The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1916-04-07
RODRRlCK Q. MATHESON. EDITOR
Kealin Water Proposals

~ corning an alleged water snatch which TIL
Makee Sugar Company desires to make, and SOM
OF the evidence in the case has been supplied b,
Colonel Spalding himself, This is contained II
the draft Of water license, which Colonel Spald
ing submitted a short time ago to Governor Pink
ham and which the Governor passed on to tho
attorney general for an opinion as to whether i
constituted franchise or not. The letter o
transmissa from the colonel is said to have ex
planned that the granting Of this water license
would settle the railroad ana water situation OF
Kauai" ia
The suggestion of the colonel on its face, seem
ed fair enough In brief he suggested that th'
ones to be granted the license should put in al
irrigation system capable of impounding and de
yeloping thirty million gallons day, which sys
tenn would belong to the government and which
would serve homesteaders and plantations alike
The licensees would put up the money, charging
the government six per cent and collect back fo
the cost of installation, maintenance and servic,
by selling the water all the system would serve
AT the end of twenty year the system woult
revert to the government, the only cost to thu
public being the difference between what thu
builders put into the system and what they go
out of it through the sale of water. ~
This is the scheme which the Governor say!
is ''in general good one, although there arr
some Objectionable features" fNU
Analysed with the schedule of rates gone in
60 and the various innocent provisos turned over
the license changes from something for the bene
fit of the homesteaders to something which give!
valuable and exclusive rights to Cononel Spald
ing without any risks to him of loss, provides wa
ter for his plantation without cost to him, shuts
out everyone else and winds up with the govern
ment owing Spalding over half a million dollars
Under the terms of the license, the homesteade
would pay, on the basis of using 100000 gallons
day for year $50, while the plantation for tn,
same amount would pay SIS, while there is no as
surrance in the license that the homesteader coulC
get any water at all at any price if the planta
tion needed it. $3.50
The license would give Colonel Spalding the
full possession of all reservoirs, dams, water
bitches, pipe lines tunnels, fumes or other con
tributories belonging to the government" Gin th,
sections covered by the icense) or that may be
come the property of the government by reversior
or otherwise, as well as the government railroad
for twenty years, except that the Colonel would not
acquire title and would not have to pay any rents
taxes or other government charges except as pro
yided in the license"-and there is no provision
In other words, the colonel would get for moth
ing some very valuable monopolies, to use rent
Tree for twenty years, without paying any taxes
On it.
Estimates by engineers are that it would cost
at the least 100000 to develop and impound a
thirty million gallon system on that section o.
Kauai covered by the proposed license. The
license provides that all expenditures, advance:
and charges " made by the licensees are for the
account and benefit of the Territory, and made by
the licensees in the capacity of agents for the Ter
ritory of Hawaii, the amounts expended being
first lien or charge upon the revenues or cOllec
tions from the sale deliveries of water" Ir
other words, the licensees build system for
themselves, to be held tax free for twenty years
and to get what money they can back by selling
themselves water at low rate, with the govern
ment eventually paying up the difference and six
per cent. for twenty years on the original inyes:
ment.
On the basis of the engineers estimate Of or
iginal cost and expense of maintenance, and the
basis of the water rates provided in the schedule
Colonel Sp9Ading would have water for twenty
years, at the end of which the government would
owe him $6l5OO0 plus interest, while his water
during the life of the license would cost him SIS
per thirty million gallons and the homesteadcr
would be making up the loss on this by paying
at the rate of SIPS for the same quantity.
Incidentally the colonel would have twenty
years rent-free use of the government railroad
with no public utilities commission TO bother him
and be the sole one to say whether the home
steader got any water at all or not
As the Governor remarks, there are some OBJ
jectionable features about this scheme
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