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Senator Dowsett moved that the Report of the Committee be laid on the table to be considered with the Bill. Seconded by Senator Knudsen and carried.

Senator Dowsett presented the Report (No. 44) of the Ways and Means Committee on House Bill No. 35 as follows:

Honolulu, T. H., March 9, 1907.

Hon. E. F. Bishop,

President of the Senate,

Honolulu, T. H.

Sir: Your Committee on Ways and Means, to which was referred House Bill No. 35, entitled "An Act to Amend Section 1278 of the Revised Laws of Hawaii Relating to Income Tax as amended by Act 87 of the Session Laws of 1905," begs leave to report as follows:

Your Committee has given the Bill its full consideration and finds that the amendment to Section 1278 of the Revised Laws of Hawaii provided in this Bill, far from securing the poor man any benefits will work an injustice to the community, in that it will relieve a class of taxpayers of a contribution to the public purse that your Committee feels is fairly and justly imposed, and a class that would otherwise escape its just share of the burden of taxation. A person in receipt of an income of $1,500.00 per annum surely cannot be classed as a poor man, and by the present law is only assessed 2 per cent. on his income over $1,000.00, or say, $10.00. Many is the young professional man who rents his house furnished, and also rents his office, possibly owns an automobile, earns from $2.000.00 to $10,000.00 annually by his profession, and only pays the Territory a property tax upon the value of his automobile, less $300.00 exemption allowed by law. Contrast this case with the poor working man with a family, who earns from $2.00 to $5.00 a day, pays a 2 per cent. tax on all income over $1,000.00, but owns a lot and furnished house worth from $500.00 to $1,000.00 upon which he is assessed property taxes to the full value of the property, less the $300.00 allowed by law, and it will not be difficult to see in whose interest the amendment to the present law will work. doubt to aid the poor man, it would only prove a boon to his more fortunate brother who would further escape a burden now easy for him to bear.

Designed without

Furthermore it is the opinion of your Committee that no hardship exists in the imposition of the present income tax

law, and the Territory can ill afford the loss of revenue at the present time that would be entailed by the passage of this Bill, and it therefore recommends its indefinite postponement.

Respectfully submitted,

J. M. DOWSETT,

Chairman.

C. J. MCCARTHY,

W. J. COELHO.

Senator Kalama moved that the Report of the Committee be laid on the table to be considered with the Bill. Seconded by Senator Smith and carried.

Senator Lane for the Printing Committee reported having received printed copies of Senate Bill No. 52 from the House of Representatives.

The Report was ordered received.

Senator Makekau gave notice of intention to introduce a Bill entitled "An Act to Amend Section 277 of the Revised Laws of Hawaii."

Under suspension of the Rules, Senator Makekau introduced a Bill (S. B. No. 53) entitled "An Act to Amend Section 277 of the Revised Laws of Hawaii."

Senator Makekau moved that the Bill pass First Reading and be referred to the Printing Committee. Seconded by Senator Brown and carried.

The Senate proceeded with the Order of the Day.

Second Reading of Senate Bill No. 16 entitled "An Act Providing for the appointment of Committees of Education in the Counties."

Senator Smith moved that the Report of the Committee be adopted. Seconded by Senator Lane.

Senator Coelho moved that action on the Bill be deferred until Saturday, March 16th, 1907. Seconded by Senator Lane and carried.

Second Reading of Senate Bill No. 27 entitled "An Act to Designate the Pay of Laborers engaged in Constructing or Repairing Roads, Bridges or Streets, Water Works or other Works, for the Territory of Hawaii, or for any Political Subdivision thereof."

Senator Lane moved that the Bill pass Second Reading as amended. Seconded by Senator Makekau.

Senator Hayselden moved to amend the Bill by striking out the words "either by contract or otherwise" in lines 3 and 4 of Section 1. Seconded by Senator Kalama and carried.

Senator Knudsen moved to amend the Title by striking out the words "or for any Political Sub-division thereof." Seconded by Senator Smith and carried.

The motion to pass the Bill on Second Reading as amended was then put and carried.

Third Reading of Senate Bill No. 38 entitled "An Act to Establish the College of Agriculture and Mechanic Arts of Hawaii, and to Provide for the Government and Support thereof." The Bil passed Third Reading on the following showing of Ayes and Noes:

Ayes: Senators Brown, Chillingworth, Coelho, Dowsett, Hayse'den, Hewitt, Kalama, Knudsen, Lane, McCarthy, Makekau, Smith, Woods and Bishop-14.

Noes: 0.

Not Present: Senator Gandall—1.

Second Reading of House Bill No. 39 entitled "An Act Relating to Reports of Circuit and District Courts, amending Sections 1658 and 1679 of the Revised Laws."

