The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1916-03-21
Utilities Commission Has Second
Inning With This Public Ser
vice Corporation
TARIFF OF CITY PHONES q,
WILL NOT BE RAISED NOW
Employees Receive Liberal Treat
ment and Climate Causes Rap
i'd Depreciation Of Plant

! The second hearing on the investiga
tion of the Mutual Telephone Company
was had last evening before the pub
ne utilities commissioners. It con sist.
ed of an examination of Treasurer John
"A. Balch and Manager F. C.. Hummel
on the report made by II. GoodinR
rfteld for the commission.
+ The report went into the finances of
the company as found from its books OF
account and other financial data on
hie in the company office, and was
proven by exporting the trial balance
and cross entries The report covered
the fiscal year 1918.
| The total value of the plant shown
to be 1891 ,502.71, the profit and loss &C,
count OF the concern showed 500 81.
The operating and general expense was
Sl6l 1881, as against $l37, 723. 20 for
the previous year, and the income in
lgI5 was 1920, 4jO24 as against $264,.
| O95.62 in 1914. The capital stock per
mitted at this time is $3.50, 900, of which
$6l5,51O is issued. All of this is fully
paid up and none of It has been issued
In stock dividends. There are bonds
outstanding amounting TO $500, 900. The
trial balance showed total of 81 ,l00,-
| T52.l6. ~
Auxiliaries Operate Al Loss
During the course Of the examine
ti9n 1t developed that the country sys-
tenn and electric clocks and fire alarms
were not paying by several hundred
dollars year and on the request Of
Mr.. Balch the figures Of the income and
expenses CT the wireless department
were not made public.
1t was intimated by Balch that while
there was no intention on the part of
the company to raise the tariff of city
| phones, 1t was possible that the rate
Tor the country service might be ad-
yaneed TO take care of the loss occur
ring each, year Of operation.
Extensions were being made from
time to time as additional subscribers
demanded service and there are at pres.
ent about 1000 phones installed and in
service, of which 400 are in the bust
ness section of the city and the balance
in the residence AMI country districts.
On the wOrkmen s compensation law
the company ,laimed to be doing bet
ter by its employees than the law de-
handed. They were taken care Of on
full pay much longer than the law con-
templated and one man who was taken
sick through his exposure in line of
duty had been taken care of for more
than FIVE months, on full pay and until
his recovery.
Status of Employees
There are 1874 employees of the com
pany, of whom forty one are women.
These later are operators in the Homo
lulu Offices and country exchanges and
get from twenty to ffty-fve dollars
month, according to efficiency and
length of service. The mechanical de
partment pays from "A dollar and a half
day for helpers to four and a half
a day to the linemen.
The work day is no longer than
eight hours and several of the
employees have been with the
more than twenty-five years. Tine and
a half is given for overtime.
Construction work is going on all the
time and this year it is possible that
there will be spent about $4,000 in
extensions and requirements. new
station to take care of the Waikiki
and Kaimuki subscribers Is being con
structed at cost of about $1,000 for
the building alone. In the country
districts the operators are supplied
with everything. except their food, but
the company furnishes sleeping and
living quarters, kitchen utensils and
table and bed linen so that the girls
have only to supply their own food.
On a question from Senator James
l.. Coke, who, in the absence Of the
attorney general, acted as attorney for
the commission, the exercise of emf
nent domain by the company was de
MED by the officers
Does Not Exercise Right
Senator Coke explained that the leg
islature had passed the law giving the
company the. right TO so exercise the
right but the company disclaimed any
use of it whatever.
Manager Hummel explained that the
climate here was very hard on the
plant and for that reason there was
a large depreciation fund set aside
yearly TO take care of the investment.
1t was possible that within the coming
five Years the switchboard would have
to be renewed, and it was necessary
that the fund allowed to grow sufti
GENTLY to take care of this replace
ment when necessary.
Treasurer BaIch stated that the com
pany's manner of handling deprecia-
ton and general accounting would be
found to be classic when compared
with other corporation accounting sys
tens in the Islands and said that the
United States was plastered all over
with defunct telephone companies
which had not paid sufficient attention
to depreciation but had tried to pay
dividends too lavishly.
Chairman Forbes pulled d new stunt
on, the commissioners in figuring de
PGeciation, 1t was a slide rule which
worked like an accordion, He got re-
suits, however, and then fred more
questions. EtE.
Audit Report Accepted ,ss...