The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-01-30
KOHALA
DITCH
SCHEME
What the Public
Doesn't Like
In 1t.
NO COMPENSATION
FOR TERRITORY
Congress is Asked to Give What
Others Are Willing to
Pay for.
IF THE bill introduced in the House

UF THE bill introduced in the House
i by Delegate Wilcox granting to the
Kohala Ditch Company the right
OF way over public lands in North and
South Kohala becomes a law. Samuel
Parker and his associates will receive
at the hands of Congress. without COM
1ensation, a privilege for which they
were willing 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, bu. 1t is q
privilege which is of considerah 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.
]. 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 or Maui, which yield the
largest revenue to the government. The
company pays an annual rental of $5,-
ooG a year for their privileges, and the
I, 10 hn
Nahiku Sugar Company. also on Maui.
has water rights for which it pays $500
for the first ten years, after which the
annual license fee is to be $1,000.
The waialua Agricultural Company
has purchased the water rights on its
on Oahu at an annual license
fee of $4,000, 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
office yesterday no exact
data as to the annual fee. was at
band, though the rental was thought
10 be $1,000 a year.
The bill which was introduced in
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 a Ii
eense to tap the Kohala Mountain wa
ter supply the value of the lease was
long considered, and the agreement, as
finally decided upon, fixed the annual
1nf rfaIN
ing the operation of the bitches, but
while they were in process Of construc-
ton. At the expiration of five years
he annual rental was to be $l,OOO, and
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
10 be less than $500 annually. and at
the end of ffty-five years the rate TO
De paid for the privilege was TO be
-eadjusted by arbitration, and at the
end of ninety-nine years all rights ana
acquired under this IL
,ense were to be surrendered to the
government.
The Parker interests did not oppose
he granting of the license at this time,
put just as negotiations were drawing
10 a close and the contract had Deeh
,onsummated, ready for submission u
he Secretary of the Interior, Governor
Dole received a letter IioIii .ko+
oartrnent in which it was advised tna1
he Territory had no authority 20 5
,ute leases for government lands ana
hat an act of Congress would De
Iuired. s-..,oe from
Upon receipt Of such adV1ces from
said Governor DUle
'ardav s'a1I negotiations with the pro-
loatars re the KohaIa water scheme
we're declared off. as the Territory had
70 o,,tboritv to grant such privileges.
within a few days Samuel Parker
withdrew his acquiescence with the
,-.,Iication made by Colonel Jones,
-. having been at that time COM
,rornise between the two parties apply
ne for the same rights. Governor