The Hawaiian gazette., 1916-09-29
Municipal Executive Tells How
u 1. Law Operates 10 Enable Ho-
noIuIu TO Raise Money
PRESIDENT 10 APPROVE
VOTE OF THE ELECTORATE
While Process Is Simple Nc. Lane
Expects To Have TO En-
II tighten Citizens

Mayor Lane IL daily besieked by per.
sons who wish to know just how the
municipal bond issue or $4,000 VII, M
engineered. in other words. many vol.
ers who have not given the subject, anv
confederation, because the eity has
never taken, advantage Of its bonain a
power, are anxious 10 know Nv t1has
authority and in what manner the bond
issue can be passed. SO ID,
To all such inquirers Mayor Lana
simply points to the revised laws az
Hawaii, which give each county Of the
Territory the right TO issne municipal
bonds and TO incur an Indebtedness of
two and one half per cent Of the M.
sessed valuation Of the property Of the
county. t7t ~ KS. N Ma
In the present cnse there seems 20 he
number Of persons who are under the
impression that the bonds are terri.
,tcrial bonds orterritorial county bonds.
Such, however, Is not the case.
Bonds Are Strictly County ~
"The present bonds are strictly
county bonds, where the eoahtgbiobi.
gates itself for the amount Of the
bonds foated,p explained Mayor Lane
yesterday, They have nothing to d.
with territorial bonds. and are issued
by the county for its own improve.
ment. From the fact that the county
has never before issued such bonds has
developed the confusion. Municipal
bonds, which are widely issued in tho
mainland, are novelty to Honolulu,
and naturally many persons do not IN.
derstand them Z
Under the law, the county is per.
mitted to indebt itself TO the extent OF
two and one-half per cent Of the, as.
sessed valuation of the property. But
il must be understood that such indebt.
edness which may be Incurred in any
one year shall not exceed one. half Of
one per cent of sueh valuation. In the
present issue the amount 20 be floated
is $4,000. d. .
voters Must Have Say 2#%
"The manner Of floating such bond
issue is as follows: Municipai bonds
cannot be issued until the Board Of su.
peryisors calls an election TO vote on
the bond issue. Sixty per cent Of tho
registered voters must vote in the af.
hrmatiye before the bonds can be is,
sued. II is, necessary under the law
for q proclamation to be made of tho
proposed election sixty days prior to
The election. This has been done, and
the bond issue will be placed on the
ballot of the general election, Ordi-
narily II would be neeessa y 70 call a
special election, But having the mat.
ter voted on int the general election
win save the county the expense of a
special election. e. q
t'If sixty per cent of the electorate
vote in favor OF the bonds at the com.
ing November election, the issue will
then have to be-dpproved by the Presi.
dent OF the United States. No delay
on this score - expected, for the Tea-
son that the city can well afford to
float such a small loan, II probably
viii require at least month to obtain
the presidential approval. After that
the bonds will be advertised gfor sale,
and they should find ready buyers for
the reason that they pay FIVE per cent
interest, are exempt from all taxation,
and are redeemable al any time after
Eve years and payable in not moro
than fifteen years. N lG $D# IT..
10 Cause For Confusion ki ~ "
II Is a simple matter and there Is
no cause for confusion. believe,
however, that II will be necessary 10
send wellinformcd men around to the
Different rreeincts IN orane 20 oxplain
70 the voters tbst the, bond issue Is not
10 be copfused with Territorial bonds.
80. unless there are unforeseen delays,
the money from the bonds should be-
ready not Inter than thu lirst OF the
year IL will be possible then 70 60
ahead with the municipal improve.
ments for which the money will be
asked. lspg hi6gp
1.-THE principal item Of work in the
list is the installation Of the filtration
plant in Nuuanu Valley. This has been
estimated by the water department to
cost $4,000. The other big item In
the issue is the pumping unit sewer
system in the residence district Of Wal
kiki, between Diamond Head and King
street. This will cost approximately
$4,000 The other items are the Belt
road from Nnuanu Pail toward Kualoa
Point, to cost 100000. The remain
der Of the money win be used for play
grounds public parks and public
baths ~ ~ y, i.st ."Sf :