The Hawaiian gazette., 1916-11-14

taken under consideration by the mem.
bers of the public utilities commission
who are paid go a meeting by the
same Taxpayers who paid 5000 for the
report, yet were barred by Commits.
sioners Forbes, Garden and Gignoux
q from learning what was in the report
I Meanwhile the general public, con.
sisting of one lone solitary Advertiser
reporter, remained isolated in the repu-
lar commission board room enjoying
the transparent attributes of a perfect
vacuum. Confdentially, it might be
stated, every word spoken in the star.
chamber room, two doors away, was
perfectly audible to the general public
as he sat in the other room. But the
stenographic notes Of the commission
reporter record these words as deep
dark secret. 1t isn't up to The Ad.
vertiser. II was "half hour recess"
Here Il the Point
In due time the half hour passed.
The commission returned to its regular
room; "the public hearing was re-
sumed." But, here's the point.
No formal motion Of calling the
meeting to order again was made. The
conversation picked right up from
where it left off in the secret meeting.
The court reporter went right on tax.
ing his notes. Mr.. Mclean continued
as witness. Mr.. Field went right on
reading from his report. Only he had
instructions to skip the blue penciled
pages. There was nothing to Indicate
an iota of difference between the two
sessions, except that one was secret
and one was public. II was just as If
the commission had found the star
chamber room "too hot" and merely
moved across the hall.
Hearing Should Be Public
The first statement of Commissi oner
Garden in the resumed public session
was:
"A hearing of this nature ought to
be made public"
He was obviously the one who
had objected to further continuance of
the star chamber session. Half an hour
later when Auditor Field sarcastically
referred to the "deleted pages" Car
den replied:
"Those pages are not deleted yet. "
Nevertheless they were-cOmpletely
and bsOlutely-" deleted, expunged
and suppressed" or rather the entire
report was suppressed in order to pre-
serve the sanctity of the secret pages
from the saereligious eyes of the pub
hc-whO paid for the report.
In the third, or public, section of the
recessed " meeting of the commission,
the report of Auditor Field was taken
up for discussion. Field was unreserv.
eddy Disguised at the turn proceedings
h0H boz M A.
guise his opinion on the suppression of
his carefully prepared-and costly-re-
port from the eyes of the public.
Meat of Whole Matter
The hearing then delved deeply into
the indebted pages of the report on
the financial situation of the Inter
Island company and it was apparent in
a few moments that the censored pages
of the document were the meat of the
whole matter. The subject was intri-
cate. Shorn of its technical details
1t amounts to a criticism by the COM
mission of the company for wiping out
its depreciation reserve fund of $432,-
02O.70, and charging it into surplus on
the books. The commission holds that
depreciation reserve should be repre-
sented by actual cash. The company
maintains they are legally and fnan.
ctally right in letting other assets re-
present this accrued depreciation. The
depreciation is on the company s ships.
As Auditor Field progressed in his
explanation Of his report, copies of
which were in the hands of all present
except the general public, he had re-
to refer to "the pages elimi-
mated by verbal explanation" and
without these pages he seemed unable
to make any advance. Finally after
endless and hopelessly tangled discus
sion Forbes asked the Inter Island re.
Where Did It All Go?
IF the amount wiped off the dcpre-
citation fund was not credited to sur
plus, where did it got"
THAT is the whole question, - Field !
interjected, land you will find the an.
Swer in the deleted pages of this re-
port.
The meeting then drew to a rapid
and embarrassed close. Asked after ad.
jOurnment what the "secret session -
was, Forbes replied that it was mere
ly an informal discussion" And in
he replied that the report Of
49, VI Niu was not ON puDnc ME,
though it was in evidence, being used
as the only subject before the hearing
and was being freely testified from by !
Auditor Field and Mr.. Mclean.
Just because this report is up for
discussion in public meeting" said
Forbes, at is not a public document.
1t is merely a set of notes from which
Mr.. Field is testifying."
Facts
The unexPunged pages of Field 8 re.
port showed that the Inter .Isla nd com
pany had issued $75O,OOO of capital
stock on account of the purchase of
the Wilder Steamship Company and
issued stock dividend at that time of
Sl5O,OOO, bringing its total capitalize
ton up to 81 100000
Field set a valuation on the com
Dany's property. and equipment of
,423, 35l.l6, to which he added office
i1tures and smaller items, making IA
otal of $l,605, 1855.
Taking up the steamer depreciation
'und, around which the "covcring-upD
actics revOlved, he showed that on De
'ember 81, 1912, this account was start.
I'd with ANA mo u,hsnh