Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-08-25

NOT RAISED ALL
AROUND, BYL.-L.
Proposed New Tariff Designed
to Help Inter- Island Break
Even," Say Officials

! That the Inter-Island Steam Nafi.
! CATION Company loses money right
| along in its freight and passenger
! business with ports on the north side
| OF Kauai, and at certain points on
/ Molokai. was stated by officials Of
| the corporation Thursday afternoon 1T
/ the public utilities commission hear
| ing relative to the proposed new
freight and passenger tariffs of the
company, to become effective Septem-
Der /, if approved by the commission.
Among other interesting facts de
veloped at the hearing, which was of
the most friendly nature, were that
, the Inter-Island carried total of 65,-
7S9 passengers, deck and cabin, for
the last fiscal year from July 1, 1915.
to June 80, 1916; that its proposed
rates are so arranged as to enable
the company to help make up the
losses ii now sustains at certain small
ports; that it has an insurance fund
of about 100000 set aside from its
earnings against possible disaster, and
that it has depreciation fund. Its
vessels are now valued at S1,342,0 00..
Meets Again Tuesday
The public utilities commission viii
not take action on the company's pro
posed new tariffs until its next meet
ing Tuesday afternoon, August %
The hearing was for the purpose Of
having the company tell the commits
sion why It has raised its rates,
freight and passenger, from Honolulu
to certain other island ports.
AS printed in the Star-Bulletin yes.
terday, Vice-President ]. L. Mclean
of the Inter-Island told the commits.
sion the reason for the general reyt
sion Of rates is that the corporations
operating expenses have increased
greatly. due to the higher prices OF
fuel and all ship supplies in the last
year, due to the war. 1t cost the COM
pany $62,9S3.10 more to operate its
fleet for the first six months of 1916
than for the corresponding period in
1915. Fuel alone cost $23, 684.S2 more
than before.
Questions propounded by Chairman
Charles r. Forbes of the commission
developed the following facts relative
to the company's business: It's stock, !
par value 500, is now quoted at $1S5 |
on the stock exchange, the company |
has no preferred stock, it issued |
stock dividend of $750,000 this year, |
at the rate of one share for every
three held, it sells Goals from its
ship bunkering department to its |
steamers for running them at the
same price charged other consumers; /
it has four practically unsalaDla |
steamers, and sets aside per cent
of its earnings year for deprecia.
ton.
Relative to the company's first |
tariff. issued October /, 1913, Norman /
z. Gedge, assistant to the president,
told the commission the rates then
were lower in many in
stances than the rates which had
heen charged previous to the time the /
took over the Wilder
Company in 1905.
Says No Complaint Made
The proposed schedule of tariffs as
passenger charges VIII oniy
raise deck rates rs cents person
between Honolulu and other island /
ports, there being on raise in rates
between way ports. On freight rates
he increases sought range from 20 to I
20 cents a ton, to help offest increased T
cost of operation Of the company +
yessels. Most of the freight increases
will affect shippers. of small quaint
ties less than five tons.
No complaint has been made to the
according to its attorney
James i. Coke, concerning the pro
posed rates. The commission, how
eyer. has the right to refuse to sane
ion them If they decide the increases
ire not justified.