The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1913-04-04
GOVERNOR OUTLINES SCHEME
BUT SENATE HEARING ENDS
IN UNCERTAINTY.
(From "Wednesday Advertiscr)


X amount of twenty-five per cont. X
X over all. Then deduct one half of X
X the excess of these revenues for X
X the Territory. 4
X "That would give the company X
X stock to the amount of S1,435,000. X
X Another way of figuring would X
X give them $SS4,375. But allow X
X them the highest figure. We must Il
4; look at it in n broad, fair way X
x They are asking us for fran X
X chise for thirty-seven years in y
X stead of fourteen, as at present. y
X They are asking us for sure X
x thing of eight per cent, which \
X they do not now have.' y
X X
Where are we ati
So far as solution of the Honolulu
Rapid Transit & Land Companys fran
chise question is concerned, this is
what the members of the special SEN
ate committee and the alf-hundred or
more interested spectators and attor-
neys asked themselves at the conclu-
sion of the meeting called to discuss
the franchise last night.
H. Tenney Peck, president of the rail-
road, accompanied by attorneys for tho
company and H. Gooding Field, the ex-
pert accountant, was present to answer
in detail the arguments set forth by
Governor Frear last week in favor of
franchise measure which he has pre-
pared.
Senator Cecil Brown, chairman of
the special committee, presided. Presi.
dent Peck began by asking Governor
Frear several questions dealing with
the issuing of stock in the corporation.
Pertinent Questions.
of this railway had been built,
said President Peck, "without bonds
but entirely by the stockholders and
not on borrowed capital, could the cor
poration issue stock up to the amount
expended, plus the twenty-five per
cent7''
"For present purposes, yes, replied
the Governor.
"Could they have paid themselves
eight per cent. in dividends on the
gross revenue, less operating expenses
and fixed chargesi' continued Presi
dent Peck "Besides paying that
could the stockholders set aside eact
year such sum, which, compounded
annually at five per cent. per annum
would extinguish. the capitalization
was another question.
AS the company thus far had moi
done these things, but expended most
of its surplus in extensions and improve
ments, the purpose of the questions was
seen. To both of the interrogations
the Governor replied in the Affirmative
President Peck, with much feeling
explained that the purpose of Mother
Castle in building the railway in Ho
nolulu was first to provide a service
which would meet the needs of the peo
pie, that all thought of profit was given
up until such time as the service would
warrant and for this reason the earn
ings of the company have gone back
into extensions and improvements that
up to the present time the company has
deferred starting a sinking fund.
To establish that the company has
not taken advantage of its right to is
sue the full amount of stock to which
it would be entitled, President Peck
continued:
Putting Money Back.
eff the railway were built by stock
holders without bonds, and il eight pei
cent per year might be paid out of any
revenue of the company, but if this
dividend were not paid, could the stock
holders put this money back in the
treasury for stock and in addition get