The Hawaiian gazette., 1909-01-15

5 contains the important provision
you spoke Of
Governor Frear. Yes.
The Chairman. 1t is in the form
sou you'd like to have it passed.
Governor Frear. Yes. This matter
has been given a great deal of study.
not only by myself, but by others in
Hawaii, including commission ap-
pointed by me to look into the whole
question, and it has been gone over
also by persons familiar with the land
laws in the United States.
The Chairman. Has it been scruti-
nized by our Interior Department.
Governor Frear. Yes; by the Secre.
tary of the Interior and also by the
Director of the Reclamation Service.
The Chairman. Mr. Garfield was in
Hawaii during the last summerf
Governor Frear. Yes; last June. Mr..
Newell, the Director of the Reclama-
tion Service, was there for two months
also.
The Chairman. And both. of them
looked into this matterl
Governor Frear Yes; both have
gone through the entire bill and ap-
proved it.
chance to read the bill. Is there any
thing you want to tell us about in ad-
dition to the provision affecting your
land lawsl Is there anything that you
think we will need to have explained
to us9
Governor Frear. There is one section
here in regard to bonds, section 8,
amending the portion of the Organic
Act limiting the bonded Indebtedness
of the Territory, and its political sub
divisions. This does not alter the
amount of the Indebtedness that may
be incurred either in any one year or
in the aggregate, but it is amended
| chiefly in two respects. First, it makes
the bonds payable in not more than
thirty years, instead of making them
as at present redeemable in not more
than five and payable in not more than
fifteen years. This is in order to give
the Legislature greater latitude, and is
made on the advice of counsel in New
York with a view to enabling us to dis
pose of our bonds to better advantage,
the idea being that we may find it best
to make the bonds payable in INSTALL
ments, so many in one year, so many in
two years, and so on, thus insuring the
payment, instead of leaving them until
| they all become due and then perhaps
refunding.
The other amendment is to enable
The Chairman. If you can tell us,
what is the bonded Indebtedness of the
Territory now2
Governor Frear. A little under
$4,OO0,000; and the rate per cent va
ries from 31a to AZ.
The Chairman. Have YOU had any
difficulty in selling the bonds so far7
Governor Frear. The last bonds,
bearing 49, per cent, were sold at 9S.l5.
We have sold each issue to better ad-
vantage than the previous issue.
| Another amendment is to permit the
counties to issue bonds without neces-
sarily having the power of taxation. At
| present all the taxes are collected by
the Territory, and then, under legisla-
tive action, certain portions of them
are turned over to the counties, thus
having simply one set of machinery for
the assessment and collection of taxes.
County government is comparatively
new, and it is thought by many that
the time has not quite come to turn
the matter of taxation over to the
| counties
Some of the counties are very anxious
| to issue small amounts of bonds for
much-needed public improvements, par
ticularly for making belt lines of road
around the island. Unless this amend
ment is passed, either they can not is
sue the bonds, as held by the Territor-
lal Supreme Court recently, or else the
Legislature will feel it necessary to
give them the power of taxation, WHICH
iSrfagarded by many as inadvisable at
IDesent. The idea is to enlarge the
powers of local government gradually
and only as rapidly as seems best.
Senator Warner. What are the limi-
tations on the amount of bonds to be
issued by counties!
Governor Frear. The amount to he
issued in any one year must not exceed
l per cent of the assessed value of the
property, and the aggregate for the
Territory can not exceed I per cent of
the assessed value of the property.
Senator Warner. OF the assessed
value of the property in the countiess
Governor Frear. In the Territory.
The aggregate for any county can not
exceed 3 per cent of the assessed value
in the county.
The Chairman. Which would be in
addition to the Z per cent for the Ter
ritory9
Governor Frear. Yes.
| The Chairman. So that the total
bonded indebtedness would not exceed
10 per cent of the valuation of the
property for purposes of taxationl
Governor Frear Yes.
The Chairman. That is the limita-
ton you are now under9
Governor Frear. And it remains the
same That is not altered in the least.
the Chairman. This simply gives a
political subdivision, the county, if you
cal u that, right to issue bonds.
Governor Frear Yes.
Inc Chairman. Up to per cent?
Governor Frear. Yes.