. Bal
"a lentyne. Mr.. McCandless insisted tina
n he knew what he was talking about.