The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1914-08-21
APPROVES. Or
. C0MPANY's
POLICY
Utilities Commission, in Exhaus.
.tlve Report Declares Inter
Island Corporations Dealings
With Pubic Are Governed BY
Spirit Of Fairness -.

Il FAsh - uhAS Az SFoNoAACo. W
Spirit Of Fairness. -.
The public utilities commission pre-.
sented lis report on the lnterisland
Steam Navigation Company TO Gov.
ernof Pihkham saturday.
Rs conclusions are .thsft 'tfrortI the
evidence which has been taken II would
lappear that the BUSINESS policy Of this
company Is to meet its obligation TO
tho poblie IN O spirit Of fairness and
Accommodation. y
The report Is briefeap concise. The
findings are supported by a mass Of
detailed information representing the
results of many months Of careful in
vestigation. 1t is one Of the most com
lprehensive and careful reports ever pre-
pared by any public Investigators in
this Territory
Commissioners j, N. s, Williams and
| A. j. 6ignonx state IN their iRtrotlae
tory remarks that the investigation was
not undertaken sin response 10 any
formulated complaint on the part Of
individuals OF business organizations
but for the purpose Of having before
the peOpla o. Hawaii q plain statement
lie services rendered by this transpor
tati06 company an on is own initiative,
or motion IN accorda-"n -~ith Act S.
of the Session Laws Of 1872
Reviews IT'S history.
Tho rep0rt takes up in brief the his,
tory or the oigaBizazon sihce 1900,
the growth of the transportation bust
ness and the extension OF its usefulness
Go the community as shown by taxes
paid and dividends declared; the extern
to which stock is held by individuals
aRd corporations; the company's pub,
lie utility equipGIent, IFS character and
effieithey scope Of operation, and the
management Of It's affairs with respect
10 the safety, and convenience Of the
public and the company y employee.
They Also treat in their report %
the passenger and freight rates eharg
cd, Shs methods of accounting AMI dis
position. of net earnings and, fnall9,
tho policy governing the board OF ~
rectoss ~ It's dealings With the public
and it's employees sar5 ~
Il SIG. Wilder started d steamship line
in 1877 on a six.year charter whfch pro.
vided that Ms single vessel, the Xxi.
lauea, would carry the mails, the King
and royal family free and that he
would erect at his own expense a dock
and wharf she'd. rFA fp5l.Ets aa ~
| In 1873, after the expiration Of this
charter, the Wilder Steamship Compa,
ny was feFmed This was capitalized
for 100000 II started with fouf
steamers, the Kinau, Likslike, Lehls,
and Mokolii. This company disincor-
pointed in l9O5, when the merger took
place with the I.-L 8. NJ Go. N
The Inter. Island was incorporated in
1852 with $S00,600 capital stock. This
was increased to 100000 and then
$s00,0e0 In 1906 TO $l,5Oo,00O il 1895,
and to $a,250,000 in 1909. @
@ Consolidated In 1905.
The merger Of the two companies
was brought about in 1908 by the con.
ditions imposed as a result of the ap-
piication Of Federal maritime laws to
Hawaii and for Politieai reasons. In
This connection the report says
III. There was great increase in
cost Of operation expenses of vessels
beeause licensed officers had TO be en-.
ployed and safely appliance installed
-. There was rapid increase of the
quantity Of freight shipped from out
ports to the mainland. ~, $751; e..
s.3 Wages and material costs il.
creased. - 81. '.r.& T.. .....
because Of these three primary rea
sons the amaleamation OF the two com.
panies was business necessity for
the reduction of operation costs and
overhead charges. The two concerns
were never competitors at any time
during their existence. ...,, .-....g
The growth of the compahys bust
ness dates from the amalgamatioh m
1908. IN 1904 the III 3. N. Co. paid
$6l02 taxes and no diyidenas. In 1918
the company paid $22,83O taxes and @
piRe per cent dividend of sos, 400.
One hundred and ninety eight indivi
daals own l7,762 shares out of the total
22,5OO. Thirteen Hawaiian corporations
own 4T3S shares and no shares are held
by foreign corporations.
a large share OF the business OF this
company Is of a non.publie utility nat
IRE, including ship-chandlery, drydock,
marine railway and eeaI business. These
are outside Of the commissions author
ity to investigate,
fst. Owns sixteen Vessels.
The public utility end Of the con
eern owns sixteen steamers totaIing
GS49 net registered tonnage, Offices, fur.
niture and fixtures, land, boats, moor.
lngs, floating appliances, workshops,
tools and appliances all valued al
$l,779,349. I
The public utility functions are pas
senger, mail and freight transportation
and towage and salvage. 49,
The steamers 90 alongside Of
whhryes at Honolulu, Kahului and Hilo.
Besides Hoholulu the steamers trans.
act business with forty-six other ports.
The lack of wharf facilities makes
freight and passenger handling at the
outports q costly and hazardous under
taking. The rough waters compel the
employment of vessels built to stand
ocean'going eonditions--stoutly built,
powerfully engined and well manned.
aud oifieered. '.. H. II
The basis Of rates here lis the same
as everywhere else--''all that the traf
fe win bear with tendency Of rates
downward and of costs of operation