The Hawaiian gazette., 1914-12-25
GOVERNOR ADMITS
now BOND SALES
CANNOT Be MADE
Legislature Win Have To Straight
ten Out Tanule Caused BY I
Mccarthys Appointment
GOVERNOR WARNED BUT
PAID NO ATTENTION
Still Thinks He Is Right Blu
win DO AS Bond Firm
At First Advised
anon Thnr.day Adverll.er.l

tfFOW iHufbuuy huNtfbbtI'D
further deliveries Of territorial
bonds should not be made until statste
passed. we'write. ~
This was the cable message sent by
Dillon, Thomson & Clay the well.known
New York authorities on bond ques
tions, 10 OoSefaop, 1inkham under date
81 November 10, on the question Of the
legality Of the fbshds of the last issue
authorized BY ythe legislature and ap-
proved by thyPresident.
The question arose TO TO whether de
liveries Of bonds BY Treasurer Me.
earthly Would be legal, inasmuch as the
bonds,were prepared and signed by his
predecessor, d. Lloyd oonkling. This
point was In issue when Governor Pink
ham appointed Mr.. Mccarthy to sue
eeed Mr.. Conkling, the latter holding
that under an opinion given by Dillon,
Thomson Clay, who had passed on the
bond issue for the Territory, a serious
question arose in this regard as TO the
legality Of deliveries by any other than
'conkling.
Governor Had Views
The Governor held that no question
could arise, as Conkling had been duly
succeeded in office BY the new treas
arer; that II was not question of the
man but of the Office which he held, the
law providing for powers of succession
in Office Governor Pinkham, In a state
meat published In The Advertiser some
weoks ago, said that he had written fuls
particulars on the situation to the New
York law 6rni aud that In view Of the
added information which he had sup
piled the bond authorities, he had asked
FOR another opinion on the subject. a
The opinion, written November l6,
was received, by the Governor several
weeks ago and submitted by him to At
torney General Stainbaek for review,
the latter giving the Governor his writ.
ten views on the mater, yesterday. The
Governor Yesterday released the whole
correspondence to The advertiser for
publication. Il ~.
Agree With Governor N Part
IN their letter to the Governor the
New York lawyers say that they agree
with the Governor that "a the purchase
price Of $4,000 paid into the treasury
October % fora block Of bonds, fthe
actual physical delivery TO the pur-
chasers constitutes simply clerical act
aud that the title to the bonds in the
condition In which they We're at the
date of payment passed to the pbr-
ebasers y The lawyers then say. that
they would be able to approve the va
lidity Of this particular sale upon the
receipt by them from the Governor or
the Treasurer of a certificate showing
that ''on October 22, 1914, Messrs.
David L. Conkling and Henry G. Hapai
were respectively Treasurer and reg
istrar Of public accounts Of the Terri.
tory Of Hawaii ~
They also required 10 be fthished
them a certified copy Of the bid or bids
Of the Honolulu parties aud certificate
TO the effect that these bids were nc,
cepted and that the purchase price WAS
paid into the treasury October 90.
Caution Recommended
"We note your statement as TO the
remaining $4,000 Of the bonds for
which bids were received from local
Honolulu parties, that IL win devolye
upon Mr.. Charles j. Mccarthy, the
present territorial treasurer, to accept
accrued interest, collect the price bid
for on the bonds and deliver the bal
ance Of these bopds. viz: $l0,S00, . fur,
ther wrote the bond lawyers 1--WE do
not think that II is safe TO follow this
conree until the statute has been passed,
a draft Of which we prepared and
handed 70 Mr.. ConklinR On October %,
1914, and which we are advised by Mr..
Mccarthy has been handed BY Mr..
COnkiing to Mr.. Mccarthy.
Advise Postponement Of sals
'tWe further note the course which
You propose TO follow with reference to
the sale of the bonds at private sale.
We think that II would be well in the
interests Of the Territoryii II Won would
postpone any further sale OF these
bonds until after an act has been pass.
ed by the legislature aud approved by
you as Governor, in the form enclosed,
(beipg the same AS that handed to Mr.,
Cogling) relative 20 the signatures
thereon. This act win remove an qiies
tion as TO the regularity OF the exeeu,
ton Of the bonds aud viii enable us
70 give our opinion relative TO future
deliveries without regard TO the time
when they may happen TO have been
paid for,
No Prejudice In Delay
eve wrote you ON October 81, 1914,
relative 10 the rule as TO the execution
Of these securities aud YOU will soc
from thst letter that the only safe rule
70 follow Is either that the securities
should be signed by the persons who
are IN Office at the time Of the ileliv,
cry and payment or that statute
shonld be passed recognizing the valid
ity Of official signatures although there
l1ay he a change In the ineumbency Of
the Office. 81.
#"We might add that present indice
tons are that any DELAY viii not be TO
the prejudice Of the Territory rs the
bond market is daily improving.
How To Overcome Question
The form Of the bill submitted it
Dillon, Thomson & Clay, which, accord.