The Hawaiian gazette., 1911-03-10
COUNTY BONDING
IS NOT POPULAR
FINANCE COMMITTEE HEARING
BRINGS OUT LOTS OF
OBJECTIONS.

The question of authorizing the City
and County of Honolulu to issue bonds
at the discretion of the board of super
yisors to the amount of 81 100000, as
provided for in house bill number thir-
ty-three, introduced by S. K. Mahoe,
was before the finance committee of
the house for hearing yesterday af-
ternoon, at which Attorney Aehi made
a hard fight for the bill.
The general sentiment seemed to be
against the bill, not only the members
of the committee, but others present
at the hearing, questioning the advisa-
pIlty VI permIvUIng tine vvr-.y 'asSuv
county bonds and go into the market
for large sums.
The question was raised as to
whether or not this bill would establish
precedent and other counties would
seek to issue bonds, SO that in the flu
ture the counties would be crushed I'M
der loads of debt which they could not
pay.
Would Lose Money.
"In such case,v remarked Repre-.
sentative Cooke, ''the counties might
go into the market bidding against
each other and the bonds would de-
preeiate and they would lose money 1t
would be the same if they sent the
bonds to the New York market"
But Aehi did not think this was a
danger. He held that the city needed
money, but just how much nobody
knew, and therefore it was well to pro
vide enough
! Chairman Rice held that the terri.
torial bonds had first mortgage on the
consolidated revenues of the Territory
] and consequently the county bonds
would be second mortgage.
But Aehi stuck to his argument that
the county bonds would be first mort
gage on the county revenues as dis
tinct from the territorial revenue.
First Mortgage Bonds.
A considerable discussion followed
in which all the members of the com
Aehi that If the territorial bonds in
cluded all the revenue of the Territory
and the Territory distributed the rev
enue to the counties the revenue of thu
counties was subject to the mortgage
bonds of the Territory. But the argu
ment seemed to make no impression.
j The question Of issuing the $500,
600 in bonds by the board of supervis
ors also caused some heated discussion
J especially when Rice thought the super
wilson's ought to know just how muel
! money they needed for the city i'm
provements contemplated, and shoalI
say so.
|The supervisors would be talking
through their hats if they assert the!
know how much money is needed 70
Honolulu. Provision must be mad
for emergencies" asserted Achi.
Representative Watkins upheld th
need Of the supervisors knowing wha
they had to spend, and believed the
do. Rice sounded a warning agains
following the supervisors to borro,
sums up to $l,500,O00 to do as the
please with.
To Help Laborers.
Achl stated that the Donub buOulu y
provided for and sold so that the Ia
borers could get to work.
Rice, as well as other members o
the committee, thought it would be bes
! to let the Territory sell honda an
provide the county with what wa
needed, adding that it would save til
counties $4,000 a year.
"sYou're trying It on a dog, - h
said, quoting the hOmely saying.
Gwen, don't you realize the eouI
ties must live9" qaehed Aehi mourn
fully.
Word 60 hnen rsen,vad int ID