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gMBjPflflP'1 fl!ff'-plfippr??W '
r-Hi-; VNDEHSIUNED linvc formed
JL u copartnership undrr tho lirm
name of " SPHEt'KKLS & Co." for the
purpose of carrying on a general bunk.
Wand exchange business ntjllonolulu,
and sueh other places hi the llnwallnn
Ktuvrdom ns mnv be deemed advisable
(Signed) GLAUS SPUKCKHLS.
Win G. IUW1N.
1 P. LOW.
Honolulu, .Inn. 14th, 1881.
Uofcrring to the above we beg loin.,
form -the business public that we are
prepared to make loans, dihcounl approv.
cd notes, and purchase exchange ul the
best current rates. Our arrangements
for selling exchange on the principal
points in the United Stales, Europe,
China, Japan and Australia arc being
made, and when perfected, fdue notice
will lie given. Wc shall also be prepared
to receive deposits on open account,
make collections, nndcouduot a general
banking and exchange business.
lUOilmii (signed) SPRECKELS & Co.
BISHOP & Co., HANKERS,
Honolulu, Hawaiian Islands.
Draw Exchange on the
llnnk oi Culiloiniiu. S. IT.
And their agents in
NEW YORK. BOSTON. HONG KONG.
Messrs. N. M. Kothschild&Son, London.
The Comiuercial Hank Co.. of Sydney,
The Commercial Hank Co., oiJSulney,
The Hank of New Zealand: Auckland,
Christehuroh, and Wellington.
The Bank .;of Hrillsh Columbia, Vic
toria, P. C. and Portland, Or.
Transact a GeneralBaukini; Riimiu-.
,009 ly b
THE DATTjV ItVljUKTlX
can be had from
.I.M. O.it, ..lr, & Co...
T. G. Thrum
. .Mciehant t.
SJu nh nteth
Pledged to neither Scot nor Party.
Hat established for the benefit of all.
THURSDAY, JUNE 10, 188-1.
THIS EVENING'S DOINGS.
Mystic Lodge, No. 2, 7:J10.
Regular Cash Sale, at Sales Room
of Lyons & Levey at 10 o'clock.
Underwriter's Sale by Lyons &
Levey at 12 noon.
' Ladie.V Prayer Meeting. Fort St
Church, at : o'clock.
A DISGRACED TOOL.
Mr. J. S. "Walker stands before
this community an utter failure.
As Auditor General his position was
secure, and he could have made
himself the safeguard of the nation.
Without his sanction, connivance,
collusion, by whatever name it is
called, the present condition of af
fairs would have been impossible.
He could have prevented the pay
ment of one dollar of public funds
otherwise than sanctioned by law ;
but he Has deliberately, willfully and
knowingly allowed himself to be
made the accomplice, possibly the
dupe, certainly the tool, of a man
whom lie knew to be without princi
ple, and utterly unworthy of trust.
Let those who doubt this read the
Finance Report, and they will doubt
THE EFFECT OF THE REPORT OF THE
The Report of the Finance Com
mittee is being discussed to-day,
and as wo go to press, its adoption
or rejection by the Legislature is un
decided. But whatever action may be taken
by the Assembly, whether they adopt
it and thereby censure the Ministers,
or whether a majority can be induced
to swallow the indogcstible facts,
with which the report bristles, and
whitewash the most corrupt quartette
that ever disgraced a Hawaiian Cab
inqt, the fact will remain, that the
Cabinet is condemned by every
honest man who lias read the report,
If the Finance Committee had
used not one word of censure, or
had not expressed an opinion con
cerning the Ministry, the very re
hersal of the facts which it contains,
facts of which there is no doubt and
concerning which there can be no
explanation, is doubly sullleient to
brand every man in the Cabinet as a
wilful law breaker, and a person
utterly unlit to hold a position of
During the reading of the Finance
Report, the Minister of the Interior,
the Attorney General and the Min
ister of Finance, one after another
arose from their seats and silently
stole away, leaving Mr. Gibson to
face the music alone. The idea
seemed to be, "this docs not con
cern us to any extent, this is your
pigeon, and you must sec to its being
properly plucked." Not so, Mr.
CSulick! Not so, Mr. Neumann and
Mr. Kapcihi! He who lies down
Willi clogs gets up with liens. Mr.
