Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-12-03
governor REFUSES TOURGE
APPROVAL orr. I. FRANCHISE

given this bill your careful considera-
ton, have you not?
Mr. PinkhamII have read IL very
carefully. I have made my statement
as concisely as possible, and, as | I'M
derstand II, the operations OF the sink
ing fund, If they are carried out as
planned, mean that the sinking fund
simply discharges the obligations TO
the stockholders of their original CAPT
tai and turns the property over to the
public, and that, ! understand from
Mr. Peck, Is the effect, and Gov. Frear
does not dispute me.
Gov Frear-That is correct.
Mr.. Pinkham-So one could hardly
ask more from a community than
that. ! do not quite agree that they
will have a pile of old junk there I'M
der any circumstances because the
public would not stand to have ii de-
cline into a junk pile, even II there
was any provision for getting money
out OF ii or not. II is very rarely that
q corporation has to surrender prop
erty without some reasonable and
proper consideration. The public does
not appropriate property that way be-
cause the company, l presume, would
have a right TO remove their belong
ings from the street and take their
movable equipment away, and all that
kind of thing. So that 1t has not par
ticularly impressed me, but what does
impress me is the fact that through
the sinking fund, in a very reasonable
manner, the public becomes the pos
SCISSOR of that railroad unless they
want to previously make some invest
ment and get ii in their possession
sooner, and that they can do today
practically on the same terms as the
sinking fund.
Mr.. Curry-Governor, you approve
this bill, then?
Mr.. Pinkham-Yes, sir; ! approve
the bill so far as / have been able to
analyze it. | do not say that have
gone into Il in way that might, and
be responsible for il like Gov. Frear.
But there is no reason why / should
doubt his wisdom in the matter. :
What Ex-Governor Frear Says. F..
Extracts from tentative draft OF re-
port. prepared at Washington, ID. c.,
by Governor Frear at the request OF
the House Committee on Territories:
when the franchise was granted
the only street railway in the city
was one about 12 miles in length,
operated by mule power, and owned
and controlled In London. 1t gave
such poor service that number OF
the residents organized the present
corporation, obtained the present fran
lchise, bought out the mule-car COM
pany and installed the present electric
system, which now includes Is miles
| Of main line besides many long sidings
and some double track, and gives ex-
ceptionally good service.
"The franchise conferred on the cor.
poration large powers as to the issu-
lance of stocks and bonds, the creation
Of both stock and bond sinking funds,
and the payment of dividends, but did
not impose upon 1t any obligations TO
extend the system from time to time
as the needs Of the city might re-
auire. Thus far, however, the corpOr.
alton has not only kept its overhead
and aggregate operating expenses uri-
usually low, notwithstanding that 1t
has employed citizen labor almost ex.
lclusively and at unusually high wages,
but It has devoted its net earnings
largely to extensions of the railway
system and improvements Of the ser
vice, and has not issued as much
stock or paid as large dividends as
the law permits. or set aside any
earnings whatever towards q stock
sinking fund, or set aside as much as
the law permits towards bond sink.
ing fund. For instance, although the