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

| last half OF the year 1903 and not one
dollar OF profit in dividends was a.
cured by the stockholders by reason
/ of doubling its capital stock In 1893.
nor any contingent benefit other than
being enabled thereby TO float bond
Issue, without which the Rapid TranI'|
enterprise would probably have been
lspeedily forced into bankruptcy Thai
lexpedient was sound brides temper
arily used over a narrow but yaWn
ing chasm.
First Dividend One Per Cent
| In 1903 the first dividends Wefc
lEaid on our common stock at the rate
Of one per cent for the year. The roe
/ on the preferred stock, the maximum
issue OK which has been S350,000, W.
fixed when authorised e. siH per Gem
which has been paid each year be9|n.
ming In 1908. In 1904 and 1905. four
Hper cent only was paid on the CON.
mon stock; IN 1906. the annual rate
was reduced to three and one-fourI1
Iper cent, aud IN 1907 still further r.
Educed to three per cent In 1908, 1919
and 1910. the annual rate was again
four per cent, since which time e has
been six per cent.
Total Returns to Date.
The aggregate dividends paid to D.
cember 31st. 1912, have been S53I.
1856, covering eleven and one-fonrth
years OF operation. Al interest pay
ments for the same period have been
$406, S50.92, the combined dividend aud
interest payments thus being $685.
1871, an average Of $S3.390.00 Per
year. The approximate average cost
Iof the property during the same per
led, computed from the foregoing
TABLE, was $1,646,031. II the road had
been built without any bonds and
1.-THE above average of $4,000 paid a.
dividends 1t would have been at an
average annual rate Of five per cent.
Unusual Policy.
Ffnanciers from abroad have asked
me how the stockholders are going to
get off when the franchise runs out
4 we continue much longer our policy.
Unusual elsewhere, Of putting back
into extensions and service such Z
large proportion Of our net earnings
Il have always answered that we have
for some time past asked ourselves
F, the same question; that there were
two ways out Of it to ensure self-pres-
ervation; one was by shutting down on
extensions and betterments. reducing
expenses wherever possible and build
ing up q capital account sinking fund;
the other course was to 90 on expand
/, ing In extensions and service, keeping
pace with the development OF the city.
which could only be made possible BY
an extension Of the franchise on terms
fair and acceptable alike to the pub
/ lie and to the company; that We were
deeply sensible OF the fact that Il
would 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
ithe extent OF $707 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 125 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, | believe, anticipat-
led by him, could be drawn from the
following extract from the Governors
statement which might seriously pre-
judice the public mind, IL not other
wise informed of our history and pol
/ icy:
Again, IL the contentious ara
sound which the company will un-
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