The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1902-01-31
KOHALA
+. DITCH
SCHEME
What the Public
Doesn't Like
In II.

South KOhala becomes a law, Samuel
Parker and his associates will receive
at the hands of Congress, without COM
aensation, a privilege for which they
We're willing a few months ago to pay
to the Territory of Hawaii an annual
license fee of $1,000, to be increased
after five years to not less than $500
per year. Not only that, but it is
privilege which Is of considerable value
to the government as is evidenced by
the Willingness of other companies to
pay for similar rights, and by the Of
fer Of the syndicate headed by Col.
j. w. Jones to pay to the Territory the
same annual rental as the parties now
applying for franchise from Congress
offered to pay at one time.
While there are but four or FIVE
leases of similar import now in force
within the Territory. the corporations
holding them are paying into the treas
ury large sums of money annually for
! the water privileges granted to them
by the Territorial government, and
which were approved by President Nc
Kinley.
The Haiku sugar Company holds the
water rights on Maui, which yield the
largest revenue to the government. The
company pays an annual rental of 3d.
00t year for their privileges, and the
lease still has long term to run. The
| Nahiku Sugar Company, also on Maui,
has water rights for which it pays $500
for the first ten years after which the
annual license zee is to be $1,000.
The Waia1ua Agricultural Company
I has purchased the water rights on its
property on Oahu at an annual license
fee of $1,000 but the agreement does
not go into effect for a few years. The
Hind lease in the Kohala tract has
been agreed upon, but at the land com
| missioner's office yesterday no exact
data as to the annual fee. was at
band though the rental was thought
| 70 be 1000 a year.
| The bill which was introduced In
1 Congress makes no mention of COM
pensation for the water rights to be
paid either to the Territorial or the
| National governments. When the prop
osition of the Chicago syndicate, rep
resented here by J. w. Jones, was put
| before the Executive Council, for IL
' cense to tap the Kohala Mountain wa
I ter supply, the value of the lease was
, long considered, and the agreement, as
! finally decided upon, fixed the annual
license at $1,000 per year, not only dur
ing the operation of the bitches, but
while they were In process of construc-
! ton. At the expiration of five years
the annual rental was to be $1,000. and
! 5 per cent OF the gross revenues from
the sale of the water, provided, how
ever. that no time after five years was
. the amount to be paid to the Territory
to be less than 81, 500 annually, and at
: the end OF fifty-fivs years the rate to
be paid for the privilege was to be
| readjusted by arbitration, and at thu
end of ninety-nine years all rights and
| Improvements acquired under this IL
cense were to be surrendered to the
| government.
The Parker interests did not oppose
the granting of the license at this time.
but just as negotiations were drawing
| to close and the contract had been
consummated. ready for submission to
/ the Secretary of the Interior, Governor
Dole received q letter from that de-
partment in which 1t was advised that
the Territory had no authority to exc
cute leases for government lands. and
That an act of Congress would be re-
, quired.
Upon receipt of such advices from
Washington" said Governor Dole yes
terday, "all negotiations with the pro-
moters of the kohala water scheme
! were declared off. as the Territory had
no authority to grant such privileges"
| Within few days Samuel Parker
withdrew his acquiescence with the
application made by Colonel Jones,
there having been at that time a COM
promise between the two parties apply
ing for the same rights. Governor
Dole exhibited the letter from Samuel
, Parker, sent through his attorneys, in
which he formally withdrew from the
agreement made with the Chicago syn
dictate, and made application for him
self for the same privileges. He filed
, with the application to the Executive
Council for the Kohala water prvi-
hn of apt urb oh ha
wished the Territory to grant, and in
which John w. Jones is named as
trustee. This contract is almost iden-
tical with the one which had been
agreed upon as with Colonel Jones in
dividually, but representing a party Of
eastern capitalists and by its terms
, also, the Territory was to receive ST.
900 annual rental for the first five
years, and $1,000 and per cent of the
gross revenues after that time, to be
not less than $500 annually. Cover
nor Dole stated that he had no iuea
as to what course the Kohala ditch bill
would follow in Congress, or whether 1t
would be sent to Honolulu before final
action is taken upon It.
One further objection to the Kohala
water scheme, which was urged at the
discussion last September, was that it
would cut off the water supply from
the homesteaders at Waimea and Ka-
waihae. Professor Curtis j. Lyons urg
ed this objection, and In the final
agreement drawn up by the Executive
Council there was an express provision
that the "licensee shall divert no water
draining towards Waimea, or in any
way interfere with the source OF any
water supply Of Waimea," also that the
''licensee shall not diminish the supply
OF water so used beueficially in the
Waipio and Honokane valleys"
The bill introduced in Congress
, makes no reference to the Waimea set
tiers. and Professor Lyons stated yes
terday that this was a grave mistake.
as they should be amply protected In
any contract affecting the Kohala wa
, ter supply.
The proposed act Of Congress also
gives the promoters OF the scheme six
years to complete the bitches, while by
virtue OF the agreement with the Ter
/ ritorial government. the work was to