The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-05-18
BONDS MAY
Be ISSUED
Securities Held
Will Prove a
Boon.
NO NEW LOAN
WOULD BE LEGAL
Attorney General Dole Believes
Balance Under Former Act
is Available.

BY opinion of Attorney General
Dole, rendered yesterday to Chairman
Emmeluth of the House Finance Com
mittee, the financial stringency is reliev-
ed to the extent of s799, 600. This viii be
accomplished by the issue of bonds to
that amount under the Loan Act of 1896
and the provisions of the Organic Act.
The question submitted to the Attorney
General was based on the fact that
bonds TO that amount We're still unissued.
the appropriations for objects under the
Loan, Act having been paid from cur
rent funds.
The opinion is in the form of letter
and covers fourteen typewriter pages,
numerous citations being given in point
The Attorney General says that lawful
| will relieve the Territory from its press
| ing financial straits and enable it to COM
| plete the public improvements which
| have been fnaugurated and to initiate
others that are greatly needed and on
the other hand every reasonable preeau-
| ton should be taken to avoid the SSH
ance and sale of invalid securities. Fac
ed by these alternatives" Mr. Dole CON
| tinpes lit issof great Importance to as
| certain, if possible, what the law isl
| The Attorney General endorses Mr.
| Dunne's opinion on the subject, publish
| ed some days ago, that the Organic Act
| does not authorize this Legislature,
while in extra session TO enact general
| have q certain relation to appropriating
lit, the Legislature, has no power to pass
| an original Loan Act at this session.
| The Organic Act and the Session Laws
| OF 1896 are quoted at length to show the
purposes" For which loans may. be au-
| thoriged; the limits OF the same in
| amount and in proportion to the taxable
property of the Territory and the pow
| ers necessary for the effecting of loans.
| : Freaas the Loan Act of 1896 Mr.. Dole
quotes seeefeas providing that bonds may,
| be issued from time to time TO an amount
not Exceeding in the aggregate two mil
| lion dollars; that no such bonds shall be
| issued except in pursuance of any Act
| of the Legislature authorizing said is
sue; that all bonds. when the issue
thereof is authorized may be issued
| from time to time with the approval of
| the: Governor, as may be deemed expe-
dieht.: and that the power to issue bonds
conferred by any Act in conformity with
| this Act, shall not lapse or become void
as the result of first issue, but may be
exercised from time to time until the
| limit of the amount authorized has been
reached.
| The conclusion is drawn from these
| and other authorities, that ito comply
with the statute, there must be the con-
/ currehce of three separate and distinct
authorities, the Legislature, the Govern
or ana the Treasurer, and adds that
| by the closing lines of section IS of the
Organic Act another authority must ap-
profe,h the President of the United
| States" The Attorney General contin-
| ues:
I'm my opinion, the legislature has no
powerbto pass an original Loan Act at
this sessfoii but 1t has the powers of a
regalaf" session for the passage of APP
probriatfpn bills The problem, then, is
tresol8ed Ailffo single question, can the
| Legislature. as legitimate feature IF
an appropriation bin, in extra session
called for appropriations. authorize the
issuance Of bonds under the provisions
of the Loan Act passed in 1896?
PLAINLY, the Legislature OF 1896 IN
tended to to- proviee public loans not ex-
ceeding. in the aggregate two million
| dollars, for the industrial and other de-
| velopfiIent of these Islands through the
| issuance of bonds from time to time, up
on approval, as necessity might require,
| pursuant to appropriations made or to
be made by the Legislature of 1896 and
by future Legislatures.
Because tn, egislature of 1896 con-
4 sidered it 'ady.-agIe that all loans to be
effected hereafter otherwise than for
the purpose of converting any loans ex-
listing and outstanding, should be eff
fected, and that the bonds to be issued
therefor should be issued, and the au-
| thority to effect such loans and issue
bonds in respect thereof should be given
| in a uniform manner 1t proceeded to
declare the uniform manner In which
the authority to effect such loans and
| issue bonds in respect thereof should be
given and declared that the power to
issue bonds conferred by this Act shall
not lapse or become void as the result
| of first issue, but may be exercised from
! time to time until the limit of the
! amount authorized by TINS Act has been
reached!
| IF the Loan Act of 1896 requires new
| Loan Act with every issue of bonds, III
| is nothing more than a bit of grAtuitous
advice to future Legislatures as to how
Loan Acts should be drawn. The two
million dollar limit, the enumeration of
distant future the repeated use OF the
phrase from time to time and the pro-
vision of section IL that the Act shall
not lapse or become void as the result
of first issue, but may be exercised from
time to time until the limit of me
amount authorized has b-en reached are
consistent with only one theory, name
ly, that the Loan Act was intended as
continuing Loan Act for the purposes
set forth in the preamble.
Bonds of the Republic of Hawaii to
the amount of about twelve hundred
thousand dollars have been issued and
sold under the Loan Act of 1896, Wits no
other and further authorization than
that contained in Act IS of the Session
Laws of 1898, entitled An Act making
special appropriations for the use of the
Government during the two years which
will end with the 31st tay of December.
A. D. 1897 setting forth the specific
amounts of the aggregate loan.
"If Act 80 of the Session Laws of 1898