expense maintain the surface of the street or bridge flush with the rail surface of their road, both between the rails thereof, and for a distance of not less than two feet on the outside of each of such rails, and also the entire space between the tracks where it has more than one track; but macadam stone if the government has it in stock, or if it is not in stock, the use under the control of the government, stone crusher and plant and materials, and the use of the steam roller and the water cart shall be supplied to said grantees by the government, for such purpose at net cost, free from any charges for profit or depreciation of plant.

§ 604. Said grantees shall not lay or construct any double track or siding on that portion of Fort street lying between Queen street and Beretania street.

§ 605. If said grantees shall fail, neglect, or refuse to observe and perform any of the conditions in sections 600-604, as expressed on their part, to be observed and performed, within the time herein limited for the performance thereof, then all the rights and privileges by said sections conferred shall lapse and become void, upon a decree to that effect being made by any court of competent jurisdiction. But nothing herein. contained shall be construed to exempt said grantees from the obligation to maintain the surface of all streets and bridges, wherein or whereon any of their roads shall be constructed, in manner as expressed in section 603, while such railway shall remain in or upon such street or road.

NOTE TO CHAPTER 44.

§§ 585-597 are S. L. 1884, ch. 34, amended as follows:

§ 585, § 590, and § 597 by S. L. 1886, ch 18. § 598 is S. L. 1886, ch. 18. § 599 is S. L. 1888, ch. 23. §§ 600-605 are S. L. 1888, ch. 56.

The right to use electric power, granted by S. L., 1890, ch. 74, and S. L., 1895, act 24, expired January 1, 1897.

Cases in Hawaiian Reports: Govt. v. Tramways Co., 7 Haw., 684; R. v. Wall, 7 Haw., 760; Re Tramways Co., 9 Haw., 281; Dickey v. Tramways Co., 10 Haw., 373; Ballou v. Tramways Co., 10 Haw., 376; Dickey v. Tramways Co., 10 Haw., 387; Tramways Co. v. Sturdevant, 10 Haw., 597.

CHAPTER 45.

PRODUCTION OF ELECTRICITY, HONOLULU.

DEFINITIONS.

§ 606. Wherever in this chapter the word "superintendent" is used, it shall mean the superintendent of public works of this territory. Wherever the word "contractor" is used, it shall mean the purchaser of franchise hereinafter provided for who has entered into a contract with the superintendent of public works in accordance with the terms of this chapter.

SALE OF FRANCHISE AT AUCTION.

§ 607. The superintendent of public works is hereby directed to sell at public auction to the highest bidder, as soon as the necessary arrangements can reasonably be made, the exclusive right and franchise to furnish and supply electric light and electric power, except as hereinafter provided, within the district of Honolulu during the term of ten years from the date of such sale. In case there shall be no sale of such franchise, the superintendent may thereafter from time to time readvertise the same for sale in the manner hereinbefore set forth.

The said superintendent shall advertise the time, place, and conditions of such sale for not less than sixty days in one or more newspapers published in Honolulu in the English language.

§608. The upset price of such franchise shall be two and one-half per cent of the gross receipts of the contractor from all electric light and power furnished to consumers; and bids for such franchise shall be for the percentage of such gross receipts which the bidder is willing to pay to the government over and above such percentage: Provided, however, That the contractor shall be exempt from paying such percentage of receipts for the first two years of such contract.

§ 609. Before any such franchise shall be knocked down at such sale to any bidder, such bidder shall deposit with the superintendent, in cash, or a certified check on a Honolulu bank, the sum of five hundred dollars, which shall be forfeited to the Government if such bidder fails to execute the contract hereinafter provided for.

CONTRACTOR'S OBLIGATION AND BOND.

