The Hawaiian gazette., 1901-05-21
BONDS MAY
BE ISSUED.

vs. ON opinion of Attorney uenefal
nole rendered Yesterday g. Chairman
mmriUth uf ihr House fifhHra Com.
WlttUc. trU financial sffnrchpy is rclIev.
ld to the rttrni ui fimun ThIa VIII boz
accomplished ~ the lssnr or houds 10
that amount under thp toiu act of tNm
ana thU provisions nf the Organic Act
The question submitted CO.. tho Attorney
/ goncrhl was based on the fact that
buuda tn thnt amount were eth unlssucd
| the appropriations Tor ubir,ta under tho
/ Loan Act having been paid from cur
rent funds.
The opinion ~ I'm the form " a letter
ana covers fourteen typewriter pages
/ numerous citations being given In point
| The Attorney General says that lawful
power 10 issue S1q90nO worth of bonds
viii relieve the Territory from Its PRESS
ing financial straits and enable II to com
pletct the public improvements which
have been lnauguratcd, and to initiate
others that are greatly needed and ON
the other hand every reasonable prcCau-
ton should be taken to avoid the Issu-
ance and sale OF invalid securities. Fac
ed by these alternatives" Mr.. Dole con
tinues. sit is OF great Importance to AS
certain, II possible, what the law is"
The Attorney General endorses Mr.
DUNES 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
laws and, while raising money may
have certain relation to appropriating
It, 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 sho% the
purposes for which loans may be au-
thorized 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
From the Loan Act OF 1896 Mr. Dole
quotes sections 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, rs may be deemed expe-
dent; 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-
currence of three separate and distinct
authorities, the Legislature, the Govern
or and the Treasurer" and adds that
''by the closing lines of section IS Of the
Organic Act another aulhor.ty must ap-
prove, the President of the United
States The Attorney General contin-
ues:
In my opinion, the Legislature has no
power to pass an original Loan Act at
this session, but 1t has the powers of
regular session for the passage of ap- !
preparation bills. The problem, then, Is |
resolved into single question, can the
Legislature, as a legitimate feature of
called for appropriations, authorize the
of bonds under the provisions
of the Loan Act passed in 1896?
PLAINLY, the Legislature of 1895 In
tended to provide public loans not ex-
ceeding, in the aggregate, two million |
dollars, for the industrial and other de-
velopment 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 the Legislature of 1896 con-
sidered 1t advisable that all loans to be
effected hereafter, otherwise than for
the purpose of converting any loans ex-
sting 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
ponds in respect thereof should be given
n a uniform manner, 1t proceeded to
ieclare the uniform manner In which
the authority to effect such loans and
ssue bonds in respect thereof should be
yiven,' and declared that the power to
ssue bonds conferred by this Act shall
lot lapse or become void as the result
If first issue, but may be exercised from
line to time until the limit Of the
mount authorized by TINS Act has been
cached
IF the Loan Act of 1896 requires new
Loan Act with every issue of bonds, 1t
8 nothing more than bit of gratuitous
ldyice to future Legislatures as to how
Loan Acts should be drawn. The two
million dollar limit, the enumeration of
that would extend into the
Instant future, the repeated use of the
,hrase from time to time and the pro-
'ision of section IL that the Act shall
lot lapse or become void as the result
# first issue, but may be exercised from
ime to time until the limit of me
mount authorized has en- reached are
consistent with only one tneory. name
y, that the Loan Act was intended as
continuing Loan Act for the purposes
ct forth in the preamble.
Bonds of the Republic OF Hawaii to
he amount of about twelve hundred
thousand dollars have been issued and
old under the Loan Act of 1896, will no
Their and further authorization than
hat contained in Act SO OF the Session
avs of 1898, entitled An Act making /
pecial appropriations for the use of tine 8
government during the two years winch L
ill end with the 31st LAY of December, c
!. ID. 1885, setting forth the specific q
mounts of the aggregate loan. - I
IF Act 80 of the Session Laws of 1898 I
more than one subject, within I
he meaning of the law, 1t was void for C
nat reason, and the bonds issued In 1898 |,
'ere invalid; and the same objection +
nd the further objection, which must &
tand or fall with Il. that the poWera OF L