The Hawaiian gazette., 1915-02-02

y w 4. y. 4.
,earehed yesterday morning barrel Of
bottled beer and q quantity OF gin and
whiskey were found. Several drunken
men, too atnpefied by liquor to get out Of
the way Of the officers when they made
their raid, were found lying on the
floors Of the house,
rather than By mule-drawn trans, for
even 20 short a period as eighteen
months, must be Of some value to the
city. irrespective Of its yalne to the
worth what II Cost
What the franchise was worth in
1908 iseeqnaliy difficult to determine.
The company considered Il worth the
purchase price, and II my information
q not at fault, yon, Is resident, =
citizon and taxpayer Of the community
had urged it, purchase 1t . somewhat
higher valuation. The local tax rec,
ords. no doubt, contain data which will
establish what value, II any, II has
been TO the city Of Honolulu to have
had the present modern system in lien
OF the Pain trans since 1908, and the
company sees h9soccasion for any one
10 condemn the purchase upon the
terms stated. 80 ahi tss5
A slight Discrepancy ~
/ Moneys Withdrawn From Surplus
Earnings; Your table upon page 3
might convey the impression that for
the period between May 10, 1913, ant
December 81, 1914, the snrplSss earn,
ings Of the company were sufficient "a
admit Of the withdrawal therefrom OF
la total Of sRS2,000. The total surplus
earnings for the two years mentioned
II were somewhat less than $l50,000
There was carried forward from De
i cember 81, 1917 a cash surplus ap
II Experimenting 100000, which amount
Il had been Accommodating for setera
i years, while negotiations were pendipf
Il for the extension Of the franchise, viii
the intention not only Of employing
\ these funds, but also Of employing
sums subsequently set aside against 8
stock sinking fund, in extensions and
that franchise were extended. upoI
the other hand, II no extension wer'
\ granted, Il was necessary 70 begin 4
ppovide for the retirement not onll
0ff the bonds, but Of the stock.
Must Increase Sinking Rund
~ Even though you dismiss as de
!, serving of no consideration our con
. teptioh OF the necessity for such pro
/ visions, you must admit that to retir
|. the outstanding bonds at maturity, un
q der tho terms Of the franchise, vii
N require setting aside the sum Of abou
I. e32 900 each year. A much smalle
Al snm has heretofore been yearly Sc
q aside for this purpose. 1t follows tina
{ in addition to the above II will ais
; require n much larger sum to- be Sc
J. aside annually to provide for the r.
4 tirement of the stock. 1t was als
4 necessary to provide dividend sus
0 pense account, 70 take care of the az
Z cruing dividends upon the authorize
d increase of capital stock, In the even
4 Of the approval by congress Of the bi
n now, before il. MS i ts5
0 Cannot Increase investments
8 ttIt.has never been commended by th
: company that Il was unable to I'm
. the means with which 70 construct an
& equip the mueh-needed additions an
i improvements to Its present service
. III has insisted, however, that it wa
|, not in position to make any furtht
e substantial outlay in this direction nm
n still Provide for the retirement Of i
q capital and bonded debt upon the laps
y Of its franchise; and In this eonneetio
y ii may have interested You TO has
nj SatedBip your inyastigation Of the a
o counts of the company that its bnsinel
!. showed falling OF in 1914 as con
. pared with 1918. While the deereai
has thus far been in no way alarnin
Il il may he significant Of inereastn
10 losses in the future. The experien'
4 OF similar companies operating ups
"a the mainland shows almost without a
wi eepti0n that their business is decli
d. ing, rdne to the general adoption
IL tbe public of the cheaper class Of aut
II mobiles and the more general use I
d motor buses. NV -.,5E ,fA' },.si
XII :" have only to add that from al
,- rfter the passage by our last legisl
.. tuTe Of the bill before congress- tn
BE- company has endeayored TO conduct |
J, business in accordance with the pr
:. visions thereof, in conformity with Il
y understanding at that time, and wi
* continue so to do until the bill h
y, teen hnaliy disposed Of one way
&, the other VI
~ 'fYouTs respeetfully, sEt