Honolulu star-bulletin., 1916-04-06
MANY OBJECTIONS RAISED TO SPALDINGLICEN
PROPOSAL; POINTS AGAINST IT ARE SUMMARIZED

! or property belonging 10 the said IL
censor as representative OF the gov.
eminent, or to the government itself,
no salary, commission. rebate or prof
| it 10 the Licensees shall or may be
charged; but any and all costs. inter
est upon advances, or moneys laid out.
charges and expenses, including sal
! aries to employees, labor and incident
al expenses shall and may be charged
! and deducted from the gross receipts.
! so TO be received as aforesaid. before
! payments are 10 be considered Cue or
be paid TO the LioensOr
| IL II Is agreed by and between the
parties hereto that any lands. rail
ways. water bitches, reservoirs,
! fumes. tunnels. accessories, rights.
! privileges, matters or things beneficial
that may be made use of by said Ii
censees, but belonging to other per-
sons, parties or companies and not
| purchased, leased or paid for, shall
and may be allowed to be fully and
| freely used by such owners, in con
nection with the government prop
! erty forming continuous line or sys-
TEN, without cost.
/ -. Rates and regulations for the
use and severance of such govern
ment railway or railway may be
made, only with the approval of the
| Licensees, by the Licensor when and
while the said Licensees are or may
| be responsible for money paid or to
be paid and costs upon same; and no
rule or rate shall be made to the detri-
ment OF the Licensees while any
such moneys, advances, costs or in
! terests may remain unpaid.
DECLARED GROSSLY UNFAIR
Both by Kauai homesteaders and
Lihue plantation interests this pro-
| posal by Col. Spalding Is declared to
be outrageously unfair. Some of the
points made against it are as follows:
i The license provides that the
! licensees may proceed to collect and
conduct water and make expenditures
for that purpose. This is under Sec
| tion ?. The same section, taken in
conjunction with the general provis-
ions, allows expenditures, advances
| and other charges made by the licen-
see (the Makee Sugar Company in
| terests1 supposedly for the bene.
fit Of the territory and to it's account,
the licensee apparently being made
the sole agent of the territory. But
these amounts paid out by the licen-
see are made first lien or charge
| upon the revenues or collections real
ICED from the sale or delivery of the
| water. -"'.. ...
This provision, it is charged, allows
| the licensee to sell and handle all
the water accounts and apply the
| money thus realized to the payment
of the amounts said licensee has ex-
pended. .2 .E<..
No Voice by Honesteaders.
And, as a general objection, it is
alleged that the license puts the
homesteaders at the mercy of the
licensee; that no voice is given the
homesteader in the distribution of the
water; that there is no provision
whereby a homesteader may make
complaint or secure redress against
what he may deem an injustice in
the handling Of the water, once the IL
cense has been completed and the
licensee becomes the territery's agent.
Though mention Is made Of possible
amendment Of rates, this apparently
is under the control of the licensee,i
as 1t has the right under Section 2
and Section 4 to determine rates &C
cording to its financial relations with
the individual water consumers.
The schedule Of rates as proposed in
the license it is claimed, Is gross
ly unfair to- the small consumer.
Working out the rates as set forth the
following figures show what is de-