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

Cash Paid from Earnings:
! Tangible Physical Prop
| eEtE ..............$ 3S6,yuI
Hawaiian Tramways Fran
CnlSc ...... 4,00O
| Pearl Harbor Traction Co,
! Limited ........ 1904
$l,704,371
Undivided Surplus Earnings. 525.SSS
; Territory's one-half share of
Undivided Surplus Earn -
ings ...%..........$ &C., 944
| 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
I gibIe Property.
Total cash paid in. .......$6 $500, 500
Bonus on same as cash. ..... 151,625
Territory's Contribution Paid and to
Re Paid From Surplus Earnings in
Excess Of Legal Eight per Cent Div
idends on Tangible Property.
Public Contribution .........$ $4,000
Bonds Retired ............... 134, 900.
Bonds to be Retired. ........ 406, 900
$618, 900
On intangible Property.
(Hawaiian Tramways Franchise expir-'
ing Sept. Is, 1850 -
Stock issued in exchange. 3 101 900
Bonds issued in exchange. -. $4,000
$ $4,000
Unseereeated Surplus.
AS shown in Summary. .....$ 262,944
Total Interest Of Territory. 81, , S1, 944
ReeapituIation.
Stockholders ($151,62 being -
bonus) ....... ..........$ 75S,125
Stockholders undivided earn Il
ings ................ 262,S44
$1,021, O6S
This amount ($1,O21, O69) is already
capitalized by stock issues totaling
$1,207 500.
Act 1856, S. L. 1913, attempts, at this
point, to capitalize the above $1,021.-
G69 at $1,6OO,O00, having an indicated
market value of $2,56O,OOO. -,
AS this utility must carry at present
other obligations to the amount of
1851, 900, it would seem that a capital
ization of $2,257 900 par or $3,217 ,000
market, emitting the territory's equity.
of $262,944, on r.. 80. -
27.05 miles pass. track and sidings.
1.13 miles semi-pass. and freight.
1853 miles freight and sidings, and
81 mile car barn and yards.
30.77 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.
Gen at high rates; and, as any axten.
sions or Improvements must come
from new issues of stocks or bonds,
and from the analysis above pres( II.
ed, / CANNOT CONSCIENTIOuSLY
COMPLY WITH THE REQUEST OF
THE UTILITIES COMMISSION AND
PRESIDENT AND MANAGER OF
THE HONOLULU RAPID TRANSIT
COMPANY. =
l.
the Honorable the Secretary Of the
Interior the letter of the Utilities Com
mission. a.. - -,
The Utilities Commission is at liber-
ty to make such use of this commune
cation as it deems best.
Very respectfully, !
(Signed) LUCIUS E. PINKHAM,
Governor of Hawaii.
Extracts From Laws. /
The reply of the Rapid Transit Con-
pany. has not yet been completed, but
the Star-Bulletin publishes herewith
extracts from the laws of~Havaii APP
plicable to the issues of capitol 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:
The following charges shall be law:
ful 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.
"2nd Dividends may be paid to |
the stockholders not to exceed eight |
per cent on 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 other record |
debt and the capital upon the expira-
ton 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 |