The Hawaiian gazette., 1916-04-18
UTILITIES COMPROMISE PLEASES HILO|
49, IL 80 - y Y y =
Second City Now Assured $ Of Traction System
BOARD n WILL SETTLE RATE FOR POWER

Stsp-Scale Proposition
Thompson also referred to the step
scale proposition which they had offer
ed: four cents for the first 5000 kilo
watt hours, three cents for the second
1900 kilowatt hours, and for every.
thing over that 1873 cents a kilowatt
honr. On the basis of 10000 kilowatt
hours that would cost the traction com.
rany $lO35 a month. less the $3.50 men.
toned in the agreement with the gov
eminent, or $Ts5 a month. Even that
was declined and the conference be
tween the two companies, said Mr.,
Thompson. ended, as Mr.. Ballentyne
was reported to have said, Gin a dead,
lock-
After the correspondence between
the parties when the conference had
ended was read, Thompson asked to
have read into the record letter ad.
dressed to Governor Pinkham on
March 81, regarding the use Of the
water in the WALTON river, in which the
electric light company made applica.
ton for license to take water from
the river, erect dams, ETC., for term
Of thirty years, paying therefor $4,000
year for the first ten years and $4,000
year for the remaining twenty wears,
or such sum for the remaining twenty
years as might be determined upon by
a board Of three arbitrators, the H.
eensee to furnish to the HilO Traction
Company electric power up to the sum
of $4,000 a year free Of charge.
Arriving at Power value
The value was to be arrived at ac-
cording to the following scale: four
cents kilowatt hour for the first 5000
'kilOwatt hours; three cents for the Sec
ond 5000 kilOwatt hours and one and
oFe-half cents a kilowatt hour for all
current in excess of 10000 kilowatt
hours a month. The application fur.
tber provided that after ten years the
'hcensee would furnish electric power
to the traction company at figure to
be arrived at by board of arbitrators
appointed in the usual manner, and
that after further term of ten years
the rate to be readjusted.
In conclusion, Thompson offered a
rate of four cents for the first 5000
kilOwatt hours, three cents for the sec.
ond 5000 and 1875 for all in excess for
the first ten years, or the fiat rate Of
one and One-half cents as formerly pro
IOsed.
Replying to Thompson, Mr.. Ballen-
tyne argued that since the former had
confined himself solely to the question
of rates, he and his clients were evil
IDENTIFY favOrably inclined to the amend
ments sought by the traction company.
Mr.. thompson think there are
thirteen pages of objections. If you
consider that acquieseing, you are en-.
titled to your opinion.
! Continuing, Ballentyne stated that
from what what Thompson had said it
would appear as if the Hilo Electric
Company had been very libc raj in its
offer. Thompson had told them what
the Hawaiian Electric charged for its
power and that the Hawaiian Electric
generated its power by steam, while
the current of the Hilo Electric was
generated by water and that water
power was the cheaper of the two. He
had not told, however, what it cost the
HilO Electric to develop its power
only what it sold it for.
Cost Is Vital Question
1t was a vital question what it cost
the Hilo Electric to generate its power
in H!lo and what was an exce< sive pro
fit in selling that power, particularly in
such large quantities and with such
constant rate of consumption as
would be required by the traction com
pany. Ballentyne claimed that before
the HilO Electric Company could get
a license to take water from the Wal.
loa river it would have to build a new
plant and to supply the traction com
PAW would require comparatively
small amount in addition. The same
dams, the same fumes and practically
the same machinery would be required
He knew the cost of power throughout
the States and while conditions here
were different-the cost Of installation
being greater, wages higher, and the
output of current smaller-all factors
which entered into the copt of produc-
tiOn of electricity, but the difference
between one half cent, the prevailing
rate throughout the East, for power
generated with water as the prime
mover and the one and quarter which
they Offered was certainly a very ma
terial increase.
lie thought they all would agree with
him that it required considerable cour
age for men to come forward and put
up their money into the traction com
pany. He had every confidence in it
but did not believe it would paw divi
dends for the first few years. He had
great confidence in HilO and believed
we were going to have a city that
would advance as years went on, unit
it assumed fairly large proportions, and
with the citv the railroad would grow
Traction Offer Liberal
1t was essential that the expenses
of the traction eGmrany should be kept
at the lowest possible point during the
first ten years and it was the expens
during the first ten years which was
the controversy between the two com
panies, because after ten years the
question Of rate would he fixed by arbi
traitors who would decide what the trar
tiom company would have to pay and
what the electric company would
have to accept. lie believed the rate
they had offered was very liberal bu,
he did not, think the meeting cared
particularly whether they paid one and
quarter cents or one and a half cents
CHECK FOR $4,000