The Hawaiian gazette., 1916-04-18
mail Special 70 The Advertiser)


little more surprise could have been
oecasioned than was the case when
Attorney Frank Thompson, appearing
for the Hilo Electric Light Company,
announced that his client was quite
willing to have the rate at which pow.
er would be sold by the Hilo Electric
Light Company to the Hilo Traction
Company fixed by the public. utilities
commission, and at G.. G. Ballentyne q
rejoinder that the Hilo Traction Com.
pany was perfectly willing to place It.
self in the hands of the commission as
to rates. Thus ended deadlock which
threatened to seriously affect the re.
lationship between the two companies,
even though the amount in dispute was
but one:quarter of cent n ki'owatt
hour. Rnt that quarter of a cent a kilo.
watt hour stood between an amicable
arrangement between the two com.
panies in Honolulu and for upward Of
two hours in public meeting in Hilo
there did not seem much chance of
either side rereding from the position
adopted. The situation had all the APP
pearances of an absolute deadlock, but
the atmosphere was cleared as il by
magic by Thompson 8 offer and Ballen-
tyne's acceptance. .',.ft ~
Conference Well Attended ~
The conference was between the
Commission, the board of supervisors
of the County of Hawaii, the board OF
trade Of Hilo, and the HiIo public.
There were upward of thirty,six pre-.
sent, among them being Charles X.
Forbes, A. J. GignOux, Attorney J. l..
Coke of the public utilities board, c.
9. Kennedy, Norman Lyman, W. H. @.
Campbell, Rev. Stephen Desha, Leon
II. Cook, A. C. Wheeler, r. W. Shingle,
-. G. Ballentyne, Attorney F.. E.
Thompson, Henry Lyman, q. H. Wears,
J. w. Russall, A. NJ. Cabrinha, John
Scott f: N. Deyo, II. Irwin, J. C.
PlankingtOn, E. H, Austin, s. Kau-
hane, chairman of board Of supervi.
Fors; Thomas Guard, II. B. Mariner. N.
5pinola, c. e. Castendyck, c. 8. Carl,
smith, A. G. Curtis, II. B. Elliott, J.
W. Bains, NJ NJ. Springer, Rev. George
Laughton, Eugene Lyman, and H. P.
y Sullivan, secretary Of the public uti,
lities commission.
Considerable time was spent in the
preliminaries Of the meeting the sec
rotary reading the messages of prot IS.
'eceived from Hilo and the replies
thereto, Chairman Forbes referring to
the original franchise and amendments
thereto, and then inviting the presen-
'atives of both companies vitality con
cerned to address the meeting, and also
asking for comments and criticisms
from those assembled.
Attorney Discusses Situation
Attorney Thompson made lengthy
speech, relating the negotiations which
had passed between the Hilo Electric
Light Company and the Hilo Traction
Company in their efforts to establish a
rate which would be equitable to both
parties and which would ensure Hilo
getting a street ear service. The sitaa-
ton today was that the traction com
pany had offered to pay the electric
company one and a quarter cents a
kilOwatt hour for power supplied and
the electric company wanted one and
a half cents kilowatt hour. In ar.
irving at the rate of one and a half
cents, his clients had consulted with
Nr. Hayward of the General Electric
CompohJ and Messrs Cation, Nell 4
Co., and with Mr.. Carr, of the Gen
eral Electric Company. Mr.. Planking.
ton manager of the Hilo Electric Light
Company, had also spent considerable
time in studying the question and all
of them said that one and half cents
was the positive minimum which his
clients could afford to accede to. The
first rate proposed was two and a half
'ents to Mr.. MetZger, but he was un-
able to cOncede that rate and offered
one and quarter cents, to which the
Electric Light Company suggested one
and half cents as a compromises
Thompson pointed out that the mini
mum rate of the Hawaiian Electric was
four cents, the maximum ten cents n
kilowatt hour, adding that the power
was generated by oil, but in IIilo it
ed for their asking so low a rate as
compared with the Hawaiian Electric
rate.
Cost to Electric Company
In order to supply the traction com
nany with power he claimed that it
would be necessary for the electric
company to build a dam, put in fumes,
bitches and all the necessary impedi-
menta that goes with a conservation
system, which would cost them about
100000. In addition, it would be
necessary to put in an auxiliary plant
in order to supply the traction com
pany with power when the water powe?
might be too, low. The figure of one
and one'half cents was predieated up
on minimum monthly supply of co.
600 kilowatt hours, Mr.. Ballentyne s
estimate of the minimum amount of
power required. That would be 5000
"A month revenue on an outlay of 800
600. Figuring their money as worth
six per cent, interest alone would be
$4,000 year; adding five per cent for
depreciation would be another $4,000;
then they were to agree with the ter
ritOrial government to allow the trac,
ton company $4,000 a year in power,
for which the electric light company
received no compensation, making a
total of $l4,500 year At the end Of
thirty years the system they would
have put in reverted to the govern
ment, so they had to provide an amor
tiHatioh fund to take care Of the 500,
600 in thirty years. Altogether it