Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-08-25
RlJLINGOF COURT
ONFRONTAGE TAX
LAW HOLDS VALID
CONTINUED from Page 81


draining and curbing highway, other
than main artery OF traffic, perhaps,
will not exceed the special benefits
conferred upon the lands abutting on
or adjacent to the street or streets
to be improved. We believe that the
statute, taken as a whole, is well
within the requirements laid down By
the authorities as being applicable in
this class of cases and to this kind
of statute. -
We are of the opinion that the
statute does not contravene either
provision of the Fifth Amendment.
Organic Act Not Conflicting.
1t i3 contenGed that the statute is
in conflict with section 55 of the Or
ganic Act of this territory in that it
provides for the mourning of indebted
ness and issuance of bonds for public
improvements py municipal subdivi-
sion of the territory without the ap-
proyal of the president OF the United
States contrary to the inhibitions on
that regard therein contained.
The argument is that the bonds
authorized to be issued by the statute
are bonds of the city and county of
Honolulu; that on being issued they
would constitute Indebtedness OF the
municipality; end that such bonds
may not be issued, nor such indebted
ness incurred, in view of section SIS
of the Organic Act, without the appro-
val OF the president, and It is not In
tended to obtain such approval as to
the in iebtedness and bonds in ques-
ton, nor does the statute require it.
Bonds issued under the statute would
be nominally the bonds Of the muni-
cipality, but it does not follow that
they must, in order to be valid, be APP
proved by the president.
The approval required by the Or
ganie act is to Indebtedness incurred
or loans made by the municipality,
and to the issuance of any bond or
other instrument of any such indebt-
edness.' If. therefore, the indebted
ness proposed would not be that OF
the municipality the bonds to be is
sued as evidence of that Indebtedness
would not require the approval of the
president though, in form, they would
be the bonds of the municipality. The
courts have repeatedly held that the
issuance of bonds or certificates pay
able only out of specific fund raised
by special tax for public improve
ments does not constitute municipal
Indebtedness within the meaning Of
constitutional limitations upon such
In the case at bar it Is clear that
the municipality is not attempting to
borrow money, and it will not be driv.
en- to the necessity of making a loan
unless in the event of the nom
payment of assessments and the pur-
chase of land within the improvement
district it shall be without funds to
pay therefor. What, if that situation.
should arise, would be the liability OF
the municipality, and what rights, if
any, taxpayer could assert need not
be inquired into at this time. We are
of the opinion that in proceeding UNI
der the statute the city and county Of
or making loan or
bond issue within the puryiew of the
Organic Act.
of Proceedings.
The plaintiff contends that in or
der that bonds issued under the stat
ute may be valid every step required
by the statute must have been taken
strictly as directed, whereas the
agreed facts in this case show that
the contract ard bond were not exc.
cuted by the contractor within ten
days from the date of the warding of
the contract as required by section
1898.
The abandonment of the contract
by the successful bidder would mere
" have required another advertise
ment for tenders, resulting, perhaps,
IN an increase in the amount Of the
The taxpayers we're not
injured by the signing Of the contract
after ten days rad passed.
I'VE think that the provision Is one
'or the benefit of the city and county,
and that the board of supervisors act
I'd within its rights in extending, in
good faith, the time for the execution
If the contract and bond. AS all the
OF the statute and ordi- |
nance essential to the validity of the
proposed bonds had been complied |
With. we think recital to that effect |
IN the face of the bonds would be in |
10 way improper, ..s.
"a Judgment denying the Injunction
prayed for may be entered"