Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-04-09
Governor and Rapid Transit
Officials Come to Final
Harmony and New Bill
Is Completed
FEW CHANGES FROM
DRAFT OF LAST WEEK
Measure Approved by the Mer-
chants Association Little
Modified NoW-Compromise
Gives Public and Company
Safeguards and Rights--Hope
Legislature viii Indorse Lat
est Plan

Harmony on both principle and de-
tan OF the new Rapid Transit fran
chise has been reached by the govern
or and the officials OF the street-rail-
way company.
After long night session last night,
the governor and Charles r. Hemen-
way, representing the Merchants As
sociation, which is taking the stand
point of the public Ia the negotiations,
completed q draft of the new fran
chise. This draft was turned over to
Secretary A. L. Castle of the Rapid
Transit company this morning, con-
sidered by the railway officials and
approved Only a few unimportant
changes were made.
The completed draft, fully agreed
upon by the governor, Attorney Hem
enway and the Rapid Transit officials,
was then submitted to the select COM
mittee OF Oahu senator's. which has
the Rapid Transit franchise in charge
so far as the legislature is concerned.
The new draft viii be considered by
the commfttee.
Hope Is expressed on all sides that
this final draft Will be found satisfac-
tory By the committee and that new
franchise bill will be introduced which
will be this latest draft. 1t is conjec-
tured that as the deliberations Of the
governor and the company officials
have been carried or, at largely-at-
tended public hearings. the latest
draft represents the consensus of
opinion on the subject and should
prove satisfactory to all parties.
The completed draft differs little
from that published by the Star-Bul-
letin last Friday and which was the
bill agreed upon in principle at the
public hearing on Thursday evening.
Some Of the changes are important,
but none of them affect the major
principles involved. The plan for di-
vision of profits with the public, for
control and supervision by public
service commission, for restrictions
on stock and bond issues and for mat
ters of service and fare have not been
changed In any material way.
Two Important Changes
The two most striking changes are
in the provisions for agreements by
the Rapid Transit company with other
corporations. and the provision for the
control OF the stock sinking fund.
The governor originally urged the
repeal of sections IA and Is of the
present franchise, under which the
company has the right to enter into
agreements, contracts, etc.. with other
companies. The governors idea was
that under such plan il was conceiv-
able that the company might cover up
its profits and hence prevent fair
division with the public On the other
hand, the company pointed out that it
might be necessary TIA enter into
trackage agreements or to become in
terested in other companies. A COM
promise has now been arrived under
by which the company will be allow
ed to make such necessary agree
ments, but under the entire supervi-
sion of a public service commission. |
The new clauses read as follows:
Section g. Section Ia of said Act
90 (Section 4S4' of said revised laws)
is hereby amended to read as follows:
Section IA. Said corporation may,
with the approval of the commissions
referred to in section of this act, be 4
amended, take over, by purchase or
lease, and maintain, use, operate and
exercise in connection with the rail-
way and the equipment and works
connected Herewith authorized by
this act, all or in part of the proper
ty, rights, privileges and franchises
of any other street railway or power
company operating solely within the
limits covered by the franchise grant
ed by this act; and said corporation
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