The Hawaiian gazette., 1914-12-25

bonds had remained In 0fiice until
the delivery Of the same to the
purchasers although the term Of Of
nee Of such persons OF either Of
them may have expired or they
may otherwise hr.ye ceased TO be
such officers before such delivery.
sectioa 2. This Act shall take
effect Immediately.
stainback Looks at Both sides
Attorney General Stainback's review
Of the New York opinion is an extens-
i've one and he goes fully into the ques,
ton Of territorial laws affecting bond
issues While scouting the idea that
sales Of bonds under existing condi
lions many be illegal he says that
there is practical side to the ques
ton that should not be overlooked and
is Of the opinion that the suggestion
that the next legislature pass such
statute as recommended by the New
York lawyers is a good one.
Excess Of Caution
In concluding his opinion TO Treas
urer Mccarthy, the attorney genera
says;
Though there may be no legal 90
lection to your selling these bonds
there is practical side to this ques
ton that should not be overlooked. The
opinion of Messrs. Dillon, Thomson
Clay upon municipal and governmental
bonds is probably more widely sought
and acted upon than that Of any othel
single firm in the United States, and
even though the opinion may be baset
upon an excess OF caution, yet II can
not be ignored when you seek to sci
bonds in New York or other markets
Therefore, their suggestion that thu
|leeislature of Hawaii, at its next SEES
sion, should pass "a statute declaring
that when any of the bonds of the Ter
Frit0ry had been signed by persons II
Office at the date of signing, sucl
bonds shall be valid, though such OH
GERS cease to hold Office before the dat
Of sale, should be called TO the atten
tion Of the legislature. have no doubt
that the legislature win pass such al
Act and thus remove every possibl,
ground for questioning the legality Of
the bonds that you may SELL
Governor Closes Subject
The whole question was APPARENT,
closed yesterday by the Governor wheI
he wrote to Dillon, Thomson & Cha,
relative TO their opinion. The Governo
believes that local procedure is soun'
and agrees with the attorney genera
OF the Territory, despite all other opin
ions. He says that the act proposed BY
the New York lawyers will be intro
duced in the next legislature and he be
iieyes that this body will act upon i
without loss of time when il meets ii
February. The Governor letter is IA
follows:
lowing TO the delay in securing th,
opinion Of the attorney general of tn,
Territory of Hawaii, have been unabl,
to reply heretofore to Your communica
tion of November 10, 1914.
Your advice will be followed ani
the proposed act entitled, /" An act II
relation to the signing and execution Of
bonds Of the Territory Of Hawaii, - al
drafted by you, win be presented, and
preaume, acted on at once by tn,
Legislature at its assembling in Feb
ruary.
~ leave the discussion as 10 tn,
points of view with the attorney gen
eral, although have a firm belief ou
procedure il sound, and agree will
him,
In following the advice Of the bont
lawyers all proposed sales Of bonds viii
be held up until the legislature passeI
the act in question, which will remoy,
any possible cloud that may exist II
more ways than one this win tie up fo
spme months to come a number Of ter
ritorial improvements which, il was pro
posed, were to be carried ont imme
diately notably barbor and wharf wofI
throughout the Territory,
scheming 70 Get Around
The bond question was discussed will
treat interest ut the meeting of the har
bor commission yesterday, and Treas
nrer Mccarthy, who is a member OF tn,
commission, said that he believed tina
he saw q way ont ~ the whole trouble
Ia the ease OF the Kauai capitalists VIII,
mad Rcteea TO take $2a.000 worth o.
bonds for the construction Of the new
Waimea wharf on that island. Mr.. Me
earthly thought that they eonld nav I,
, the money and receive vouchers goot
u.s. the nrds nHtil The batter could b,
delivered 10 them after the legislator,
paNg' re 1art that " to remove al
r"rnip"s ~ tho premises.
~ Lord. renrescnting tho Lord
"e',no rngihcerinq Company. that like
H. n. Z. . RI.