the rate of insurance, exchange or labor, or compensation for professional services." Seconded by Senator Woods and carried.

Senator Chillingworth moved that ine Section pass as amended. Seconded by Senator Woods and carried.

Senator Knudsen moved to defer action on the Bill until Monday, April 1st, 1907. Seconded by Senator Chill.ngworth.

Senator Makekau moved that the Bill pass Second Reading, as amended. seconded by Senator Woods.

The motion to defer action on the Bill until Monday, April Ist, 1907, was then put and carried.

Second Reading of House Bill No. 26 entitled "An Act to Amend Section oo of Chapter 13 of Act 39 of the Session Laws of 1905, as amended by Act 54 of the Sess.on Laws of 1905."

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

Second Reading of House Bill No. 117 entitled "An Act to Provide for the dispostion of moneys received by the Government on account of Sales of Improvements placed upon Public Lands by Settlers or Homesteaders."

Senator Smith moved that the Report of the Committee on the Bill be adopted. Seconded by Senator Lane and carried.

Second Reading of House Bill No. 136 entitled "An Act to Amend Section 28 of Chapter 9 cf Act 39 of the Session Laws of 1905, entitled 'An Act Creating Counties within the Territory of Hawaii, and Providing for the Government thereof.'"

Senator Chillingworth moved that the request of the House of Representatives be granted and the Bill returned. Seconded by Senator Knudsen and carried.

Second Reading of House Bill No. 148 entitled "An Act to Amend Section 2566A of Chapter 157 of the Revised Laws of Hawaii, enacted by Section 1 of Act 91 of the Session Laws of 1905."

Referred to the Ways and Means Committee.

Second Reading of House Joint Resolution No. 2.
Referred to the Committee on Public Lands.

The Senate proceeded with the Order of the Day.

Third Reading of House Bill No. 47 entitled "An Act to Amend Section 115 of the Revised Laws of Hawaii, relating to Holidays."

Senator Chillingworth moved to defer action on the Bill until April 15th, 1907. Seconded by Senator Woods and carried.

Second Reading of Senate Bill No. 1 entitled “An Act relating to the Payment of Salaries and Wages of County Officers and County Employees."

Senator Coelho moved to defer action on the Bill for one week. Seconded by Senator Brown and carried.

Second Reading of Senate Bill No. 86 entitled "An Act to Amend Section 897 of the Revised Laws of Hawa.i.”

Referred to the Judiciary Committee.

Second Reading of Senate Bill No. 87 entitled "An Act to Provide for the Protection of Birds beneficial to the Forests of the Territory of Hawaii, and to define the same."

Referred to the Committee on Public Lands.

The Chair here appointed the following Committe under the provisions of Senate Concurrent Resolution No. 1:

Senators Lane, Woods, Knudsen and Coelho.

Second Reading of House Bill No. 103 entitled "An Act relating to terms of Circuit Courts, amending Sections 1644 and 1646 of the Revised Laws, as amended by Act 34 and 37 respectively of the Laws of 1905."

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

Second Reading of House Bill No. 109 entitled "An Act relating to Costs and Fees, amending Section 1895 of the Revised Laws.

Senator Knudsen moved to defer action on the Bill until Tuesday, April 2nd, 1907. Seconded by Senator Lane and car

ried.

At 12:35 o'clock, upon motion of Senator Coelho, seconded by Senator Smith, the Senate adjourned.

WILLIAM SAVIDGE,

Clerk of the Senate.

Approved by the Senate:

E. F. BISHOP,

President of the Senate.

THIRTY-FOURTH DAY.

Monday, April 1st, 1907.

The Senate met, pursuant to adjournment, at 10 c'clock. After prayer by the Rev. W. N. Lono, the Roll was called showing Senator Knudsen absent.

The Journal of the Thirty-Third Day was read and, upon motion of Senator Lane, seconded by Senator Coelho, approved as

read.

A Communication (No. 137) from the House of Representatives, returning Senate Bill No. 44, as amended, was read by the Clerk as follows:

THE HOUSE OF REPRESENTATIVES.

