The Hawaiian gazette., 1903-03-20
MILLION IN
GOLD IS ON
WAY HERE
Bonds Will Be In
Time For Last
Payment.


Department at Washington and Homo
lulu W. +. M'Lennan, special agent to
have charge of the payment Of the fire
claims, with more than "a ton OF gold,
is making way toward the mid-Pacifc.
The man and money should arrive here
very soon, perhaps before the end Of the
month, and before those factors in the
final settlement Of the claims are at
hand, the bonds, approved by the gov
eminent and bearing the signature of
the Secretary of the Interior, will be
here and ready for sale.
w. o. Smith, who has acted as spe-
cial representative for Governor Dole
in making arrangements for the pay
ment, arrived in Honolulu In the Siberia
yesterday. While nothing had been
done regarding the starting of the man
and money, further than to perfect ar
rangements, before he left Washington,
he said that the making available of the
appropriation here would be sufficient to
insure the immediate departure of both.
Mr.. M'Lennan is well known in Homo
lulu. as he has been here on similar err
rands, having been in charge of the
payment Of the Postal savings accounts
and the taking up Of the bonds.
arrangements have been made for
the DOHuS so Tar as tnelT IL
concerned" said Mr.. Smith last even
ing. I'VE consulted the best attorneys
in New York, and the form of the bond
has their approval. The securities are
issued in $1,000 bonds, of which there
are 1926. and interest is payable at Wells
Fargo & Co.'S bank in New York, half
yearly. The bonds bear date of May l.
We found that there was more demand
in New York, which is the financial
center, for 81 900 bonds, and practically |
none for 500 bonds. Also there would |
be greater security felt if the payments |
of interest We're made in New York, |
and we were able to make very good |
rates for the payments.
"On the advice of Judge Dillon we |
had placed on the face of the bonds q
certificate that they are issued accord
ing to regulations fixed by act of Con-
gress, and each thus bears the sigma
ture of the Secretary of the Interior.
This will give greater force to them.
There has never been such a bond
issued, and while they are not govern
ment securities they are the very next
thing to it, and I believe there will be
a good demand at good prices for them.
There Is not a territorial bond at the
same rate. Arizona and New Mexico
pay per cent and Porto Rico g. We
could not provide for the sale of the
bonds, but I know that orders to make
bids have been sent on here, and l be-
lieve that there will be no money lost
by any one who takes up those bonds.
we had frequent conferences as to
the method of claims payments. There
will be only one payment made and
this will comprise the full amount due.
! a at |
be then an arrangement by which all
the funds may be put together and one
check. or warrant probably, made to
cover the amount. If the bonds do
not sell then there must be made some
whereby there can be a
punching of claims and the claimants
must take a proportion of bonds. Sup
pose this is done and the bonds paid
out at their full|face value: the pro-
portion will be of course as ten to ,
three, and If the people are willing to r
lake the bonds they will find that they ,
will get a good price. Say for instance /
hat they have to sell the bonds at 80.
hat will not be above about 2h per
cent discount on the entire payment,
md what we want is the million of
ash, which cannot be paid out unless
here is way found to realize on the
ponds.
The money will be in tens and fives
# gold and dollar bills to make frac-
ional payments The bonds will come Y
~ registered mail, it is expected too :.
" the very next mail and then the !
Governor and Secretary will have them :.
II signed by the time Mr.. McLennan -
nd the money are at hand. Full in ~
will accompany the bonds :,
nd there will be no delay in the adj ~
ertising and other preparations for :,
sposing of the securities, I found at ~
Washington the most kindly feeling -
oward Mr.. Pratt and appreciation of =
lis work, and as well that Mr.. Hay .
iood was well received and given most .
areful attention wherever he went. ..
Il learned that the recommendation =,
t the Commission, that lepers be sent =.
ere, was not received with favor any -
here: / expect too that there will be
n investigation of the land question .
efore there is any legislation affecting +
ne subject" =,