Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-10-18
OPPOSES giving
FREE power SITE
ON HAWAII RIVER
CONTINUED from page one)

with presented for NnHr consideration
by the Governor
The physical data is unavoidably
lesS definite than is desirable, but the
memorandum Is aimed to be project
i've in any event, of the gOvernH. "a t s
interests, which are for o period oil
~ years TO be licensed, for 81 pei
year. TO aid the HilO Traction Compa
ny, Limited. in establishing and ope
rating its transportation system and
contributing to ITS capital or credit
such excess income as may be derry
cd, above its own power needs, from
power to be sold as indicated.
All this that the Territory after IL
years and for the subsequent 20 yearr
and constructively thereafter, may r
Ceive the full power value OF the va
ter under consideration
COPY Of Letter to Single.
Honolulu, T. H., October l6. 1915.
r w. Shingle. Esq,
President, HilO Traction Company,
Honolulu, T. H.
Dear Sir: The Administration is
prepared to recommend to the Land
Commissioner and the Land Board
the waters OF the WaihIkH river in
South Hilo District, Island OF Hawaii.
rs existing between the approximate
elevation of 900 TO $50 feet sole In
takes and approximate 410-foet above
sea level sole discharge shall be leas-
ed to the Hilo Traction Company,
Limited, or their successors, for the
term Of 80 years, it being stipulated
The water in question shall be taken
for power and lighting purposes only,
or both, and shall be returned to the
river. unpolluted, at the point OF dis
charge named.
The license shall cover a period of
50 years.
For the first ten years the Hilo
Traction Company, Limited, shall pay
the government 81 per year.
TO whomSoever is concerned 1t
shall pay 6 per cent per annum, pay
able semi-alnually, on the cost Of the
power and electric generating plant
The electric current shall be delivered
10. the transmission line or lines at
the, generating plant.
Current To Be- Metered.
All current delivered to the Hilo
Traction Company. Limited, shall be
metered at the generating plant and
all other current sold or otherwise de-
lfEered shall be separately metered at
the same point.
There shall be set aside a sinking
fund annually equivalent to the an
raal requirements of such q fund as
may discharge the cost OF the power
and electric generating plant at the
end, OF 30 years Oh the basis of 4 per
cent interest per annum on sinking
fnnds,
After the first ten years as speci-
fisd there shall De paid, to the Terri
tofial government, semi-annually, the
income derived from the electric cur.
rent as metered and delivered on said
transmission line or lines based on
the cost Of said electric current per
kilowatt when generated by power
ether than water power.
The cost Of 50 generating shall be
determined by the cost of electric cur
rent within the Territory Of Hawaii
produced by prime mover other than
water power, due consideration being
given to the decreasing factor in the
cost of a larger production Of electric
current as against a smaller produc-
ton.
The cost Of the. electric current
shall be determined every tive years,
or oftener should equity so require,
I by q board Of three appraisers appoint
ed by the Governor.
Open to inspection.
Inspection Of meters and records
shall always be open to the inspection
OF the government.
The construction Of at least one
such plant and pipe line of q perma.
nent nature with all modern equip
ment for the generation of electric
current Of at least $50 kilowatts ca
pacity-either continuous or aiternat
ing current or both as the hcensee
may determine-shan be begun by the
licensee within two years from the
date Of this indenture, and be dIligent-
ly proceeded with until completed,
provided that il there shall be any
period during which such work shall
be suspended by reason Of actions,
suits or injunctions. instituted in good
faith without any COLLISION on the part
Of the hcensee impeding or delaying
construction, the time so lost shah
not be counted as part Of the time
within which such construction shall
be begun and completed. In case Of
failure to begin the construction Of at
least one such plant and pipe line
within two years from the date of this
indenture as in this section provided
this license and all rights, privileges
and authorities herein granted shall
upon the expiration of such time cease
and determine.
Very respectfully,
(Sgd) L. E. PINKHAM.
Governor of Hawaii.
/ now leave the matter for the con-
sideration Of the Land Board and
Land Commissioner.
Respectfully,
LUCIUS E. P1NKHAM,
Governor of Hawaii.
Several other matters of interest
were taken up and acted upon by the