Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-29
FRANCHISEGEIS
ANEW TWIST
tcontInued from Page y

I'D; provided, that said commission
shall not so direct unless in its opinion
the earnings of said corporation when
maintaining and operating such add
tons, extensions and Improvements,
together with its previously existing
railway system, will be sufficient fol
the reasonable. expenses OF ulaiEte
nance and operation, sinking funds
dividends or per cent per alnum on
the issued stock, and the cash basis
fund, as provided In the first ave sub
divisions OF Section IL of this Act as
amended; and said commission may
likewise permit said corporation 70
cease the maintenance and operation
or any portion of said railway, equip
ment and works, whenever in its opin.
ion conditions so warrant or require.
Any additions, extensions or improve
ments made or acquired by said cor
poration may be paid for in whole or
iIl part out of earnings or the proceeds
OF bonds or the proceeds of stock or
otherwise as said corporation may de-
termine unless otherwise directed by
said commission.
Section g.. That section 3 of said
act So lsection S37 of said revised
laws) is hereby amended by striking
out tho second proviso in the first
paragraph thereof and inserting in
lieu thereof the following:
And further provided that the said
railway shall not be operated with
cars propelled by tho use Of steam or
animal power, but such. parts thereof
may be operated with power develop.
ed by the use of internal combustion
engines during such hours as may be
approved by the commission referred
TO in section 2 of this act as amend
cd"
Section a. That the first two sub
divisions of section 9 of said act 50
(rcvised laws, section S42) are here
by amended to read as follows:
81. Until the expiration of the
term OF thirty years for which the
franchise was Originally granted, said
corporation may charge each passen-
ger for a continuous ride anywhere
between Wailupe and the westerly
side of Moanalua valley and between
the sea coast and line parsley there's
to four miles inland such fare not ex-
ceeding five cents as it may fix. and
for continuous ride wholly or partly
without said limits such fare as it
may fix with the approval, as to any
excess over five cents, of the COM
mission referred to in section 2 OF this
act as amended; provided that chill
dren under seventeen years of age in
going to or from school shall not be
required to- pay more than half fares.
"2. After the expiration of said
term of thirty years only such fares
may be charged as shall be approved
by said commission, provided that the
commission shall not require re-
duction OF fares unless in its opin-
ion the earnings of the corporation
after such reduction will be sufficient
for the reasonable expenses of main
tenance and operation, sinking funds,
Dividends of eight per cent per an
mum on the issued stock, and the cash
basis fund, as provided in the first
five subdivisions of section IL of this
act as amended"
Disposition Of Income.
Section g. That section IL of said
act 50 (section S51 of said revised
laws) is hereby amended to read as
follows:
Section IL. Disposition of income
The income of said corporation shall
be disposed of as follows:
Il. There shall be paid out of
said income the expenses of mainten-
ance and operation Of the railway and
the equipment and works connected
Herewith, including repairs, renewals,
taxes, interests, insurance premiums.
damage claims and all other expenses
connected with such maintenance and
operation. Such expenses shall be
reasonable in amount and the commits
sion referred to in section 2 of this
act as amended may prescribe such
rules or make such orders as it may
deem proper to prevent the payment
of unduly large salaries or other
expenses. Said railway, equipment
and works shall be maintained in
first-class condition and said COM
mission may require the setting aside
and expenditure of so much of said
income as it may deem necessary for
this purpose
"2. There shall be. set aside each
year out of said income TO the credit
of sinking fund for the redemption
of the bonds, If any, of said corpora
ton such a sum of money that the
aggregate of the sums so set aside,
with interest thereon compounded
yearly at the rate Of interest speci-
fled in the bonds, would amount to
the par value of the bonds at their
maturity. Said commission. however,
may permit or require larger sum
to be set aside in any year. if there
is sufficient income for the purpose
after meeting the requirements of
subdivisions /, 2, 8, and of this
section. All income, if any, derived
from investments or deposits of said
sinking fund shall be added to the
fund. The monies in said sinking
fund shall be used so far as may be
for the redemption of any redeem
able bonds of the corporation. and
may, with the approval of said COM
mission, be used for the purchase of
Al