Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-08-25
RATESREWSED,
NOT RAISED ALL
AROUND, BYL...L.
Proposed New Tariff Designed
to Help Inter- Island Break
Even," Say Officials

! That the Inter-Island Steam Nali.
! cation Company loses money right
! along" in its freight and passenger
business with ports on the north side
| o. Kauai, and at certain points on
/ Molokai, was stated by officials Of
the corporation Thursday afternoon at
| the public utilities commission hear
ing relative to the proposed new
/ freight and passenger tariffs of the
company, to become effective Septem-
Der 1. if approved by the commission.
Among other interesting facts de,
veloped at the hearing, which was of
the most friendly nature, were that
!, the Inter-Island carried total of 65,-
7S9 passengers, deck and cabin, for
the last fiscal year from July 1, 1915.
to June 80, 1916; that it's proposed
rates are so arranged as to enable
the company to help make up the
losses il now sustains at certain small
ports; that 1t has an insurance fund
of about $500, 900. set aside from IFS
earnings against possible disaster, and
that it has depreciation fund. Its
vessels are now valued at 81, 342, 900.
Meets Again Tuesday r..
The public utilities commission viii
not take action on the company's pro.
posed new tariffs until its next meet
ing Tuesday afternoon, August 20
The hearing was for the purpose OF
having the company tell the commits.
sion why it has raised its rates,
freight and passenger, from Honolulu
to certain other island ports.
AS printed in the Star-Bulletin yes.
terday, Yice-President ]. L. Mclean
of the Inter-Island told the commits
sion the reason for the general revi.
sion Of rates is that the corporation s
operating expenses have increased
greatly. due to the higher prices OF
fuel and all ship supplies in the last
year, due to the war 1t cost the conf
pany $62,98310 more to operate its
fleet for the first six months of 1916 !
than for the corresponding period in
1915. Fuel alone cost $23,6S4S2 more
than before. III. ~. ... ...--
Questions propounded by Chairman
Charles r. Forbes of the commission
developed the following facts relative
to the company's business: Its stock, (
par value 500, is now quoted at $185 I
on the stock exchange, the company |
has no preferred stock, 1t issued a /
stock dividend of $759,0o0 this year,
at the rate of one share for every /
three held, it sells Goals from its I
ship bunkering department to its I
steamers for running them at the
same price charged other consumers;
1t has four practically unstable
steamers. and sets aside 4 per cent /
of its earnings a year for deprecia-
ton. II
Relative to the company's first
tariff, issued October 1, 1913, Norman I
e. Gedge, assistant to the president,
told the commission the rates then L
were lower in many IN.
stances than the rates which had
teen charged previous to the time the
took over the Wilder 4
Company in 1905.
Says No Complaint Made
The proposed schedule of tariffs as
affecting passenger charges VIII only
raise deck rates % cents a person d
between Honolulu and other island B
ports, there being on raise in rates
between way ports. On freight rates
he increases sought rsnge from 70 to
20 cents ton, to help offest increased
cost of operation OF the companys Il
vessels. Most of the freight increases
will affect shippers OF small quanti-
lies less than five tons.
No complaint has been made to the
according to its attorney
lanes l.. Coke, concerning the pro
oosed rates. The commission, now
ever. has the right to refuse to sane.
ion them if they decide the increases
ire not justified. -s