Evening bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1895-1912, 1908-12-26
TERRITORY DOES
NOT Lend Credit
Merely Gives Territory
Night To- Do
So

ca, said Acting Governor MOtt'
Smith yesterday, docs not lend the
credit Of the government to any rail.
road enterprise, as some people seem
to think. 1t merely gives the Terri.
tory the power to do SO II II wants to
and the Legislature authorizes Ii.
When the power was given to the
Philippine Government to lend its aid
to the construction Of railroads for
the development of that country 1t
was looked on as an excellent thing, a
progressive move. The amendment
as drafted by the Governor simply
gives to this Territory the power that
was given to the Philippine Govern.
ment. The Territory does not need to
exercise the power. unless It wants to-
The Legislature Is the judge In that
matter.
80 that everybody may know just
what the amendment In this matter Is,
] have here the text Of 1t. with per.
haps some variations In the mere
phraseology. This is as the added sec
ton will read II the amendment IL
adopted: go al
"'That for the purpose Of aiding In
the construction, equipment, operation.
and maintenance OF such railroads us
ing steam, electricity, or other pow.
err, in the Hawaiian Islands, as the
Hawaiian Government may hereafter
specifically authorize, the said govern.
ment is empowered to enter into con-
tract of guaranty with any railroad
company organized pursuant to the
laws Of said government or of the
United States or any State thereof
undertaking to construct. equip, oper.
ate, and maintain any such railroad
whereby the said government shall
guarantee interest, at not exceeding
four per centnm per annum upon frs.
lien bonds to be issued by. such COM
pany, properly secured by mortgage or
deed Of trust upon the said railroad,
Its equipment, franchises. and other
property. real, personal and mixed,
then owned and thereafter to be nc.
CURED.
"'Such contract of. guaranty shall!
be signed on behalw Of said govern
ment by the Governor thereof, and on
behalf Of the railroad company under.
taking the construction, equipment,
maintenance and operation OF said
railroad by the chief officer thereof,
thereunto duly authorized by the
stockholders and directors Of the
same, and shall contain, among 9th.
ers, the following provisiops:
'First-That the total amount of
bonds the interest upon which is to be
guaranteed shall In no event exceed
the amount actually invested in cash
in the construction and equipment OF
ruch railroad. to be determined as
hereinafter provided.
'Second-4ThatOn o debt except as
Ebove provided shall be incurred by
the said undertaking railroad com.
pany. Its successors or assigns, by
which lien shall be created upon
such railroad, its equipment or other
property, prior to the lien of said gov.
eminent to secure the repayment ei
t'' '"te'ese paiu ny II uhaer SAID
guaranty without the consent OF the
congress.
ihird-That the said railroad
snail be constructed and equipped
~ithihg the time limited In the first
instance by the Hawaiian Government
VI any extension OF said time granted
y. sa'd government Tor good cause
s"omn'
ou'tnin NAT a'ters tne construe,
. on a." oau'pu'en, Vi sara railroad IN
s,nn. as - W" ne ,o,esohs Prov.
snan,n.,, a.. o" ",, =, 'ne 1oh'rac' o'
Sross oo,,,na. ~ .",. sna" "pp'' ''s
".Eyrs, a. ,ha ,oaa..,.
exnenses ,no,nS,nn sa"a ope'"''"s
nenses or tho cornoro,,on. "a. a.
the necessary ana ord,nar, ,orn,u ~ ~
said railroad and its eou,nman,. ,h,.a
IN .,cb ho,,or,no,.. -, u
repairs of said railroad or eouinment
as may be first by the governor NJ
the islands, In writing. expressIv con.
| eented IN. fourth 70 tho ,.. .