The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-12-26
INTELLIGENCE
Shipping News
RAILROAD BOND
GUARANTEE BILL

Following is the proposed amend
ganic Act, to enable the Territory 10
guarantee interest on private railroad
bonds.
That for the purpose of aiding in
the construction, equipment, opera
ton, and maintenance of such rail-
roads, using steam, electricity, or 9TH
err power in the Hawaiian Islands, as
the Hawaiian Government may here
after specifically authorize, the said
government is empowered to enter
into a contract 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 centum per annum upon first
| 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 &C
quired.
Such contract or guaranty shall be
signed on behalf of said government
| by the Governor thereof, and on be-
half 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 stock
holders and directors of the same, and
shall contain, among others, the fol-
lowing provisions:
! 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
such railroad, to be determined as
| hereinafter provided.
Second-That no debt except as
above provided shall be incurred by
the said undertaking railroad COM
pany, its successors or assigns, by
W
such railroad, its equipment or other
property, prior to the lien of said
government to secure the repayment
of the interest paid by it under said
guaranty without the consent of the
Congress.
Third-That the said railroad shall
be constructed and equipped within
the time limited in The first instance
by the Hawaiian Government, or any
extension of said time granted by
said government for good cause
shown.
Fourth-That after the construction
and equipment of said railroad in ac-
cordance with the foregoing provisions
and all others of the contract of guar
anty. the railroad shall apply its gross
earnings as follows:
First, to the necessary operating ex-
penses, including reasonable expenses
of the corporation; second. to the ne
cessary and ordinary repairs of said
railroad and it's equipment third, to
such betterments and extraordinary
repairs of said railroad or equipment
as may be first by the governor of the
islands, in writing, expressly consent
ed to; fourth. to the payment of the
interest on the bonds, the interest on
which to any extent shall have been
guaranteed by the Hawaiian govern
ment under this section.
The contract of guaranty shall be in
IG1V1 Nrfp S,,I
and signed by the treasurer of said
| government and the said contract of
guaranty shall not be executed except
upon satisfactory proof of the com
pletion of the railroad in sections of
not less than twenty continuous miles
each, and in such pros ortion, to be
fixed from time to time by said gov
eminent, as the actual capital invest
ed in completed road and acquired
equipment shall bear to the capital
required for the completion and equip
ment of the entire road, to be deter
mined by the said government.
All payments made under any such
guaranty shall be from the time the
same are paid lien upon said rail-
road and its property then owned and
thereafter TO be acquired subject only
to the lien of the mortgage or deed of
trust executed to secure the bonds, the
interest upon which shall have been so
guaranteed, and the total sum paid
under such guaranty shall at the ex-
piration thereof be payable to said
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