§610. A contract shall be entered into between the superintendent and the purchaser of such privilege. There shall be included in the terms of such contract, in addition to the other requirements herein contained, an agreement by the holder of the franchise, that within two years from the granting of such franchise such contractor shall be able to and will furnish to all applicants at any point within the following-described district all the electric power and light which any applicant in such district may bona fide apply for, viz:

Beginning at a point on the seashore east of Honolulu, where a line drawn in extension of Punahou street meets the sea; thence running mauka along such line to and along Punahou street to Wilder avenue; thence westward along Wilder avenue to the street highest up the slope of Punchbowl; thence around the base of said hill on the same level to a point in line with the extension of School street; thence to the junction of School and Punchbowl streets; thence along Punchbowl street to the bridge across Pauoa stream; thence in a straight line to the east end of Judd street; thence along Judd street to Liliha street; thence along Liliha street and a line drawn in extension thereof to the seashore; thence along the seashore to the point of beginning. Provided, however, that the contractor shall not be required to run special wires over 1,000 feet in length for the furnishing of lights or power until the applicant or applicants shall apply for at least fifty sixteen-candlepower lights, and have first wired the premises proposed to be lighted, or prepared the apparatus necessary to utilize the power applied for; and in no case shall a contractor be obliged to run wires until the applicant or applicants shall have agreed to take at least five lights at schedule rates for not less than one year.

And provided further, that if the contractor is unable to furnish power or light applied for by reason of lack of capacity of the apparatus for producing electricity, such contractor shall be allowed a reasonable time, not to exceed nine months from the date of any application, to procure such additional apparatus as may be necessary to furnish such applicant.

§611. Before any franchise herein provided for shall be granted, the person or company to whom the same is proposed to be granted shall file with the superintendent a bond in the sum of five thousand dollars, with two sureties, conditioned to properly carry out the terms of the contract herein provided for, and to observe all of the terms and

conditions of this law. Each of such sureties shall be the owner of unencumbered real estate in this territory of the value of not less than twenty-five hundred dollars, or the owner of unencumbered personal property in this territory of the value of not less than five thousand dollars.

If at any time either of such sureties shall fail to comply with such property requirement a further surety or sureties shall forthwith be furnished by the holder of the franchise.

A deposit of twenty-five hundred dollars with the superintendent of public works may be made by the holder of the franchise to secure the execution of the condition of the boud, in lieu of the sureties above provided for, at the option of the holder of such franchise.

RULES AND REGULATIONS.

§ 612. The superintendent is hereby authorized to make and from time to time change, amend, or add to, all rules regulating the placing of poles and wires, the insulation of wires and apparatus carrying the electric current, the maintenance in good repair of all poles, wires, and apparatus, and generally concerning the manufacture and supply of electricity, which may be necessary or proper for the public safety and welfare.

Such regulations shall, after publication, have the force of law.

Nothing herein contained, however, shall authorize the superintend ent to require the wires to be placed underground.

§ 613. If the poles, wires, or apparatus of any contractor do not comply with such regulations, or there is any other infraction of such regulations, the contractor, or the person causing such infraction, shall be liable to a fine of not less than twenty-five nor more than five hundred dollars for each noncompliance or infraction.

§ 614. If at any time the contractor shall fail to observe or execute the rules and regulations or directions herein authorized, the superintendent may, in his discretion, after giving such contractor notice in writing of his intention so to do, proceed to remedy such failure at the expense of such contractor, and such contractor shall pay to the superintendent all expenses incurred in so doing; and the cost of such proceeding shall be a first lien upon all of the property of the contractor. § 615. No one shall be allowed to place or maintain poles or wires in, upon, or across any public street except such persons as are authorized by law so to do. Any person violating this section shall be guilty of a misdemeanor, and be fined twenty-five dollars for each pole or wire so placed in violation hereof. The superintendent may at any time cause such poles or wires to be removed at the expense of the person placing them in such position; but the penalty provided by this section shall not be inflicted until after the expiration of three months from the date hereof.

SUPERVISION.

§ 616. The entire plant, operations, books, and accounts of any contractor shall at all times be subject to the inspection of the superintend ent or such person as may be appointed by him for such purpose.

§ 617. Each contractor shall within one month after the expiration of each year file with the superintendent:

First. A detailed statement showing the name of each consumer of light or power furnished by such contractor; the number and character of lights or horsepower furnished to each consumer, and the amount paid by each consumer during each year;

Second. A detailed statement showing the objects added to the plant or stock of the contractor and the true net price, after deduction of all discounts and rebates of each such objects; and

Third. A further detailed statement showing the item of running expense of such contractor and the amount of each such item during the preceding year, and shall at the same time pay to the said superintendent such per centum as may have been bid and agreed upon in the contract above provided for.

EXEMPTIONS FROM EXCLUSIVE FRANCHISE.

