The Hawaiian gazette., 1909-01-15

that only about 20 per cent of the for.
est reservations are public lands. The
rest are private lands. That being n
subtropical country, water is all an
portant and forests are ne'csM-y u
insure a constant supply, fer without
the forests the water would uu:rl,ly run
of, owing to the fact that tho water.
sheds are short and steep.
The Chairman. What kind of timber
is there in those forest reservations9
Governor Frear. Mainly two kinds
Of commercial value--the koa, which re,
sembles mahogany and is a cabinet
wood, and the ohia, which is very
| hard wood and is used principally for
railway ties. A contract was made
about year ago for selling two and
a half million ties of that wood to the
Santa Fe Railway
Senator Flint. They have commenced
to ship ties to the Santa Fe railroad'
Governor Frear. Yes; they began
recently, within the last month.
Receipts and Expenditures.
The Chairman. What have the rev.
enues been amounting to annually
from government lands disposed of by
| the government
Governor Frear. 1t amounts to $685.
600 or 10000 year from sales and
about $4,000 year from rents.
The Chairman. And you still have
| an income tax therei
| Governor Frear. Yes.
The Chairman. Are you financially
keeping up with your expenditures
Governor Frear. No; we are not.
Five years ago the Territory got be-
hind about 100000, when special
session of the Legislature was called
to cut down expenses. They cut down
the school teachers 90 per cent, who
were paid little enough anyway, and
so all around. This went on until the
last session of the Legislature, when
the Territory had recovered and had
accumulated surplus of $4,000.
Since then we have been running be-
hind. This last year our expenditures
exceeded our receipts by $147,0OO and
by the LIST of next February we will
not have cent in the treasury.
The Chairman. Was that caused by
an increase in expenditures or a fall
ing off of revenue?
Governor Frear. No; simply the
last Legislature restored the eXpendi.
lures to where they were four years
ago.
The Chairman. And of course that
increase of expenditures put you be.
hind againF
Governor Frear. Yes.
Senator Flint. Why was it neces
sary to make such radical change in
one session from condition of affairs
where you had surplus to a condi
ton of affairs where you had such al
enormous defcitG
Governor Frear. Well, one reason
why an increase was desirable, if il
could be afforded, was because the ap
preparations had previously been cut
too much-as a matter of necessity
owing to lack of funds. There was
also another reason. The Legislature
there does not always hold itself down
to the estimated revenues. 1t has fol
years been in the habit of appropriat
ing considerably more than the esti
mated revenues, with the result that
the executive is obliged to select be
tween appropriations as to what shall
be spent. But in the case of salarie:
the executive can not cut down. Wher
it comes to other expenses we Gu
what we can.
The Chairman. Can the Governor
veto an item in an appropriation bill
and let the bill stand?
Governor Frear. He can veto spe
cific items. But an item to which he
objects can be passed over his veto by
thirds vote.
The Chairman. All your customs re
ceipts are paid into the United State!
Treasury?
Governor Frear. Yes.
The Chairman. What do they
amount to?
The Governor. Last year they
amounted to $l,550,000.
The Chairman. / refer now to tariff
duties on importations into Hawaii.
Governor Frear. Yes.
The Chairman. They amounted tC
how muchl
Governor Frear. Last year they
amounted to over a million and halt
dollars. That is besides internal rev
enue. For the eight years under Ter
ritorial government the customs re
ceipts nave amounted to ten and {
quarter million dollars.
The Chairman. That have been pait
here into our Treasury
Governor Frear. Paid into thu
United States Treasury.
The Chairman. In addition to th'
internal revenue that has been collect
: ed'
Governor Frear. Yes.
The Chairman. What do the inter
nal revenue receipts amount tot
Governor Frear. They have varied
, At present / think they amount t.
about $4,000 year. While the staml
, duty was in force they amounted t.
perhaps 100000 a year.
The Chairman. is the internal rev
enue tax chiefly on tobacco'
Governor Frear. Not very much oil
/, tobacco, because very little is raise,
there, but on liquor distilling and sell
ing in the Territory, and various spe
, cial taxes,
! The Chairman. Is there much liquo
! business there.
Governor Frear. There was unit
~, 10 Ia