Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-04-06
LITTLECHANCEOF =.
FOR kauai RIGHTS.
CONTINUED from Page Two.)


1t is furthermore pointed out that
there is no provision whereby the
lomesteader must be first served
though the license speaks repeatedly
f doing something for the homestead
}rs' benefit
Section provides that the hcensee
shall handle the water to the home
3teader and handle also the accounts
)ut no provision is made whereby the
accounts shall be filed with the gov
Irnment or for any representative OF
lomesteader or government to check
n the licensees figures.
Many Riqhts-No Taxation.
Sections and Z of the license pro,
ides that all reservoirs, dams. water
itches. pipe lines, tunnels, fumes or
,ther eontributories belonging TO the
government or that may become the
property of the government by rever.
ZION or otherwise shall be a part of
he property turned over to the licen.
zee during the life of the licenBe-2O
'earsr-but without ownership, title or
responsibility for payment, rental or
axation, except as provided by the
tcense, and the contention of those
yho have studied the license is that
throughout the document the licensee
as shrewdly provided against any
.uch payment or taxation. -
This point-the avoidance of any
aaxes 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
ly against good public policy.
Railroad Rights.
Section z provides for the construc-
ion and operation of railroad be.
tween certain points on condition that
he government grants to the licensees
the 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
may become the property of the gov
eminent by reversion or otherwise,
for the 20 years of the license, with
The right to a 100.foot strip over gov
eminent lands for a right of way.
hdud1 pCOPlC Cldlui llldL IhlO PlON1-
sion is put forward to give Kealia
certain government reservoirs, siphons
md railways costing something more
than $4,000, all of such property &C.
quired to be free Of any taxation or
other payment, and it is further charg-
ed that the railroad rates could be
made only with the approval of the.
licensees.
Under Section s, 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
1t is made obligatory on the govern
ment to approve such change of Ii
censees Immediately.
Under Section 10 and other sections,
The licensees have the right to make
advances in order to get possession
Of and hold the water. These expen-,
ditures and advances, with interest,
are made a first Lien against the col
lections and revenues from the sales
Of water.
viii the Territory Realize Defeitf /
Right here is one Of the main points
Of protest. q
It is claimed that the territory may
be put In the position of owing, Kea-
la at the end of 20 years some $685.
900 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, 900 gallons daily.
interest on this at per cent
would be $4,000 year. A sinking
'und of two and one-half per cent
would be $4,000 more per annun1.
Operating expenses have been fig
Ired at $4,000, maintenance and re-
pairs at $4,000, total initial expendi-
lure of 100000. and total annual
expense of about $4,000.
II is figured that the revenues from
he homesteaders and other consum-i
srs would be about s15,243 per an.
num, resulting in an annual deficit
of over $4,000. In 20 years. with in
.erest, the deficit would be about
$4,000 with interest, and this, it IS
charged, the government would owe
The licensee under the license as pro-
poseu.
In any event, under Section 10, the
share would only be
possible after ali fixed charges and
Incidental expenses are paid. includ-
ing interest on advances, and the IL
censee would be able to avoid any
payment to the government by run
ling up these charges and expenses
20 large figure. r..
Under the section the hcensor turns
over all rights for 90 years, but the
icensee avoids financial responsible
" by STIMULATING that it is merely
agent for the icensor.
No Public Control Of Rates. : a
In the matter of rates, 1t is point
ID out emphaticaIly tuat the license
yets out from under any control by
he utilities commission, both as tol
,ailroad rates and rates for water.
Furthermore, under Section II, the
icensee could forever avoid accept
ng rates it did not desire because 1t
,ould claim that any rates it did not
Iesire were to its "detriment, and
lnder the license it could not be
orced to accept such rates while
my moneys. costs, interest ETC., re-
NAMED unpaid. Such a condition, it