§ 618. Nothing in this chapter contained shall be construed to prohibit any person or corporation from erecting electric apparatus and producing electricity for either light or power for his or its own use upon the premises where produced. But any such plant so erected shall be subject to all of the regulations herein before referred to; and shall be subject to the inspection and regulation of the superintendent or such person as may be appointed by him for that purpose.

Nor shall anything herein contained be construed to prohibit the Hawaiian Tramways Company, Limited, under the franchise already granted to it, from erecting a plant, poles, and wires, subject to the inspection and regulations herein before provided for, for the purpose of furnishing power for the propulsion of its cars; or for making a contract with any one or more of the contractors to furnish it with such power for use on any of its tracks, whether the same is within the district of such contractor or not.

Nor shall anything in this chapter contained be construed to prohibit the Government from furnishing to any part of Honolulu electricity for light or power, produced by the power now obtained from the present water supply of the city, up to the capacity of the electric dynamos now owned by the Government.

RATES.

§ 619. The rates to be charged by the contractor shall not exceed the following rates for each 16 candlepower light, viz:

For all-night use, or for use by saloons or billiard rooms, per month, $1.25. For stores, per month, $1.00. For dwelling houses, for first five lamps, per month per lamp, $0.90. For all over five lamps, per month per lamp, $0.60. For hotels, hospitals, churches, halls, and other places of a similar character, where lights are only occasionally used, shall be given special rates, not to exceed an equitable charge, depending upon the circumstances of each case.

The charge to be made for light and power furnished by the gov ernment shall not be less than the rate prescribed to be charged by any contractor.

The superintendent of public works is hereby prohibited from alienating in any manner the ownership and control of the government over the government water supply, or power produced therefrom, or the government electric light plant.

CONTRACTOR'S PLANTS MAY BE TAKEN BY THE GOVERNMENT.

§ 620. At the termination of the franchise granted hereunder, the superintendent may take over, on behalf of the government, all of the plant of the contractor, upon payment to him of the value thereof. The

value so to be paid shall be the actual cost price of all of the stock and plant of such contractor actually in use in carrying out the purpose of such franchise at the time the same is so taken over; the actual cost of the labor used in placing the same in position ready for work, less the deduction of a reasonable percentage for wear and tear and deterioration; and no allowance or payment shall be made for good will or value of the business. Provided, however, That such value shall not be higher than the same plant could, at such date, be duplicated for.

The percentage so to be deducted shall be used as may be agreed upon between the parties; or, if they are unable to agree thereon, each party shall appoint a disinterested appraiser, and the two so chosen shall choose a third, and the appraisement of such three persons so chosen shall be binding upon both parties as to the amount of percentage to be deducted.

§621. In case the Hawaiian Electric Company, Limited, shall not be the purchaser of such franchise, the purchaser thereof shall, if so requested by said company within thirty days of such purchase, take over from such company all of the plant now in use by such company at its fair market value, taking into consideration a fair discount for wear and deterioration. If the purchaser and said company are unable to agree upon the price, it shall be determined in the manner set forth in section 620. Provided, however, That such value shall not be higher than the same plant could at such date be duplicated for; and provided further, That said company shall have ten days after the rendition of the appraisers within which to decide whether to accept such award or not.

If such company shall not accept such award within such ten days, the contractor shall be thereupon absolved from any obligation to purchase such plant.

NOTE TO CHAPTER 45.

§§ 606-621 are S. L., 1892, ch. 107.

CHAPTER 46.

PRODUCTION OF ELECTRICITY, HILO.

§ 622. The superintendent of public works is hereby authorized to grant to the Hilo Electric Light Company a franchise for the term of fifty years from the date thereof, granting to the said company the right for said term to manufacture and supply electric light and electric power, in the town of Hilo, on the Island of Hawaii.

§ 623. The said company, under the supervision of the superintendent of public works, shall have the right to place poles and hang wires for the transmission of electricity in the streets and public places; on the wharves and elsewhere, as it may be required from time to time. It may take its water pipes under the highways and public roads, and across lands, where such is necessary to the exercise of its franchise, but such use shall not be made across private property unless, upou failure to agree with the owner of such property, regular proceedings shall be had for condemnation.

§ 624. Such franchise shall not be granted until the company shall have assured the superintendent by guarantees satisfactory to him that it is, and will be at all times during the existence of such franchise, able to supply promptly and efficiently such electric light and electric power in the town of Hilo as may from time to time be required, and