The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1916-12-01
DEEPPEACE-[|KE
'DDVEBROODSOVER
HEARING 0NRAlTEs
Not One Cross Word Mars Ses-
sion Of Public Utilities Com
mission On lnter,lsIand
LION WARREN AND LAMB
! FIELD GAMBoL PAINFULLY
Ponderous Hypothetical Question
= of Chairman Lends Learned
Tone To Probe s
(From "wednesday Advertiser.)

An unusual atmosphere Of calm per-
AIDED the board room of the public
tilities commission yesterday as com
Iissioners and ofieiuls of the Inter.
sland Steam Navigation Company set
led down to peaceful and quiet dis
.ussion Of the financial report of the
Ompany, compiled by II. Gooding
ieId, which heretofore has been pro
iuctive of so much bitterness and
5ordy warfare.
Little advance was made in tho
ross examination of Field by l.. J.
Warren, attorney for the company, due
argply TO a aggression by Chairman
Norbes to ask a series of lengthy, com
Seated, hypothetical questions of J.
1. Mclean, vice-president of the Inter.
sland.
Depreciation Again r.
Depreciation, the worn and ragged
ubiect over which so many hearings
N the report have developed into
vrangles, was again the main topic of
be discussion. Theories of correct
Methods Of keeping depreciation ac-
cunts, quotations from authorities and
Individual ideas on the merits of vari.
rus systems entered into the proceed
ngs yesterday, more deeply involving
hose present in the forest of figures
rom which there seems no way out
Auditor Field and Attorney Warren
settled between them many points on
which they disagree by agreeing
wherein they disagree. Field settled
definitely his conclusion on the 800 900
:harged to profit and loss in 1912 and
'redited TO depreciation to open that
account He said:
That 100000 Once More
"The 100000 was not a charge
'gainst income of the steamers, but
as "A charge against profit and loss
! representing the income of both the
teamer or public utility enterprise and
he non-pubhc utility enterprise of the
company"
Chairman Forbes then stopped, Attor-
Iey Warren's questioning of Auditor
FiPld so that he might ask question
Mr.. Mclean. BY actual eoufN the
mestiOn and its correlative explana.
ions and digressions took eleven and a
alf minutes to be spoken. Then At
orney Warren objected to Mr.. Mclean
Ping called upon to answer the query,
the ground that Chairman Forbes
rad based the question on q wrong
ypOthesis and on facts not found in
he record. The subject of the ques-
ioh>na"urally was depreciation. Par
tally, in response, Mr.. Mclean said:
"Tbe Inter Island stockholders are
'aek of every enterprise the company
las. There has never been a time in
he thirty-three years of the cOmpany's
xistence when the company has not
lad enough assets to cover all habili-
les, meet all losses and be in a posi-
ion to meet any probable losses. The
usiness has been managed on a safe,
onservptiVe system, and its record
hows this
Question BY Forbes
Chairman Forbes question dealt
With the theories of depreciation; the
bsolrsrCnce of steamers; their scrap
aluc the rate of charging deprecia
on: how depreciation should be repre-
"ntcd, and several other kindred sub
cts on which he said he had been
rading up Of late and consulting many
tandard authorities. The question,
e said, chad been on his mind" and
Ow that he had "gotten it off his
ind" he was sa tisied. Auditor Field
Ten read long list Of authorities on
bich his conclusions have been based,
! I'D business was almost supended
lille theories, ideas and authorities
ere discussed at much length.
Auditor Field pointed out repeatedly
hat the bar TO clear settlement of the
| ssues was the inclusion of both public
Utility and nOn.public utility enter
prises of the company under one sys-
EN- Of bookkeeping. In this connec-
ton Attorney Warren said
Probe of Rates Only
| "The common surplus of the com
lpapy eRres for everything in the bust
ness. This investigation is primarily
lnertinent to rates. The commission
cannot consider the earnings of any
tut the transportation RPtGFprises Of
the business. : .,rGT,'
enquiry by the commission into
when. how and why the various &C.
counts were opened is no aid to the de
Termination of what should be the
proper method of calculating operating
Expenses and what are the proper
Il ,harCcs to get fair return on the
\ ,teamer business, and hence what are
air rates There is no reason for go
ny into all these theories"
Mr. McLean's objection Monday to
I supplying Il mass of figures requested
W Commission Garden was not because
of alleged .intermingling of accounts,
as has been stated, but because of the
countless number of small items scat.
tered through the books that would
have to be checked up to provide the