The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1917-10-02
Inter Department PROFIT

Inter Department PROFIT l2
q, All charges by the merchandise De.
partment for the years 1914, 1915 and
1916 that were profit were 24.51 per
cent for 1914, 27,37 per cent for 1915
and 1921 per cent for 1916. In con.
sequence .the amount Of money charged
to the expense of operation Of steamers
for each Of those years, in each case,
was an overcharge by the amount of
this improper interdepartmentn prof.
IL. Thus for the year 1914, for ek-
ample, the amount charged to the, OPP
Grating expenses Of the steamship de.
partment on account Of goods supplied
by the merchandise department, in
stead of being the amount Of the ae.
tual cost to the company was 1245l
per cent Of the actual cost.
""The following table shows the
amount Of overehaTge in the operating
expenses Of the steamship department
for each OF the years brought about
by the inter-departmental profit made
by the merchandising department at
the expense of the steamship depart,
ment! 1" ~
Year Charged Profit Cost Charge
1914 sill. ~ ~ 2l.51 So 1888 $:sl.lsa.5o
1915 l23. 1Galo3 2I.37 1G,IO2.I5 N. I0T. As
1916 14o,22oO5 1sa1 t2d,2a3O1 22.OsI.Oi
Book PROFITS Reduced ~. }y
''In consequence of the 'overcharge
in the expense Of operation Of the
steamship department. for each of the
years 1914, 10l5 and 1916, the net prof.
Its made by the steamship department
for each of those years, as shown by
the books Of the company, are too low
for each year by the amount of the
oSercharge. -
Z The dry dock department charges
are next taken up in, the same way
aud relative to alleged overcharges by
that department. the commission fur.
nished a table showing the profits of
that department were 1911 per cent
in 1914, In 1915 1850 per cent and 1915,
80 so. 'r1
Then follows this table to show the
amount of oyereharge to the steamship
department through departmental
profit made by the dry lock depart,
ment:
:. Amount Per cent Actual Over.
1911 s57,Soi,fS ioII $ls,27G,1o $ S.2sS,d
1910 iI.oseso sa.so 5s,iiT.Go r0.sS3.ac
The same conclusion of overcharges
by this department for the three years
in these amounts, follows, as was
drawn, similarly in the ease of the mer
chandising department. p:
Other alleged oyereharges are found
in the coal department, lighterage de
partment, Insurance industrial depart
ment and the findings come to the ac
tuaI amount Of profit made by the
steamship department. for each of the
years 1914, 1915 and 1915. IN sum
marizing this report said:
Actual Fronts large
"The officers and representatives Of
the company haTe contended through
out the eoorse at the hearing that the
steamship heparE ment of the company
was operating at very small rate OF
profit, so small, in fact, as to be liabl,
to be turned iRte~a loss at any time
The figures produced before the com,
mission, with the deduction made by
the commission from such figures, not
only show that such is not the case but
that the steamship department of the
company for each of those years
operated at a very substantial profit.
Order Rate Reductions
As a result of the findings made the
commission then entered the following
order which was yesterday served upon
the company: -.
1.-THE commission having duly in.
vestigated the Inter-Is1and Steam
Navigation Co., Ltd, and the com.
plants against said corporation on file
in the Office of the commission at public
hearings duly held before the commits.
sion; and the commission being fully
advised in the premises, the opinion
of the commission having been duly
filed this 2Sth day of September, 1917,
it is the order of the commission:
THAT the Inter Island Steam Navi,
CATION Co, Ltd, reduce all charges for
the carriage Of passengers and freight
not to exceed the rates and classified.
tons which were in effect on the lst
day of August, 1916;
'That the company so amend its
freight tariff that the total charge for
less than quantity lots shah not exceed
the minimum charge for quantity lots:
"That said Inter- Island Steam Navi.
CATION Co.. Ltd. put into effect such
changes in rates and classifications on
or before the 18th day of October,
1917.
"Dated at Honolulu, Territory of
Hawaii, this 2sth day of September,
A. D., Hl7. "'
WILLIAM r. GARDEN,
80" Chairman.
a. J. GIGNOUx,
Commissioner
WILLIAM p. THOMAS,
=. Commissioner. -