The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1914-10-02
HILg RuLRgAD
PASSES INTEREST
President Dillingham; Makes an
Optimistic Statement
Nevertheless -

The Hilo Railroad Company failed
to pay six months interest coupons,
Amounting 10 $4,000, coming due on
the bohdei debt, yesterday morning.
President B. n Dillingham; makes the
following statement Regarding this:
'srhe gross earnings Of ms, comgqny
for the year ending June 30, .lyi-, q ere
1896, 404.00 The cash operating ex.
penses amounted 10 s259;240.OO, leaving
surplus available 70 meet sxed charges,
$3.50, 164.00.
1.-THE axed charges: interest, rent
and taxes, amounted to approximately
1915, 10000; cash deficit, $ls4, $4,000. 7
There are some bookkeeping ae.
counts In addition 10 the above, but
this represents the approximate eur.
rent cash status of the company; that
is, this amount of additional cash was
required to break even on the year 4
business. ta'.'- 1sS'
Cause Of the Deficit
t'fho cause of the deficit is the
failure to secure sufficient business.
This Is due to two main eanses, viz,
t,t1) The usual delay, incident 60
all railroad enterprises, in the building
up Of business along the line; NE
"(2) The failure 10 secure con.
siderable portion Of the existing bust.
ness along the line.
HThe company has made strenuous
efforts 10 secure this additional bust.
ness, and will continue to do so. IA
= The company has already reduced
its operating expenses considerably be.
low THOSE Of last year, and can do a
much larger business at slight addition
fal cost ,f'
''The securing Of additional busi.
ness, reasonably available, win put the
company on its feet.
Future Status n
"Under the bonding mortgage, the
company has six months in which to
make arrangements to meet the cou.
pons. IT win use its best endeaVors
during this time TO secure additional
business and hold expenses down
There is enough business now in
sight along the line Of the road, If il
can be secured, to put the road ON a
paying basis. There is also a large
adjacent territory capable of cultiva
tioh, which can eventually be devel
oped through the medium OF the rail
road, and afford more than sufficient
business TO support the railroad and
liberal extensions thereof. = Fry
"The completion Of the wharf III
Hilo has already brought some new
business to the railroad and will bring
similarity 10 OAHU Railway Conditions
ftThe Hilo Railroad Is now passing
through the same experience that thu
Oahu Railway did during it's early
years, The public do not remember
but ] do, that the Oahu Railway did
not pay a dividend for eleven years af
ter II was started; nor that its pay
rolls, even, could not at times be met
to say nothing Of fixed charges. g.
The Hilo Railroad has better out
look, in some respects, than the 0ahl
lid when il was started, for the for
tne- WINS built into m almost .barrer
and undeveloped. territory, whereas tn,
lIilo road runs through the most pop
ulous section of the Territory, ontsid,
iof Honolulu, and one Of the most high
ly developed. g.
Looked at from the bondholders
point Of view, it may be stated tina
even with its present business only, tn
company is able TO earn It's operating
expenses, rent, taxes, and approximate
" four per cent interest on the bohde
debt. X, 1sF WI! i{s
"ANfull statement will be prepare
TAT an early date and submitted I
bppdholdsrs and Others financially IL