Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1912-09-13

Inc net earnings, ne SalQ, are ABOUT
100000. The surplus dividend has
largely gone into new rolling stock
and extending the line -. -.
Fisher asked IL any OF the original
stockholders ever paid into the treas
ury. Dillingham; answered he could
not remember any large amounts thus
paid by stockholders The Secretary
again asked III any of the stock now
outstanding had been paid for by
actual cash, turned into the COM
pany's treasury. Dillingham; replied
in the affirmative, and gave the name
of one man who had purchased his
stock outright.
Mr.. Dillingham; then gave history
of the development of the Hilo rail
way. That was an economical line,
easily constructed, be asserted, cost
ing only about $4,000 mile. He
told how he and his associates with
drew in favor Of some others who
claimed to have several millions to
begin work Immediately. The 9TH
ers, who, he thought, were headed by
two men known as Gear and Brown,
obtained their franchise, but allowed
il to lapse by not beginning work in
five years time. -:
Mr.. Dillingham; then told of going
to Governor Carter and taking up
with him the matter Of the Hilo Rail-
road construction, asking 20 years
exemption from taxation as one OF
the announcements. Carter favored
this for ten years anyway, and the
n IN
feet. Mr.. Dillingham; stated briefly
how he suggested to Gov. Carter that
in view of the obstacles Of building
the road, the Government get, il pos
sible, the organic act changed SO that
the Territory could guarantee four
per cent on bonds for railroads all-
thorizee, and that the read Itself
should pay six per cent on its bonds,
two per cent of which should go for
a specific purpose building and de-
velopment of interior carriage roads
ON Hawaii. He said the only advan-
tage to the railroad would be that
The promoters could take this prOpo-
sition to New York and sell its bonds
because of this Territorial guaran-
Lee. !.
.He thought 1t a very improper
said Mr.. Dillingham;,
saying there We're q few holders OF
bonds here who wouldn't
ike It. So we went ahead on our
own arrangement" He then out.
lined the financing of the Hilo road.
A four percent dividend was paid
early In the history. OF. the line. but
DO dividend has been declared in re-
cent years, because the earnings did
not warrant it. The net profits last
year, however, were about $50, 900 to-
sS5. 900. while this year they were
$4,000.
Asked about homesteading, Dilling-l
nam said he believed 1t would be a.
good thing to have more people here
4 they could make living. He
would naturally desire to from a rail
toad standpoint.
But | cannot see how 1t Is going
10 do any good to uproot system
hat has cost so much to establish
ind which is proving so successful IN
| financial way, to make room for a
OF Of malihinis who don't understand
conditions
Regarding pineapples as a crop, he
aid 1t has been only within the last
ew years it has had q real test, but
thought It would not prove practical
o the small homesteader because OF
he great expense 1t entails. There
ire only q few known crops that are
Known will be successful he asserted.
md that sets large limitation on the
Of the homesteader..
OF the government lands on which
leases are expiring, he thought it
would be a rather dangerous expert
nent to open these for demonstrating,
seriously Gripping the plantations.
The mills are expensive propositions
and the owners need control Of suf-
icient land to insure enough business
or the mills to make them pay fori
themselves. If the land goes to thel
small farmers, the mill owners will
lever have that assurance, because
hey will never know how soon the
Iarmers may turn to some cultureI
,ther than cane.
He admitted, however, that there
ire limitations to the land, that about
he only alternate crop is the pine
apple. The Secretary Informed him
hat others have testified that land
lest suited for sugar is generally mott
/ success as pineapple land.
81 presume that is true" Dilling |
lam admitted"
Attorney Ashford then questioned
he railway man regarding the estab-
of the plantations along the
oahu railway line. Asked If any pro-
1oters' stock was issued on the Eva
plantation, he replied:
dWel, II there was. ] didn't getI
NY"
Mr.. Dillingham; went into Ewa's fl
lancial history, saying it was capital
zed originally for half million,
which was million or a million and
half too low, and when Castle &
'ooke had carried the plantation al
most to the point of suspension they
we're finally able to raise more money