The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1915-03-26
Mayor Lane Has Blu Of Great
Importance To Honolulu
For Legislative Action
SENATOR CASTLE Will
INTRODUCE MEASURE
Act Provides Fifty-Year Exten-
sion Of Obligation To Terri
tory In Purchase Of Plant

In order 70 enable the city to finance
its water system, which 1t acquired
from the Territory June 80, 1914, there
shortly. will be introduced In the legis
lattfre a bill which Mayor Lane said
Yesterday was Of more Importance to
Honolulu than any other measure, that
would be presented this session.
Technically the bill win be known
as Gan Act to amend section 1851 of
the revised laws OF Hawaii Of 1915.
Il was drafted by the mayor and the
legislation committee Of the board Of
supervisors, with the assistance and
approval Of the city counsel. Senator
Alfred L. Castle will offer il.
status Of Public Bonds
q No city or county bonds have ever
been issued,D wrote Governor Pinkham,
setting forth the situation in his an.
nual message. Hitherto public inn
provcments, whether Of strictly ter
ritorial or local nature, in so far n
moneys, have been provided out Of
territorial bonds, but during the last
few years distinction has been made
between bonds the proceeds Of which
are used for territorial improvements
and bonds the proceeds of which are
used for local improvements. The in
terest and sinking fund Of the latter
are required TO be reimbursed to the
Territory out Of the revenues of the
local governments for their own public
improvements, subject TO referendum
in each case 70 the voters"
obligations City Assumed ~ r.
In taking over the waterworks, the
city also assumed yearly interest
charges of $35,357.75, exclusive of pay
ments into the sinking fund. Reve-
nues for the year were $174,607.39, and
expenditures, in addition TO interest,
Sl20, sS5.S3 for maintenance and opera
ton, and $44l4.7O for extensions and
improvements. ,..e ~.
What. the city asks Of the legislature
is authority to defer for Ave years from
July any payments into the sinking
fund, keeping up the while its interest
| charges, In order that IL may, make
| vitality needed improvements and extern
sions, to be paid for out Of current
revenues, without ineurring addict in.
| debtedness. "a @s.
These extensions, it is reckoned, win
| provide additional revenue, which win
enable the city not only to pay or its
bonded Indebtedness, but to take care
Of future extensions and improvements
as they are needed. s2,k Al
Fifty-year Extension Asked
! The city asks fifty years from the
period ending July, I, 1920, in which
to amortize the bonds. The text Of the
bill follows: t, ,# ...s.' -
Section i. 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 reve.
nue.. All revenues derived from time
to time from said works shall be paid
into tho treasury of the said city and
county, and there held as q special
fund for the following purposes, for
which alone it shall be. expended: tl)
The operation and maintenance of said
works; (2) interest at the rate Of 81
per cent per annum, payable semi.an.
nually, on the sum Of 81 ,042 900, which
is the amount expended by the Terri
tory for the extensions and improve.
ments on said works; (3) the payment
OF the principal Of said amount of
81 $4,000, for which purpose there
shall be set aside each year, for the
term Of fifty years after FIVE years from
July !, 1915 not less than such sum
that the aggregate of the sums SO set
aside, with interest thereon at the rate
Of BY per, cent per annum, compounded
yearly, would amount to the sum Of
$l,042,000; and ~ the extensions and
improvements Of said works.
; Payment Of Interest s..
In whole or partial fulfllment of its
obligations under subdivisions (2) aud
: (3) Of this section, said city and county
shall pay to the Territory on July I
and January Of each year interest
, upon the said sum of $l,042,0 900 at the
rate Of S1s per cent per annum, and
also such sum or sums each year after
/ five years from July ], 1915, for the
term of fifty years that the aggregate
OF the sums SO paid will, compounded
annually at the rate Of 3h per cent
per annum, equal at the. expiration OF
said term of fifty years the sum OF
VI $4,000; and may so pay to the Ter.
ntoTy in any year any additional sum
: on account of the principal sum OF
said $l,042,000, and when any such
payment shall be made on account OF
the principal, the interest payable
thereafter shall be reduced correspond
ingiy, and when the aggregate sums SO
:. laid on account Of the principal shall
, equal the sum of 81 ,042, 900 all obiiga
n tions of said city and county in re-
speet of said watNr and sewer works
4 .Sa)l be deemed TO have been d
/ charged, ...9 }. .ft
I All amounts 50 paid to the Tarr'tn
!. on account Of the principal shall
Z credited to the territorial sinking fun
!. and such credit when made shall
deemed to have been made under tR'
: provisions of the first paragraph A
seetion 1852. HIS
Section 2. All laws or parts Of law
il in conflict with the purpose of TIL
/. Act are hereby repealed.
!. Section 3. This Act shall take eifec
7 from the date of its approval, j