Honolulu, T. H., March 30th, 1907.

To the Honorable President and

Members of the Senate of the

Territory of Hawaii,

I have the honor to return herewith Senate Bill No. 44 which this day passed Third Reading in the House of Representatives of the Territory of Hawaii, with the following amendments:

In Section 1, line 6, after the word "oil" and before the word "vanilla" insert the word "copra," and in lines 9 and 10, strike out the words "two hundred" and insert in lieu thereof the word “forty." After the word "corporation" at the end of the section, insert the following: “in the cultivation and production of pineapples."

Respectfully,

JOHN H. WISE,

Clerk, House of Representatives.

The Communication was ordered received and placed on file. Senator Hewitt moved that the Senate do not occur in the amendments made by the House of Representatives to Senate Bill No. 44. Seconded by Senator Lane and carried on the fo!lowing showing of Ayes and Noes:

Ayes: Senators Brown, Chillingworth, Coelho, Dowsett, Gandall, Hayselden, Hewitt, Kalama, Lane, McCarthy, Makekau, Smith, Woods and Bishop-14.

Noes: 0.

Not Present: Senator Knudsen-1.

The Chair appointed the following as a Conference Committee for the further consideration of the Bill.

Senators Hayselden, Dowsett and Hewitt.

A Communication (No. 138) from the House of Representatives, returning Senate Bill No. 73 as amended, was read by the Clerk as follows:

THE HOUSE OF REPRESENTATIVES.

Honolulu, T. H., March 30th, 1907.

To the Honorable President and

Members of the Senate of the

Territory of Hawaii.

I have the honor to return herewith Senate Bill No. 73 which this day passed Third Reading in the House of Representatives of the Territory of Hawaii, with the following amendment:

In Section 3, line 2, strike out the words and figures "ten (10) days" and insert in lieu thereof the words and figures "three (3) months."

Respectfully,

JOHN H. WISE,

Clerk, House of Representatives.

The Communication was ordered received and placed on file. Senator Smith moved that the Senate do not concur in the amendments made by the House of Representatives to Senate Bill No. 73. Seconded by Senator Lane and carried on the following showing of Ayes and Noes:

Ayes: Senators Brown, Chillingworth, Coelho, Dowsett, Gandall, Hayselden, Hewitt, Kalama, Lane, McCarthy, Makekau, Smith, Woods and Bishop-14.

Noes: 0.

Not Present: Senator Knudsen--1.

The Chair appointed the following as a Conference Committee for the further consideration of the Bill:

Senators Smith, Gandall and Hewitt.

Senator Smith presented the Report (No. 107) of the Judiciary Committee on Senate Bill No. 48 as follows:

Hon. E. F. Bishop,

Sir:

President of the Senate.

The Judiciary Committee have had under consideration Senate Bill No. 48, entitled "An Act to Amend Section 2693 of the Revised Laws of Hawaii as amended by Act 51 of the Session Laws of 1905," and recommend that the Bill be laid upon the table.

The object of the Bill is to change the legal rate of interest from eight per cent to six per cent. From 1898 until 1905 the legal rate of interest was six per cent but at the session of the Legislature in 1905 it was amended to read eight per cent, which rate is now in force.

While there are reasons, which in the opinion of the Committee have weight, for reducing the rate to six per cent, much opposition has been expressed by certain persons representing mercantile interests in Honolulu and there would appear to be a considerable difference of opinion upon the subject. In view of these facts and of the fact that the Act increasing the rate to eight per cent has only been in operation for two years, we are inclined to recommend that no change be made at present.

The legal rate of interest is to a certain extent an indication of the financial stability of a community. This rate is different from that of the contract rate or market rate, the latter being liable to fluctuation; but the legal rate should be stable and not subject to frequent change.

Respectfully submitted,

W. O. SMITH,

Chairman.

A. N. HAYSELDEN,

CHAS. F. CHILLINGWORTH.

Honolulu, April 1, 1907.

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