only from the standpoint of economic value and civic requirements, but especially for sanitary reasons. It is extremely important that action should be taken by which such conditions may be remedied.

Insanity. The powers of the Commissioners of Insanity should be enlarged by authorizing them to subpoena witnesses and administer oaths in conducting cases on appeal, and to permit of the asylum inmates to leave the institution upon parole under proper conditions.

The Insane Asylum has long been overcrowded and espècially inadequately provided with rooms for single patients and with hospital accommodations. There is most urgent need of appropriation for these purposes. Part of the work for the new buildings may be done by the inmates.

PUBLIC WORKS.

Coordination of Departments. Two years ago this Department and the Departments of Public Lands and Survey were coordinated by providing for the appointment of the same person over each of them. This has resulted in the anticipated advantages of unity, economy and efficiency, but it has not been entirely without disadvantages. There has been too much for one man to attend to without more adequate provision for superintending assistants. There should be a man at the head of the important Department of Public Lands, corresponding to that at the head of the Survey Department; that is, regarding these three departments as practically in the nature of bureaus of one department, each bureau should have a superintending head in addition to the office force, excepting that the head of all three may well act as superintendent of one of them. This is needed especially in view of the large amount of detail work involved in the Department of Public Lands, and the increased activities of that department under the recent amendments of the Organic Act.

Transfers to Counties. The Legislature also transferred two years ago to the local governments a number of minor powers and duties of the Superintendent of Public Works. There are others that should be similarly transferred as recommended under the heading "Local Government" in this message.

School Buildings. The main functions of the Department of Public Works have to do with harbors and wharves, water and sewer works and the construction of school and other public buildings and homestead roads. During the present period little has been done in the construction of new school buildings for want of appropriations for that purpose, but, as shown under the heading "Public Schools," much should be done during the coming period.

Homestead Roads. This subject is covered under the heading "Public Lands."

Wharves. With the $100,000 appropriated from loan funds for Honolulu harbor and wharves, the slips on both sides of the Hackfeld wharf have been dredged, the wharf has been widened at its inner end, and its shed has been extended, thereby adding much to available wharf accommodations; the Sorenson wharf has been widened; the building on the Alakea wharf has been lengthened, and a contract has been let for the construction of the Richards Street wharf. Out of previous appropriations the main building on the Hackfeld wharf has been erected and the Honuapo wharf constructed. Licenses have been granted for the construction of a large wharf at Hilo and two wharves at Kahului and one of the wharves has been constructed at the latter place. The negotiations in connection with Kahului involved also a transfer of the harbor frontage and land for streets by private owners to the Territory. These arrangements were a prerequisite to obtaining Congressional action for the extension of the breakwater and dredging the harbor.

Provision should be made by the issuance of bonds for much wharf construction during the coming period. This is especially necessary because of the approaching opening of the Panama Canal, for which event preparations must be begun early in order to have the necessary wharf facilities when that event occurs. The principal immediate need at Honolulu is the construction of another wharf and building somewhat similar to the Alakea wharf and building and next to it on the westerly side. It is a question deserving of careful consideration whether the Territory should construct the wharf at Hilo, as it may do under the terms of the license, or permit the licensee to do so; and also whether the Territory should purchase the wharf already constructed at Kahului under the license recently granted, as it may do under the terms of that license. Similar wharves are required particularly at Napoopoo, Mahukona, and Hanalei, and provision should be made for a larger wharf for ocean steamers at Kaawaloa on condition that the present railroad running in a northerly direction shall be extended to the wharf and the contemplated railroad to the south shall be constructed and both of them utilize the wharf as their terminus. That apparently is the only suitable place on the west coast of the island of Hawaii for a wharf for large ocean steamers.

Larger appropriations are needed for wharf maintenance. The Wharf Commission has presented a very complete and valuable report in regard to private wharves and landings, which should have your careful consideration.

Honolulu Water and Sewer Works. The action of the last

Legislature in putting the Honolulu water and sewer works on self-sustaining basis has been justified by the results. With these works there was taken over the obligation to meet the interest and sinking fund on an amount of bonds, $947,656.27, the proceeds of which went toward the construction of these works. During the first eighteen months of the biennial period the receipts amounted to $269,293.39-an amount larger than was anticipated because of the vigorous and successful effort made for the collection of back sewer rates. The expenditures were $268,688.22, namely $18,427.70 for redemption of bonds; $56,619.82 for interest on bonds; $55,437.18 for permanent improvements; and $148,203.52 for operating expenses.

