The Hawaiian gazette., 1883-12-19
THE GOVERNMENT BOND CASE.

| Wind abated on the morning of December lsth
The vessels IN kahuiui Bay rode out the storm
| quite comfortably.
THE GOVERNMENT BOND CASE.
A Cause Celsbre.
What has already proved celebrated case
as lar as Il has gone at this writing the petition
signed by Messrs- $. B. Dole, W. o. Smith and W.
X Castle, which was presented and heard before
ms Honor Chief Justice Judd on the 18th instant.
The court room was crowded with representatives
OF the mercantile and planting interests of the
country, and Her Britannia Maiesty's Commits
sioner and the Consul for Portugal were also pre-
sent; AL the spectators seemed deeply interested
IN the arguments Of counsel and the decision of
Judge Judd was given amidst breathless silence.
Messrs. Neumann, Preston, and Whiting APP
peared for the Minister of Finance and A 4
hartwell, Esq, for the petitioners.
The PETITION.
In petition of W. Il. Castle, s. b. Dole and
W. q; smith, for writ of Msndamus against
His Ex. John NJ Kapena, Minister of Finance.
The petition of the undersigned, petitioners
shows; That your petitioners taxpayers,
citizens and residents of Honolulu in the Island
OF Oahu and such residents. citizens and taxpayers
are pecuniarily interested and concerned in the
several matters and things hereinafter stated and
set forth.
That your petitioners are Informed and believe
ana 50 aver IN their information and belief that
lbs ENcellency John NJ. Kapena. the Minister Of
Finance, defendant hereto. has caused to be
prepared and Is now about TO issue certain coupon
bonds OF the Hawaiian Government to the amount
OF One Hundred and Thirty Thousand Dollars
bearing interest payable semi-annualy at the rate
OF SIX per cent. per annum, the said bonds being
1y their tenor payable, principal and interest in
United States gold coin or its equivalent.
And your petitioners further aver that the bonds
aforesaid purport to be issued under and by au-
thorty OF the provisions of act entitled AN
Act 10 authorize national loan and to define to
WHIT uses such loan shall be devoted, approved
on the NTH Qay of AupuSt A ID 1880 =
Iaat the said Minister of Finance is about to
Issue said bonds below par and to receive therefor
silver COINS of less than equivalent value in United
states gold COINS that Is TO say for silver coins
which are only about eIChty-two per cent. of the
value Of United States gold coin.
That 1t Is the duty of the said Minister of FL
nance TO issue said bonds only at par and upon
receipt Of their equivalent value in United States
gold coin.
That it Is the right of your petitioners as such
taxpayers as aforesaid that there be misapplica,
non OF the public moneys; whereas the issue OF
the Aforesaid bonds for less than par as aforesaid
would operate as a misappication of the public
moneys and thereby iniure the petitioners as citi
zeus and taxpayers, and that by reason of such
issue of the bonds aforesaid at less than par as
aforesaid the public good and administration of
justice would suffer.
And your petitioners further aver that they have
requested the said Minister of Finance not TO
issue SAID bonds at less than par as aforesaid but
that ne refuses and neglects to comply with such
their reasonable request.
'.4SAN-oAG Nbul lcAl4lolCIH pray Nudl u VIII OF
mandamus do issue out of this Honorable Court
requiring the said Minister of Finance to accept
Tor such bonds only United States gold coin or
ITS equivalent and not to accept therefor the silver
coins aforesaid, and not TO issue such bonds sx-
cept for the par value in United States gold coin
or Its equivalent and for such further and ap-
pFopriate relief as justice and reason require and
TO Your Honor shall seem meet
And your petitioners will ever pray,
WILLIAM X. CASTLE
By $. b. DoLE,
SANFORD b. DOLE,
WILLIAM o. SMITH.
MOTION TO oUAsH THE WRIT.
In a petition of W. Il. Castle, S b. Dole and W.
q. Smith, for writ of Mandamus against His
X John NJ. kapeua, Minister of Finance.
The respondent herein moves the Court to deny
the application Of the petitioners and vacate the
writ issued because the petition for said writ and
application therefor is made by said petitioners
ana petitioners have neither nor any of them have
any personal or direct interest in the act to be
restrained and this respondent is public officer
oil the Government Of this Kingdom.
