The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1914-04-24
HOW STEAMER
Rates ARE
FIXED
President Kennedy Of the Inter
Island Steam Navigation Com
pany, Before Public Utility
Commission, Explains Manner
: in Which Passenger and Freight
Tariffs Are Prepared.
(Trom 1lhursday Adyertiserl.

fiVH Ahursuhy Advertiser).
Public utilities commissioners A ri
Gignoux and }. N. s. Williams again
continued their public investigation
into the affairs Of the Inter.Island
steam Navigation Company last night. |
President J. A. Kennedy, Treasurer
Norman +. Gedge, superintendent j.
Il. Sheedy and Attorney O. S. Hemen.
way appeared for the company.
}. N. s. Williams acted as chairman
Of the meeting. lie stated that the
principal subject for discussion was to
be the freight rates and passenger
fares, their business or unreasonable
ness.
Mr.. Kennedy entered into history
Of the practices Of the company in the
matter of freight rates. Back un-
der the Monarchy, the Provisional
Government and the Republic, there
were no licensed officers in the employ
Of either Of the two competing lines.
Nor were there at any time any gov
ernmental requirements as to inspec-
tions, safety appliances, lifeboats, life
buoys or anything of that sort. An
nexation brought, the better standards
and because the companies had TO en-
ploy better men all along the line and
provide better equipment the two com.
panies had TO raise their freight rates
TO meet the heavier operation costs.
The raise in rates occurred early in
1899 because the companies found that
they could not make expenses and
earn a profit without so doing.
Sugar Formed Bulk Of Freight.
Before annexation ten per cent Of
all the freight carried was sugar and
the basic standards were established
on sugar f-eighting.
Mr.. Kennedy said that before 1899
neither Hilo nor Kahului had direct
steamship connections with the Coast.
Small schooners like the Lurline and
the Claus Spreckels each loading about
800 tons carried some sugar TO San
Francisco from these outports and
brought return eargoes Of lumber and
mezchandise but practically All the
sugnFs from the other Islands came TO
Honolulu and were transshipped here.
In 1900 the general freight rates from
Honolulu to Kawaihae were IS per
ton, and sugar freights a dollar less.
There were very few plantation con-
tracts in those days, he said. At the
time the Wilder Steamship Company
and the |. !. s. NJ Company were
amalgamated all freight rates were re-
duced Mr.. Kennedy said.
- There has been no raise of freight
rates in my time or within my recol
lection.
Rates Wero Reduced.
The lowering Of rates following the
amaigamation was made possible, he
said, beeause of the material reduction
IN overhead expenses, Another fac
tor was the opportunity it gave them
to lay out their steamer routes to bet
ter advantage, so as 10 secure quick
despatched cargoes. Kennedy said
that the profit in the steamship bust
ness depends absolutely on qnick des-
patch Of vessels. Distance Travelled is
not a factor in water transportation.
Terminal charges are what counts.
As to Packing Fright.
He had good deal to say about the
difficulty of getting small shippers to
ness-like packing Of general merehan-
Use freights might be a factor tending
10 the lowering of rates on that class
81 goods, he said. "Space is our cap
ltal. and small shippers don Z seem to
realize it,"
Mr.. Kennedy said that "hens and
ava root were about the bulkiest
freight and tho most costly that the
steamers have to carry. 'TThe Hawa.
Jams want their empty toxes back, and
they are 50 honest that they think
everybody in Honolulu is honest too.
They expect our pursers to remember
every chicken coop and who il be-
Ionged to. y
Fares Not Raised
Discussing passenger rates, Mr.. Ken.
nedy said that there had been no raise
1n frst-class fares since annexation, ex
,ept for certain preference cabins on
certain steamers.
1.-THE rate had been $12 80, Homo
ulu to Hilo, ever since the DAYS when
we all slept on deck with pig for a
lillOw = he said. Recently there has
been reduction to $40 on certain in.
iide or tween deck rooms. -
At the time of annexation all
deck fares were raised fifty cfnts
because of the beifdr accommodations
hat had to be provided under federal
aw.
Mr.. Kennedy said that the company
grants absolutely no passes except 10
quests of the company.
Referring back to the labor cost dis.
,ussioh Of a week ago, Mr. Kennedy
aid that the "ship's wages paid
Turing 1913 amounted to over $746,50O.
m average Of over $4,000 per month.
The commission then adjourned. 70
meet next week at date 10 be fxeA B