The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1913-03-14
Believed Rights Of the
Public We're Not
Protected.
Substitute Bill, One
Which Congress
Will Approve.

In a lengthy statement given out to
the press yesterday morning, Governor
l'rear sets forth his reasons for draft
ing his own bill granting new fran
eiise to the Honolulu Rapid Transit &
| Land Company, as introduced by SEN
ator Judd. The measure, the Governor
states is intended to take the place of
franchise bill for the same company
introduced by Senator Chillingworth,
which bill is a copy of the one passed
! by the 1911 legislature and pocket
vetoed by the Governor.
In his statement issued yesterday the
Governor explains that he regretted
! that the franchise bill came up so late
two years ago that he could not veto
| it in the usual manner and at the same
| time give his reasons for so doing in
! such a manner as not to have his ac.
! ton ntisconstrued.
The franchise bill two years ago, -
| said the Governor. "seemed to me
nothing less than proposition to sell
| he birthright, as it were, of the city
in the important matter of transporta-
ton facilities for long period for a
mess of pottage"
! Continuing, the Governor saws that
he company naturally would try to
do the best it could for itself, but the
public spirited citizens who supported
he bill did not realize what it meant
| tc the city. The Governor S bill, as
! outlined in his statement, is materially
different from the Chillingworth meas
IRE in several particulars. He is OPP
posed to any fixed amount being paid
annually by the company for its fran
| chise, believing that the revenue to the
city should be graded only in accord
| anre with the net income.
First, he would allow the stockhold-
ers an income of eight per cent. on
| their Investments, the city to receive
! thre e,fourths of the net dividends in
| excess of this amount. 1t would be un-
wise, he says, to have the city tied up
for forty years for return of two and
cne-half per cent. of the earnings. He
MAINTAINS that the people should retain
the right to repeal or amend the fran.
chise at any time, pointing out that in
many cities at present franchises are
granted for indefinite periods, subject
always to the companies rendering
proper service to the public.
| Caution is urged in view of the cost
ly experiences of cities on the main
lana who have granted franchises with
| out careful consideration.
The Governor also points out that
congress has shown its intention of fol
lowing progressive lines in approving
| franchises. This was evidenced last
year when the national lawmakers in.
cOnOrated these views in the Hilo fran
chise.
What Congress Did.
at did that, moreover" said the
Governor yesterday, Gin the case of a
railway that was about to be started
and that had before it the usual early
years of development and small earn.
ngs and that was to operate in a town
that was very small for the support
of an electric street railway. How
much more should the rights of the pub
lie be guarded in the case of com
pany which has already largely passed
its period of development and small
earnings, ana which IS applying for {
long extension of it's franchise before
its present franchise is half gone? Car
congress be expected to do less in thi!
case than in the other, and can the PEG
pie of this Territory through its legis
lature be expected to say to congress
practically that although you have jus
'hown us what you think is right by tn
amendments which you made in a bill
that we passed Mt the last session, w,
VIII nevertheless take the position tina
You are wrong and we will persist il
rassing another bill, on a similar sub
iect, that is far less up.to-date thai
the one which you so amended Shoul
not the people of these Islands shoy
to congress that they can safely b
trusted TO do The right thing bv tn
public in the matter of special fran
chises9
1.-The first consideration in mat
ter of this kind is the public servic,
The public may own and operate
street railway, ms il does in some place,
and as it owns and operates the waite
works here. or it may itself own it bu
permit company to operate il for
fair compensation, or II may, rs is prol
ably best, permit company to ow
and operate IL under conditions whic
viii insure the company fair retur
for its investment and yield the max
mum public service consistently wit
such return, The question is. what
the best way for the public to obtai
the servicei The question is not. no
great or how little fayors shall |
granted TO the companyi Nor is /
how much revenue can be made by II
puhhcl
Entitled 10 Proht.
'Fhc company should be allowed "a
tn'Ht Wolt 90 induce capital 10 n
drriake the service aud h may he d
lowed Pan additional amount hy way
stimulation to giving better hubble ~
: vice hnt beyond that IL cannot rea
nnap'F ssk anything ANA BIS tenn
: hnuld Ne durug good behavior ai
therefor iAr puhi'r should nrsessari
Z Keep thc whip'hand
1 hast rruR Public.
: Ihr company masi fmsf tha pu
Z lr,'' nonilHHra iha ftafrHcbt 'tnf Z
/. i.'Hfnef has shan p lies It nay ssfs
: lo sa y 's iulfsi b raitrr of N
tnft. WrfrIE tlH ID HHrf .f tl. ..tt.