The Hawaiian gazette., 1901-04-23
THE SENATE
AND HOUSE

The lobby OF the Senate was nl.cd
with Visitors and Office hunters until
noon yesterday as Il was expected lhAt
Governor D0los official appointments
were 20 come ip. this, however proved
TO be a disappointment owing Go Che
fact that Senator White had got in Dis
work early In the day and q postpone
ment had been agreed upon until next
Tuesday. As soon as this determination
was known Colonel Mazuma and other
wire-pullers were noticed sending div
ers notes to the Independent Senators
demanding that the turning down Of
"Doles appointments should be no
further delayed. The result was that
when the appointments were called up
the Independents put forth their
strongest men to demand that action
be taken but the vote was made con-
elusive by Senators White and j. T.
Brown voting with the Republicans
eight to six for postponement,
During the afternoon session the
members settled down to business ana
over dozen bills passed second and
third reading or We're referred to COM
mittees.
The first communication read by the
clerk Of the Senate yesterday morning
was from the House, announcing the
passage on third reading, or House Bill
Z, on Thursday last. The bin passed
first reading and was set for second
reading on Saturday Guday).
Mr.. White reported from the judi
ciary committee, TO whom was referred
Senate Bill JS relating to the fling
foreclosiug, Limitation and priority or
chattel mortgages, as follows:
Honorable S. Il. Kaiue, President OF
the Senate:
Your judiciary committee. to which
was referred Senate Bill 5S, entitled,
"An Act to provide for fling, foreclos-
ing, limitation and priority of chatteI
mortgages" beg leave to submit the
following report.
Your committee believes that all
questions of credit and security are
delicate matters, and should be treat
ed with great care. With that belief.
the bill under consideration mas been
treated. Your committee finds that
there is now no law upon the statute
books of Hawaii covering the subject
of this bill by which the honest credi-
tor and the honest debtor are alike
protected on pledging personal proper
ty as security for the payment of
debt, thereby allowing Shylock credi-
tors to defraud and rob helpless debt
ors by taking the law Cor rather, want
of law into their own hands.
This bill, If enacted, will allow the
creditor to take what legally belongs
but will allow him to take no more.
If the debtor is so unfortunate as TO be
in default of payment this law would
protect him to the extent, that the
property mortgaged should be sold at
public auction after due notice, and il
such sale resulted in n greater sum
than enough to pay the debt. he would
be entitled to receive the surplus. This
Is true as to real estate mortgages;
why should it not be true as to per-
sonal property mortgages?
Section / provides, and the courts
generally hold, that "A chattel mort
gage, although duly executed and de-
livered, admits of the presumption that
ii is fraudulent unless ii is either fol-
lowed by an actual and continued
change of possession or, that it be
filed and indeXed upon the public rec
ords as notice to subsequent mortga-
gees, purchasers and other creditors
Without this provision, chattel mort |
gage can be made cloak for fraud |
and conspiracy. With this provision 1t
serves all honest purposes. and pre-
vents bogus mortgages being held to |
cover personal property in fraud of
subsequent creditors in good faith.
Section 2 proceeds upon the presump |
tion that county government will soon |
be an accomplished fact. If this Ter
ritory is really part of the United |
States, no other presumption is ad-
Missile; but should county govern
ment fail to materialize at this ses-
sion, ii would only render this law In |
operative until such times as counties |
shall be duly organized, when II Will |
go into force and effect.
Section 3 properly makes the life OF .
the mortgage two years, with the priv
ilege of one years extension upon
same shown by affidavit or the mort
gage. The nature Of personal prop
erty is such that a mortgage thereon
for a long or unreasonable period is
presumptive of fraud and collision as
against subsequent purchasers or cred
itors.
All the other sections have been
carefully considered, and throughout.
your committee finds that the bill has
been carefully drawn 10 protect the
honest creditor and honest debtor \
alike, in all honest transactions, and II
that the doors have been as carefully l.
closed against fraud and collision. BY
thus protecting both debtor ana credl-
tor in lawful transactions II enhances
the value of personal property as Sc
cur!ty (Which is generally the only
class of security the poor man has to Z
connscation, which now prevails.
This bill also protects the mortga-
gee from fraud upon the part of the
mortgagor. Section II provides a pun
ishment by imprisonment or fine, or
both, In case the mortgagor seeks to
defraud the MORTGAGE.
In view of the great necessity OF
such law, your committee recon-
mends the passage Of the bill
WILLIAM WHITE,
NICHOLAS Russell.
Judiciary Committee.
The report OF the committee was laid
upon the table, TO be considered with
the bill
Mr.. Paris reported from the COM
mittee on public lands on petitions 10,
16 and 2S, for roads and repairs IN
Olaa and Puma, Hawaii. as follows:
Your committee finds that petition
JIG for a road 10 Koohe homesteads,
has already been provided FOR In the
estimates Of the Superintendent OF
Public Works.
Petition 10 asks for $1,000 TO repair
the crossroad at fifteen miles on the
Volcano road. We would recommend
that the sum Of s. 1000 be inserted IN
the appropriation bin for this road
Petition 2S asks for SO 600 10 build