The Hawaiian gazette., 1882-05-03
Tic Havaiian Hotel.


The Hawaiian Hotel is an important factor in
our social life, and its management affects every
citizen more or less. 4 GAZETTE reporter was de-
tailed to enquire Of the Minister Of the Interior
regarding the recent renewal of the lease Of it.
and we give the explanation substantially in his
own words, rsserving 10 a future time a criticism
upon II.
The Minister said: wish everybody to under
stand this business. ] had 10 deal with At, and
concluded not 10 shirk it. The hotel is out Of re
pair. the sewerage is bad It needs painting and
must be refurnished; and it must have more rooms
and be better kept. 1 live in it, and l hear and
know Of strangers constantly damning IL Now
in a few weeks we are to have two additional lines
Of steamers. When the people land here where
are they to gos There Is not room enough now in
1t 70 accommodate our own people, and when
these people land. we shall welcome them into a
dilapidated, dingy house. Now the Herbert lease
Of the hotel expires in September next. If moth
ING was done until then this would happen that if
the lease was sold at auction, the purchaser would
have TO buy the present worn out furniture Of
Herbert or shut up the house till he could get fur
niture from abroad. Sol concluded to act at once.
The Herbert lease contains clause that the
lease fix a term of years and a rental and the
lessee shall have the right 10 take the hotel on
those terms if he chooses. DR.. AcGrew asked me
II I would give him new lease Of the hotel, IL
case be bought out Herberts lease and furniture,
and GOT Herbert right to a renewed lease. told
Kim that did not consider that claim in the lease
binding on me. as Minister; that should put the
lease up az auction, as thought the law required
But we finally agreed to carry the matter before
the Judges Of the Supreme Court, We did so and
they said that the Legislature had declared IL
lsT2 that the "hotel erected solely for public
benefit and not for the profit Of the protector,
and therefore / could lease itwitEout putting II up
at auction To put the hotel properly in a con
dition to suit the people Of this place requires at
once refuruishInE. which Will cost $1,000: num-
Der Of cottages, which VIII cost $1,000 and at
least 5000 spent on the house itself. Here is at
least $4,000 required. No man could afford TO
put that and more in without long term Of years.
Taking all things into consideration, ability 70 in
vest the money, 20 work up something that would
be Creditable. ] concluded that DR.. McGrew as
lessee and Mr.. Lawlor as manager would satisfy
the public Besides this DR.. McGrew had bought
out Herbert and was entitled to the first chance.
he was willing 10 send at once for new furniture
and use the present furniture only until that came
and then GET nd Of the old stuff. He was willing
TO put up cottages TO repair the place: repant II,
and make IL trst class hotel all stables are also
to be removed. No doubt other men would agree
to do the same thing. but he had bought out Her
bert and was entitled to the first chance or op-
ton. On carefully examining the books Of the
hotel saw, that with Its present very limited ca
pacity it could not earn net income Of over
$500, outside Of the profit on selling liquor, and
in earning that II had to furnish a poor table
Now no good man viii run hotel for that sum.
Ii won't pay him. The profit on selling liquor was
about 5000 wear If l raised the rent above
S2.Jlo. the profit would fall below 5000. II ]
could guarantee liquor license for a term Of
wears the rent might be raised, but can't control
that ! could not guarantee a license. SO / fixed
the rent at as high figure as II would stand on
4frah hfsfsI he l.
taken away. the lessee can't ask 10 have the rent
reduced. Several persons have offered high
rental. An offer Of 5000 was made. In order 10
paw that il would be absolutely necessary to sell
liquors. High rental means that the government
viii get the money. and the public will have 10
pay for It, and the place be poorly kept. The
law declared expressly that the hotel was not built
for profit. OF course there are several people who
did not eat the lease, and they feel very about
my reckless management of Government property.
/ have done what the Law contemplated, leased
the hotel to a man who has some reputation at
stake IN the matter, and he has agreed IN his lease
TO make good hotel. The great difficulty with
the house i. that there are not enough rooms in
il to make i pay we'll. There are only about
thirty good rooms, and there should be sixty at
least. Il Is about as cheap TO run a hotel with
one hundred rooms, as with fifty rooms, which
bring the profit There Is need row Of many
more rooms than the house has Il Is worth
while 10 give lease on such terms that the lessee
viii build on, and keep adding If twenty people
60 up TO the hotel to-day they cannot get rooms.
The very first difficulty to be met with IN the new
line Of steamers Is, that their passengers can't
ind accommodation. and they viii return TO the
Coast and discourage travel. The easiest way out
Of this 'hotel business vas 10 let 1t take care of
itself But / was put In office to attend to these
matters, and / took the responsibility Of acting.
Il should be plainly understood that the purchase
Of the furulture by Dr. McGrew was for the simple
purpose Of keeping the hotel running till new
furniture could be got in. Instead Of giving a
lease for 10 years, and then paying for improve
rfz faz-r riel1 L to
and lei the improvements revert to the Govern
menL believe that in one years time, the place
will be a credit to this city, and that time will
show that the course have taken is the best.