The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1911-12-15
NEW TERMS FOR
NEW RAILROAD
Governor Agrees 10 Tentative
Plan for Hllo LIno--Con.
press to ACT.
LFrom Tharaday.. AdverLIlar.l


The HilV electric railway franchise
bill to be submitted to congress win
differ IN several important respects
from the act which pissed the legisla.
ture Of Hawaii last spring Another
conference was had yesterday in the
executive chambers, Governor Frehr,
Attorney'General Lindsay, Superintend.
ent Campbell, Land Commissioner Judd
and l.. s. CONFESS being present. A
tentative draft was agreed upon, and
It viii probably be submitted to con.
gress next month.
After the meeting the Governor said
that the discussion had been with a
view to protecting public interests and
at the same time giving the railroad
company q reasonable chance to mako
profits. There were three points in
volved-extension of the road, water
ed stocks and bonds, and the disposi-
ton of the earnings.
May Compel Extensions.
"Under the act as it stands appar-
emily the holders of the franchise
might build only four miles Of road and
then never build any more, however
great the need, said the Governor.
In other words, the company might
take the cream of the business so as
tc make it Improbable for another
company to operate on other streets
and simply pile up profits. 1t is pro.
posed to require additions and extern
sions of the railway to be made by the
company and to be maintained and
operated by it, whenever it shall be
directed to do SO by a disinterested
board. The proposition now is to have
the board consist of the Governor, the
secretary and the chief justice of the
Territory and the circuit Judge at Hilo
and the chairman Of the Hawaii county
supervisors.
SIN regard to stocks and bonds, the
present act permits the company to is
sue stocks and bonds together to the
extent of 220 per cent of the cost, or
100 per cent water, without further
limitations. 1t is proposed to limit the
stock to the amount paid in therefor
IN cash and fifty per cent additional,
the additional amount, however, not to
exceed $4,000 in the aggregate; to
limit the amount of bonds to two-thirds
of the actual cost Of the property, and
forbid their issuance at less than ninety
per cent of their par value; and to
PtONlue Luab Jn0 enJlTe proceeds OIL the
stock and bonds shall be applied to
capital expenditure.
"The act at present permits divi-
dends Of eight per cent and then re-
quires that all paid in excess of eight
per cent shall be divided equally be.
tween the company and county, but
after ten years the county shall get at
least one per cent Of the gross receipts.
1t is proposed to change this by allow.
ing cumulative dividends of eight per
three. foaFths To ri III IN ueaeess Of that
fourth to the company and eliminating
the payment of one per cent of the
gross receipts.
Must Pay for water.
GAS to water rights, the plan is to
give to the railroad company a license
for using certain water of the Wailuku
River for its railway and other pur-
poses with the privilege on the part of
the Territory or the county of purchas-
ing the power plants, etc, along with
the railroad at any time after twenty
years. The company is to have tho
power free for the first five years, to,
pay at the rate of one.eighth of a cent
per kiiowatt hour during the next five
years and thereafter to pay at a valua-
tion appraised at the beginning Of each
ten-year term"