Gibson has been the author and the
occasion of more rascality in the
past two years than the whole pre
vious history of the Government can
furnish, but you have been one with
him. You have known of and helped
to violate the law concerning the
disposition and transfer of public
funds. You have known of the im
proper conduct of the public busi
ness, and not one word of rcmon
stranco have you uttered. Had you
been men of any principle, you
would have refused to sanction the
methods adopted by the Government
or to have associated with such a
liviim disgrace to nit honest commit
nity as Yv M. Gibson. You have
made your own beds and you must
lie in them. With Mr. Gibson you
must stand or fall.
THE REPORT OF THE FINANCE COM
MITTEE. nXAXl'K MKt'AUTJtKXT.
Certificates of deposit to the
amount of 888-1,000 have been issued
and are now in circulation. The
sales of stamps at the Treasury
amounted to 8-12,088, against Sosi,-
7G(! for the last period, showing a
decrease of 1:3,078. The sale of
stamps at the Custom House was
827,78(5. as against 82-1,1-12 for the
last period, showiug an increase of
8.1,0-M. "The Rooks of the Finance
Department have been well and
faithfully kept and reflect credit on
the Registrar of Public Accounts."
An additional clerk has been asked
for and an appropriation for that
purpose is recommended.
Section o of the Loan Act which
provides that all sums borrowed shall
be kept separate and not applied
either directly or indirectly, tempo
rarily or otherwise, to any uses or
purposes other than those specified
in the Act seems to have been studi
ously ignored, as the money realized
from the sale of bonds has been paid
directly into the general fund, and
disbursed at the will of ministers
without any reference to the pro
visions of the law. The issue of
bonds has also been irregular, as for
instance wc find that bonds amount
ing to 850,000 were signed on the
1st of May, ISS.'i, and sent to San
Francisco in hopes of finding a pur
chaser there, but no one being found
willing to buy, they were returned
and are now in the Treasury. As
these bonds are endorsed "principal
and interest payale in San Fran
cisco," your Committee recom
mend that they be destroyed, and
that entries to that effect be made
in the books of the department.
Another issue which also meets with
our disapproval was made on the 1st
of May. J 88!). when bonds to the
amount of 85f.0()0 were delivered
to the Minister of the Interior, who
nued them as collateral security for
sundry liabilities incurred by that
department. These bonds were
finally realized on the 12th of Janu
ary, 1881, over eight months after
their issue from the Treasury. The
total sale of bonds under this Act
to the date of our examination has
rtoeri 8080,000, add to this the sum
of 81.'I8,!00 realized from the Loan
Act of 1870 which makes an in
crease of the public debt under this
ministry of 8818,900. and entails a
yearly payment of interest of
, "Your Committee note with some
surprise that commissions paid to
tax-collectors and assessors for the
last year in certain districts have
been raised to ! per cent. ; 11 per
cent, has always been considered" a
liberal commission for a district like
Honolulu, which will strike the
House more forcibly when they
know that the Assessor for Honolulu
received as compensation for his two
months'' work the sum of $-l,811).i0.
"Notice of this change, was not
published as usual, but the several
Governors were notified of the fact
on the Ifith of Jrnuary, 1881."
K'erybody knows that son-in-law
Jlnysoldeu, was Assessor for Hono
lulu, riiK ci'stoji nousi:.
The accounts were well kept and
the revenue faithfully accounted for.
"There was an item of $948.95
paid September 1st, 1883, for watch
ing kerosene oil. It was explained
that the building of the new kerosene
ware-house was so delayed that large
quantities of oil had to be stored in
an open lot near the old store-house
and men employed to watch it.
The Collector-General notified the
the Minister of Finance, Feb. (!th,
188fl. of the need for the new store
house." Concerning the smuggling of
opium llic collector ucncrai says:
"The only way to guard against
opium-smuggling is to increase the
guards and night watchmen. A boat
should be manned for a night harbor-watch.
"1 fliinl. fttr Minnlinf f miillm ill
.111111. mil- ....i .. ,1 w vi'...... ...
the Kingdom, and the amount used
is largely over-estimated, for these
"During the past two years, 0,098
Chinese have arrived and 2,001 nave
departed, leaving an increase of
1,997 for the two years. These
0,998 Cinnamon were nearly all
young, healthy men, who did not
use opium, and who have not to any
extent taken to its use since their
arrival, while a very large proportion
of the 2,000, who left the kingdom,
were opium users.
