Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1917-03-23
CONTINGENT FUND
use IS DEFENDED
BY GOV. PINKHAM
In Letter to Senate Committee
He Declares Expenses for
Militia and in Rapid Transit
Suit Justified BY Public
Policy

Governor Pinkhan's use OF the $50.
600 contingent fund partly for militia
expenses was done with the advice Of
four hold-over members Of the pres
ent senate.
His use Of the fund partly for the
Rapid Transit suit was done to block
"unabashed high finance"
Such are declarations by the gov.
ernor in a letter to the ways and
means committee Of the senate
Whether the legislature will con.
tinue the fund or increase II to $780,.
900 as he suggests, has become prob
lematical since the house last Tues
day Knocked out the fund altogether
The senate may reinsert II in the APP
preparation bill or introduce IL under
another name and with certain re-
strictions as to its use. In fact, the lat.
ter course has been suggested as
likely.
The ways and means committee of
the senate, studying financial prob
lens OF the territory simultaneously
with the house, has had this contin-
gent fund under consideration. On
Wednesday the governor, evidently
moved by the action of the house, sent
the senate committee the following
letter:
In view of the occurrences OF the
past "a hours. ! trust you win per.
init me 10 place myself on record as
10 the contingent fund.
Contingent Fund
Realizing tho Imperative necessity
OF national defense, and the sudden
demand OF the secretary OF war and
commanders Of the Hawaiian depart.
ment that this territory provide an
adequate and efficient force for local
control and assistance 10 the army
in case OF war. | was forced to turn
TO the contingent fund for the neces-
sary additional financial support.
Il called as advisers four hold-oyer
members OF the senate, who acqui-
esced in the use OF the money.
NO equal amount Of money used in
any part OF the United States has be-
gun TO produce comparable results
with the amount under discussion.
The one thing that gives this ter.
r.tory q reputation Of patriotism and
spirit Of true manhood Is the National
Guard OF Hawaii
The Honolulu Raplo Transit q Land
Co., Ltd.
ANY perscn who states my attitude
toward that corporation is the result
Ct any personal interest whatsoever.
or personal feeling or spite against 1t
or any individual Or individuals is pitt
fully ignorant Iof the public financial
inmcralities embodied and concealed
in section S04 Of the franchise Of that
company. Section ga and paragraph
1 obligated the company TO pay the
territory an income, and On this prom
ise the franchise was granted. I'M
Ger section Sfi, as Interpreted BY the
company, the territory could never
receive one dollar.
Asa good citizen. years ago ex-
osed this opportunity to nuilify. de-
feat and make void all financial
Promises.
las good governor | have tried to
enforce the rights OF the territory
nd stop undue exploitation.
in doing 50 ] was obliged to as. !
sist the attorney geLeral's depart.
ment from the contingent fund.
Briefly, the company claims that
for every one, thousand dollars it Dor /,
ows by its bond issnes--which bonds |
must be paid by the public and not the
{ tockholders-it has the right to issue.
tnd has done so to the extent the l
business would bear, to its stockhold
ers. without money or other consid !
orsa hoff
enc hundred dollar $4,000 shares In
common stock
These IL 1-2 gift shares had mar
ket value on August 2, 1916, of s2S75.
These IL l-2 gift shares had mar
ket value on Aug. S, 1916, Of $21S9.50. i
These ~ IL gift shares had a mar
] Ell value in September, 1916, OF slS75.
"The decline is due to an Issue Of
about 100000 OF gift shares.
Responsible capitalists who have
I'm the justice of the gov
eminent have offered $3.50 per share +
for the control of the company.
The present management has
been so cbtuse to their public duty
il took them five years to extend their
King street track 100 feet to Fort
Shafter, where thousands of people,
particularly women and children.
needed the service
IF any member of the legislature
can approve of the people of Homo
lulu paying s1S75 commission for the
mere act of the Rapid Transit in Dor,
rowing, at no risk to itself, $1,000,
be is welcome to that sort of finan-
6ial reputation.
my financial conscience will net
Continued from page one)