Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-10-27
CAST DOUBT ON
real VALUE OF
OLD FRANCHISE
Rapid Transit Purchase of Ho-
noIuIu TramWay Assets De-
bated in Teritory's Suit

Whether the purchase Of the ole
Honolulu tramway franchise, valued
at considerably more than 100000
may rightly be included as an item
| In ascertaining the cost and present
day value OF the Honolulu Rapid
Transit & Land Company, In view oil
proposed increase of the capital
stock of the company, is the question
which was before the court today IN
the trial of the territory's injunction
suit against the Rapid Transit.
The question win be one which
Circuit Judge Stuart win have to
solve in deciding the case. AS the
trial progresses il is steadily merging
into what might be termed friendly
debate, owing to the wide latitude
which is being allowed the attorneys
by the court in the matter of pro
cedure.
Clinton @. Ballentyne, manager OF
the Rapid Transit, resumed the wit.
ness stand today for further examina,
ton as to the net realizations Of the
company from bond issues. These he
summed up as follows:
Halt Payment IN. Bonds.
In 1900, $1S0,500; in 1901, $11S.000
in 1902, 1887. 714.SS; In 1904, $s3,s40.-
70, including a premium. In addition
TO this, $4,000 of bonds were is
sued in 1903 to, cover the purchase Of
the old Honolulu tramway system.
Regarding the payment of the con-
sideration for the tramway system,
Manaeer RaIIentvne said mai si5l ll,o
was n bonds soi mn was Is nreserrsd
stoct AZ mar value and the balance IN
cash The frst cash navment was
made an Iniv "a ie0g 4 the snm ~
SIX or. an Anxnst % ~ the same
wear s23 a51 was Maid IN from a sale
of bonds. Al 4 later date. he said.
10 bonds were fransferred comhlef.
ing the fuIl pIlrchase pricef az the sys.
fem. anproximatelv y3OOs1sO.
A 10 The fanrible nronertv acouired
by the purchase. some was transferred
To the RAND Transit. for which cred.
It was given in the purchasing ac-
count. Some or It was sold and some
removed. About a mile Of rails. then
in storage. was used for road con.
struction 81, Bereranla street. and 9th.
ers were used in the carbarns, About
400 or 500 feet of the rails were used
in South street. Some of the tools
also were put into use, added Mana.
ger Ballenfyne.
AK Reason For QUESTIONS.
During the examination the. attor-
news for the respondents INQUIRED to
know the purpose OF this line of ques-
tons. Attorney Clarence Olson, one
Of the counsel for the territory, stated
that the object was to determine Just
how much capital the Rapid Transit
was able to realize from the property
acquired by the purchase Of the tram
way system. He added that the terri
tory wanted to know how much of the
property was sold for cash and how
much actually went into the road.
sOur. contention continued Attor-
ney Olson, SIS that the Rapid Transit
has, no right to increase its capital
stock unless 1t Is apparent that It
has actual property In use to such a
value as would justify the capitaliza-
ton asked for. In arriving at that
amount It Is necessary to ascertain
what actually has gone into the road.
preparatory to arriving at the actual
cost of the system. We want to find
out what the system actually cost and
what. the company put into the road. .
Entitled 70 No Credit.
In connection with this the terri
tory charged that the Rapid Transit
Is entitled to no credit for the pur-
chase of the tramway franchise and
that the territory is entitled to show