The Hawaiian gazette., 1911-10-17
BOARDS SIDE or
WATER DISPUTE
Official Statement issued by
Secretary Regarding Land
Value.

------
William y. Olcson, secretary Of the
Huwaiian Board, yesterday prepared
the Following statement regarding the
Hio watershed lands owned By the
board concerning which a controversy
has arisen as to their valuationi
The Boards Position.
''Under a deed Of trust, the Hawai-
ian Board holds about 1900 acres of
land above the town of Hilo. Thc
growth Of Ililo makes II necessary for
IL TO secure more abundant water
supply as well as a protective wafer
shed About fifty.eight acres of the
tract held by the Hawaiian Board
makes complete watershed and in
cludes spring with an uninterrupted
flow of over one million gallons of
water every twenty-four hours. This
tract of fifty-eight acres with the
spring has been condemned by the
County of Hawaii at a valuation of
$3.50 The Hawaiian Board puts a
valuation of $4,000 on this land and
water, but offers to compromise, before
going to adjudication, for $4,000.
Otherwise it will claim 100000.
" Now, while the land wanted for
the watershed is only fifty-eight acres
in extent. it constitutes the most val
liable and revenue producing portion
of the entire property. 1t is situated
near the town and will some day be
valuable property for residential pur-
poses Especially win this be true
in view of the inexhaustible supply
of pure spring water close at hand as
part of the property.
:" At present the entire tract yields
an annual revenue of about $500. This
rental, however, is mainly for the use
of the small tract wanted by the Coun.
W of Hawaii. At present the land is
planted to cane, no use being made
of the spring, so that the $500 is prac
tically rental for the land only.
90 Now the proposition of the Hawai-
ian Board is to convey to the County
of Hawaii the fifty-eight acres contain,
ing the spring for $4,000. At five pei
cent this amount would yield a revenue
equivalent to an annual rental of $3.50
or $3.50 per annum more than is now
being received for the land in question
for growing, without any use be
/ ing made of the spring, or any valu,
being received for its water.
Reasonable Valuation.
"The Hawaiian Board stated tina
such a spring would command renta
elsewhere of over $2500 per annum;
but it has not figured its claim on tina
basis, but rather on a basis which viii
yield only $3.50 per annum more thai
is now being received for the Tenta
Of the land for cane-growing. Phi
statement justifies the claim made b.
the Hawaiian Board in its letter to tn
officials of the County of Hawaii, viz
that 1--WE feel that we are setting yer,
reasonable valuation on the propert,
you wish to condemn.
HWith reference to some of the criti
cisms made by the law officials of TIL
County of Hawaii it need only be sal,
that they and other intelligent mel
know well enough that in a question
of this kind it does not matter WHIT
the benefciaries are. They might b.
residents of Hilo, or of Honolulu, o
of New York, or of Zanzibar. Trus
property must be safeguarded in &C
cordanee with the solemn obligation
of trust responsibility, irrespective o,
who the benefciaraies may be. TIL,
courts are bound to protect the right
of benefieiaries, whoever they may be
and to hold trustees responsible for tn,
just administration of their trust obi
cations. If the trust benefciaries il
this instance had been certain Hill
institutions, or certain Hil0 residents
those institutions or those residents
would have just claim to hold TIL
Hawaiian Board rigidly responsible TO
the most careful safeguarding of tn
present and prospective values of tn
property in question. The actual bene
ficiaries have the same claim.
. In behalf of the Hawaiian Boar,
submit this public statement of tn
facts in the case