The Hawaiian gazette., 1917-10-19
BOARD
SEEKS TO ENlON
THEiNTER4SLAND
Files SGitln Circuit Court To Re.
strain Shipping Company
IA From Raising It's Rates
CORP 0RATl0N IGNORED
1, COMMISSIONS ORDERS
Question Of Territorial Body's
~ Jurisdiction Expected To
Be BROUGHT Up

y
Suit in equity to enioin the Inter
.lsland Steam Navigation Company
from raising It's passenger and freight
rates above those, authorized by the
public utilities commission was filed in
the circuit court yesterday afternoon.
just what and how much authority
the utilities commission has over the
Inter.Island Steam Navigation Com,
pany is TO be determined by the courts
of law The utilities commission has
issued its orders TO the Inter Island
company TO reduce its rates, the com
pnny received the orders, did not re.
duce rates as ordered but on the con,
trary proceeded to put into operation a
schedule of still higher rates which Il
had announced before the long expect
ell report and order of the commission
had issued. ..'',. ., .. '.... ~
Who Has Jurisdiction =. =. ~. =
Has the utilities commission aLy iu
risdiction over the affairs of the Inter.
Island Company so Ear as Transports
ton and the rates to be charged for
transportation of freight aud passen-
gers is concerned or Is it without juris7
diction and does the real power Of con.
troll of the company lie with the ship.
ping board are the questions into which
the ease that the courts will determine
must finally resolve themselves. As a
means of determining these the utilities
commission, through Watson & Glenn!
ons, its attorneys, has fled suit in
equity against the navigation company
in which, AMONG other things, il seeks
to restrain by injunction the defendant
corporation from charging rates for
freight and passenger service higher
than the board provided in its order.
Investigation Was General
General investigation of the affairs
of the Inter. Island company by the
utilities commission grew out of GER.
tain specific complaints that were fled
from Maui. The scope at once became
general instead of going merely into
the special complaints. Here there
arose at once controversy as to wheth.
er or not the commission had power to
investigate what the company termed
its nOn-utility business and which the
commission claimed was so closely in.
terwOven with the utility business as to.
be inseparable and to have arisen di.
rectly out of and to have been fifiance,li
by the utility end Of the business.
Company Indicates Position "a
As the investigation went along il
became more and more evident that
while the company was submitting to
AN Investigation II would, when the
time came to consider any ruling that
might be made, either refuse to recog-
nize the commissions right to dictate
or ignore the authority which the com, /.
mission claimed and set up the. coun-
ter claim that jurisdiction over the
transportation company was in the
shipping board. .
Now Up to Court =.
The lengthy report of the commits
sion was handed down n few weeks
since and the company ordered to res
turn to its 1915 rates. Instead, sec.
Ond schedule, higher than the one the
commission had considered, went into
effect at the time the company had set
for it. This brought it to the utilities
board to make the next move. Its au.
thority appeared to be ignored; at
least its orders were not Obeyed. To
enforce the powers and Jurisdiction
which it claims under the laws of the
Territory of Hawaii the board must
act. The procedure for action was
through the courts. This move has.
been made in the commence ent of
the legal action. 1t is now the move
of the Inter Island Company through
it's counsel. What that move will be-
remains to be seen but the logical in,
ference seems to be that it will TAX
the form of answer in the legal form
which will deny jurisdiction of the
utilities board and squarely frame
those issues. ~
Report AS Evidence
1t is possible that the lengthy testi
mony taken before the commission may
finally get before the court but the ex-
pectation is that such will not be the
case until the primary dispute, juris.
dietiOn or lack of jurisdiction, is de
termined If il be found the utilities
board has the jurisdiction it claims,
then the matter of the right and jus,
tice of its orders might enter into the
case, but not before, -. H..
If, however, IL be held that the
shipping board has jurisdiction in the
matter, and not the utilities commits,
sion, the navigation company has to
reckon with an Absolutely unknown
quantity, but one that has expressed
the intention Of giving to the public
rates for freight aud passenger service
that it shall deem within reason and
insist that nothing beyond a fair profit
shall be eXncted, al