Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-04-04

lS0nNlnQGo from F&9G III
changes or improvements made CT &C
quired by said corporation shall be
commission shall permit or require
them to be paid out of the proceeds
of bonds or unless 1t shall permit
them TO be paid for out OF the pro
ceeds of stock.
Section That section of said
act 80 (section SS7 of SAID revised
lawsl is hereby amended BY striking
out the second proyiso in the first
paragraph thereof and inserting In
lieu thereof the following:
And further provided that the
said railway shall not be operated
with cars propelled by the use OF
steam or animal power, hut such
parts thereof may be operated with
power developed by the use OF inter-
nal combustion engines during such
hoprs as may lie approved by tho
commission referred to in section 2
of this act as amended.
Section T. That the first two sub
divisions of section Of said act 50
Revised Laws. sec. S43l are hereby
Il. Until the expiration OF the
term OF thirty years for which the
franchise was originally granted.
said corporation may charge each
passenger for a continuous ride any
where between Wailupe and the
Inorthwesterly side of Moanalua val
ley and between the sea coast and .
line parallel thereto four miles inland
such fare not exceeding five cents as
it may A. and for continuous ride
wholly or partly without said limits
such fare as 1t may hx with the APP
prevail, as TO any excess over fTe
cents, of the commission referred to
In section 2 Of this act as amended;
provided that children under seven
teen. years of age In going to or from
school shall not be required to pay
more than half fares.
y. After the expiration OF said
term Of thirty years only such fares
may be charged as shall be approved ;
by said commission, provided that
the commission shall not require a
reduction Of fares unless In its opin-
ion the earnings of the corporation
after such reduction will be sum
Gent for the. reasonable expenses OF
maintenance and operation, sinking
funds, dividends Of eight per cent per
annum on the issued stock, and the
cash basis fund, as provided In the
first five subdivisions Of section ~
Of this act as amended; and likewise
If 1t shall appear after q trial for q
REASONABLE period that such. earnings
are insufficient for such purposes
after any, such reduction shall have
been required, said commission shall
permit such an increase in fares a.
will make such earnings sufficient
for such purposes $780,
Section 5. That section II of said
act SO (section s51 OF said Revised
Laws is. hereby amended 10 read as
follows:
Section IL. Disposition Of income.
The income. Of said corporation shall
be disposed of as follows:
4. There shall be paid out OF
said income the expenses Of mainten-
ance and operation of the railway
and the equipment and works con-
nected Herewith, including repairs.
renewals, taxes. interest, insurance
premiums, damage claims and all
other expenses connected with such
maintenance and operation. Such
expenses shall be reasonable IN
amount and the commission referred
to In section 2 of this act as amend
ed may prescribe such rules or make
such orders as It may deem proper
to prevent the payment Of unduly
large salaries or other expenses. Said
railway, equipment and works shall
be maintained in first-elass condition
and said commission may require the
setting aside and expenditure OF so
much Of said income as II may deem
reasonably necessary for this pur-
pose.
"2. There shall be set aside eheh
year out OF said income to the credit
of a sinKlHg fund for the redemption
of the bonds, II any, OF said corpora
ton such sum Of money that the
aggregate of the sums so set aside,
with interest thereon compounded
yearly at the rate OF interest specf-
fed in the bonds. would amount to
the par value of the bonds at their
maturity. Said commission, however,
may permit or require a larger sum
to be so set aside in any year, II
there is sufficient income for the pur-
pose dILeT meeting the requirements
Of subdivisions 1, 2, 8, and 5 of this
section. All income. If any, derived
from investments or deposits of said
sinking fund shall be added 10 the
fund The moneys in said sinking
fund shall be used so far as may be
for the redemption of any redeemable
bonds of the corporation and may,
with the approval Of said commits
sion, be used for the purchase Of any
unredeemable bonds of the corpora
ton
"a. Cumulative dividends may be
paid out of said income. If sufficient.
after meeting the requirements Of
subdivisions and 2 of this section,
at the rate of eight per cent per an
mum on the outstanding capital stock
issued by said corporation and shall
be paid so far as may be each year
unless otherwise permitted by said
commission. .:...-t r. -
po1iY,nfn0 In the vaar 1923 or