The Hawaiian gazette., 1911-03-07
GOVERNORSE.NDS
IN MESSAGE
AND BILL
Reviews Territorial and
County Needs for
Pub iC Work.
OUTLINES A PLAN.
$l,O24,24O Plus Road
Money Called for
in Bill.
OUTLINES A PLAN
tFrOm saturday,s Advertiser. }

(From Saturdays Advertiser.)
The permanent Improvements act,
carrying the appropriations for the
urgent construction work needed by the
Territory, was presented in both houses
OF the Legislature yesterday, Governor
Frear submitting his estimate and a
lengthy message in which he outlined
the necessities of the Territory.
One of the largest items is for the
Honolulu water system, for which he
asks $5O0,OOO and a bond issue Will
probably be authorized, the principal
and interest to be paid out of the re-
ceipts from the department
The parks, territorial buildings and
other needed Improvements come in for
their fair share of attention. The schools
are treated at length as being one of
the most important needs of the Islands
at the present time and the relations of
county government in relation to ter
ritorial government as regards schools
is discussed
The message is as follow:
A Message From the Governor.
To the Legislature: submit here
with, in the form of an appropriation
bill, estimates for public improve
ments.
In my first message suggested the
desirability of separate bills for cur
rent expenses and permanent improve
ments.
The amount available for public inn
provements from loan funds now in the
treasury after meeting outstanding OBJ
legations will be practically nothing;
out there is substantial surplus in
general funds, though small as COM
pared with the needs.
The amount of bonds that may yet
be issued under the existing loan aci
(Revised Laws, page 1902 is $1,756,
000 If p1blic Improvements are tx
be provided for out of loan funds il
excess of that amount, either the exist
ing loan act mast be amended SO as Il
extend the limit to which bonds may
be issued or else a new enabling ac
must be enacted.
The limit prescribed by the Organi,
Act to which bonds may be issued i
one per cent. of the assessed value o
property, or, say, $1,500,0O0, in an.
one year, and seven per cent. in tn
aggregate, but it will probably be ad
visable in any event to issne the bonds
not all at once, but in instalments, S
as to avoid keeping an unnecessaril
large sum in idleness and so as not t
affect labor conditions too seriousl,
The total amount of bonds now ouf
standing is $4,029, ,000 or 2.6S per cen
nf ba ocqaeead trol,,a of A
additional $4,000 is about to be paiC
Facilitate sale.
The recent amendments of the o.
ganic Act extended the term for whic
bonds may be issued from fifteen year
to thirty years. This should faeilitat
the sale of bonds at a lower rate o
interest or a higher price than wo1l
otherwise be possible. On the othe
hand, the bond market at the presen
time is such that higher rate of il
terest may have to be paid or tn
bonds sold at a greater discount tina
was the case with the last three issue
1t may be that bonds cannot be sol
at par unless they bear interest at
rate as high as four per cent. per al
mum, although the market may in
prove before the bonds are issued,
as to make it possible to sell them Q
better terms. The last sale was 81
per cent. fifteen-year bonds at 9s.2
If the rate of interest is 4 per cen
there will have to be set aside annual
for sinking fund, in addition to inte
est, 4.99 per cent. if the term of Il
bonds is Is years; 1886 per cent. if II
term is 20 years; 2.40 per cent. if Il
term is 90 years, and LIS per cent.
the term is 80 years.
In order to justify the issuance
bonds adequate provision should
made also for the expenditure of h
proceeds to the best advantage al
without waste and for the upkeep
the Improvements thereafter, so tn
the improvements will not require
be replaced before the bonds are pal
Most Of the improvements cover
by the proposed bill have been c
planned sufficiently in my first messal
to which your attention is invite
They are divided into two class,
namely, those which are territorial a
those which are county and city a
county in nature.
The territorial improvements q
classified into water and sewer worl
wharf and harboT improvements a
public buildings.
Special Bonds.
As to water and sewer works, all I
bonds that may be issued for this
may be met, principal and interest, q
OF the revenues of those works, as p
vided by Act 1O5, Laws Of 1909, a
section 8 of the bill submitted he
With.
As to wharf and harbor impro'
ments, the bonds that may be issu
for these may be met, in part at les
out Of the revenues Of the impro
ments TO be made with the proeel
Of such bonds. 1t is a question es