Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-10-25
AID CLUB HEARS
VIGOROUS TALKS
FOR BOND ISSUE
CONTINUED FROM page oreJ

| tCOntlnue0 from page oIe1
in order to make progress, all Of the
methods of obtaining funds must be
] used in part, al least: the tax method
II followed entirely viii place large
burden on the present owners of
| property. Once that the tax rate is
| largely increased for a specific pur-
pose, IL is a marked tendency to main
! tain. that rate thereafter irrespective
of the fact that the specific purpose
requirements may have been salts
| fled -,
! Funds Must BE Assured
Considering the most urgent city
need, that of water and sewers en-
largement, he said that funds to be
obtained from bonds would be as
sured, whereas the tax rate increase
plan does not now assure such funds,
even though an emergency exists.
| He then added:
1T is our desire to be distinctly I'M
derstood. that we reserve our opinion
as TO any other issue of bonds in any
other year than the present year un-
\ til II can be seen what will be the re-
| suit of legislative enactments in re-
/ gard to the disposition of funds to be
derived from taxation and as to the
/ impounding. continuance, or release of
certain funds now provided by law to
be maintained.
"As to whether bonds should be is
sued for roads and parks is a question
as to the distribution of the burden
of raising the funds and the rapidity
with which the community desires the
work to progress. If 1t should be ne
cessary, that in order to obtain the
necessary funds for the water and
sewer systems, to meet the wishes of
those desiring money from bonds for
the roads, parks and baths, as mat
ter of compromise, then raise the en-
tire sum of $4S0,000 by issuance of
bonds. However, our preference
would be bonds for water and sewer
systems only.
The present is favorable time to
sell bonds. Not in recent years has
there been such plethora of money.
A city and county 5-15 per cent bond
will sell say, to be conservative, on
not to exceed a ~ per cent basis.
While if funds are obtained from the
Increased tax rate some of the tax
payers may be borrowing money from
the banks at per cent. The bond
by its terms can be redeemed in five
years when the city has adjusted its
finacens. The Law should be amended
so as to permit of the issuance of
serial bonds payable yearly and re-
deemed by the high or low numbers.
Early payment by the city is thus en-
forced, reducing the interest charge
and the bonds last to be redeemed are
known, thus running for longer def.
mite time will command q higher
price. The Manoa improvement bonds
would have sold at a higher price If
the last provision had been available,
There are advantages as well as
disadvantages to the increased tax
rate plan. It has sometimes occurred
that when the tax rate has been in
creased to provide funds for specific
purpose, the increases tax rate is
maintained, although the require
ments of the specific purpose may
have long been satisfied. Much of
the present opposition to the issu-
ance of bonds arises and when the
time arrives the same opposition to
the increased tax will arise, from the
thought in the mind Of the business
man that the city administration is
top-heavy with overhead charges.
Some of the criticism leveled at the
heads of the mayor and supervisors
is undeserved and much is pertinent.
County expenditures for gasoline, an-
tomobiles, automobile repairs, ETC.,
and departmental administration is
the basis for that which IS pertinent.
However this state of affairs may be,
nublic improvement should proceed.
The people ultimately have the cor
receive remedy In their own hands.
The plan has been advanced for pro-
viding for the election of three super
visors for the 4th district, three for
the 5th and one at large, thereby rem
ering 1t possible to obtain relatively
the same number of businessmen on
the board as in the house of represen-
tatives. Some businessmen may be
induced to stand for board election
If dependent upon the electorate of
the 4th district only and not upon the
electorate of the entire island Fur
thermore. once a mayor or supervi-
sor has ben elected, place him on the
defensive when candidate for reelec-
ton, make him prove what he has