The Hawaiian gazette., 1916-03-07
AUTO TRAFF|CIS
FELT BY RAPID
TRANSIT COMPANY
Nearly Three Hundred Thousand
Fewer Fares Last Year Than
During the Year Previous
~ -
GENERAL CONDITION OF
BUSINESS SATISFACTORY
&c. $780,
Litigation lnaugurated BY Gov
ernor Cost Enough To Bring
" Deficit Last Month ofYear

D6t ~ st5j -
Remarkable growth Of AUTOMOBILE,
arafie in Honolulu the last two year
he's bal . material effect on the volume
Of stfeetcar business. In the year 1871;
the nnmber Of paid fares collected by
ths Honolulu Rapid Transit 4 Land
Company was 2o6,215 less than in 1914
pad the actual reduction in its gross
avenue amounted to Sf6,25S.4O. This
dtcrease in business began in 1914, for
Ne figures in the annual report of the
eolhpany's officers for 1918 show that
Ne gross revenue for last year was
tee,si9.es less than that of two years
csc; H.,
This falling of Is ascribed by tie
company in very large part TO the more
General nse Of the motor ear in Homo
inIn. ,f
Nevertheless the Transportation com
lapy ~ not downhearted. Tourist bust
reee and other features Of the general
foAdition in the city are improving and
f44s President L. Tenney Peck, "bene-
Heal iresults in streetcar traffic are al
ready shown which Offset in measure
Ne severe handicap caused by the
growing use of automobiles, which is
tefiously affecting our receipts in com
mon with those of urban companies
throughout the mainland.
Annual Financial Reports
1.-THE annual reports Of President Peck.
Manager g. @. Ballentyne, and Treas
hFer Q. H. Atherton show that the gross
reyepue for 1915 was $500 ,564.45, the
operating expenses 1927 1895, and that
four dividends of two per cent each,
total Of $4,000, were paid on the out.
standing common stock of $l,207 500.
An interesting feature of Manager
Ballentyne's report Is that the company
encountered deficit Of $6260.19 in De.
tember. This was caused says the
manager, ssby reason Of the expenses
in seonnection with the injunction suit
brought BY the Territory in which. it
was sought TO enjoin the company from
any further issue of stock, the costs Of
which suit have already amounted to
t23 ,246.72s,
The expense Of this suit, instituted
by the Governor, was met and paid in
December and as the litigation is en-
tirelY foreign TO the eOmpany's real
t1sincss Il has no bearing on the lat,
ter D financial condition. 1t will be re-
membered that the Territory lost the
suit in circuit court and carried an ap-
nail to the supreme court this appeaI
has not yet been perfected, however.
Uarting Time
ftstThere have been no developments
bihce our last annual report as to fran
ehise legislation, says President Peck.
HFho act of the legislature of 1913
which amended our franchise and .ex-
fobded its term from 1880 to 1850 was
not ratified by the federal congress nor
reported cut Of the committee TO which
II had been referred. Although the act
permitted an Increase Of stock to 81.
100000 as fairly representing the cost
on January !, 1913, of the property of
the railway, less the amount Of bonded
Ildebtedness, D suit, nevertheless, was
Instituted during the year by direction
o. the Governor Of the Territory to en-.
join the company from issuing any
stock beyond the present amount of
tI,2O7 sou admittedly valid stock.
NA4 Upon the hearing the Territory re-
fused to allow the cost Of the property
10 he shown, contending that the cost,
ltsa depreciation, should be taken az the
basis for stock issue, and introduced ex-
pert testimony intended to show a pres
emit value not in excess of the Outstand
irih a1onnt Of stock. ....... ~,
Court Upheld Company
fsIhe company thereupon caused an
EXPERT valuation to be made by an
6nrineer Of high standing from the
mIinland assisted by local engineers
and proved q present value far more
than siiIIeient to warrant stock issue
% tkssproposed amount of 81 GOO, 900
Tie court, however, rejected the pres
6nt.yaiue Theory Of the Territory and
detided that the, statute, as claimed by
IL, clearly fixed the basis for stock
i1ne qnaSlthe Ieestt of the property of
|hb railway, which, as of April !, 1918,
~as proven TO be $2,17l000, and de
Med the Injunction asked for by the
I1rfifory. e. y
- An appeal was taken by the Terri.
IIly To the supreme. court Of Hawaii
Which has not, however, as yet been
|1rfAtted. az e.,
'rffYOnr authorization for the incom
M board to FIX the stock Of the com
.InV ~ Aenf0rmity with the final court
dlfision on this point is requested by
the present board. y
80 FIXTURE efforts viii not be.spared to
fsenre an extension Of the term of
your franchise fairly amended to meet
modern conditions. The interests of
tIt company and Of the city of Homo
Idia are alike injured by the delays
Already experienced.
Xhen Roads Permit
Discussing the company attempt to
Increase The scope Of its privileges,
very largely for tho benefit Of the
f6Iiiers, President Peck says: Late
VI the year four motor buses of spe
tial design were procured at COS
~ &l7Sl4.50 to extend our service
III free transfers from the western ter