Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1915-03-26
TERRITORY IS
ASKED TO Defer
BOND PAYMENTS
Mayor Lane Requests Legis-
ture in Bill For Relief of
Water Works

An extension OF SO years In which
to amortiZe the bonds of the city held
by the territory, which were issued
at the time the waterworks was trims
ferred from the territory TO the city
OF HoaoIulu, will be asked OF the ter
ritory in a bill to be presented to the
Legislature by Senator Castle. The
bin was prepared at the request OF
Mayor Lane 1t also asks that the
territory relieve the city of payment
on any principal for a five-ye7r period,
the municipality to pay interest only.
Mayor Lane said the reason for the
FIVE sears relief was the crippled con.
dition of the waterworks. He says
that the money saved during that pc
Rod, through the workings of the bill
will enable the city to make needed
repairs and enlargements in the wa.
terworas department. The bill is as
follows:
Section ]. That section 1851 of the
revised laws of Hawaii of 1915 is here
by amended so as to read as follows:
Section 1861. Disposition OF reye.
nue.. All revenues derived from time
to time from said works shall be paid
into The treasury or the said city and
county, and there held as special
fund for the following purposes, for
which alone il shall be expended: ~
The operation and maintenance of said
works; (2) interest at the rate of 1-2
per cent per annum, payable semi-an,
nually, on the sum of $1,042, 900, which
is the amount expended by the terri
tory FOR the extensions and improve.
ments On said works; CD the payment
of the principal of said amount OF
81 .042 900, for which purpose there
shall be set aside each year, for the
term Of so years after five years from
July 1, 1915, not less than such sum
that me aggregate OF. the sums SO set
aside, with interest thereon at the rate
of IL per cent per annunl, compound.
ed yearly, would amount to the sum
of $1,a42,s00: and IA the extensions
and improvements of sid works.
Payment Of interest. Il.
In whole or partial fulfilment OF its
obligations under subdivisions t2) and
80 of this section, said city and coun.
ty shall pay to the territory on July
and January I OF each year interest
upon tie said sum of 81 ,042, 900 at the
rate OF 3 IL per cent per annpm, and
also such sum or sums each year
after Eve years from July 1, 1915, for
the term of so years that the aggre-
gate of the sums SO paid will, COM
pounded annually at the rate of 8 LIP
per cent per; 4nnnm, equal at the ex-
piration of said term of 30 years the
sum "a $1,e42.000; and may so pay to
the territory. In any year any addition.
al sum IN account of the principal sum
OF said s1,042, coo, and when any such
payment shall be made on account of
the principal, the interest payable
thereafter shall be reduced correspond.
ingly, and when the aggregate sums so
paid on account Of the principal shall
equal the sum of $l,042, 400 all obliga.
tions of said city and county in re-
spect Of said water and sewer works
shall be deemed to have been dis.
charged. -.
All amounts so paid to the territory
on account Of the principal shall be
credited to the territorial sinking fund,
and such credit when made shall be
deemed to have beensmade under the
provisions of the frst paragraph OF
section 1872.
Section 2. All l1ws or parts of laws
in conflict with the purpose OF this
act are hereby repealed.
Section 8. This act shall take effect
from the date Of its approval. .s