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

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.
HE use Of the fund partly for the
Rapid Transit suit was done to block
"unabashed high finance"
Such are declarations by the gov
crnor in letter to the ways and
means committee Of the senate.
Whether the legislature will con.
tinue the fund or increase 1t to $780,
600 as he suggests, has become prob
lematical since the house last Tues
day knocked out the fund altogether.
The senate may reinsert It in the APP
preparation BILL or introduce II 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 viii per.
NIT me to place myself on record as
TO the contingent fund
Contingent Fund
Realizing tho imperative necessity
OF national defense ana 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 to 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 I'M
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
ritory reputation of patriotism and
spirit of true manhood Is The National
Guard OF Hawaii.
The Honolulu RapIo Transit & Land.
Co. Ltd.
ANY person xho states my sttitudel
toward that corporation Ii the result
IL any personal interest whatsoever.
or personal feeling or spite against II
or any individual or individuals is pitt.
fully ignorant Of the public financiai
immoralities embodied and concealed
in section S04 OF the franchise Of thai
company. Section 1S4 and paragraph
4 obligated the company 10 pay the
territory an income, and on this prom.
Use the franchise was granted Tn.
der section S04, as Interpreted by the
company. the territory could never
receive one dollar.
As good citizen. I years ago ex.
iDsed this opportunity to nullify. de-
!. feat and make void all. financial
PROMISES.
- As a good governor l have tried to
Scbforce the rights Of the territory
and stop undue exploitation
in doing 50 was obliged TO as.
sist the attorney geLerafs depart
ment from the contingent fund
Briefly. the company claims that
for every one thousand dollars ii Dor
lows by It's bond issues which bonds
must be paid by the public and not the
stockhoiders-it has the right to issue,
end has done so to the extent the
business would bear, 70 its stockhold
ers. without money or other consid.
Grafton, twelve and one-half IL l-21
enc hundred dollar $1,000 shares in
common stock.
These IL IL gift shares had mar.
ket value on August 2, 1916. of $2375.
These 12l-2 gift shares had a mar
ket value on Aug. S, 1916, of $21S9.50.
These IL IL gift shares had mar
let value in September 1916, OF 1875.
The decline is due TO an issue Of
about 100000 Of gift shares.
Responsible capitalists who have
confidence in the justice of the gov
eminent have offered $3.50 per share
for the control OF the company.
The present management has !
been so obtuse to their public duty |
il took them five years to extend their |;
King street track 100 feet to Fort
Shafter. where thousands of people, I
particularly women and children, |
needed the service
IF any member OF the legislature |
can approve of the people OF Homo
lulu paying 1875 commission for the |
mere act of the Rapid Transit in Dor
rowing, at no risk to itself, $1,000, !
he is welcome TO that sort OF a finan.
tial reputation.
My financial conscience will not
Continued from page one, |