The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1903-10-03
KOHALA DITCH
FRANCHISE
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lNhbtNSNlNSS
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Governor found an opening for a shot
which caused "A general laugh.
"rhe provision that construction
shall be begun within eighteen months
doesn't amount to anything" sad
Thurston, unless ONE amount of work
is set forth. | have known parties
here to put one man at work under
such a provision and thus comply with
their agreement.
YES" said the Governor, "the Rapid
Transit Company for instance The
suggestion of Thurston was approved
and the Governor proposed requiring
at least $4,000 to be spent on the work
within eighteen mvAths. Gehr said
this would not pay for the preliminary
surveys, but the Governor replied that
the construction was apart from sur
veys.
Gehr, McCrosson, W. O. Smith, a.
Lewis and Fred Wundenbelg took the
most prominent part in the proceed
ings. The attitude of Gehr was gem
orally antagonistic to the franchise
proposition and he was as aggressive
as usual. Governor Dole produced d
draft of franchise and it was read
through section by section and amend
ed according to various suggestions.
The franchise is for fifty years Ito
collect, conserve, impound and divert
all surface water upon government
lands on Hawaii within what is known
as the kohala watershed, subject to
vested private rights. The right is not
exclusive, says the franchise. and is
only for surface water, no tunnelling
being permitted. Construction Is to
haoit, wifi IL, nj ny 1aoc CT
$500,000 must be spent on the work
within four years; a license fee of 81 coo
per year is to be imposed at once and
after four years it is to be increased by
3 per cent of the gross receipts of the
licensee; at the end of twenty years the
rate of license is to be readjusteo by
arbitration and again at the end of 80
years; water is to be furnished to pri-
vate parties at rates agreed upon by
the corporation and the Commissioner
of Public Lands every ten years. After
these provisions the proposed franchise
contains the following:
'"If the licensee corporation at any
time during the continuance of this liz
cense shall be unable because of an in
sufficiency of water under it's control
to supply all it's customers with the
full amount of water required by them,
then such water as shall at such time
be under the control of the licensee cor
poration shall be by arbitration appor
toned equitably between the several
customers so long as such Inability OF
the licensee corporation shall continue
"All arbitration herein provided for
shall be made by three disinterested
persons, one selected by the Commits
sioner of Public Lands, one selected by
the licensee corporation and one Sc
II lanta1 NV two Ion ~
any two to be final and binding upon
the parties interested. The expense OF
such arbitration shall be divided equal
ly between the Commissioner of Pub
| lie Lands and the licensee corporation
"At the end of 80 years from the date
| hereof, the licensee corporation shall
surrender to the Territory of Hawaii
all rights acquired under this license
and all improvements constructed un.
der the terms hereof by said licensee
> and all rights and improvements ac
qured by him on the lands of 3rd par
ties for the conservation, conveyance
or delivery of waters from the lands
= aforesaid.
), 1T is hereby understood and agreed
t that the licensee shall within months
i from this date organize a corporate
e under the laws of the Territory OF Ha
= wall to construct and operate the salt
v proposed water works under this Ii
4 cense, which shall be deemed a publ
> corporation, and shall thereupon as
sign to such corporation, herein de
. scribed as the licensee corporation thu
/ license.
Such corporation snall not be EN-
e powered by its charter to enter int,
l. the business of buying, selling, leasini
n or otherwise dealing in real estate, no
shall h11u
deal in land beyond the direct neces
r stiles of its business or conducting tn
: enterprise of developing, conveying
o collecting and selling water, and max
. ing the limited use thereof as herein
before set forth, nor shall it engage Il
;, agriculture.
Nor shall an owner or owners D
= stock in the said corporation represent
ing a controlling interest therein, en-
' gage as a corporation, partnership
: combination or individual, in the bust
e ness of buying, selling, leasing o
e otherwise dealing in real estate, nor il
|, agriculture, in such parts of Mort
If Kohala, on said Island of Hawaii, a
it may be. supplied with water from tn
Il water works of the said corporation,
o This license shall be forfeited:
n 81. If the corporation last abov
mentioned be not legally formed an
organized within three months fror
the date hereof.
u go. If actual construction shall nc
l. be begun within IS months from tn
o date hereof.
'e ''S. If s50O,OOO.OO shall not have bee
e expended in such construction With
e four years from this date.
d II. II delivery of water 10 custom
e ers within the district of North Koha
la shall not have been begun With
= three years from said date.
a IS. If at any time within the sal
e term the licensee fails substantially /
/ carry out any of the stipulations mad
by him in this instrument or,
IS. II the licensee corporation sha
during the term of this fra M hise q I