Upon motion by Senator Judd, seconded by Senator J. T. Brown, the Bill passed Third Reading on the following showing of Ayes and Noes: Ayes: Senators Baker, C. Brown, J. T. Brown, Chillingworth, Fairchild, Hewitt, Judd, Kalama, Kaleiopu, Makekau, Pali, Quinn, Robinson, and President Knudsen. Total, 14. Noes: None. A Communication (No. 35) from the Chief Clerk of the Office of the Secretary of the Territory, notifying the Senate that the Governor had signed House Bills Nos. 28 and 76, was read by the Clerk as follows: EXECUTIVE BUILDING. Honolulu, T. H., March 18, 1911. Honorable Eric A. Knudsen, President of the Senate, Legislature of the Territory of Hawaii, Sir: By direction of the Secretary, I beg leave to inform your House Bill No. 28, as Act 25, entitled "An Act to Amend House Bill No. 76, as Act 26, entitled "An Act Making Appropriation for the Construction, Reconstruction, Improvement and Extension of the Wharves and Wharf Sheds at Mahukona, Hawaii, and Hanalei, Kauai, and for the Construction of Approaches Thereto." Very respectfully yours, H. P. O'SULLIVAN, Chief Clerk The Communication was received and placed on file. At this juncture, Senator Chillingworth moved that the thanks of the Senate be extended to the Members of the HoldOver Committee on Ways and Means for their valuable serv ices rendered to the Senate, seconded by Senator Judd, and carried. At 11:01 o'clock A. M., the Senate adjourned. The Senate met at 10:00 o'clock A. M., pursuant to adjourn ment. After prayer by the Chaplain, the Roll was called, showing all Senators present. The Journal of the Twenty-seventh Day was read and approved. Senator Robinson introduced a Resolution (No. 19) relating to rations for the inmates of the Molokai Leper Settlement, as follows: RESOLUTION. RESOLVED: That the Ration allowance of the Lepers at Kalaupapa and Kalawao, Molokai, be increased from $10 per year to $15.00 and that, an appropriation sufficient to provide each person entitled to paiai ration to receive 50 cents per week in groceries in addition to the paiai ration or poi now given them. WM. T. ROBINSON, March 20, 1911. The Resolution was referred to the Committee on Ways and Means. Senator Makekau gave notice of his intention to introduce a Bill entitled "An Act to Provide for the Issuance of Licenses for the Manufacture, Compounding and Preparation of Certain Food Products." Under suspension of the rules, Senator Makekau introduced Senate Bill No. 89, entitled "An Act to Provide for the Issuance of Licenses for the Manufacture, Compounding and Preparation of Certain Food Products." The Bill passed First Reading by Title and was referred to the Printing Committee. Second Reading of House Bill No. 32, entitled "An Act to Provide for the Registration of Voters." Upon motion by Senator Hewitt, seconded by Senator Judd, consideration of the Bill on Second Reading was further deferred until Wednesday, March 22nd, 1911. Senator Fairchild presented a Report (No. 127) from the Committee on Ways and Means, to whom had been referred Senate Joint Resolution No. 1, recommending the adoption of a substitute Resolution, as follows: Honolulu, Hawaii, March 20, 1911. Hon. Eric A. Knudsen, Sir: President of the Senate. Your Committee on Ways and Means, to whom has been referred Senate Joint Resolution No. 1, begs leave to report that they have had same under careful consideration, and after due deliberation came to the conclusion that in considering the resolution, not only questions of policy and revenue were involved, but also the feasibility of the scheme as well. Upon inquiry we find that this resolution was introduced by the Chairman of our Committee at the request of the regents of the College of Hawaii, the object in having same presented being to provide an independent source of certain revenue rather than to be forced to rely upon the uncertain and inadequate appropriations which heretofore the Legislature has, with reluctance, provided. The regents of the College have been advised that the demands for appropriations upon the Legislature now in session amount in the aggregate to a sum which is nearly three times the estimated revenues for the next biennial period. Realizing that there was little chance for them to receive from the Legislature appropriations needed for the development of their institution, had recourse to a scheme, which they claim obtains in the States, for endowing their College with the revenues from a specified tract of public land. They have recommended for transfer to these regents the lands of Waialua in the proposed Act, but are quite willing to have any other lands so long as the object of the Act is attained. While the resolution, upon its introduction, was regarded with suspicion as an agreement between the Regents of the College of Hawaii and the Lihue Plantation Company looking to the relief of one or the other institutions, we found that the