"As to price, there are several
kinds of opium, and while a brand
put up in San Francisco might be
selling for ten dollars per half pound
tin, the best Hongkong brand would
bring twenty to twenty-five dollars
for the same quantity."
"It would appear that there had
been some neglect
in the matter of
guarding against smuggling, for the
Committee have ascertained that,
for some months, no night-guards
have been employed to watch the
steamers of the Oceanic Steamship
Company while in port.
Thus opportunit' has been afforded
for almost unlimited smuggling, not
only of opium, but of other articles
of small bulk."
This is an account amounting to
8209,089, a large proportion of which
is for "overdrawn balances of sundry
appropriations, covered by a Cabinet
Resolution dated February 10th,
188-1, which authorizes unlimited
expenditure for those pucrposes."
That is to sa', that when the appro
priations made by the Legislature
were exhausted, the Cabinet on its
own responsibility has made a new
appropriation, and having spent the
money now comes to the Legislature
and asks to be indemnified. Con
cerning these the Committee say
they "require the closest scrutiny."
"Interest on Special loan" consists
of two payments, one made Dec. .'51,
188!! to C. T. Gulick of 8530 10,
being interest at the rate of 12 per
cent. (? flH7i???!. on SI 8297.f)G, money
which had been procured by him to
tide the Government over their
financial dilliculties. The other pay
ment of Sl,f)-I0 00 was made on the
31st of March. 188-1. to Messrs. V.
G. Irwin & Co., who charged 9 per
cent for similar accommodation.
Indemnity to Judd and Kapena
appears to have been for advances
made to these gentlemen by Messrs.
W. G. Irwin & Co., but for what
purpose we are unable to stale.
The sum of 87,-108 00 has been
paitl to C. O. Iierger for sundry
soundings made in the channels by
the Steamer ""W. II. Reed." This
payment is covered by a Cabinet
Resolution of Feb'y 10th, 1881, but
we can see no legal authority for
this disposition of funds.
A resolution of the Cabinet Coun
cil of Feb'y 10, 1881, authorizes a
draft upon the Loan Fund
For Government Buildings
and Hospitals 885,000 00
F01 Telephone andTolcgraph JIO.OOO 00
A proceeding without warrant of
the Appropriation Act, and an as
sumption of power resting only
with the Legislature, or in case of
emergency as set forth 111 Article 15
of the Constitution, with the Privy
Council. Under this unwarrantable
appropriation the Ministry caused
to be drawn from the Treasury dur
ing the last days of the period
For (lovernment Buildings &
Hospitals 851,082 01
For Telephone & Telegraphs. 7,108 00
And strange to say toe find that the
Auditor Gencrol passed vpon these
accounts, although in the terms of
Section 7, of Chapter 23, Session
Laws of 1882, he was bound to as
certain that the sum mentioned in
the warrant of the Minister of Fi
nance were then legally available for
and applicable to' the services men
tioned in the warrant. Moreover,
the Auditor is commanded, that in
case he shall find Hint the sums in
the warrant mentioned or any of
them are not thch locally available
or applicable to the services or pur
poses in the warrant set forth, ho
shall return the said warrant to the
Minister of Finance for correction.
As the Loan Fund had been ex
hausted and the general funds of the
treasury ahead' drawn upon for
some 8300,000, your Committer can
not come to any other conclusion than
that the Minister and Auditor-General
tuere acting in collusion for the
expenditure of public moneys in
violation of the Constitution and
Laics of this Kingdom.
Your Committee further find that
out of moneys thus illegally drawn
from the Treasury, there . was de
posited with the Registrar of Public
On the Hist of March, 1S34,
the sum of.
And the unexpended balance
of the appropriation for
rolice Court Buildings
which hadalso been drawn
out, say 12,000 00
This money is being
iiifl hv the.
"o '"- J
Minister of Interior for current ex
pense." Tilt: HAWAIIAN I'OIXAC.K.
Ily the Coinage Act the Minister
of Finance was authorized to pur
chase gold and silver bullion with
any moneys which may from time to
time be in the Treasury, and cause
Hawaiian money to be coined there
from. "But1 the Minister did not follow
cither the Coinage Act of 1880, or
the Loan Act of 1882. He bought
no bullion to be coined into gold and
silver coins, but agreed with Mr.
