The Hawaiian gazette., 1911-02-28
TAXATION CROPS
UP DURING
HEARING
Discussion Of Bonding
Bi Brings Out
Other Things.
OPPOSITION READY
The Commercial Bodies
Officially Declare
Position.
OPPOSITION READY
(From saturdays Advertiser.l

(From Saturdays Advertiser.)
Taxation by counties broke loose for
the first time in the legislature yester-
day and although a prolonged discus
sion of the merits and demerits crept in
irrelevantly and semiofficialIy and no
conclusions were reached, enough was
said to make it fairly certain that the
financial policy Of the senate, at least,
for the coming session, is going to be
formulated with an eye open 10 the
county taxation scheme
The Judiciary committee of the
senate commenced a public hearing on
the county bonding bill introduced by
Kaleiopu at two clock yesterday after
noon and it was at this hearing that
prominent banking and financial men
and representatives of the commercial
organizations discharged the first guns
of what is apparently battery aimed
at county taxation.
Afterwards the committee took up
the apparently unimpoTtant bill dealing
with witness fees in criminal cases and
again the discussion swung around more
emphatieally than ever to the proposals
of the governor regarding taxation and
those proposals were openly on the floor
for the first time.
Ready to Oppose.
That the business men and CONNER
cial organizations are to offer opposition
TO county taxation and oppose the bills
discussed as an indirect means to their
object, is apparent.
Among those at the first hearing yes
terday were A. Lewis, Jr., manager of
the Bank of Hawaii; ]. r. Gait of the
Hawaiian Trust Company; Attorney
General Lindsay, Territorial Treasurer
Conl6ling, Attorney g. r. Hemenway,
representing the Chamber of Commerce
and the allied commercial organiza-
tions; w. G. Achi; ]. w. Catheart,
representing the city, and several
others, including Senator Fairchild of
Kauai, who was ready with figures and
statistics regarding the growth of Ho-
nolulu county's revenue resources.
Fairchild Is interest in the proposition
of giving the city power to bond itself
seemed to be on the negative side.
Objectionable Features.
Several sins of commission and omis.
sion were discovered in the bill by those
present, Mr.. Gait being responsible for
the pointing out of several of them and
Mr.. Lewis also calling attention to what
he considered imperfections.
One of Galt's objections to the bill
was that the clause making the auditor
of the Territory the garnishee in an
action by bondholder to recover pay
ment or interest in case of default, of
fered the territorial revenues as Sc
curity for the city bonds. The gar
nishee summons mentioned, according
to the bill, is to be made when terri.
torial moneys are owing to the county
Gait contended that If the territorial
revenues were security for these bonds
it would have a bad effect on the ter
ritorial bonds and cause suspicion
among eastern holders of Hawaiian
paper. A question of good faith, he
stated, could be raised against the Ter
ritory under these conditions by the
holders of these bonds, and it would
also hurt future issues He hoped that
the committee would consider this phase
of the bill, as he considered it the most
vital thing.
Afterwards Chairman Judd asked
Lewis If he considered the bill liable
to "huTt Mr.. Galt's patrons" in tina
way, Lewis replying that he did no
consider it would to such an extent.
Doesn't Like Scheme.
Hemenway, speaking officially as tn
representative of the chamber of CON
merce and other commercial bodies
stated that he was not there to oppos
the county bonding bill, and that tn
organizations would offer no oppositio
to any proposition of that kind, but tina
he considered the bill implying taxatio
by counties, and that he did not thin
taxation powers should be given to th
counties.
He believed further that there wa
no direct reference to the revenue th
county was offering as security, an
did not agree with leaving such an in
portant matter TO implication.
This point, once raised, refused
down and became the subject for fr
quent discussion. Another point WI
the priority of claims of bondholders {
the city security in case of successi'
issues of bonds. This is a matter n
dwelt on in the bill, otherwise complet
and, in the estimation Of one memb
of the committee at least, overcomplei
Another objection.
City Attorney Cathcart found 9th
faws in the bill. His main objeeti
TO 1t was the legislative reference tn
denoted the routine to be gone throul
in issuing the bonds. resolution
tho supervisors optlining purpose o.
amount needed is made the initiate
move, this 20 be confirmed by the leg
latnre and 70 be approved by the Pre-
dent Of the United stEtes before I
city has the power 10 make the issue.
Catheari eontended that the approx
Of the legislature made the bill sup'
nuona, IN the view Of the present situ
ton and that Il would be better 70 ]
the Territory issue the bonds, as In Il