The Hawaiian gazette., 1917-06-05

'fWe are refusing to make any con
tracts for coal longer than for June,
July and August, said President Ken.
nedy in answer to question at the
continuance of the Inter Island hearing
last night. 'tWe cannot get the trans.
portation from Japan and Australia
will not sell any coal. We have two
schooners coming from AustSalia with
coal we bought two years ago, the last
cheap coal we can get, and two former
Germany. steamers may bring ne some.
but do not know what that coal will
cost us. We have merely made arrange.
ments with the shipping board for the
transportation rates. The prices of coal
even at the mines are doubling nm.
Japan coal win now cost us 5000 or
more. I have offered $50 and been re.
fused. - 5'ia na Tx v@ t'
Last, night Is hearing opened With the
president of the company on the stand
and questions being directed to him rel.
alive to the earnings of the not-utilities
branches Of the company's business and
especially to the coal selling. 1t was
developed that under like conditions the
company charged its shipping depart.
ment like prices TO third parties for
coal and the indications were that the
hearing would be tame affair, but the
change came suddenly, startling the
commissioners. President Kennedy told
of how freight rates from Japan had
risen TO such a price it was impossible
to get steamers to carry IL when they
could get $50 ton for other frei light.
He said he did not know whore and how
the company was to get coal, that he
was securing the world for 1t. 10 rs
Further Engagements Are Refused .
Towards the close of the hearing
Kennedy told of the II. X. X. and the
Holland lines asking contracts for the
balance of the year and of his having
refused to agree TO furnish any coal
after August. If the company could get
coal for its own business it might not
be able to do much more.
Increased Rates Considered ~
Probable increase in freight and pas.
senger rates was another announcement
that startled the commissioners, II
came out when Chairman Forbes asked
Some questions relative to increasing
costs. H4 asked as to foodstuffs, and
Kennedy Told him of the increased cost
of $4,000 10 feed the passengers, and
said he could see nothing to do but
false passenger rates. "Are you also
considering another raise in freight
ratesflN asked Forbes. Sin both pas
senger and freight rates, am considers
ing the matter, looking into it, but have
not yet taken il up with the directors, :
In answer TO other queries he said he
might do so in month to six weeks.
Earnings Are Far Behind t,
That the transportation department is
falling way behind last year came out
after the testimony on the probability
OF raise in rates. Kennedy told how
earnings for the first three months Of
the year had fallen $4,000 behind the
same period of 1916. He admitted that
If the decrease continued II might wipe
out the profits from that department,
unless rates were raised correspond,
ingly He knew of no way TO retrench,
had thought and studied, but had been
unable TO find any other means. -
Freight Rates Elsewhere Compared q,
Garden asked a question to get a com
parison Of rates charged by the Inter
Island and in other parts Of the world
and brought out the information that
freight rates from Japan to the main.
land were now $52 ton and the volun.
teered information relative 10 what the
Matson line oonld earn in other diree-.
tions. Forbes interrupted to say that
Captain Matson had told him the same.
but that he, had continued that despite
this the Matson company had no ilten.
ton Of deserving this run y H s.G
What effect diseontinuance of the
sale ofecoai to liners would have In
turning shipping into other directions
the commissioners did not Inquire. IL
Was evidently deemed not pertinent to
the hearing.