SEWER BONDS FOR HONOLULU JUNE 29, 1937.-Referred to the House Calendar and ordered to be printed Mr. WENE, from the Committee on the Territories, submitted the following REPORT [To accompany H. R. 7377] The Committee on the Territories, to whom was referred the bill (H. R. 7377) to enable the Legislature of the Territory of Hawaii to authorize the city and county of Honolulu, a municipal corporation, to issue sewer bonds, having considered the same, report it back to the House without amendment and recommend that the bill do pass. The rapid growth of the city and county of Honolulu requires the extension of its sewer system. This bill which is in the form passed by the legislature and approved by the Governor would grant congressional authority to the Legislature of Hawaii to authorize the city and county of Honolulu to issue bonds to the extent of $1,750,000 for this purpose. In anticipation of such approval, the legislature has already passed an act, No. 210, Session Laws of Hawaii 1937, which was approved by the Governor, authorizing the board of supervisors of the city and county of Honolulu to issue such bonds, which of course has no effect until Congress passes H. R. 7377. The Organic Act, section 8041, Revised Laws of Hawaii 1935, prescribes how county and city and county bonds may be issued, and places a limitation on the total amount of such bonds outstanding of 5 percent of the assessed value of the real property in such county, together with other limitations. The total outstanding bonds of the city and county of Honolulu as of June 15, 1937, are $8,865,000. Of this total, $5,000,000 are water bonds of the Honolulu Board of Water Supply and are self-supporting, which deducted from the total, leaves a balance of $3,865,000. Sinking-fund cash investments as of June 15, 1937, aggregate $828,000, which subtracted from a balance of $3,865,000 would leave a net outstanding bonded indebtedness chargeable against the city and county of Honolulu of $2,983,000. The assessed value of property in the city and county of Honolulu is approximately $229,000,000, and 5 percent of this amount would exceed $11,000,000. Thus it may be noticed that the issue asked for is well within the safeguards provided by the Organic Act. It should be remembered that no expenditure of Federal funds is involved, nor does the Federal Government incur any obligation through passage of H. R. 7377. It might also be noted that at no time has the city and county of Honolulu defaulted on its bonds, its reputa tion in the New York market being very high. ISSUANCE OF CERTAIN BONDS OF THE TERRITORY OF HAWAII JUNE 29, 1937.-Referred to the House Calendar and ordered to be printed Mr. CROWE, from the Committee on the Territories, submitted the following REPORT [To accompany H. R. 7490] The Committee on the Territories, to whom was referred the bill (H. R. 7490) to enable the Legislature of the Territory of Hawaii to authorize the issuance of certain bonds, and for other purposes, having considered the same, report it back to the House without amendment and recommend that the bill do pass. The legislature in its recent session passed Act 247 (Session Laws of Hawaii 1937) to provide for public improvements, authorizing a bond issue of $4,129,000, which the Governor approved except as to one item of $100,000, leaving a net bond issue desired of $4,029,000. The improvements contemplated are enumerated in the act and comprise a number of projects in which the Territory would be eligible for Federal grants under rivers and harbors appropriations, or the Federal road-aid program or Public Works Administration and Works Progress Administration grants to supplement Territorial funds. The projects include harbor improvements, highway construction, new waterworks, and considerable buildings for school purposes. The Organic Act prescribes a limit on the bonded indebtedness of the Territory of 10 percent of the assessed value of real property. As of June 30, 1936, the assessed value was $300,041,473, which would permit of a bonded debt of approximately $30,000,000. As of the same date, there was outstanding a total bonded debt of $33,141,000; but there was in the sinking fund for the redemption of this debt in excess of $9,000,000, leaving a net debt of approximately $24,000,000. This authorization, therefore, together with the unissued portion of the bonds authorized by the last Congress will still be within the limitations of the Organic Act. It should also be pointed out that Hawaii's bonds have invariably sold at a high premium in the New York market, even when at a low rate of interest; and that the credit of the Territory has always borne a high reputation in the financial markets. CONGRESS PER-DIEM PAYMENTS FOR KLAMATH DELEGATES JUNE 29, 1937.-Committed to the Committee of the Whole House on the state of the Union and ordered to be printed Mr. HILL of Washington, from the Committee on Indian Affairs, submitted the following REPORT [To accompany H. R. 5975] The Committee on Indian Affairs, to whom was referred the bill (H. R. 5975) establishing per-diem payments in lieu of compensation and expenses for members of Klamath business committee and official Klamath delegates to Washington, having considered the same, report thereon with a recommendation that it do pass with the following amendment: Strike out all matter after the enacting clause and substitute the following in lieu thereof: That the Secretary of the Interior or such official as may be designated by him is hereby authorized, beginning July 1, 1937, to pay, out of any unobligated tribal funds of the Klamath Indians in the Treasury of the United States, to members of the business committee, and to officers of the general council when engaged on business of the tribe, and to such official delegates who may carry on the business of the tribe at the seat of government, a per diem not to exceed $8 in lieu of all other compensation and expenses: Provided, That the official delegates of the tribe on business at the seat of the government shall also receive the usual railroad and sleeping-car transportation to and from the seat of government: Provided further, That the rate of per diem paid not to exceed $8 shall be approved in advance by the tribal council of said tribe or its authorized business committee: Provided further, That the length of stay of the official delegates at the seat of government shall be determined and fixed by the Commissioner of Indian Affairs. This bill provides for the payment to authorized representatives of the Klamath Indian Tribe of the Klamath Reservation in Oregon, when such representatives are actually engaged upon the business of the tribe, a per diem not to exceed $8 in lieu of all other compensation and expenses. This per diem of $8, in lieu of salary and expenses, is necessary for the efficient management of the affairs of the tribe by those qualified to manage such affairs. The Klamath Indians, for instance, have a large timber enterprise which nets them approximately $500,000 per |