Spreckels to take S 1,000,000 in
silver Hawaiian coins in exchange
for the U. S. Gold bonds of the Ha
"Four hundred and twenty-five
thousand dollars of this silver has
been brought into this country by
Mr. Spreckels in dollars, each valued
at Sli- cents' as compared with U. S.
gold, and 8500,000 in half dollars,
quarter dollars, and ten cent, pieces
(not 12i cent pieces as the Act re
quired.) Two of these half dollars
are worth 79 cents as compared with
U. S. cold.
"One result of bringing all this
silver here instead of U. S. gold,
and instead of exchanging the gold
and silver in the Treasury, for Ha
waiian gold and silver coins, of the
value of American coins of like
denominations, has been that there
is no U. S. gold, or British gold to
bo found in circulation, and even
the American standard dollars have
"This is a loss to this country
and a gain to those who have
brought the cheapest silver which
has driven away the dearer coin.
"If the Minister had followed the
Acts above named, there would
have been no such' loss."
"The Act to regulate the receipt,
custody and issue of public moneys,
which was passed by the Legislature
of 1882, was at the time supposed to
have been framed for the purpose of
providing some check on the im
proper disbursement of public
moneys, but such does not appear to
have been the result, as it seems
simply to have provided a way for
profligate Ministers to shift the res
ponsibility of illegal acts to the
shoulders of a weak and incompe
"Your Committee, on visiting the
Auditor General's office, found that
no books of record were kept, except
a small book in which he copied out
the cash sheet which is furnished
him at stated intervals by the Min
ister of Finance, and which is a copy
of the cash book kept in the Finance
Department ; that no record of any
of his transactions was to be found,
and that he had nothing but his
memory to rely on for any of his
official acts; ho further stated that
it was his custom to approve what
ever accounts were presented to him,
as long as there was money in the
"Your Committee further find
that tho olllce which lias been fitted
up for him in the Government
Building, seems to be used princi
pally for the prosecution of his pri
vate business affairs, which is in
direct violation of Section 10 of tho
Act under which he holds his ap
pointment. In proof of the fore
going statement, we may say that
there arts vouchers on file in the In
terior Department which bear his
approval as Auditor-General, and
which were subsequently collected
by him as agent for a contractor
who had large and quostionalo deal
ings with the Government; evidence
has also been procured that the
Auditor-General lias, during iiis
tenure of olllce, virtually acted as
agent of sundry insurance com
panies, as persons of unimpeachable
veracity have testified that have had
many dealings with him, having paid
and received sums of money in
regular business transactions: lie
was also, on the 11th of February,
1881, the consignee of a shipment
of produce per . schooner Jennie
"Walker from Fanning' s Island, a
portion of which lie afterwards
shipped per Ivalakaun to San Fran
cisco, on the 13th of February, con
signed to his agent at that port.
Further instances of iiis violation of
Section 10 of the Auditor's Act,
could be multiplied ad iufinitun,
but your Committee think that sulli
cient has been proved to convince
the House that the prolongation of
the present occupant in the office of
Auditor-General icould be detrimen
tal to the best interests of the country;
at the same time they wish it to be
distinctly understood, that they
recognize the absolute necessity of
a good act for the audit of public
accounts, and the appointment of a
man of integrity and independence
of character to
the position of
Tiil'usday, Jrxi: 19.
The House assembled at 10 a. jr.
After prayer by the Chaplain, the
minutes of the preceding day were
read and approved.
Mr. G. Brown moved that the bill
relating to tax matters be referred
to a select committee.
Mr. Kaulukou read first time a
bill to restrict the sale and importa
tion of opium. Read a second time
by its title and referred to Judiciary
Mr. "Walker gave notice of a bill
to more fully define the payment of
monies into the Treasury, and to
what account the same shall be
credited Read a second time by
Mr. Walker moved the bill be
Mr. Kalua said there was no need
of hurrying the bill through. It
seems that the Ministers have only
just woke up to the fact that the
ironies of the board of Immigration
belong to the Government. rJhey
have found it out all of a sudden.
Mr. Nawahi said, our experience
witii the Auditor General is that he will
either carry laws out or not at his pleas
ure. He has not obeyed the laws in the
past, and it is not to be expected he
will do so if we make new laws. If
he does not know where the money
is to be paid in, I will take him out
nnchshow him. If the officers have
no intention of carrying out the laws
it is no use of us passing them.
According to this bill they have
found out that there is some money
outside that they "have to pay in.
