The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1916-08-11
BOND ISSUE MEETS .
OPPOSITION FROM
score OF SOURCES
Chamber of Commerce and Ad
Club Committee Fight Pro-
posaI At Public Hearing
CITY ATTORNEY GARDEN
BLOCKS PART OF SCHEME
Finds Honolulu Can Issue But
fl , $4,000 In Bonds During
nv Any One Year

From seven thirty until eleven-thirty
o clock last evening the city supervis-
Ors, assembled in public session in the
chamber of commerce rooms, heard a
wealth Of argument advanced for and
against the proposed bond issue, which
would be used for permanent high
ways, more parks, and the improve.
mGnt of the water and sewer system.
Though many SPOKE IN favor of the
bond issue, the weight of the argument
apparently was against it, the author
lyed represe natives of the chamber of
commerce and the un'nstructed special
committee of the Ad club reporting
nd versely.
Before argument started however,
announcement was made that the
clty's deputy attorney, w. T. Garden,
had handed in written opinion say
Ing the city could not obtain authorize
tlun for issuance of more than $3.50 900
~ any one year. This opinion, given
Yesterday, is taken to mean that at the
suggested plebiscite the electors of
Oahu could not vote on a bond issue
of more than the amount mentioned
This naturally will alter materially
the supervisors plan for the expendi.
ture of $75O,O00, the amount originally
discussed rs the size of the issue.
crowd Representative
Forty men, a crowd well represent
ing the many business and public in
terests of the community attended the
meeting. Discussion was general and
evidently highly educational to all
present; at least, nearly everyone who
spoke confessed that much. While the
talk once or twice threatened to enter
into the devious paths of politics. stern
repression was exercised by some of
the more conspicuous figures, such as
William Larsen, w. H. McInerny, NJ
{. PachecO, John Wise, w. X. Earring
ton, Mayor Lane, and that was evaded.
McInerny, speaking for the board of
directors of the chambers of com
merce, informed the supervisors that
the chamber, while standing ready to
support the supervisors in their efforts
to get civic improvement in every
manner possible, from moaves of econ
omy could not sanction and approve
any proposition involving a bond issue
"s the means of procuring necessary
funds.
Chamber Advises Taxation
The chamber thought, rather, that
some system of elastic tax, whereby
additional means might be raised,
would be an advisable ALTERNATIVES
McInerny suggested that the funds
nIgnt be forthcoming through the me-
dunn of an advance of onethird of one
per cent in the tax rate. He did not
think the city should rush in and as
sumo a debt of $3.50 900, which it would
not be able to spend in public i'm
rovements in year; it would have
to pay interest on the debt, but would
not have immediate use of it.
Albion r. Clark, speaking for the
special committee of the Ad club also
advised the tax rate increase system,
a. least for roads. If bonds are to be
raised the city should assume such
debt for water and sewers only, de
purtments which, as all present seemed
/" agree, are the most vital to the
health and welfare of the community.
The rate of tax increase suggested
Une-tmrd of one per cent of the as
scssed valuation of the city-wOuld
bring in an additional $500 900 a year,
said clark. This could be used for
construction of permanent roads.
Raises Interesting Point
An interesting argument ru:seG
against the bond issue by John Guile,
who had in mind the original proposal
TO issue 100000, was that such bonds,
ordinarily having life of fifteen
years, would cost the city interest a
sum of perhaps $450,000. Why spend
all Of this enormous amount in inter.
est, he inquired. Would it not be bet
ter to tax the community for the i'm
proVements and save this great sum to
the local public!
If there must be a bond issue, he
said, let it be for such improvements
rs actually are of u permanent char
acter, such us parks, the water and
sewer system, city hall, and the like.
He did not consider roads correctly
classified as permanent improvement.
incidentally, Guild paid his respects
to the board of supervisors, declaring
that until he had delved into the sub
Jeet, as a member of the chamber of
commerce committee, he had not
realized how badly the hands of the
supervisors are tied, in the matter of
expenditure. While hundreds of thous-
nnds of dollars ostensibly pass through
its hands, the board must spend a vast
portion OF the aggregate in channels
already fixed and routed by statute
He said he did not believe the public
fully realizes the large degree of the
supervisors impotence.
This ELECTED a line of discussion of
municipal finance that consumed much
time.
M. c. Pacheco raised the point that if
IL plebescite were held at the coming
election, it is likely to become mixed
badly with. politics. Politicians will
be inclined to cloud the real issue and
the voters will get the idea it has Il
political aspect. 1t is too large and too
vital for politics, said Pacheco, and if
plebescite is to be held, it should not
take place until some later time.
Harrington, declaring he was not to