The Hawaiian gazette., 1913-04-04
SHARP RETDRTS IN
FRANCHISE HEARING


meeting was to receive suggestions from
the public as to what is wanted in the
way of a franchise.
"The committee will welcome sug-
gestions for amendments to the bills
already being considered sara Judd.
eff these can be submitted in writing
it will be better appreciated. -
Attorney Hemenway, on behalf of the
commercial body, briefly outlined the
result of the several conferences which
have been held in reaching an agree
ment upon the principal features of the
franchise bill.
A Compromise Bill.
at was agreed as fair to place the
valuation for the stockholders at
81 ,G00,000' said Attorney Hemenway
cit is perhaps not necessary to submit
figures as to how this valuatlon was
reached; it is a compromise based on
figures submitted by the Governor as
well as the Transit Company. We be-
lieve it is fair and liberal. Honolulu
can well afford to be liberal N view of
the other changes, which have been
made. The measure as submitted to-
night has the approval Of the Mer-
chants Association, the members of
which believe it fully meets all obiec-
lions urged against the other measures
If, on a more critical study, it appears
that the phraseology is not as clear as
has been intended, we will gladly join
in making such amendments as are
necessary to make it more clear. If this
is adopted by the committee it will be
an accomplishment both for the com
pany and the people and for a better
street railway service for Honolulu"
Very Fair, Says Frear.
Governor Frear followed in a state
ment saying that Attorney. Hemenway
had outlined practically all that had
been accomplished in the conferences
'Every feature in the measure now
submitted has been accepted as salts
factory to both Sides" said the Gov
ernor. con the whole, l think it is
very fair. On the one side it affords
protection to the company; on the
other, protection to the people, two
things to be kept in mind.
Under the present measure, if the
commission should reduce the fares to
below five cents and the results show
that n mistake was made, the commits
sion is given power to raise the fares
to the former figure. Under the terms
now proposed extensions for the sys-
TEN can be made by resorting to the
issuing of bonds if the earnings will
not meet the cost, but it will require
a mutual agreement between the COM
mission and the stockholders to make
extensions on the proceeds from the is
suing of stock
"The manner of the disposition of
earnings is changed in several imp0r-
tant particulars. The stock redemption
sinking fund is placed in control of a
trust company or trustees instead OF
with the government or the company.
One to Three.
HThe franchise is made subject to
future laws, except as to n change in
the scale as to the disposition of the
earnings, which would be unfair. The
measure provides that such surplus
earnings as are not paid out shall be
divided one-fourth to the company and
three -fourths to the people, instead of
half and half, as formerly proposed.
, The Governor told of the three pc
riods during the life of the franchise
The first is the period up to 1929
when the present franchise will ex-
pre- after which the charter is subject
/ to repeal at any time. The Governor
stated that it is not believed that this
privilege will be used. In case ii
should be repealed, he said, provision
is made for the public buying the prop.
erty and thus protecting the capital in
vested This period is followed during
the next ten years, continued Governor
Frear during which the people could
buy out the road as n business PROPOSE
ton, if it so desired The purchas,
price in that time would be one-half OF
the value of the road over the sinking
fund During the last eleven years NJ
to 1850, said the Governor, the cost
, would gradually become less.
, cit has been figured, he sal,
"that up TO that time the owners hav
S had opportunity to realize upon tDei
t investments should the property rever
y to the city. At the end We would pa,
them one.third in excess of the amour
in the sinking fund. Eventually tn
3 road would pay for itself out of tn
z earnings"
q Possible Purchase Price,
9 At any time the price can be deter
mined by three arbitrators, subject 4
> appeal 10 the supreme court, he said
u In no event, under the proposed fran
~ NhlH't NAhAA wv ltANA w HAhiN IMAM VI
!. tangible value of the property eNelud
- ing good viii and value of franchise
that shall be no greater than the cost
= less depreciation or not greater tina
is would be the cost OF Duplicating "a
p system, Ihoaa are the maximum limit
placed, he said.
Continuing further, he said that a
estimate en this basis under the bi
proposed NI include deduction o
Al the outstanding indebtedness, less III
" amount Ia che sinking fund lees on'
2 mlf H llf Adherence fftatru the h0e
4 value ana the cole price value ~
n other ti0.h HnI bond projections M n
/. former dtlft nr flaurh.fr aff retail
r1i b. Hli
- imH iht committee wH Ca
b MHf tHfHHI|UHa HpiHf HniHl 10.
IA HduaiInn HiA tHU gQfFma
tfHHrHr mas tH aHHU.iUI ana Ha
NJ fsnHl H0HfB
AfiHH hIHHr'm W.H4 saf n.