Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-03-20
FREAR
MAKES ANSWER
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lenses. During the last eight years
/ the annual gross earnings have in
creased by 1921 ,907.45 while the an
nual running expenses increased by
only So, 66120. The annual net earn
ings increased 1888 ,24625. What a
good time is coming IL this rate OF in
crease continues! ..... -
81 do not merely concede, but /
affirm, as | have done previ-
ously, that the company has
done we'll in many respects.
II wish | could say that it had done
, well in all respects. But the question
now Is not as TO what the company
has done in the past or what risk it
incurred during the first few years of
it's existence. 1t is conceded to have
an unusually good franchise, and no
one, so far as | am aware, has pro-
posed to interfere with that franchise,
but the company itself is not satisfied
with good thing. 1t is saying that
the public should put itself irretriev-
ably in its hands for thirty-seven years
to come, trusting that it will continue
! lie shall give it the hope of even
! greater rewards because it incurred
risk for few years at the start, al
though il is now on firm founda-
ton. As ! said in my first published
statement, 1T is immaterial that the
company has thus far given good pub
! lie service and that those in control of
lit are minded men. That may be
reason why the public should not
exercise it's whip-hand, but itSis not a
reason why it should surrender its
whip-hand, or, in so far as it has sur
rendered it, should extend the surren-
der for several additional decades. So
long as the company does its duty; it
should be given every reasonable con-
sideration by the public and be treat
| ed well by it,, but no sensible commu-
nifty would now place itself irrevo-
cabIy for long period within the
power of q despot, however beneftcent
or benevolent that despot might be for
the time being .. II. ..-.
Answering q Contention. .:.. T
"If Mr. Castles contention is right
that the stockholders are entitled to
all the earnings of the company, he
should consistently object hereafter to
paying the 21s per cent of the gross
Transportation receipts which his com
panys bill proposes, and he should
also take the position that it was most
unjust TO provide in the original iran
chise act that after meeting running
expenses, extensions, dividends of 8
| Cer cent and interest and sinking
fund, the remainder of the income
should be divided equally between the
public and the company. .'.@.
THAT any person should take the
! view aud publicly state it at this day
! that public utility business and par
/ ticularly q street railway business is
like any private business is, to say
the least, astounding. All the modern
books on the subject, all the new fran
chises granted ON the mainland, all the
settlements of old franchises must, in
Mr.. Castles opinion, be absurd.
AS to Other Corporations.
"Mr. Castle asks why the Oahu Rail-
way & Land Co. and the Inter-lsland
Steamship Company should not be
treated In the same way. There are
! several points of difference. In the
| first place, there is vast difference
between a street railway, which oper-
ates entirely on the pubic streets III
I a dense community, on the one hand,
| and on the other hand an ordinary
railway which operates in the couIl-
: try and upon its own land which it
/ has purchased and a steamship COM
pany which operates mainly on the
| high seas, which are free to ALL How
ever, the latter, are public utilities
and should be required to do the
square thing by the public and &C
/ cordingly / am urging the passage of
public utilities bill with view to
! bringing all public utilities under
public control Again, the Oahu Rail-
! way Co. and the Inter-Island Co. are
rot asking for valuable extensions OF
franchises. No one, so far as know,
! has suggested taking an adverse stand
against the Rapid Transit Co. That
company, however. has come forward
and requested most valuable privi-
lefe and the question is on what
terms should il be granted, ri at all.
The railway company and the steam
ship company do not require any fran
chise at all. The steamship company
/ has no franchise now and several OF
the railroad companies in this terri
tory have no franchises in the sense
in which the Rapid Transit franchise
| is understood. ...s .#-..-.. -.
Mr.. Castle speaks of an amorti-
| zation fund for the stock. This is an
important matter in which the inter-
ests of the company should be pro
teeIed. Mr.. Castles view is sound to
| a certain extent but does not 50 i'.r
! enough. Either the public should
pay for the property at the termina-
! ton of the franchise or the COMPANY
should be permitted to set aside Il
sinking fund for the purpose of
gradually reimbursing the stockhold-
ers for what they have put into the
company Otherwise the stockhold-
ers would receive only the income on
their investment during the franchise
and not get back their capital But
in either case the public should get
the property. That is the point
which Mr.. Castle overlooks. He
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