Template:1122-1123

-p1122-

of Honolulu, on the island of Oahu, Hawaiian Islands, where all the drawings of said lottery shall take place.

SECTION 3. The said grantees and their successors and assigns shall pay for said franchise to the Hawaiian Government the sum of five hundred thousand ($500,000) dollars each year, in quarterly installments, at the end of each quarter after the announcement of the first drawing; that is to say, on the 31st day of March, the 30th day of June, the 30th day of September, and the 31st day of December, of each year.

SECTION 4. Said sum shall be devoted to the uses and purposes hereinafter set forth, and the minister of finance is hereby authorized to pay the same as herein provided, as long as the same is received for said franchise.

First. Subsidy to be paid for an ocean cable between the port of Honolulu and a port on the North American Continent connecting with any American telegraph system, one hundred thousand ($100,000) dollars per annum. This subsidy shall be paid in quarterly installments in the manner in which it is received, to such company with which the Hawaiian Government may enter into a contract under Chapter LXX of the session laws of 1890, and to commence after the sending of the first message over such cable, and to continue as long as such cable is maintained in working order.

Second. Subsidy to be paid for the construction and maintenance of a railroad around the island of Oahu, fifty thousand ($50,000) dollars per annum, to be paid to such company who may construct and maintain such railroad and during such time in which said railroad is kept in operation.

Third. Subsidy to be paid for the construction and maintenance of a railroad from Hilo, Island of Hawaii, through the districts of Hilo and Hamakua, fifty-thousand ($50,000) dollars per annum, to be paid during such period during which said railroad is kept in operation.

Fourth. For improving and maintaining the improvements of Honolulu Harbor, fifty thousand ($50,000) dollars per annum.

Fifth. For roads, bridges, landings, and wharves in the Hawaiian Kingdom, one hundred and seventy-five thousand ($175,000) dollars per annum, to be apportioned as follows: Island of Oahu, fifty thousand ($50,000) dollars; Island of Hawaii, sixty thousand ($60,000) dollars; Island of Maui, forty thousand ($40,000) dollars; Island of Kauai, twenty-five thousand ($25,000) dollars.

Sixth. For the encouragement of industries in the Hawaiian Kingdom, fifty thousand ($50,000) dollars per annum, to be disbursed as may be from time to time directed by the Legislature.

Seventh. For the encouragement of tourist travel and immigration, twenty-five thousand ($25,000) dollars per annum, to be disbursed as may be from time to time directed by the Legislature.

Eighth. If at any time during the existence of this franchise the provisions of the reciprocity treaty relating to Pearl Harbor should be abrogated, then the amounts mentioned in subdivisions fifth and seventh shall be used as a subsidy for the purpose of opening the harbor known as Pearl Harbor and erecting and maintaining dry docks and other improvements in said harbor.

Ninth. If for any reason any of the above subsidies can not be applied to the purposes herein set forth, then the sums so set apart shall be used as from time to time the Legislature may direct.

SECTION 5. The grantees and their successors and assigns shall be exempted from any and all taxes and license fees of any kind whatsoever upon or for said franchise, except the said sum of five hundred thousand ($500,000) dollars per annum, paid as aforesaid.

-p1123-

SECTION 6. The minister of the interior is hereby authorized to grant a charter of incorporation to the grantees of this franchise and their successors and assigns, in conformity with this act, and under the following conditions:

First. The capital stock of such corporation shall be five million ($5,000,000) dollars, represented by fifty thousand (50,000) shares of stock of one hundred ($100) dollars each, par value, provided the said capital stock may be increased to ten million ($10,000,000) dollars, represented by one hundred thousand (100,000) shares of par value of one hundred ($100) dollars each share.

Second. All powers of the corporation shall be vested in a board of directors to consist of five (5) persons, each of whom shall own at least five hundred (500) shares of the capital stock of the said corporation.

Third. The corporation shall be empowered to sue and be sued, to plead and be impleaded, to appear in any court of record or justice, and to do any other lawful act, such as any person or persons might do for their own defense, interest, or safety, in its corporate name.

Fourth. The president and secretary of the board of directors shall be the proper persons upon whom citations, notices, and other legal process shall be served.

Fifth. The corporation shall furnish bonds to the minister of finance in the sum of one hundred and twenty-five thousand ($125,000) dollars as surety for the prompt and punctual payment of the sums and in the manner set forth in section 3 (three) of this act; which bond shall be filed at the time when the first drawing and distribution of prizes is announced.

Sixth. The board of directors shall have power to establish as many agencies as may be necessary, and to appoint a president, superintendent, secretary and treasurer, and such clerks and agents as may be required, and may remove them at pleasure, fix salaries of all officers and employees of the corporation (except that of the commissioners appointed by the Queen, with the approval of the cabinet as hereinafter provided), and fix the amount of their respective bonds and sureties, and shall make and establish such rules and by-laws for the proper management and regulation of the affairs of the corporation as may be necessary and proper. A majority of the board of directors shall be necessary to constitute a quorum, and shall have power to remove any officer of the company. The board of directors shall have power to fill any vacancy that may occur by death, resignation, or removal.

Seventh. At all meetings held for election of directors or for any other purpose, every stockholder whose name is entered upon the books of the company as such, and none other, shall be entitled, either directly or by proxy, to cast one vote for each share of capital stock held by him. All transfers of stock shall be made and entered on the books of the company.

Eighth. The persons named in the first clause of this act shall be, and they are hereby, constituted the first board of directors, who shall at their first meeting appoint one of their number president, and the said board shall serve for two (2) years from the time this incorporation takes effect, and thereafter until their successors are elected and qualified, at the expiration of which term a meeting of the stockholders for the election of a board of directors shall be held on a day fixed for all elections thereafter. A two-thirds (²/₃) vote shall be necessary to constitute an election, and if no election be held, the meeting will adjourn over one (1) year.