Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-04-30
IN
SUIT AGAINST
RAPID TRANSIT

IuH III IlNHVO1I
Continued from page one)
for cause Of action and alleges as fol.
? lows:
That the Honolulu Rapid Transit &
Land Company is a corporation duly
organized and existing under the laws
of the territory OF Hawaii and is the
holder of that certain franchise grant
ed to Clinton G. Ballentyne, Frederick
J. Lowrey, Theodore Lansing, James
A. Kennedy Charles S. Desky, Joseph
A. Gilman, James F. Morgan, George
R. Carter and j. H. Soper, and their
associates, by Act 60, session laws OF
1898.
That there is annexed hereto and
made "a part hereof a copy marked
Exhibit A Of the amended charter of
incorporation of the said Honolulu
Rapid Transit & Land Company.
III
That it is provided by said charter
of incorporation and by said franchise
that it shall not be lawful to increase
the capital stock of said corporation
at any time in excess Of 5000, 900, I'M
less the proposed increase shall when
taken with said original capital
stock, represent only the actual cost
of the property of the railway, and not
over 25 per cent of such cost in add.
ton thereto.
That the said Honolulu Rapid
Transit & Land Company has from
time to time increased its capital
stock so that the amount of said cap
ital stock now outstanding is of the
par value of $1,2o7, 800.
Cost Of Property.
That your petitioner has been in
formed by an expert account
ant, who has examined the books OF
the said Honolulu Rapid Transit &
Land Company, that the actual cost
of the property of said railway is
$795,407, and your petitioner believes
the statement of said expert account
ant and therefore charges the fact 10
be the actual cost of the property of
said, railway is $795,407.
vi
THAT the amount of capital stock
now outstanding, to wit: Capital
stock OF the par vafue of $1,207 500,
exceeds actual cost of property of the
railway and % per cent OF such cost
in addition thereto. 49,. 49,.
VII - G.,
Increase in Stock Planned.
THAT the said Honolulu Rapid
Transit & Land Company, plans and
intends to and will, dnless restrained
by the order of this court, further in.
crease its said capital stock to the
sum of 81, SOC, 900, AID that such pro-
posed increase, when taken with the
present existing capital stock. does
not and will not represent only the
actual cost of the property of said
railway and not over, Is per cent of
such cost in addition thereto, but on
the contrary said proposed Increase
when taken with the capital stock OF
said corporation now existing, will far
exceed the actual cost of said railway
and % per cent of said cost in addi-
ton thereto, to wit: the sum Of $685.
407, plus 25 per cent of said $795, 40l. a
VIII ~ " a
"That your petitioner is without
any adequate remedy at law. 20
Injunction Asked, II .. 4
Wherefore, your petitioner prays,I
that said respondent be summoned tol
appear and answer this petition, ans
wer under oath being hereby express
ly waived, and to show cause why an
Injunction should not be granted, re-
straining said respondent from in
creasing said. capital stock, of said
Honolulu Rapid Transit & Land Com.
pany to the sum of $1,600.000 or TOD
any amount in excess of the present
capital stock of said corporation; and
Your petitioner further prays- that,
pending hearing hefeon, the said re-
spondent be enjoined and restrained
by order of this court from increasing
the capital stock of said Honolulu
Rapid Transit & Land Company to
the amount of $1,600,000 or to any
amount in excess of the present capt.
tai stock of said corporation; and that,
said respondent be enjoined and re-
strained until further order of this
court from paying or attempting tol
pay any dividends upon any capital
stock of said Honolulu Rapid Transit
& Land Company other than upon the
amount of said stock now outstanding,
and that upon final hearing hereof
said injunction be made perpet-
ual and for such other and further
relief, as in equity and good consci-
ence your petitioner may be entitled
to and for costs of this action.
Honolulu, April 80, 1915. !
TERRITORY OF HAWAII,
by INGRAM NJ. STAINBACK,
d.. 49, Attorney General.
The 1913 legislature passed an act
to grant, with the approval of Con-
gress, a franchise extension to the
railway for a period of 81 years, toI
replace the present franchise Is years
hence. The present franchise pro-