The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1856-1888, 1878-06-22
An Important Act.

The following is the full text of an act intro
duced in the Assembly on Tuesday last by the
Minister of the Interior:
An ACT TO ENCOURAGE THE BUILDING OF RAILROADS.
Whereas. good roads are absolutely necessary, and in many
parts Of the country, railroads are essential to the bring
ing of produce to ports, therefore, be it enacted by the
King and the Legislative Assembly of the Hawaiian Is
lands, in the Legislature of the Kingdom assembled:
Section l. Power and authority is hereby given TO the
esty in Privy Council, TO enter into contracts with any associa
tion Of persons, who may associate themselves, together under
of building and operating a railroad or railroads in any part
of this Kingdom, aud more especially il the districts of Hlo
Hamakua and Kohala, in the Island Of Hawaii.
Sec. 2. And the said Minister in the Privy Council as
aforesaid, shall have power and authority to grant a right o.
way through all government lands, as well as such
lands as may be necessary for their buildings
and structures, stations, depots and stores, or other
structures, to any corporation as aforesaid for the pur-
pose of building such road or roads, and such corporation
shall also, in case they shall be unable to agree with the own
ers of lands on the respective routes, for the purchase of lands
necessary for their right Of way, as well as their necessary
lands as may be necessary for their use in like manner as land
is now condemned for ordinary public roads and ie suf en-
chartered, are hereby made and declared to be public corpora
tons.
Sec. 3. And be it farther enacted, that the said Minister is
hereby authorized, to guarantee to any corporation that shall
lent to Eve per cent. per annum, on the cost of their road or
roads, and equipment thereof. Provided ai,oGys, that in any
contract which may be made the extreme amount on which
such guarantee is TO be paid, shall be plainly set forth; And
proUided farther, that when any such road shall have been
finished, the actual cost Of the road and its equipment shall be
correctly made up, and filed in the Office of the Minister ct the
Minister of the Interior, fit shall seem TO him desirable TO
refer the accounts of construction to Two arbitrators mutually
chosen, one by the said Minister, and the other by the agents
of such corporation who shall choose an Umpire, and the GER
tnfcate of a majority of such referees duly sworn to before
some Justice of the Supreme Court, shall be taken to be the
cost of the said road and its equipments.
Sec. 4. And be it farther enacted, that the Minister of FL
nance is hereby authorized and required to pay on the certih-
cate of the Minister of the Interior, to the corporation or cor
poratiOns in this Act contemplated, such sums Of money as
may be ascertained TO be due by virtue and authority OF the
preceding section, out of any moneys which may at the time
Sec. 5. And be it farther enacted, that the property of any
corporation which may undertake the building of any railroad
public taxation. it being understood that the property by this
Section intended, is to be taken to be the road and the property
Sec. g.. And be it farther enacted, that the said Minister of
the Interior be, and is hereby authorized upon the authority of
His Majesty in Privy Council to invest the proceeds of the
sale of any public lands lying within the district or districts
where such railroad or railroads may be constructed, in the
Sec. l.. And be it farther enacted, that such sum or sums
of money as may be annually paid out by the Minister of FL
nance on the certificate of the Minister of the Interior as in
Sections 3 and 4 Of this Act, may be assessed pro rata upon
all the property within the district traversed by said roads, in
like manner as any other taxes, and such assessment shall
be collected in like manner as any other taxes and the sum de-
rived from such assessment and collection shall be paid INTO
the public treasury under the denomination OF railroad tax"
and shall be put to the credit of any account which may be
opened with railroad or railroads.
Sec. s. And be it farther enacted, that all material which
may be imported for the construction and operation of such
road or roads, shall be free from all duties, imposts and public
charges whatsoever.
which may be organized, and undertake the building of any
railroad in pursuance of the authority of this Act, and in &C
cordance with its provisions, may issue bonds to raise money
for the construction of such road in such sums as may be con-
venient, and the payment of such bonds principal and interest
may be guaranteed by His MaJesty's government to any
amount not exceeding one half of the cost of the road: Proui-
ded ALWAYS, that no such guarantee shall be entered into un-
less upon the authority of His Majesty in Privy Council duly
summoned for that purpose, for which the summons shall be
issued at least three weeks before the vote he taken, and at
which at least two-thirds of the members present shall vote in
the Affirmative; such guarantee to be signed by the Minister
of Finance, it being however expressly understood that such
security shall be taken as may be reasonably sufficient in the
opinion of a majority of the Privy Councillors to secure the
government for the payment they may be obliged TO make by
reason of such guarantee. And it shall be incumbent upon
the Minister of Interior and the Privy Council to provide in its
contract with the corporations so contracting as aforesaid, that
the guarantee of the payment of interest by the government by
this section authorized, shall not be in addition to the payment
by sections 8 and 4 and this Act.
Sec. 10. And be it farther enacted, that the aid by this
Act contemplated, shall be only extended to roads of public
utility and not TO roads of mere private or limited convenience.