Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-20
Hearing Develops Grave De-
fectS in Plans-S;mp!er
Substitute Is Suggested

Completely SCATTERING the three Pub.
lie utility bills now before the legis.
lsture, showing how they are ineon.
sistent and inapplicable to utility cor
rorations in the territory-in fact
how no commission can assume COLI
uol of the principal utility concerns
| i'll the islands, committee represent
| ing the Honolulu Chamber OF COM
IHerce, the Merchants Association
and the Hawaiian Sugar Planters As
| ISOLATION appeared before the house
judiciary committee at its public hear
ing last night with voluminous re-
| FORT that occupied two hours in the
| reading. a.. r.: -. .:.ss
At that, only the principal points
OF the report were touched upon. L. \.
Thurston and Attorney D. L. Whiting.
ton took turns in reading the printed
| discussion. which had been prepared
! by a committee consisting, besides
themselves. of c. R Hemenway, X. b.
| Anderson and A. l. Castle. ~
| First, they showed that except in a
few minor points, all three public
| utility measures now before the legis-
lature, one In the house and two in
the senate, are identical and tina; they
incorporate almost bodily all the fea-
lures of the California act, one of the
most drastic pieces of legislation on
the subject enacted in the States.
They explained that these provided
| for the commission control of Vir 'u1lly
I every department and line of activity
of the utility corporations, including
rates, rules and regulations and issu-
ance of stocks and bonds.
No Power Here.
! Second, they develop cd the fact that
this system cannot lie applied To cor
| porations in Hawaii because of fed
eral control and the franchises given
the more important concerns here by
congress; that over these companies
a territorial commission could exer-
else very little, if any. power.
Third, they explained that the most
satisfactory and perhaps only feasible
| commission that can be provided here
at present would be one similar to
those existing in Wisconsin, New York
and Massachusetts. They recommend
| ed that It. be given authority to work
| for the abolition of secrecy and COM
! Eel publicity of corporation affairs;
have the power and duty to investi-
gate all utility company finances.
| rates, regulations, and charges against
| the concerns, and to make public its
findings; the power and duty to rec
ommend rates and charges
The bills now In the legislature
would provide for complicated com
mission bodies, highly expensiye; the
report states the territory could not
maintain them for two years on less
than 100000 The committee recon-
mends that a commission be chosen,
as for instance, selecting the terrific
| rial secretary, the attorney general
and the superintendent of public
| works, giving them a stenographer
| and secretary, and thus handling the
subject at less expense and at the
same time accomplishing the desired
| result
Because of existing franchises,
granted by congress, and because of
! the interstate commerce law and the
| general federal statutes applying to
concerns within the territory, the re-
port enumerated the following island
| corporations over which a territorial
commission could have either very
small or absolutely no power: The
o. R. & l.. Co., Honolulu Rapid Tran
sit and Land Co., Mutual Telephone
| Co., Hawaiian Electric Light Com
pany, Honolulu Gas Company, Island
Electric Company of Waikiki, Maui;
Lahaina Ice Company, Pearl Harbor
Traction Company, Kau Ditch Com
Lany, Hilo Street Railway Company,
Wahiawa Water Company. Also, be-
cause its traffic is over the high seas
and passes outside the three-mile
limit, the committee stated that ter
ritorial body could not exercise juris-
diction over the Inter-Island Steam
! and Navigation Company. ->~-
| Attorney D. L. Wilmington pointed
out clearly and in detail the difficult
ties that arise when an attempt is
made to apply the far-reaching bill
drafted for the California situation TO
the peculiar situation in Hawaii. On
this subject, he said: :.
| when, however, we come to the To-
cal situation, the act is in direct vio-
lation of the general policy of Con-
gress shown in the organic act, which
reserves the granting of franchises to
the control of Congress and commits
to the superintendent of public lands
and the superintendent of public
works powers and duties sought by
this act to be imposed on the proposed
commission; with the explicit dec
laration, in the recent Hilo street rail-
road act, that Congress may authorize
the regulation of public utilities in
| Hawaii-which 1t has not yet done
with the recent legislation which has
brought the Hawaiian railroads under
the interstate commerce act, with va
rious charters which are contracts not
subject to change by legislation, with
the congressional charters which
lhave inconsistent provisions and
which can only be changed by Con-
gress, and with the power of Congress
to regulate commerce on the high
seas. ~
The following is a mere schedule