Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-04-21
RAPID TRANSIT
FRANCHISE PLAN
MEETING FAVOR
CONTINUED from page one)

street railway company from propos-
ed stock issuance is a matter Of con.
| lecture.
This suit is now pending before the
supreme court. In the circuit court
Judge Stuart failed to uphold the ter
ritory's contentious and dismissed
the case on its merits. The decision
in Judge Stuart's court was decided
victory for the company An appeal
has been taken by the attorney-gener-
al to the supreme court and the terri
tory has filed it's brief on this appeal.
Attorney Coke said this morning
that he believes the, court litigation
should be dropped. President Peck,
when asked regarding such action,
said thats this phase of the matter
had not presented itself to him, but
that personally he would like to see
supreme court decision. The Rapid
Transit Company feels confident such
decision would be In its favor.
There is no present charter bill be-
fore Congress-. A bill-the 1913 mea-
sure-embodying principles agreed
upon by the company and the terri
torial administration when W. F.
Frear was governor, went to Congress
for necessary ratification and enact
ment, but when Governor Pinkham
stepped into office his opposition
blocked action in Congress and the
bill expired by limitation.
However, members of the commits
sion believe that Congress will be
more disposed to hurry the new char
ter bill through because of the pre-
vious measure having gone on from
the legislature and the failure of Con-
gress to act before.
Main Features. ~.
The main features Of this latest pro-
posal are:
A new charter for the Rapid Transit
company.
About $4,000 a month for the city
government
The amount Honolulu will realize
is problematical, but it will probably
be between $500 and $4,000 month.
President Peck. did some informal
and unofficial figuring this morning
and said that on the basis of Febru-
airy gross receipts the public would
get about $500 month. The Stats
ticians of the utilities commission said
today that the amount would be close
to $4,000 The figure is arrived at I'M
der the proposal that the city shall
get two and one-half per cent of the
company's gross receipts, as payment
for the franchise grant
New lines into several sections of
Honolulu; double tracking on King
street; more rolling stock in service;
a hundred minor improvements that
go with an increased expenditure all
these things for the people of Homo
lulu.
The proposal is that the transit
company surrender its present charter
and abandon its efforts to secure the
passage by Congress of the bill
amending that charter, which was APP
proved by the legislature but which
the governor refused to indorse. Then
ii Is to apply for an indeterminate
charter, ending only when cancellation
proceedings are taken by Congress,
and containing provisions putting II
under the Jurisdiction of the public
utilities commission, freeing it of all
limitations of bond and stock issues,
and providing for the payment of an
annual tax of two and half per cent
OF the gross receipts to the city.
The first move in the matter was
taken at a meeting of the utilities
commission held Wednesday after
noon, when a letter from the chair
man Of the commission to- the govern
or, calling attention to meeting of
the transit company stockholders for
the purpose of considering plans for
the retirement of the present bonds
of the company, was read. The letter
pointed out that the present franchise
would necessarily be included as
part of the security of the company,
that the government has derived no
reyende from the company during the
16 years of its franchise, that the
transit company was not making the
extensions necessary to the growth of
the city, that all this could be changed
by putting the company under the /
Jurisdiction of the utilities commits
sion. 1t then requested that the gov
ernor direct the commission to inves.
tigate end report upon the subjects
mentioned.
Conference 10 Held.
The governor approved of the
scheme and the commissions chair
man arranged with the president of
the board of directors of the transit
company, l.. T. Peck, for a conference
between the two bodies. 1t took place
yesterday afternoon.
The proposal that the company sur
render its old charter and apply for a
new one was made at yesterdays
conference and tentatively approved. |
A committee composed or Mr.. Peck,
as president; C. G. Ballentyne, as man
ager, and Richard Iyers, director, was
appointed to act for the company in |
all further negotiations. The super
yisors will lie asked to appoint COM
mittee to represent the city and con-
ferences with the utilities commits
sion will be held until the matter is
disposed Of
If the plan goes through, as pro-
posed, it will end all government liti-
CATION with the company and with the |
scding of its troubles the company