EDWARD PRESTON,
w. A. WHITING,
Paul NEUMGNs,
Attorneys for Respondent.
Mr.. Neumann, argued in support of the motion,
that the animus Of the petitioners was not good
when their motives rather political than pat
uouc Waiting until the eleventh hour when it was
generally known long ago that contract for these
bonds had been made showed desire to embar.
rass he Government. Counsel cited cases for the |
view that individual taxpayers cannot institute
sach proceedings 10 prevent Illegal action by |
Government oiiicer and spoke of the injury to the
national credit if this writ were allowed. The |
bonds were not at first taken with eagerness, and
tins was the only way TO issue them. |
9ir. Hartwell argued Contra that if there was |
anltnus, or wrong motive, this was the first he had
heard of 1t, That he had never heard until yes |
terday of the contract, referred to, but he had |
been informed that m agent of Earrings was last |
year employed by the Government TO place these |
bonds, and nbOut TO do 6 when the buSiunsg |
was taken out of his hands. He did not take so |
sombre view rs did counsel for the Ministry, |
!! II these bonds be issued only at par as
the statute requires. If the contemplated action |
OF the Minister would not stand Judicial inyesti-
CATION, let II be known. II the aI-payers of the
country have the right TO appear in court to de-
maid that no Illegal issue of bonds be made, why
should they not do 50 He cited the mandamus
aat OF 1876, the decisions of the Supreme Court,
of the United States, Connecticut, and New Hamp-
shire, Dillon on Municipal Corporation and Cooley
on taxation referring TO the decision Of other
courts to the effect that such remedy exists for |
tax payers. If not such remedy, there is none, |
and the Constitution is powerless, which declare
that Ministers are responsible"
The court denied the motion to dismiss the peti-
ton ruling that by the authority of the Supreme
Court of the United States and by the great pre-
right TO appear in court Mr.. Neumann said
that the respondent took no exception TO this
ruling, and he thereupon filed the following
return.
And now comes John NJ Kapena and makes
this his answer and return to the above entitled
cause and saws:
That the writ of Mandamus should not issue be-
cause the matters and things set forth in the petit
ton are insufficient in Law and that there is no
neglect OF duty on the part of the defendant set
forth in said petition, because that said petition
does not show demand to perform n duty re-
quired of him by Law.
And the respondent further answering says that
he Z. Is about to issue Hawaiian Government Bonds
to the amount, and at the interest stated in the
petition under and in accordance with the proys-
ions of an Act entitled An Act TO Authorize Ma
tional Loan, and 20 Define to what Uses such Loan
shall be Devoted approved on the jthday of Aug
ust, A. d. 1882.
Denies that he is about to issue said bonds be-
low par but AYERS that he is about to issue said
bonds at par and in accordance with the provis-
ions of said Act last above mentioned.
Denies that it his duty such Minister of Fl
nance to issue the said bonds only upon receipt of
value IN United States gold coin, but
AYERS that his duty in this respect is fully set
forth in said act as follows;
Section !. The Minister of Finance under the
direction of the King in Cabinet Council is hereby
20 borrow on the credit of the Hawaiian
Government from time to time, during the period
Of three years after the passage of this Act such
sums not exceeding in the whole the sum of 81
DOJCO for the purposes in the Act hereinafter set
forth, for which sums the Minister of Finance
may cause coupon bonds to be issued from time
10 time for such amount each as he may deem
such bonds to be issued not less than
par, and to bear interest not exceeding six per
cent. per anuum, payable semi. annually
And the RespJndent AYERS that he has in all re-
specis c0nfOrmed to the provisions of said Act and
that said bonds are to be issued ut par in accord
luce with such provisions of said Act.
And denies that he is about intends to, or
will issue said bonds mentioned in the petition or
any bonds below par or to receive accept there
for coins OF less value than the equivalent of the
lawful money of the Kingdom of the Hawaiian Is
lands is provided in the Act aforesaid.
And the defendant further says that the demand
made upon him is in the words following:
Honolulu, 18th December, 1883.
To lis h. Jl0. ". hapeHa, Minister Of Finance.
Dim Srr.--Inn nnhnrsinrnl rifiznrs md tax |