Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1903-11-09

and | could not find that It passed,
and for a moment | was In despair.
It seems that was working on the
wrong bill. Taking up another bill
that had been introduced in the Sen.
ate, | took II through until II wound
up with the Conference Committees
report. which had been adopted in the
Senate without a showing of ayes and
noes. And Judge Dillon shook his
head and said, II don't think that com.
plies with the Organic Act" asked,
Judge. are you going to send me back
all that distance to wait two years?
Suggestion TO Hawaii.
Mr.. Hubbard joined him, and they
spent that night looking up the mat
ter. The next morning they agreed
that the matter could stand, but Judge
Dillon said, in his quiet way: 1T Is
not for me to advise the Senators Of
Hawaii, but II were asked, ! should
suggest that every Conference Com.
mittee report or other Act which Is to
become law be passed by calling the
Ayes and noes. II might save the
Territory some trouble in the future"
From this point went TO work on
the financial side Of the question. The
United States Mortgage and Trust Com
pany put themselves entirely at my dis
pOsal as representatives Of the Terri
tor. was more than pleased with
their attitude. on every question that
came up they were guided by our in
terests solely. 1t was on their sugges-
ton that the question of the rate OF
interest was taken up and lowered.
Reducing Interest
Mr.. Terrill said he thought the Ter
r!tOry could float the bonds at rate
OF interest less than FIVE per cent. This
gentleman has had experience as a bond
purchaser for the last thirty years, and
told me that If we went to the purchas-
ers with the question, they would un-
dOubtedly say No. That bond buyers
in New York could get together quick
er than any other place in the world
and take united action. but he be-
lieved the rate could be reduced, and
that five per cent was allowing too wide
q margin. One of his arguments was
this: II National Bank desires TO
purchase 100000 Of your securities,
the nearer par they pay the less amount
OF unremunerative capital they will
have uninvested. Your five per cent
bonds ought to sell at considerable of a
premium. after the action of Secretary
Shaw. and all cost above par would
simply tie up the purchasers capital.
We did not decide the matter hurried
ly but took another - hours to in
Vestigate. Mr.. Terrill desired to fol-
low up certain lines OF inquiry which
he alone could undertake. My own in
quiry resulted in possible purchasers
telling me under no circumstances 10
change the rate; that the cities OF
Cleveland and Galveston had failed 10
sell four per cent bonds. But the next
morning Mr.. Terrill insisted that II
could be done, and In this agreed with
linn thoroughly, and we ordered the
change in the engraving. During the
day | told several representatives OF
financial houses that we had decided
to make them Az per cent. and was
very much surprised to find that they
did not after all think il would make
very much difference in their sale.
Sell Whole Issue.
I Judge Dillons advice was TO sell the
whole issue at once. and TO make
prompt delivery. In the first place,
the bond dealers desire to handle the
whole issue, for they can secure a GUS
toner more readily by informing him
that he cannot buy the bonds any
where else. In the second place. II you
sell quarter Of million at this time,
n half million in January and a quar-
ter OF million in April, as provided
iE the plan which was made before you
left the Islands, you will have to pay
excessively for II. No financial man in
this city is willing to take the risk OF
saying that he will buy in January
without making price that will pro-
teCt him against all possible changes
H. the market. Your Territory, said
Judge Dillon, can do much better by
selling the whole issue, and leaving the
million dollars idle for a year, than
10 split It up. II the issue is properly
advertised, bond dealers will compete
and accept very small margin OF
profit, provided they can make a quick
turn. In some cases they will have the
entire issue sold before their bid is in
OF course. Mr.. Carter you can keep to
your original plan, but II Is an unbusi,
nesslike way OF doing II. This advice
caused the change in the plans and de.
termination to sell the entire issue al
once.
Judge Dillon advised me also in ref.
erenCe to the advertising-where and
how It should be done; and further
that the bids should be received pub,
llicly on the 18th of November. Al
that meeting the Governor of the Ter.
ritory should preside, and the Treas,
urer should report what bids were re,
ceived. 1t would be well to have q
stenOgrapher there and keep minutes
Of the proceedings. This record SHOULD
show the names of every person pres
ent; of everything that TRANSFERRED i