The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1905-10-25

Oct. 81, 1905.
Hilo Chamber of Commerce, Hilo, Ha-
waii.
Gentlemen:
Up to the present have not had an
opportunity to reply to your letter Of
Sept. 23d, re the bond issue.
It pleases me to note your approval
of the plan of keeping the debt of the
Territory at minimum. Common
sense would dictate such a course.
With this three-quarters of million
dollars the Territory will have ex-
hausted fifty per cent. of her borrow
ing capacity, and will be paying nearly
S5O0.00 day interest, and this with
out any provision as yet being made
by the Legislature t. meet this indebt-
edness.
During the last session of the Legis-
1ature, Treasurer Campbell made a
suggestion (Which I approved) that
the revenues and proceeds from the
sale of public lands be set aside for
the redemption of our bonds. The rev.
enue for the last year was some $780,
10000, and the sales under 100000,
with which, if not increased, it would
take some twenty four years to pay off
our present debt. Such an act would
not bind the future, and whenever the
sales or revenues from the lands in
creased to such an extent that they
made too large sinking fund, the
amount could be reduced. But no, it
did not appear as if either the people
of the Territory or their representa-
tives felt any responsibility as to the
debt they were creating. It was
easier TO let posterity do the worry
ing.
Many of the arguments brought for
ward in regard to this loan question
seem to miss the point entirely, and
dwell rather on the necessity of the
work contemplated than upon the wis
dom of making an expenditure with
borrowed money.
Previous to the passage of this loan
bill, county act had been passed
which, if constitutional, would revo-
1utionize our whole system of govern
ment. The Legislature had been
through one experience where such an
act had been declared unconstitu-
tional, and they could not forsee the
result Of the second act, and could not
1egislate IN any way with certainty.
There must of necessity in such a
change be a transition period-one OF
friction and difficulty. For instance:
IF they had legislated on the theory
that the counties were to take charge
of the roads entirely, and the county
act had been declared unconstitutional,
it would have been impossible to do
any work on roads at all without a
special session of the Legislature. I
Now the situation has been entirely
altered as the act has been tested and
fsund constitutional. /
There seems to have been an indefi-
mite plan that the Territory should
build new roads and the counties re-
pair and maintain the old ones. But
no definition has as yet been laid down
as to what is new road work. Every
body has a different idea in regard
to it.
I note you, too, make a distinction
between work on new and "old''
roads, and I would be very much
obliged if you would give me deini-
tion of what you consider NEW
road, for I have had all kinds of argu-
ments presented to me in regard to
this question. and it is often apparent
that the desire for the appropriation
molds the argument. You know, a
shove1fuI of dirt taken out of the gut
ter and thrown on the road can be |
considered as new work; it is ,
new in the sense that it has never .
been done before. 4
It was argued during the last ses- !
sion that certain districts with a small '
population and long distance would re- I
luire assistance in their road work. {
And there was considerable talk of the
Territory maintaining the belt roads t
around the Islands as Territorial 7
But nothing could be done with any {
at that time, and in my +
opinion it is absolutely necessary that t
;he Legislature should declare just .
whas roads are to be Territorial roads,
md whether or not the Territory is to c
be responsible for their maintenance i
Is well as construction. I know of no i
Authority by which the Executive @
could settle such a question.
You argue that road extensions are