Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-04-30

Upon the request Of the territory
Circuit Judge stuart today granted q
temporary injunction against the Rap.
Id Transit &aLand Company In the
matter OF std issuance. The word
ina Of the Injds.etlon is:
"WdEREAs, the Territory OF Ha'
wall, BY ingram NJ. Stainback, its az.
torney lpenerai, has flied lts bill OF
complsiFt against you, the above nam
ed respondent praying among other
things, that an injunction issue against
you: fs-- - 81"
aNow THEREFORE, In eonsidera-
ton thereof and Of the particular mat.
ters IN the said bill set forth, do
strictiy command and enjoin you, the
said honolulu Rapid Transit q Land
Company, az well as your agents and
ali other persons acting through, un.
der or In aid Of you, under penaity OF
the law, until further order Of the court
herein, not 70 increase or attempt TO
lncrease the capital stock Of the said
HonoiuIu Rapid Transit d Land Com
psny: and you are further ordered and
enjoinsd until further order Of this
court not 20 pay or attempt to pay any
dividends or dividend upon any capttaI
stock ef ssld 5onoluly Rapid Jna1slt
GCsnd Company either thar upon the
capital stock already issued and out.
TSis ssshds unsll the hssrlns = held,
A new sAngle was given today with
startiing audiences To- the Rapid
Transit franchise situation, 2EI
Through the filing OF suit to-
day to enjoin the Honolulu Rapid
Transit &Land Company from further
increasing It's capital stock, the Terri.
tory Of Hawaii started what may be
., long and bitter fight in the courts OF
both the territory and the. United
states against the street car company.
Charges that the actual value OF all
the properties Of the company is not
In excess OF $795, ,407;; that stock to the
amount Of 81, ,207 800, par value, Is now
outstanding and that the company pro-
noses further TO increase the stock to
81 600 900 and win do so unless res.
trained by court injunction, are made
in the complaint filed IN Circuit court.
The gist OF the whole matter is that
the street car company. TO avoid pay,
ing a per centum Of its profits to the
territory. has 'watered' its stock so as
not to exceed the dividend limit OF its
franchise explained Attorney General
Stainbaek, s.and they propose to fur.
ther water, this stock by issuing up
to $1.600,O00 In capital stock This,
II accomplished, will enable them to
nav dividends on 'watered' stock re-
presenting no actual property OF cash
value" ,t
Reason for Sudden Action.
The reason for the unheralded filing
OF this suit today is briefly thus:
AT midnight last night the two years
had elapsed IN, which, under the pend,
ing Rapid Transit franchise extension
bill. Congress could act a
Under that bill passed by the terri
torial legislature and made law just
two wears ago, Congress was asked to
extend the franchise. II Congress
should not net within two years, under
the TERMS on the bill the matte- would
automatically lapse. ri.
Two years has passed and Congress
took no action. The governor, who, Il
is recognized, il supporting this legal
move BY the territory AMI Is generally
credited with being its prime advo-'
cate. IS said to feel morally, as we'll as
legally free TO secure some sort OF
action. k6 3 = - "N = 2
The 5ill for lniunction.1 &Es..s.tS.ey "A
The suit IS made in equity in the
name OF the territory, through Ingram
NJ. Stainback. attorney-general, and is
a bin for Injunction. 1t asks for a
temporary restraining order toPreyentI
the issuance OF additional stock by the.
company and pleads for a permanent
injunction after the hearing Of the
suit. The complaint is as follows:
"To the Honorable, the presiding Judge
AT Chambers Of the Circuit Court
OF the First Judicial Circuit, Ter
ritory Of Hawaii -. - -. ,
Comes now the territory of Hawaii
by Ingram NJ. Stainbaek, its attorney
general. and complaining Of the Homo.
lulu Rapid Transit & Land Company,