Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1906-03-17

Following Is the report Of the hear
ing on Hawaii's refunding bill held be-
fore the Senate Committee on Porto
Rico and Pacific Islands:
Tuesday, February 10. 1906.
The committee met at 1890 a. m.
Present: Senators Foraker (chair-
mani. Wetmore, Clapp, Flint, Piles,
and Rayner
A delegation from the Hawaiian Is
lands. w. o. Smith, George w. Smith.
NJ. p. Robinson, j. X. Gait, Francis NJ.
Hatch, and +. A. McInerny, Of Homo.
lulu. and A. y. Loebenstein. of Hilo,
and d. II. Case, of Maui. appeared.
Hon. Jonah X. Kalanianaole. Dele
gate In Congress from the Territory
of Hawaii. was also present
INTRODUCTORY STATEMENT BY
| THE CHAIRMAN.
The Chairman Senator Foraker.
will state that this meeting of the COM
mittee was called for the purpose of
| giving a hearing to certain gentlemen
who are present in Washington from
Hawaii They want to be heard in
support OF the bill (H. Il. 1i.0l5) to es-
tablish fund for public works in tho
| Territory of Hawaii and for other
purposes. which reads as follows:
BE II enacted. etc. THAT seventy
, Ave per centum Of the customs and in
ternal revenues collected each year
within the Territory of Hawaii. for Il
| period of twenty years from July first.
nineteen hundred and Ave, shall be
segregated and held apart in a sep
arate fund by the Secretary Of the
Treasury to be designated the Hawaii
an fund and to be expended only for
public works. including educational
and other public buildings, harbor i'm
provements. and military and naval
defenses within the Territory OF Ha-
wall as the Congress may from time to
time specifically authorize and appro-
PIRATE"
The Chairman (continuing). This
bill was drafted and introduced in ac-
cordance with the recommendation OF
the President In his last annual mes
sage. from which quote as follows:
Hawaii Is too heavily taxed. Laws
should be enacted setting aside for n
period of say twenty years. 10 per cent
OF the internal revenue and customs
receipts from Hawaii as a special fund
TO he expended in the Islands for edu-
catiopal and public buildings, and for
harbor improvements and military and
naval defenses. II can not be too often
repeated that our ann must be to de-
velop the Territory of Hawaii on ira
ditional American lines"
Tho Chairman (continuing). Now,
we will hear the gentlemen who are
present. in such order as they may
agree upon among themselves.
STATEMENT OF w. o. SMITH.
Mr.. W. o. Smith. Mr. Chairman and
gentlemen of the committee. we have
come from Honolulu at the request ii
the commercial bodies of Honolulu and
of the islands OF Hawaii and Maui. The
suggestion OF the President Is one OF
such Importance that the commercial
men Of the Islands and the citizens gem
orally feel deep interest in the mat
ter and desire very much that the rec
ommerdation shall be adopted.
Before annexation we had all the
revenues, of course, both from the in
ternal taxes and from the custom
house The internal taxation and
sources OF that kind gave about two
thirds OF the total income and the Gus
tom-house one-third. We have been
annexed for five years and we have
continued carrying on the government
and We are finally able to meet the cur
rent expenses from the current rev.
enues without the customs receipts;
but va have not been able to make
public improvements except by borrow
ing, and we have borrowed and in
CURED a debt which now amounts 10
over SS.000,000.
The Chairman. For which you have
issued bonds, | suppose?
Mr.. w. o, Smith Bonds, authorized
and approved by the President,
Tho Chairman. You issued those
bonds subject to the approval of the
President?
Mr.. ". o. Smith. Yes, sir.
Since annexation the proportion be,
tween the current revenues of the Ter.
ritory and the ,custOm-house and in
ternal revenue has been just about the
same. one-third and two-thirds. Botl
have increased slightly. The total rev,
enues OF Territory have been s., 900, O0(
and s2.400000 The annual revenue
from the custOm-house for the last fiv,
years has averaged little over $1,000
600 II has been as high as 81, 200, 900
and II has been down as low as $780,
900.
The Chairman. That Is, tariff du
ties, you mean?
Mr. w. o. Smith. The tariff duties
! The Chairman. And all that revenue
has been brought here to Washington
and put into the General Treasury o.
the United States?
Mr.. W. o. Smith. Yes, sir. II Ii
taken out of the country and brought
here.
We feel that 1t would be a very
great help and benefit to us there &
a fund could be created from the
source indicated and be appropriated
from year to year or from time to timt