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Dream Cruises fined
for 2 liquor violations

By Harold Morse
Star-Bulletin

The Honolulu Liquor Commission has fined Dream Cruises Inc. $3,000 after finding the company guilty of two March 4 violations aboard its vessel American Dream -- $2,000 for selling liquor without a license and $1,000 for offering liquor as an inducement.

Dream Cruises lost its license for the American Dream for selling alcohol to minors last year, but won back the license for its vessel, Rainbow I. American Dream was cited last year on March 27 and again on June 18 for alcohol violations involving minors .

Last Aug. 19, the commission fined Dream Cruises $3,350 for these violations and revoked liquor licenses for both American Dream and Rainbow I. An Oct. 14 hearing reconfirmed the fines but reinstated probationally the Rainbow I license.

Kenneth Hoo, attorney for Dream Cruises, entered not guilty pleas yesterday on both counts. He and Deputy Corporation Counsel Anthony Chang stipulated that on March 4 liquor had been served aboard the American Dream to passengers and investigators Kerry Shannon and Jared Redulla.

Shannon testified he made two reservations costing nearly $40 each by telephone for the March 4 American Dream dinner cruise. He said he was told guests would receive a complimentary mai tai.

After he and Redulla boarded about 5:30 p.m., a greeter told them to go to the second level for a captain's briefing, he said. The captain told them a full open bar was downstairs where passengers could help themselves, he said.

"We stayed on the top deck until the vessel departed, and somebody came by and gave us mai tais," Shannon said.

He said they later went downstairs and asked a waitress the cost of a drink.

"She said it was all included in the price of the ticket," Shannon said. "You name it. They had it. And it cost nothing."

A bartender was handing out free drinks, but a tip jar was on the bar. "They encouraged tips instead of paying," Shannon said. "We were only out two hours, but we did notice some of the tourists were feeling pretty good."

Redulla gave similar testimony, noting he had a mai tai and a beer.

Hoo said the American Dream is now licensed under a separate corporation, Aqua Marine, while Rainbow I remains licensed under Dream Cruises Inc. Aqua Marine is a different corporate entity with principals similar to those of Dream Cruises Inc., Hoo said. "This is a separate license, separate vessel, separate premises."

The first Dream Cruise witness, Caroline Williams, in charge of Dream Cruise reservations, said it was normal to tell callers drinks would be provided.

The hearing also dealt with an Oct. 8 letter Dream Cruises sent the commission asking approval for serving free drinks aboard the American Dream.

"Dream Cruises informed the commission and asked the commission consent as to their intended action," Hoo said.

"I spoke with the commission and was advised to send a letter regarding our intentions," testified Frank Alexich, Dream Cruises general manager.

"We intended to serve beverages without charges."

But an Oct. 11 reply did not give commission approval. Questioned by Chairman John Spierling, Alexich said there were perhaps 20 to 25 passengers aboard the American Dream on March 4.

Commissioner Chu Lan Kwock said alcoholic beverages went unmentioned in the Oct. 8 letter. "You just said drinks," she said.

Deputy Corporation Counsel Chang said, "The key situation was when the investigator called the reservations desk and asked the person what do I get for my ticket." The answer was dinner, a cruise and a mai tai, Chang noted.

"That we contend is clearly a sale, and that testimony was unrefuted by any witness," Chang said.