Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-20
VESSELS TO AND
FROM THE ISLANDS
Special Cable to Merchants
<......:s. Exchange .-
GOVERNOR FREAR
MAKES ANSWER

CONTINUED from Page ~
Ienses. During the last eight years
the annual gross earnings have in,
creased by 1921, 1914 while the an
nual running expenses increased by
only S32,66120 The annual net earn,
ings increased $199. 246.25. What a
good time is coming if this rate of in,
crease continues
Il do not merely cOncede, but !
affirm, as | have done previ-
ously, that the company has
done we'll in many respects.
l wish l could say that it had done
well in all respects. But the question
now is not as to what the company
has done in the past or what risk it
incurred during the first few years of
its existence. 1t is conceded to have
an unusually good franchise, and no
one, so far as | am aware, has pro-
posed to interfere with that franchise,
but the company itself is not satisfied
with a good thing 1t is saying that
the public should put itself irretriev-
ably in its hands for thirty-seven years
to come, trusting that it will continue
its good service and also that the pub
lie shall give it the hope of even
greater rewards because it incurred
risk for few years at the start, al
though it is now on firm founda-
tion. AS | said in my first published
statement, 1T is immaterial that the
company has thus far given good pub
lie service and that those in control of
it are high-minded men. That may be
a reason why the public should not
exercise its whip-hand, but it is not a
reason why it should surrender it's
whip-hand, or, in SO far as it has sur
rendered it, should extend the surren-
der for several additional decades. So
long as the company does its duty, it
should be given every reasonable con-
sheraton by the public and be treat
ed we'll by it, but no sensible commu-
nifty would now place itself irreyo-
cably for a long period within the
power of q despot, however benefieent
or benevolent that despot might be for
the time being. =... -.
Answering a Contention.
IF Mr.. Castles contention is right
that the stockholders are entitled to
all the earnings of the company, he
should consistentlyTobject hereafter to
paying the 21s per cent of the gross
transportation receipts which his com
pany's bill proposes, and he should
also take the position that it was most
unjust to provide in the original iran
chise act that after meeting running
expenses, extensions, dividends of S
Fer cent and interest and sinking
fund, the remainder of the income
should be divided equally between the
public and the company. Z.
"That any person should take the
view aud publicly state it at this day
that a public utility business and par
ticularly a street railway business is
like any private business is, to say
the least, astounding. All the modern
books on the subject, all the new fran
chises granted on the mainland, all the
settlements of old franchises must, in
Mr.. Castles opinion, be absurd.
As to Other Corporations.
Mr.. Castle asks why the Oahu Rail-
way & Land Co. and the lnter-Island
Steamship Company should not be
treated i'll the same way There are
several points of difference. In the
first place, there is vast difference
between a street railway, which oper-
ates entirely on the public streets in
q dense community, on the one hand,
and on the other hand an ordinary
railway which operates in the coun-
try and upon its own land which it
has purchased and steamship COM
pany which operates mainly on the
high seas, which are free to all. How
ever, the latter, are public utilities
and should be required to do the
square thing by the public and &C
cordingly l am urging the passage or
a public utilities bill with view to
bringing all public utilities under
public control Again, the Oahu Rail-
way Co. and the Inter-Island Co. are
rot asking for valuable extensions OF
franchises. No one. so far as | know,
has suggested taking an adverse stand
against the Rapid Transit Co. That
company, however, has come forward
and requested a most valuable prlXl-
lefe and the question is on what
terms should il be granted, If at all.
The railway company and the steam
ship company do not require any fran
chise at ALL The steamship company
has no franchise now and several. OF
the railroad companies in this terri
tory have no franchises in the sense
in which the Rapid Transit franchise
is understood.
Mr.. Castle speaks of an amortl-
cation fund for the stock. This Is an
important matter (which the inter
ests of the company should be pro
tected. Mr. Castles view is sound to
certain extent hut does not so f"r
pay for tn eproperty at the termind-
ton of the franchise or the COMPANY
should be permitted to set as'd" a
sinking fund for the purpose OF
gradually reimbursing the stOckhold-
ers for what they have put into the
company Otherwise the stOckhold-
ers would receive only the income on
their investment during the franchise
and not get back their capital. But
in either case the public should get
the property That is the point
which Mr. Castle OvcrloOks. He
rr-&,,JJ have thpir