The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1912-01-12

( JOHN T. MccRossoN,
Who wins first round in his fight for
pnssage of Kau Ditch Bin in con.
Y gress.
s*****#Ak*sSss*,EskS + ss*sso
produced; and at the end Of the term
the Territory will regain full possession
tof it's landsy which it Is estimated will
then be worth, approximately, 1925 per
acre, instead of an average value OF
MESS than s. per acre, based ON the pre-
sent rental rate and use. -
Section 6 Of the bill provides that
:, the Government may withdraw 80 per
9cent. of these lands for homesteading
or other public use after the irrigation
plant is in operation; it also secures to
the users of such lands so withdrawn,
/ whether for homesteading or other
fpublic purposes, the right to contract
for the pro rata portion of water to
i which such lands are entitled,
This makes available for home
Isteading nearly one-third of tract of
4 $4,000 acres, Of which, due to its arid
eondition, only about 5 per cent. is at
j the present time available for cultiva.
ton, The great cost of building these
Irrigation works makes it impossible
Tor any group Of homesteaders to
secure their construction. The Fed.
i eral Government win not undertake
I. the work, and the Territory of Hawaii
is neither disposed nor able to do so.
II "The Territorial legislature, after
lseareful consideration, and with only
bnne dissenting vote, recommended this
hill -, ~. Il.
Il leasible plan for making use of these
wasted resources and for making one.
third of the area Immediately avail.
able for homesteaders. Ultimately the
entire tract, with permanent water
supply, will become available for that
or any other public use.
j "This long term lease is found neces
\ sary not only TO finance the construc
ttion of the ditch, but also to enlist the
aid of capital necessary to insure the
development of the land, and thus pro.
vide a certainty of water consump-
ton.
"Seetion 10 and IL contain stringent
provisions for the forfeiture of this
franchise and the reversion of the com
4 pahy's property to the Territory in
lease the ditch company fail to conform
to all the requirements of this bill.
"The Legislature of Hawaii has pro.
vided in section Is that the ditch com.
pany and its property shall be exempt
4 from taxation during the first 10 years
of its franchise term, IN order to carry
it through the unremunerative period OF
construction and incomplete operation
!; incident to the opening of new land.
"The Hawaiian Government has
from time to time, during the past 90
years, followed this same policy for en-.
couraging the construction of railroads
and for developing various new indus.
tries. The benefits to the Territory in
y permanent and greatly increased
sources of taxation, following the ex.
emptiOn period, have been such as to
convince the people of Hawaii and the
Legislature that it is, under their con.
ditions, sound, long distance business
policy for the Territory.
Believing that the people of Ha-
wall are best able to decide this ques-
tion of policy for themselves, your com
4mittee have made no change in this
4 section.
g "The regulation and adjustment of
water rates is very fully covered in
sections IA, IS, and 16 of this bill, in
Guiding definite basis for the reduc.
tion of water rates whenever the in.
come of the ditch company exceeds q
/, fixed return on its investment; this re.
turn on the investment your committee
believes to be most reasonable and
fair. These provisions arc further re.
E enforced by section IL, which gives full
publicity to all the financial affairs OF
!. the company, and viii enable both the
/. Territory aud the users of water to
know whenever the income of the ditch
company would justify a reduction in
. rates ate
y ''s3setlen Biproyides that at the end
Of the b0,year term the ownership Of
Z the ditch, with ita entire plant and ap-
/, pnFtenaneea, shall pass to the Terri.
tory, without any payment, and free
Of al lines aud charges whatsoever.
: sf'heetion u gives the Territory Of
liaNAil the. right 20 purchase st any
tlnle SITTER 10 years from data Of con,
pletion Of the ditch and plant NJ 10
exact cost plus 20 per sent. The margin
I shove actual cost allowed 20 tbs ditch
company, In casa their property Il
tnken over, appears 20 be 4 mQdlTala
enc n view 81 tho Apanelnl flaks 81 The
work ana The nnpr0aaelige period 81
~ constipation aud aaTlY 9pefaileb.
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