Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1914-12-03

account of Bond Re
| demptions ....:...... $4,000
Cash Paid from Earnings:
! Tangible Physical Prop
erty ........,........$ 22S .9u7
Hawaiian Tramways Fran
ChlSe ...... ........... 400
Pearl Harbor Traction Co..
Limited ............. 79,024
$l.7Q4.37l
! Undivided Surplus Earnings. 525 ,SSS
! Territory's One-half share of
Undivided Surplus Earn
NgS ...............-...$ 2O2,9i4
Estimated revenue, based on aver
age Of previous nine months revenue
Total Cash Capital Furnished by
Stockholders Of the Honolulu Rapid
Transit and Land Company on Tan
9iOIe Property.
Total cash paid in. $606 800
Bonus on same as cash. .... 1916
Total Observation-Disclosures. .$7JH, l25
Territory's Contribution Paid and to
ee Paid From Surplus Earnings in
Excess of Legal Eight per Cent Div
idends on Tangible Property.
Public Contribution .......$ $1,000
Ponds Retired .............. 1874 900
Bonds to be Retired .. 400 900
$6lS,000
On Intangible Property.
(Hawaiian Tramways Franchise expir-
ing Sept. Is, 1850
Stock issued in exchange S 101, 900
Bonds issued in exchange . 100000
5 $4,000
Unseereeated Surplus.
AS shown in Summary. ....$ 262 ,944
Total Interest of Territory. 81 Isl ,944
Recapitulation.
Stockholders ($151,6 25 being
bonus) ....... .........$ 758,125
Stockholders undivided earn
lngS Observation-Disclosures. zo2,544
$1,O21,O69
This amount ($1,O21,O69) is already
capitalized by stock issues totaling
81, POI 500.
Act 1876, S. l.. 1913, attempts, at this
point, to capitalize the above $1.021,-
o69 at $1,6OO,OO0, having an indicated
market value of $2,560,000.
AS this utility must carry at present
other obligations to the amount Of
1857 900, it would seem that a capital
ization of $2,257,00 par or 1927 900
market. emitting the territory's equity
of 1892, 944, on
2705 miles pass. track and sidings.
113 miles semi-pass. and freight. =
1853 miles freight and sidings, and
81 mile car barn and yards.
3O77 miles, is extending capitalization
to a questionable valuation per mile,
and undoubtedly to an unjustifiable
curtailment of public service.
AS Act 1876, s. L. 1913, fixes on the
public a very long term capital bur-
den at high rates, and, as any extern
sions or improvements must come
from new issues of stocks or bonds,
and from the analysis above presE IT
ed, | CANNOT CONSCIENTIOUSL
COMPLY WITH THE REQUEST OF
THE UTILITIES COMMISSION AND
PRESIDENT AND MANAGER OF
THE HONOLULU RAPID TRANSIT
COMPANY.
l, however, as requested, forward to
the Honorable the Secretary of the
Interior the letter of the Utilities Com
mission.
The Utilities Commission is at liber-
ty to make such use of this commune
cation as it deems best.
Very respectfully,
(Signed) LUCIUS E. P1NkHAM,
Governor of Hawaii.
Extracts From Laws.
The reply of the Rapid Transit Com
pany has not yet been completed, but
the Star-Bulletin publishes herewith
extracts from the laws of Hawaii ap-
plicable to the issues of capital stock
and the use of earnings, with which
statutory provisions it is expected
that company's reply will deal These
the reader may compare with; the
statements in the governors letter.
Section II of the present franchise
reads as follows:
1, The following charges shall be law
full upon the income of said railway:
list. The expense of operating, re-
pairs, renewals, extensions, interest.
and every other cost and charge prop
erly or necessarily connected with the
maintenance Of said railway.
end. Dividends may be paid to
the stockholders not to exceed eight
per cent en- the par value of the stock
issued.
"3rd A sinking fund may be Gre
ated for the redemption of any bond
which may be issued or ether record
debt and the capital upon the expira-
tion of the franchise. Provided, how
ever that the amount placed to the
credit of such sinking fund annually.
shall not exceed in amount such sum
Continued on page eight