Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-18
]. ABADlE, Prop

u 4
hast half OF the year 1903 and not one
dollar of profit In dividends was Sc. :
cured by the stockholders by reason
Of doubling ftss capital stock In 1909.
nor any contingent benefit other than
being enabled thereby to float bond
Issue, without which the Rapid Transit
enterprise would probably have been
speedily forced into bankruptcy That
expedient was a sound bridge tempor-
arily used. over q narrow but yawn-
/ ing chasm.
First Dividend One Per Cent
In 1903 the first dividends were
Laid on our common stock at the rate
| of one per cent TOR the year. The rate
| on the preferred stock, the maximum
issue OF which has been S350.o00. was
| fixed when authorized at SIX per cent?
which has been paid each year begin
ming ii 1909. In 1894 and 1905, four
i per cent only vas paid ON the com
mon stock; In 1906. the annual rate
was reducedsske three and one-fourtn
ger cent, and In 1907 still further re-
duced to three per cent. In 1908. 1903
and no Tide annual rate was again
four per cent, since which time It has
been six percent.
Total Returns TO Date.
The aggregate dividends paid to De
cember 3tst. 1912, have been S53ff
1896, covering eleven and one-fourth
wears OF operation. All interest pay
mepts fOr6the same period have been
S406.S56.S2. the combined dividend and
interest payments thus being $685.
~ -. -
wear. The approximate average cost
OF the property during the same per-
iod, computed from the foregoing
table, was $1,64ey031. Hthe road had
been built without any bonds and
the above average OF $4,000 paid as
dividends; Il would have been at an
average annual rate Of five per cent.
ohusIal Policy.
Fir1aHciefs from abroad have asked
me- how the stockholders are going to
get Off when the franchise runs out
| # we continue much longer our policy.
unusual elsewhere. Of putting back
into extensions and service such
large proportion of our net earnings
/ have always answered that we have
for some time past asked ourselves
the same question; that there were
two ways out Of 1t TO ensure seif-pres
ervation; one was by shutting down on
eSfension4 and betternents, reducing
expenses wherever possible and build
ing up a capital account sinking fund;
the other course was to go on expand
ing in extensions and service, keeping
pace With the development Of the city.
which could only be made possible By
en- extension of the franchise on terms
fair and acceptable alike to the pub
!, lie ana to the company; that we were
deeply sensible of the fact that Il
wofild be .fatuous TO go on without
. some rational provision against final
day of disaster, when our power plant
would be permanently shut down and
our rails and cars would turn, as the
Governor says, into scrap-iron and
Junk.
No Advantage Taken.
1t will be seen from the foregoing
that the company has not taken adj
vantage Of its powers to pay dollar
of dividends except on cash capital
stock paid for by its stockholders to
the extent of S707, 10000, and on cap
ital stock underlaid by extensions
made possible by allowing stockhold-
ers' profits to remain in the business.
by which the company, naturally. has
the better served the public. 1t has
no stock based on rs per cent OF
total cost, whether derived from bond
issues or in any other way In fact,
as shown above, its stock IS but fifty
eight per cent of the total cost Of the
property.
Could Be Unfair.
differences. not, I believe, anticiPat'
ed by him, could be drawn from the
following extract from the Governors
statement which might seriously pre-
jldice the public mind. IL not other
wise informed of our history and pol
icy;
Again. il the contentious are
sound which the company will un-
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