Lihue Plantation Company knew nothing of the matter. Upon inquiry it was found that the lands sought to be transferred to the Regents for the purposes of the proposed Act, were under lease to the Lihue Plantation Company for six more years, and that the plantation was not willing to surrender them at this time. In the interests of divising ways and means to meet the crying needs of the education and health of the inhabitants of the Territory, your Committee have carefully scrutinized every source of revenue with a view of finding some means for raising funds to provide, not only for the College of Hawaii, but for the alleged underpaid teachers of our schools, the $800,000.00 required for school houses as well as other large sums necessary to be expended in reclaiming disease-breading lands and in improving the hospitals for our sick and unfortunates in the asylums and on Molokai. There have been presented to the Legislature bills and resolutions looking to the raising of necessary funds for these purposes, among them a request that Congress pay over to the Territory one-third of the proceeds of the Custom House for the support of the schools. The so-called "vested interests" through the leading financial organizations here have gone upon record as being opposed to any increase in the taxes at this time. Your Committee, believing that Hawaii should be sufficient unto itself to take care of its children and sick without asking financial aid of Congress, has, upon investigation, found that there are about 40,000 acres of developed agricultural lands with water belonging to the Territory, which lands are under lease to corporations, and in many instances at very low rentals. Upon the expiration of these leases, should the lands and water be withdrawn from the restrictions or obligations of the Organic Act and placed in the hands of a board, of say five members, the Chairman of which should be the Governor, we have ample evidence to warrant the prophecy that these lands and water would bring into the Territory in rents and taxes at least $400,000.00 a year, which revenue should be available only for appropriations in the interests of education and health. Some may oppose this. idea on the ground that the withdrawal of the developed agricultural lands from the provisions of the Organic Act for homesteaders would interfere with homesteading. Your Committee is assured that as much and more undeveloped land and water is available for such purpose, to which they recommend homesteaders be given free access, if deemed advisable, but it does not seem fair to the inhabitants of the Territory that developed lands and water, capable of producing such a large yearly revenue, being equivalent to 5% on $8,000,000.00, should be practically given away to a small percentage of the inhabitants of the Territory, or to immigrants to arrive, when the needs in the way of education and health of the inhabitants of the Territory are so great. With the approaching completion of the Panama Canal, precursing a large, varied, and, as to infectious diseases, dangerous commerce, it is necessary to make use of every available source of income to render, Honolulu, around which the United States is spending vast sums in creating a Naval and Military stronghold, by the use of modern sanitary methods, as free from disease as possible. As to the question of policy, your Committee being impressed with the present and future need for funds in the interests of education and health, look with favor upon the policy embodied in the resolution, as its adoption would result in making the lessees of the public lands pay for the use of same, the maximum revenue in the interests of the education and health of the people. While it may be true that already the "corporations" are heavily taxed, it is equally true that the present rentals paid to the Government are out of all proportion to their value. Owing to the provisions of the Organic Act, no lease of agricultural lands can be made which is more than a tenancy at will therefore prospective lessees are only justified in offering small rentals owing to the uncertainty of tenure of any lease which the Government can grant. The short-term lease has also given rise to the practice among tenants of neglecting the principles of good husbandry, the limited term militating against the expenditure of time and money necessary to insure scientific conservation of the soil, thereby greatly reducing, rather than enchancing, as good husbandry would, the yielding capacity of the land. As an example of loss directly attributable to the indefinite term lease system, your Committee finds that in one district where 3000 acres of public developed land with a daily flow of 15,000,000 gallons of water were formerly operated under a lease which had expired and had not been renewed for five years, the falling off in revenues in the way of taxes and rent |