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

The net earnings. he said, are about
81 100000. The surplus dividend has
largely gone into new rolling stock
and extending the line. f~...
/ 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 II 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 a history
OF the development of the Hilo rail-
way. That was an economical line,
easily constructed, he 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. 49,.
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
Legislature passed a bill to this ef'
feet. Mr.. Dillingham; stated briefly
how he suggested to Gov. Carter that
In view Of the obstacles Of building
the road. the Government get, II pos
sibIe, the organic act changed so that
the Territory could guarantee four
per cent on bonds for railroads au-
thorizec and that the read itself
should pay SIX per cent on its bonds,
two per cent Of which should go Tor
specific purpose building and de-
yelopment OF interior carriage roads
ION Hawaii. He said the only adyan.
ftage 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-
tee.
aHe thought it very ! improper
nroposition. said Mr.. Dillingham;,
saving there were a few holders OF
government bonds here who wouldn't
like 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
no dividend has been declared in re-
cent years. because the earnings did
not warrant it. The net profits last
year however; were about 10000 to
s35, 900, while this year they were
$4,000.
Asked about demonstrating, Dilling-
ham said he believed 1t would be q
good thing to have more people here
If they could make living. He
would naturally desire to from q rail-
road standpoint.
aBut cannot see how it Is going
to do any good to uproot system
that has cost so much to establish
and which is proving so successful in
q financial way, to make room for q
lot Of malihinis who don't understand
conditions.
Regarding pineapples as a crop, he
said it has been only within the last
few years it has had real test, but
thought it would not prove practical
to. the small h6mesteader because OF
the great expense 1t entails. There
are only few known crops that are
known will be successful, he asserted,
and that sets a large limitation on the
Of the homesteader.
or the government lands on which
leases are expiring, he thought Z
would be q rather dangerous expert
mert to open these for homesteading,
seriously Gripping the plantations.
The mills are expensive propositions
and the. owners need cOntrol OF SUI
ficient land to insure enough business
for the mills to make them pay for
themselves. II the land goes TO the
small farmers, the mill owners will
never have that assurance, because
they viii never know how soon the
farmers may turn ito some culture
other than cane.
He admitted, however, that there
are limitations to the land, that about
the only alternate crop Is the pine
apple. The Secretary Informed him
that others have testified that land
best suited for sugar is generally not
q success as pineapple land.
Il presume that is true" Dilling
ham admitted" 81,
Attorney Ashford then questioned
the railway man regarding the estab-
lishment of the plantations along the
Oahu railway line. Asked II any pro-
moters stock was issued on the Eva
plantation, he replied:
aWen, If there was,.I didn't get
any. ".
Mr.. Dillingham; went into Ewa's IL
nancial history, saying it was capital
ized originally for half million,
which was q million or million and
half too low, and when Castle &
Cooke had carried the plantation al
most to the point Of suspension they
were finally able to raise more money