The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1913-03-21

tense of the measure he had presented
to the legislature through Senator
Judd. Both the Governor and the com.
pany issued statements Yesterday, the
former replying to Mr.. Peck s letter in
The Advertiser and the latter issuing II
counter reply.
Mr. Peck IS statement says:
Reply to Governor.
Editor Advertiser-One of the sen
fences in my communication to you
published this morning, through ty.
biographical error in your Office was di-
vested of any meaning. The true
reading should have BEEN;
81 will say now rs | have always
said when discussing these financial
questions that it is the disposition of
the income, which most vitality affects
the public, and that the question of
stock and bond issues, detached from
| the question of the fairness of the
rates for service, and the apportion-
ment of revenue is of much less mo-
ment. Governor Frear fully realizes
| the force of this position in his various
communications to the press regarding
the legislative bills for an extension
of the Rapid Transit franchise.
| He therefore enlarges on the fact
that the company mt one time issued
| $500,000.00 IN stock, and by mere as
sumption, not only states that 1t was
all water, but by further assumption at
tempts to make the public believe that
it has ever since, even though under
laid by share bought property remained
as water, and has been used as bas's
for many unwarranted dividend pay
ments, since distributed to the stock
holders in cash! That this is all pure
assumption | need only refer your
readers, who are willing to follow this
more or less technical discussion, to
the statements and tables in my
letter which you published this morn
ing.
As shown thereby the increase OF
stock alluded to, was used temporarily
, as a basis to validate the new bond
} issue, and not for the purpose of de
irving any income or dividend from it
although it was partly underlaid by
money, otherwise available for diyi
dends The statement also showed
that no dividends have ever been paic
upon il to this day as representing
bond-bought property, contention
which the Governor sticks to, appar
emily in almost every column of his
communications.
AS stated in my letter not one dollar
of dividends was paid to the stock
holders until the fall of 1903. In the
meantime, additions were being con
stantly made to the physical property
of the company. This was paid fol
from month to month, out of its earn
ings, substantial portion of which
represented profits which could have
been paid to the stockholders in div
dends, and also further sums whicl
could have gone into sinking fund re
serves. To make such disposition, oil
the income, however, was foreign t.
the policy of the company. On the
contrary, it has consistently followed
the plan of leaving as much revenue a'
possible in the business merged will
its other working capital, where from
year to year, with ever increasing
power, it would likewise serve the pub
lie, by affording, what many have
stated to be the best machinery, thu
best tracks, the best ears, the bes
wage scale, and the best service to b.
found in any American city.
In this afternoon paper, the Gov
ernor states that ! persist in misunder
standing him, and that in doing so,
unwittingly concede his argument
think j now understand the Cover
nor s position.
Two years ago in the lengthy con
ference we have each alluded 90
which took place just after the clos'
of the legislative session, he endeayOr
ed 10 draw picture of the direful re
suits which might follow if our fran
chise rights were administered by the
company only from the standpoint o.
self-interest. At the same time, HI
was free to admit that such condition.
had not yet prevailed. He did no
commit himself AZ that time as to hi
conception Of the meaning Of our fran
chise, and seemed more ready TO lister
to my views of IL, than to tell me VIII!
be would not allow il TO 90 up Il
Washington with his approval alonl
with the lllo. street railway franchise
whore II could be put in upto-dat,
form in congressional committees, IL ~
desired. Neither have I nor has thl
company proposed TO avail ourselves Of
any such construction Of the franchise
as that apparently adopted by cover
nor freur Ind Secretary Mott Smith
The Governor " Seems Is hndul
now meanings 10 IL day by day, an'
Wys that tho more ho goes into n th'
more feWiul mi wonderful bee hud
H. 20 lo Whom lc Rris thfougI
WIth hH study Of ~ pfhpp
Dog nuoihfr conference ffhls iim'
nopr u thr presence 0f pH
mufu1l friends thH puIiFI, thI
Governor Hud fhr represent HilEas o
tha company con gof tatffHrr au
ItHH ilHt Win recognize frt of lll
tHHi WhW che tnfNhpldafs haFr ru
lrin ihr property either through iH
rHrlHar "a stool nf ihmHfH ihH fli
iuHl ff Investment nf ilH irHta Dbl
.irUH .UIB Ca tErm