Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-12-04
Letter in FAVOR
. Of FRANCHISE TO
GO IOCAP|IAL
Confined nom page ose)

THE said bin for the proposed new
franchise was passed at the last ses-
sion of the local legislature after ex-
haustive discussion between the terri
torial executive, representative Of the
people and the directors of the Rapid
Transit Company, and It is. believed
that bill safeguarding the rights OF
the public in every. reasonable respect
has been submitted to Congress for
its approval.
1.-THE advantage of the proposed
franchise to the public may be indi-
Gated by the fact ti1at where the pre-
sent franchise, which expires In 1880.
allows capitalization of $2,750, DOC. 90
and permits q maximum dividend of
not to exceed s percent per annuni,
capitalization based on the cost Of
equipment, the proposed franchise lin
its the capital to 81 500, 100000, with q
maximum dividend Of not to exceed 8
per cent per annur1, and on its ex-
piration in 1850 the railroad will au.
tomatically become the property Of
the public, the capital investment be-
ing protected by sinking fund pro.
vided for out Of the net earnings.
For some unknown reason this bill
has been In the hands of the commit
tee for considerable time and SO far
as we are able to ascertain no action
has been taken on It; should this bill
fail OF approval by Congress before adj
journment in March next il will lapse.
"The Public Utilities Commission Of
Hawaii believes that unless good rea-
sons exist, which have not heretofore
been made known, the said bill grant
ing an extension Of 20 years to the
corporate life OF the Honolulu Rapid
Transit and Land Co. should receive
the approval of Congress, and 1t re-
specially requests that you interest
yourself In this matter, believing that
the influence that can be exerted by
your office will be most efficacious
in obtaining action on the part Of the
committee having the matter In
charge"
s According to statements which
have been made by Commissioners j.
n. 8. Williams and A. ]. Gigno1x.
there Is very little chance of the Pub
lie Utilities Commission taking up the
governors letters for; any further con-
sideration. 1t is the concensus or
opinion of the commission that fur
ther action lies with the transit conf
pany.
The governors report and the COM
missions communication to the sec
rotary of the interior is an outgrowth
of q recent meeting of the commits
sion at which Deputy Attorney gener-
al Arthur G. Smith brought up. the
matter OF the long waits which pat
rcns of the company often are sub
ject to at points Of transfer, from the
fact that passenger might hold
transfer good only. for certain line
while he might take the car OF an
other line and therefore save consid.
cradle time. - a>.. :. y
Mr. Ballentyne's reply to MIR.
Smiths query, and further action by
the commission, are set forth in the
following statement, taken from the
minutes of the meeting:
Mr.. Ballentyne stated that the
matter was one which could not be
controlled with q singletrack system.
IL the system was double-tracked, no
such inconvenience would occur. If
the new franchise was passed by con-
gress the company would be in pc.
sition to double track more of its sys-
tenn than at present, and more cars
could be operated. 1t is the COM
pany's intention to double track King
street its entire length. thus allowing
the Waialae car to come in on King
street. In this manner it would al
low a car about every three and one
half minutes along King street
The acting chairman stated that
at present the commission has no ju-
risdiction over the Rapid Transit and
Land Company until the new fran
chise. which was passed by the last
legislature and which now is pending
in Congress, is approved. The acting: