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 a 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 its 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 that this phase of the matter
had not presented itself to him, but
that personally he would like to see
a 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. $50. .."- q.
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 a 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 a month. The Stats
ticians of the utilities commission said
today that the amount would be close
to $4,000 The figure is arrived at un-
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 fits present charter
and abandon its efforts to secure the
passage by Congress of the bill
that charter, which was ap-
proved by the legislature but which
the governor refused to indorse. Then
1t is to apply for an indeterminate
charter, ending only when cancellation
are taken by Congress,
and containing provisions putting 1t
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 a 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
Dr., calling attention to a meeting of
he transit company stockholders for
he purpose of considering plans for |
he retirement of the present bonds |
II the company, was read. The letter |
pointed out that the present franchise |
would necessarily be included as a |
part of the security of the company, |
hat the government has derived no |
'eyenue from the company during the
Is years OF its franchise, that the |
ransit company was not making the |
extensions necessary to the growth of |
he city, that all this could be changed |
~ putting the company under the |
of the utilities commits
ion. 1t then requested that the gov
'rnor direct the commission to inves.
igate end report upon the subjects
Conferences 10 Held.
The governor approved of the l
cheme and the commissions chair
nan arranged with the president of
he board of directors Of the transit
L. T. Peck, for conference
'etween the two bodies. II took place
afternoon.
The proposal that the company sur
ender its old charter and apply for a
lew one was made at yesterdays
difference and tentatively approved.
! committee composed Of Mr.. Peck,
s president; C. G. Ballentyne, as man.
ger, and Richard Ivers, director, was
ppointed to act for the company in /
II further negotiations. The super
isors will he asked to appoint a COM
aittee to represent the city and con-
erences with the utilities commits Il
ion will be held until the matter is
isposed of.
II the plan goes through, as pro-
osed, 1t will end all government liti-
alton with the company and with the
cding of its troubles the company
rill he ready RI anond mnnav nm nv II