Minister Kapena hoped the bill
would be carefully considered, there
is no necessity for hurrying it
Mr. G. Brown said there, was no
reason for passing this law. It
looks like locking the tdoor up after
the horse has gone. Section 2 shows
it the duty of the Auditor-General
to see that all monies are paid in.
Mr. "Widemann said he had often
stood on the floor of this house to
protect against useless bills. There
is nothing useful nor ornamental in
this bill. It is pretty Into in the
day to make a law for taxes to be
paid into the Treasury. The bill
brought to-day I do not understand,
and move it be indefinitely post
poned. Mr. Dole said this house is con
vinced thai the Auditor-General has
never read the Auditor's Act
througd, and it looks as if tiio cabi
net had not done so cither. This is
another attempt to whitewash tho
C a b i 11 0 t and Auditor-General
through them. The bill was finally
referred to the Finance Committee.
Sir. "W. O. Smith moved the order
of the tiny, Carried.
The Housox resolved itself into
Committee of the Whole. Mr. ,L
Mott Smith in the chair, for the con
sideration of the report of the
Minister Gibson asked the in
dulgence of the House. Tho report
of the Finance Committee lias
created a wide spread expectation,
and bi ought together a large crowd,
and the report certainly warrnnls it.
Five representatives of the people,
have been specially appointed to in
vestigate the public action and dis
bursements of His Majesty's Minis
ters and the stewards of the country.
These gentlemen have had full oppor
tunity for the past seven week's. This
time lias afforded them the amplest
possible opportunity for investiga
tion. We liavc an intelligent, patriotic
sovereign, and a history of which we
may be proud as Hawaiian subjects.
This is everything in the circum
stances around us to inspire us to
act honestly. On looking over tho
report I find it is carefully prepared
but am sony to say on reviewing it
do not find it conducted in this spirit ;
but rather a minute search for a
ilaw rather than for the honest truth.
In order that I may show the animus
of the report, I bring forward two
statements, which have been made
in connection with a member of my
family. These arc a bill ofMr..F.
-II. Ilayseldcn's for seven turkeys at
83.50 each, also a bill for two pairs
of corsets, and another for a bustle.
These are spoken of in the report as
transactions wherein he derived pro
fit. One of the members of the
committee is connected with a
journal, at least his partner is, and
makes the following statement inten
sifying tho representation "F. II.
Ilayscldcn has turned an honest
penny by selling the Government
seven turkeys at 83.50 each.
There is no positive untruth in
the statement, but it is a suggestion
of untruth. These gentlemen of
the Finance Committee have never
asked either me or my colleagues
for airy information. One would have
thought if they required informa
tion they would certainly ask the
principals concerned. In order to
have a proper celebration of the
Coronation, it was necessary to have;
10 kahilis. It required persons of
great skill to make these, and in
stead of spending 82,000 cash, we
spent a few hundred dollars in
buying presents for a few skilled
ladies who made these ftahilis.
Those presents consisted of shawls,
laces, corsets and bustles bought in
the city. The Committee searched
my olllce as if they were looking for
a noodle in a haystack, they oven
split the straws and boiled them
down to find the lost article. The
not only took voucher but copied
every one. The Supreme Court
where there is large disbursements
of money was almost entirely passed
by, also the recorders officers which
they do not even refer to.
Auction Sales by Lyons & levey.
To-morrow, Friday, June 20,
At 12 noon, at our Sales Room,
We will sell for account of whom it may
2 bars Octagon Steel, U in.
20 bars nsst'd cast'steel, 4, ? & 4 in.
0 dozen Cane Knives,
7 dozen Lane's l'lantation IIocs,
Damaged on voyage of importation ex
bark Abblc Carver, from New York.
Lyons & Lkvey, Auctrs.
By Order of Ills Excellencv the
MINISTER OF THE INTERIOR, wc
will sell by Auction at the premises,
On Saturday, Juno 21th,
At 12 o'clock noon,
JCIie i Story Slute Xooi
Tunic Unlit ISnlliUne,
On Merchant Street !
Formerly occupied by Lovejoy & Co.
74U 2t Lyons & Lt:vev, Auctioneers.
Saturday Evening, June 21st.'
AssUteJ by tho Best Loyal Talent.
Doors open at
7:30; performance to
commence at 8,
Beats may bo sesured
lit J. E. Wise-
Box Sheet now open.
Carriages may ba ordered at 10 p.m. f