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

in order to make progress. all of the
methods OF obtaining funds must be
used in part. az least: the tax method
il followed entirely will place large
burden on the present owners OF
property. Once that the tax rate is
largely Increased for a specific pur-
pose, it 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 .@ F."
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: ......... H..
1t is our desire to be distinctly I'M
derstood that We reserve our opinion
as to any ether issue of bonds in any
other year than the present year I'M
til il can be seen what will be the re-
sula Of legislative enactments in re-
gard to the disposition of funds to be
derived from taxation and as to the
impcGnding continuance, or release OF
certain funds now provided by law to
be maintained.
las to whether bonds should be is
sued for roads and parks IS question
as to the distribution of the burden
Of raising the funds and the rapidly
with which the community desires the
wotk to progress. If it should be ne
cessary, that in order to obtain the
necessary funds for the water and
sewer systems, to meet the wishes OF
these desiring money from bonds for
the roads, parks and baths, as a 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. -. III
The present is a favorable time to
sell bonds. Not in recent years has
there been such a plethora of money.
A city end county 5-l5 5 pet cent bond
will sell say, to be conservative, on
net to exceed a Az 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 6 per cent. The bond
by its terms can be redeemed in five
years when the city has adjusted its
finance. 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 higher
price. The Manoa improvement bonds
would have sold at a higher price II
the last provision had been available.
There are advantages as well as
disadvantages to the increased tax
rate plan. 1t has sometimes occurred
that when the tax rate has been in
creased to provide funds for specific
purpose, the incrnc~>d tax rate is
maintained, although the require
ments of the specific purpose may
have long been satisfied. Much of
the present opporsition 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 leyeled 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 it 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 a 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
done to reduce the overhead and
waste and refuse to hear him on his
promises for the next term :.