Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-04-06
'LIT1LECHANCE0f
.SPALDINGLICfNSE
FOR kauai RIGHTS
Continued from Page Two.)

II is furthermore pointed out that
here is no provision whereby the
lomesteader must be first served
hough the license speaks repeatedly
If doing something for the homestead
rs benefit.
Section provides that the HCensee
hall handle the water TO the home
steader and handle also the accounts
ut no provision is made whereby the
,ccounts shall be filed with the gov
rnment or for any representative OF
romesteader or government to check
N the licensees figures.
Many Rights-No Taxation.
Sections 6 and Of the license pro
ides that all reservoirs, dams. water
iitches, pipe lines, tunnels, fumes OF
Their contributories belonging to the
government or that may become the
property of the government by rever
ion or otherwise shall be a part OF
he property turned over to the licen'
Zee during the life of the icense-2O
'ears-but without ownership, title or
responsibility for payment, rental or
axation, except as provided by the
license, and the contention of those
rho have studied the license Is that
throughout the document the licensee
las shrewdly provided against any
UGH payment or taxation. III.
This point-the avoidance of any
axes and liability or responsibility for
property turned over completely for
20 years-is one of the main objec-
lions seen to this document as square
" against good public policy. -.
Railroad Rights. =. ~. ..
Section provides for the construc-
ion and operation of railroad be-
-ween certain points on condition that
he government grants to the licensees
he right to take possession of and
hold and use all railways, tracks,
switches, ETC., belonging to any and all
railways or railway lines on govern
nent lands within the boundaries of
the land named, belonging to or that
nay become the property of the gov
arnment by reversion or otherwise,
TOR the 20 years of the license, with
the right to a 100-foot strip over gov
ernment lands for a right of way.
Kauai people claim that this provi-
sion is put forward to give Kealia
certain government reservoirs, siphons
md railways costing something more
han $4,000, all of such property &C.
CURED to be free of any taxation or
other payment, and it is further charg.
I'd that the railroad rates could be
made only with the approval Of the
licensees.
Under Section 8, the document
caves it entirely to the licensees to
determine their successors, If any, the
government apparently having moth
ing to say in the matter, and further
It is made obligatory on the govern.
ment to approve such change of Ii
censees Immediately.
Under Section 10 and other sections,
he licensees have the right to make
advances in order to get possession
Of and hold the water. These expen-
iitures and advances, with interest,
are made a first lien against the col.
lections and revenues from the sales
Of water.
Will the Territory Realize Deficit2
Right here is one of the main points
Of protest. Fl
It is claimed that the territory may
be put in the position of owing Kea.
liza at the end of 20 years some $685.
600 plus interest. These figures are
arrived at in this way:
Engineers have estimated that it
would cost about 100000 to develop
and impound 30,000,000 gallons daily.
interest on this. at 6 per cent
would be $4,000 a year. A sinking
fund of two and one-haf per cent
would be $4,000 more per annum.
Operating expenses have been fig
Ired at $4,000, maintenance and re-
pairs at $4,000, total initial expendi-
ture of 100000, and total annual
expense of about $4,000.
1t is figured that the revenues from
he homesteaders and other consum-
9rs would be about s15,243 per an
aum, resulting in an annual deficit
If over $4,000. In 20 years, with in
.erest, the deficit would be about
s615,000 with interest, and this, it is
charged, the government would owe
the licensee under the license as pro-
poseu. ~ r. 4,a. III
III any event. uHuSt OOSILOh ~, SAO
governments share would only be
possible after all fixed charges and
Incidental expenses are paid, nclud-
ing interest on advances, and the IL
censee would be able to avoid any
payment to the government by run
ming up these charges and expenses
to a large figure. E..
Under the section tie licensor turns
over all rights for 20 years, but the
licensee avoids financial responsible
" by stipulating that it is merely
agent for the licensor.
No Public Control Of Rates.
In the matter of rates, it is point
ed out emphatically that the license
gets out from under any control by
the utilities commission, both as to
railroad rates and rates for water.
Furthermore, under Section II, the
licensee could forever avoid accept
ing rates it did not desire because it
could claim that any rates it did not
desire were to its "detriment." and
under the license it could not be
forced to accept such rates while
any moneys, costs, interest, ETC., re-