The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1913-04-08
RAPID TRANSIT
HAVE NEW
BILL
includes Some Changes
From Merchants
Suggestion.
(From Monday Advertiser.)

Rapid Transit Company delivered, on
Friday evening, TO the merchants as
snciation. aud to the Governor their
proposed notifications OF the bill sub
United 10y Charles X. Hemenway, at
torney for the merchants association,
and explained by the Governor at the
public hearing ON Thursday evening,
hut ny yet counsel for the merchants
association have found no opportunity
to confer with the attorneys for the
rapid transit.
There is only one radical difference
between the bin as submitted and the
bill as proposed by the company. The
rapid transit IS cntirely willing to ac.
ccpt the figure named by the mer
chants association--$l 500, 000-as the
stock on which the dividend Of eight
per cent is to be paid, and agrees that
the road should be brought at once
under the supervision OF public
utility commission, and in the proposed
bill the company goes further than the
merchants in their bill in placing the
company under its supervision.
For Extensions.
The only radical difference is upon
TIE point as to whether the provisions
OF the existing charter, which authorize
the company to take over the property
of other trolley companies and to unite
and. to consolidate their stock with
such company, and to enter into leases
and agreements to operate the lines oil
other companies and TO take shares IN
them should be continued in the new
charter. The sections were inserted in
the Act in 1878 in order to allow the
company to extend, through other com
% hi ngI
is being done in the extension to Pear
lIarbor through the Pearl Harbor
Traction Company. Thus, for instance,
+. as under the me. chants bill, which had
intended to protect the extension to
r., Pearl Harbor, these provisions are re-
peaied and the Rapid Transit could not
wake that extension, as the Pearl Har
Dor Traction Company is distinct
company, having franchise from con
lress and permission from the war de
partment to cross the military reserva
-rtioH, obtained alter years of effort
The repeal Of these provisions, as sag
gestcd IN the merchants association
Eill, would prevent further extensions
of similar character; while under the
now proposed company's bill they could
be made hut only with the approval OF
the public utilities commss on up to
' 1925, and only to a small extent with
ont that approval after that time.
Use of Surplus.
The company bill, in effect, privides
flat ali revenues of Incorporation, at ter
its running expenses and the dividend
and small sinking fund for the exist
ing londs are paid, shall be used as
directed by the public service commits
sion in extensions up to 1925. At that
time, or earlier if directed by this com.
mission, sinking fund for the stock
begins,
Under the merchants association
bill this surplus would be tied up in a
trust company, so that it could not be
used by the rapid transit in extensions.
Under the company bill, this could
be used and stock or bonds as well, il
permitted by the commission, for ex-
tensions
lot one dollar of the revenue, out.
side Of the dividends, goes to the com.
pany until 1925. Every dollar is sub.
ject to be used for extensions at the
direction of the commission.
1t is true that in each bill three.
fourths OF the surplus goes to the pub.
lie. and one-fourth to the company;
hut, as has been shown in the expert.
once of the road up to this tire, every
90 lar VIII be used in the future, as it
has been in the past, for extensions
and improvements of the service.
Specific Changes.
The specific changes are as follows:
Making clear that the streets and
roads in the land of Halawa are in.
cluded in the franchise;
Leaving out the ENTHUSIASTICALLY
llXF.4r tru lxr tYgn t,I :. l.
ligatOry to operate lines which might
lie built by others;
Making clear that the findings of tn
commission shall be on the facts;
Striking ont the requirements that
the road must build on bonds if requir.
ed by the commissioner condition i'm
possible of fulfllment;
Leaving IL optional with the com
riifssion to permit building on the stock
or bonds,
Fixing the date of the expiration OF
the present charter as July j, 1880, in.
stead Of leaving it indefinite;
Providing, in view of the fact that
the five-eent fare is to extend from
Waimpe to Moanalua, that the contin
nous ride must be in general d.rec.
ton.
The only other changes, other than
verbal, are those providing that the |
rate Of speed shall be subject TO the
control of the commission, which is not
provided in the merchants proposed
bill and fixing the rate for the sinking
fund at four per cent for the bond
fund and five per cent for the stock
sinking fund, in place of the unwork.
able rates set cut in the other bill
The company proposes. in regard TO
-tnis, further that If the rates put by
them into the bill, which in the case
Of toe stock sinking fund is the rate
pnt in the original act in 1898. are nm
satisfactory, that they be left to the
commission to fix from time to time as
the state OF the money market may
warrant. in the case of the stock
sinking fund, the company proposes that
instead Of that fund being put in the