The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1916-01-11

2O,O52.7G
Grand Total .............$1O 2.l9
System Well Constructed
Now, we have from this witness
that the system was WELL CON
! STRCCTED originally; and has been
| WELL MAINTAINED. There is moth.
ing material by way of obsolescencc
that detraets from its original value.
Careful examination of the power plant
shows that repairs (not particularly
needed at this time), to tho amount o,
$500 would make it as good as new.
The track, ties and poles show the
greatest depreciation. But to a great
| extent these have been replaced and
so well kept up that while there is
doubtless some depreciation, it is not
large, and | do not believe it could
actually be ascertained under the evi-
dence. 1t appears to me that the de-
PENDANT s evidence on depreciation is
framed upon more proper basis and is
much more satisfactory than that of the
plaintiff. But even as to that, I do not
believe that actual depreciation in tn,
pant is anywhere near the amount al
lowed by the defendant. But he this
as 1T may, the agreement filed herein
with the admitted facts that have been
approved, supersedes all questions orI
drnr"ciation so far as arriving at n
conclusion in this case is concerned,
even II depreciation was involve Tho
court holds, however, that under the
franchise anC charter the defcndan,
was and is authorized to issue stock
to the actual cost value of its prop
ertv and twenty-five per cent thereof
in addition thereto.
1.-The evidence shows that when the
act Of the legislature of 1913 was being
considered in the congress on December
IA. 1913, Mr.. Pinkham, the recently
appointed governor, stated before the
committee:
Pinl1ham Before Committee
"Mr. Pinkham-'Mr. Chairman
and gentlemen, had quite a little
to do with this street railway
problem years ago and made
pretty thorough analysis of the
matter with the officers of the COM
pany, particularly with Mr.. Peck,
in my capacity as a pr vate citizen
and business man of the town.
Dmring this last legislation |
was out of the country; | was in
the Far East during the last session
of the slegislature, so | only had
what opportunity my short stay in
Hawaii afforded before | came
down here to Washington to look
over this matter, and my infOrma
ton or analysis is scarcely deeper
than your own. But my belief is
that the people Of the Territory and
the commercial organizations
were so thoroughly in interest in
the matter that there is no aues.
ton, | believe, that they realize
that we have protected the public
in every possible way, and if
could criticize it it would only be in
some minor manner that probably is
not essential. ! would not want
to presume to open up any ques-
tons in the matter. OF course,
my administration begins as soon
as the President can sign my com
mission At present ! am not in
active administration.
1.-THE Chairman-' Governor, YOU
have given this bill your careful
consideration, have you not3
'Mr. Pinkham-'I have read it
very carefully. I have made my
statement as concisely as possible,
and, as | understand it, the opera,
tions of the sinking fund, if they
are carried out as planned, mean
that the sinking fund simply dis
charges the obligations to the
stockholders of their original cap
ital, and turns the property over to
the pub IT, and that, | understand
from Mr.. Peck, is the effect, and
Governor Frear does not dispute
me
"GOvernor Frear-'That is cor
rect.
"Thc bill under consideration pro
vided for the issuance of stock to the \
amount of s ,6OO,O and it surely con
fains safeguards to the public that it
lid not have by the original act.
zee no reason to doubt the good Judge
nent of Governor Pinkham in this IN
stance in approving Of this $1,000, 900
Of stock any more than | have not
doubted his judgement in a prior in
'tance, in the purchase of the Hawaiian
rramways. Under any view that may
oe taken find that the defendant has d
he right to issue stock to the amount
IF $1,600,OOO t
have examined the many authOri-
les cited and have aimed to follow !
hem, 1t is useless to cite them.
1.-THE injunction heretofore issued is e
dissolved and the case on its merits e
s finally dismissed at the plaintiff 5
osts. The attorneys will prepare the
Ormal decree"