The Hawaiian gazette., 1915-02-02
TENNEY PECK SETS
GOVERNOR RIGHT
Guesses What Latter Meant In
His Letter and Replies
. To Points Raised

\ PP0rnttng out Tor the toNernor
fbenefit few Of the things concerning
the Rapi,I,Transit situation, over which
bis excelleney appears to be harboring
certain personal decisions, and other
wise setting him right, 4. Tenhey Peck,
the president Of the Honolulu Rapid
Transit and Land Company, has re-
piled to the Gsycfnor's latest eommu-
nieation. Gtt.Ey
Mr.. Feek evidences considerable pa,
thence with the Governor, hut makes Il
plain that the e0mpHny intends. 10 prr;
sue the even tenor OF its way, under
its agreement with the legislature and
Governor Frear, until congress- either
passes or drops the Franchise Extension
Bill, when the privileges Of the present
charter will be resumed and the conf
pany will proceed to take the financial
steps necessary for winding up Of It's
BUSINESS at the time Of the charter ex.
| piry. In the meanwhile the necessities
of Honolulu must perforce wait, despite
the willingness of the company TO
make the improvements already urgent
" required, but which the attitude Of
the Governor prevents
Hint Of the Past
The Rapid rransit president flips mp
the corner Of page in history when
he reminds the Governor OF the time
he, the Governor, was in the market foi
the street railroad franchise which the
Rapid Transit acquired.
Rapid Transit Reply
Mr.. Peck, under date Of January 20,
wrote: yt9B
"Dear sir;-In reply to your pre-
viously acknowledged letter Of the Goth
instant, | would state that our diree-
tors have studied with interest the fol.
lowing excerpt given therein from
your message to the coming legislature:
by all the roles Of procedure and
ethics Of respect to the Legislature and
congress, no further steps can be taken
on either side until congress disposes Of
the matter, unless the Rapid Transit
makes some move indicating bad
| faith.'
Additions and improvements ss
"fAs the Frear' bill, passed by the
legislature OF 1913 and now awaiting
confirmation by congress, provides
that extensions shall not be made until
after hearing and then by the direc.
tion or permission only Of the public
utilities commission, would It not be
more consistent with good faith II yon
were TO wait untfl congress disposes Of
the matter before urging upon us Ger
tain immediate extenxions Of your per.
sonal selection7 Moreover. to construct
and operate such extensions, the ma
\ terial for which is not on hand, would
involve expenditures so large Is to
neeessitate the securing Of additional
funds either by an increase of capital,
an increase in bonds, or by issue OF
other evidences of debt, any Of which
acts upon the part of the company
would be in direct violation Of its I'm,
derstanding with the last legislature
and with former Governor Frear. AZ
Somewhat Obscure Rsf
II Il The meaning Of other portions Of
your communication Is SOMEWHAT OBJ
| scure, but It Is evident that after your
lengthy investigation of our books yor
seek further enlightenment upon the
,apital account, the Hawaiian Tram
ways purchase, and upon certain In
vestments Of the company. y
Answering your direct query as Il
whether the statement of this account
outlined upon page Of your letter, Il
correct or incorrect, have TO advis,
you that 1t Is incorrect and beg q
repeat the statement contained IN m,
former letter that the capital stock Is
sued and outstanding, amounting I,
81 ,207, 500, Is represented by more than
. q full consideration. 5ff@ W III
One Possible wish ~.
VI what you really wish 10 know 4
whether and why in May 1902, th
company increased its capital stool
from 100000 TO $l,O00,000 by the ID
. sue of an additional $500, 900 in stock
} the answer would be yes, and for til
reason that full authority for such nc
! tion was specifically granted by Seetio
: 81 Of its, franchise to which you ar
: referred. To meet the requirements o
the Hawaiian statute which provide
! that corporation must not incur IN
/ lehtedness in excess of its capita
stock, such lawful increase was the
! imperative to validate a pending issl
g II bonds whereby to secure funds 70
Immediate and future extensions an
improvements.
The government was in due forI
advised of the eompany's intention I
make this Increase and the matter wa
fHlIy, discussed and given wide pull
] flieity at the time the provisions of til
Frear Bill were under consideration {
publie hearings before the last legil
lature. Although authorized under II
n section of the franchise above quote,
J and although the conditions Of III
Z franchise imposed no such obligatio
! upon the part of the stockholders, N
fun par value thereof was subsequent
I contributed by the stockh0lders fro
& 'hrnings available fqr dividends With
4 the statutory limits, not distributed
Y them 10 cash, but invested In the pro-
8 erty by way Of additions, extension
. and improvements TO the SYSTEM.
! Tho Pain Franchise 81 n, IL
Hawaiian Tramways Purchase; I'll
! properties, franchise, etc, of the Haw
!, iian Tramways Company were purchase
y by this company under the authorit
!. conferred by section IA Of the Rap
q Transit franchise, which purchase m
Z only carried with il the privilege
y exercising all the rights, etc, embodi'
> IN ths TTamwayst franchise 10 the e
d piration thereof, but by merger 10 u
expiration of the Rapid Transit Cor
y II - ,.on1htaa Tha .nnat 1aa. - A.