The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1911-03-14

/ The rights or nOmcHiphuofk are guard.
Cd Ia this section, as followsj
fAnd the said ditch company shah
furnish 20 homcstrndorf or settlers
along the line Of the company's water.
ways, or such othor pcra0ne along said
waterways, as the said oommiuaionor,
with the approval Of the Governor,
may direct, az q point to be designated
by sunh oficiolst such waters due aa
rental for said public lands"
Withdrawals Tor Homcstoada.
The original bill presented to con
gross subjected oil the public land
leases Of the ditch company to a with
druwal clause, whereby any portion OF
all of the land could be taken for home
steaders under the terms OF the recent
amendments to the Organic Act.
The proposed bill to 20 before the
legislature today allows Of the with
drawal OF only thirty per cent of the
land, thus allowing the ditch promoters
to retain leased title to two-thirds as
security for the ditch bonds. This is
provided for in the following section:
Z" Not more than thirty per cont Of
the lands SO held under lease by the
ditch company may ut any time after
the expiration Of six months from the
date of the first delivery Of water as
aforesaid by said company be with
drawn for public purposes, or home
steaded, or sold for other purposes
under the laws relating TO public lands
in Hawaii, such withdrawal of lands
to be in blocks Of not less than Ave
hundred acres, and the right-of-way of
the ditch company through such land
so withdrawn to be reserved to IL. In
which case the rent reserved shall be
proportionately reduced at the rate of
one dollar per acre for the land so with
drawn, homesteaded and sold; provided,
that written notice of intention to
withdraw any portion of such public
lands, together with a proper descrip
tion Of the lands so to be withdrawn,
shall be served upon the ditch company
by said commissioner, with the approval
of the Governor, not less than three
calendar months before such with
drawal is to take effect; provided also,
that growing crops, if any, upon said
lands so to be withdrawn may be har-
vested by the ditch company, or those
holding under it, before such with
drawal is or shall be operative"
Work Before Concessions.
Continuing, the proposed bill pro-
vides: "The said lease shall go into
effect when the said company shall have
constructed ditch from said district
of Hilo to Pahala in said Kau, with
delivering capacity of one hundred
million gallons of water per day of
twenty-four hours, and when fifty mil
lion gallons of water shall have been
actually delivered by means of said
waterway to said Pahala within
period of twenty-four consecutive honrs
such date to be ascertained by said com
missioner and fixed by him with tho
approval of the Governor. Notice Of
the fixing of such date, and the conse-
quent beginning of the term of sail
lease, shall be communicated in writing
to said ditch company by said officials
within ten days from the date thereof.
Million in Three Years.
} IA sum, not less than $4,000 in cash,
shall be actually expended by sald ditch
company in preliminary surveys, con-
struction work upon said ditch or reser-
voirs, or for other good and useful pur-
poses in that behalf, within one year,
100000 within two years, $1,000,000
within three years from the date of the
approval of this act by the President.
Work or Forfeit.
''The said ditch shall be completed
, as far as Pahala, in said district of
, Kau, within four years, and as far as
:. Waiohinu, in said Kau, within FIVE years
: from the date of said approval. If the
said John T. McCrosson, his associates
} or assigns, OF a corporation organized
r by him, as aforesaid, shall fail to ex-
pend the said respective sums of money,
: or either of them, within the respective
times aforesaid, for the purposes afore-
said, then and in such case all of the
} rights, powers and privileges hereby
D granted and said lease shall be forfeited
} aud become null and void and of no
}. effect and all works and improvements
: up to that time erected or constructed
/. shall Immediately revert TO and become
the property of the Territory" .
Tax Exemption.
/. .fThe corporation formed by the said
J. Il. MeCrOsson as aforesaid, for the
purposes aforesaid, and its property
used for or in carrying into effect the
! purposes aforesaid, or any of them, and
its income, shall be free from terri
torial, municipal, and county property
' and income taxes for the term Of ten
9 years after the approval Of the act.
a Fixing the Rate.
+ tfThe rates at which water flowing
0 along said ditch, and power produced
0 thereby, or incidental thereto, shall be
sold to applicants, shall be fixed and
g published from time to time by the said
ditch company with the approval of the
Governor, and the said rate shall be the
same to all.
.'Sucb rates shall be based upon the
, yielding of not more than sufficient
revenue to pay the following, viz:
? .f1-The reasonable expenses of
\ maintenance and operation Of said ditch
and other plants and appurtenances.
"2-Interest on any bonds issued to
7 procure money with which to construct
7 said ditch and other plant and appur-
9 tenanees, at rate not to exceed six
per cent. per Gnnum, payable semi
annually.
s'3-An annual sinking fund to re-
deem all of said bonds within the term
of the said lease and franchises hereby