Senator Knudsen moved that the Bill pass Second Reading. Seconded by Senator Dowsett and carried.

Second Reading of House Bill No. 69 entitled "An Act to Amend Section 65 of the Revised Laws of Hawaii, relating to

Elections."

Senator Dowsett moved to amend Section 1 so as to insert the whole of Section 65 of the laws as amended. Seconded by

Senator Coelho.

Senator Dowsett withdrew his motion and moved that the Bill be recommitted to the Judiciary Committee. Seconded by

Senator Lane and carried.

Second Reading of House Bill No. 35 entitled "An Act to Amend Section 1278 of the Revised Laws of Hawaii, relating to Income Tax, as amended by Act 87 of the Session Laws of

1905."

Senator Makekau moved that the Report of the Ways and Means Committee on the Bill be adopted. Seconded by Senator Kalama and carried on the following showing of Ayes and

Noes:

Ayes: Senators Coelho, Dowsett, Hayselden, Hewitt, Kalama, McCarthy, Makekau, Smith and Bishop-9.

Noes: Senators Brown, Chillingworth, Knudsen, Lane and

Woods-5.

Not Present: Senator Gandall-1.

Second Reading of Senate Bill No. 52 entitled "An Act to Appropriate Money for the Purpose of Defraying the Expenses of Opening again the Government Road from Kapua, in South

Kona, Island of Hawaii, to Kahuku, Kau, Island of Hawaii, lately destroyed by Volcanic Eruption."

Senator Hayselden moved that the Bill be referred to the Miscellaneous Committee. Seconded by Senator Makekau and carried.

Under suspension of the Rules, Senator Lane for the Printing Committee reported Senate Bills Nos. 50 and 51 printed and ready for distribution.

The Report was ordered received.

Second Reading of Senate Bill No. 50 entitled "An Act to Create the Office of County Surveyor for Counties in the Territory of Hawaii, and to Fix their Duties and Compensation." Referred to the Special County Committee.

Second Reading of Senate Bill No. 51 entitled "An Act to Encourage the Constructing or Development of Railroads on the Island of Hawaii, Territory of Hawaii."

Referred to the Ways and Means Committee.

At 11:22 o'clock Senator Woods moved to adjourn out of respect to the memory of the late Ex-Senator J. B. Kaohi. Seconded by Senator Chillingworth and carried.

WILLIAM SAVIDGE,

Clerk of the Senate.

Approved by the Senate:

E. F. BISHOP,

President of the Senate.

SIXTEENTH DAY.

Monday, March 11th, 1907.

The Senate met, pursuant to adjournment, at 10 o'clock. After prayer by the Chaplain, the roll was called showing Senator Knudsen absent.

The Journal of the Fifteenth Day was read and, upon motion of Senator Lane, seconded by Senator Coelho, approved as read.

Senator Coelho presented a Petition (No. 12) from residents of Pelekunu praying for an appropriation of $300.00 for repairing the derrick and landing at Pelekunu, Molokai.

The Petition was ordered referred to the Ways and Means

Committee.

Senator Lane for the Printing Committee reported Senate Bill No. 53 printed and ready for distribution.

The Report was ordered received.

Senator Dowsett presented the Report (No. 45) of the Ways and Means Committee on Senate Bill No. 29 as follows:

Honolulu, T. H., March 11, 1907.

Hon. E. F. Bishop,

President of the Senate,

Honolulu, T. H.

Sir: Your Committee on Ways and Means, to which was referred Senate Bill No. 29, entitled "An Act to Authorize any Person, Firm or Corporation to store Oils and other Liquid Explosives in his, their, or its own Warehouse, in Honolulu,” begs to report as follows:

The object of the Bill is clearly set forth in its title, and authorizes any person, firm or corporation to erect private warehouses for the storage of Kerosene and other Liquid Explosives, outside of the Fire Limits of Honolulu, subject to certain conditions of construction and inspection.

Your Commttee has given this Bill its most earnest consideration and has invited an expression of public opinon, both oral and written, upon the merits of the Bill, but must admit having thus obtained little or no material to assist the memhers of this Committee in arriving at their verdict.

Your Committee is satisfied that the provisions of the present laws governing the storage and sale of Kerosene and other Liquid Explosives have not been and are not now being complied with, and the attention of the proper authorities is called to this glaring evasion of the statutes, admittedly danger ous to life and property in this Territory. The purposes of the present laws for the storage of Kerosene and other Liquid Explosives under Government supervision are in the interest of the public welfare, and in the opinion of your committee this should have first consideration.

The law now reads, however, that all Kerosene Oil and other Liquid Explosives must be stored in Government Storehouses, and although a fee for such storage is now and has always been charged to the owner of the oil by the Government, your

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