The most pressing immediate needs have been met, such as the construction of the Kaimuki reservoir, the addition of 5.12 miles of pipe line, the supplying of Manoa and Alewa Heights with sufficient and pure water, and the boring of two artesian wells and installation of the high lift pump, thereby providing for emergencies and affording relief for the Beretania Street pump for much needed repairs. All this has been done without increasing the water rates, although these rates are lower than in almost any other city in the world and only a small faction of the rates in many cities on the mainland, and although, owing to the spaciousness of residence lots, there is an unusually large consumption per capita and an unusually small number of consumers in comparison with the length of pipe line. The consumption has been reduced by the discovery and prevention of waste.

Out of former appropriations from the loan fund the Nuuanu dam and reservoir have been completed and are already paying a fair rate of interest upon their cost.

The water works naturally have been of long and gradual growth, its different parts having been constructed from time to time according to the needs for the time being; hence, much of the system is unsuited to present conditions. The city is now growing in population and expanding in area more rapidly than ever before; hence, there is need of considerable development in the system. Much of the pipe line is too old to bear much pressure, and in some cases the same line varies greatly in diameter in different sections, thus producing undue friction for the pumps. New lines are needed for growing suburbs and the new Nuuanu reservoir should be utilized to greater extent by using its water to generate electricity with which to operate the pumps which lift from artesian wells. For purposes of economy, protection from fire, reduction of insurance rates, and to meet the needs of a growing city, a large sum, to be obtained by the issuance of bonds, should be provided by the present Legislature, such bonds to be added to those to be paid, principal and interest, out of the revenues

of the works. This can be done without increasing the rates and may result in a reduction of rates, besides the advantage of a more dependable water supply for direct use and for protection from fire.

Kula Pipe Line. This line has been completed at a cost of about $100,000, the amount appropriated out of loan funds. Owing to a fall in price, a pipe was laid of several times the capacity originally planned.

Artesian Wells. The Department of Public Works, besides conducting a topographic and hydrographic survey, referred to more fully under the heading "Conservation,” has had extensive data prepared and a careful investigation made of artesian wells, especially on the island of Oahu. It is evident from the information obtained that all possible precaution should be taken to prevent waste of artesian water in order to avoid serious diminution in the supply. The present law upon this subject should be amended so as to make it more effective and particularly by defining what is waste.

PUBLIC LANDS.

Changes in Land Laws. The enactment last May of amendments to the Organic Act mark the beginning of a new era in public land matters in this Territory. Those amendments provide for greater simplicity in the administration of the land laws and greater certainty as to their meaning; they provide for settling numerous titles to church sites, and for granting preferential rights for the purchase of residence lots by those who have lived on them and improved them; they impose further restrictions on the leasing, exchanging and selling of public lands for other than homestead purposes; most important of all, however, they facilitate the homesteading of public lands with bona fide homesteaders. A drawing, covering 1,026 lots, has already taken place and preparations are being made for another, which will cover numerous new lots as well as old ones. Provision was made in the amendments for meeting, out of the proceeds of the public lands, the expenses of the large amount of surveying that will be required.

Homestead Roads. The act providing for the construction of homestead roads out of the proceeds of sales for homestead purpses, should be amended so as to obviate the necessity and inconvenience of setting aside such proceeds as special funds; also so as to increase the amount available for such purposes by including interest on deferred payments and rents under right of purchase leases; in other words, so as to permit the use of all money properly arising from homestead agreements for the construction of homestead roads, for, at best, the amount will probably be small enough; and also so as to pro

vide somewhat similarly for roads for tracts of land opened for residence or business purposes as distinguished from homestead purposes, as, for intance, by permitting so much of the proceeds as may be necessary from the sales of lots on the slopes of Punchbowl to be used for the construction of roads made necessary by laying out that tract into lots and blocks. Needs of this kind arise at almost any time and cannot be long foreseen for the purpose of making appropriations for them; it is often practically useless to open tracts for homestead or residence or business purposes without constructing the necessary roads; and it is appropriate that tracts so opened should, in a sense, pay their own expense.

Purchases of Land for Public Purposes. Formerly private property required for public purposes was usually acquired by exchange. The method was changed two years ago by providing that such property, instead of being so acquired, could be acquired by selling property that might otherwise be given in exchange and using the proceeds in purchasing the property required. This provision is now inadequate because of the limited cases in which exchanges can now be made under the amendments to the Organic Act. The act should therefore be amended so that the proceeds may be available for this purpose whether the land could have been exchanged or not. Even this will yield too little because of the further limitations placed by the amendments upon the cases in which such sales can be made.

Aid to Homesteaders. The Commission on advances to homesteaders has prepared a report which will be submitted to you. Owing to constitutional obstacles to the loaning of public money to homesteaders, the Commission recommends that the same object be accomplished in part by improving homesteads by the construction of buildings, fences and water pipes and tanks before the land is sold, charging for the improvements by increasing the price of the land. The compulsory expenditure of public money in this way under present conditions would seem to be open to serious objections. There can be no assurance that the lots will be taken after the improvements are made; nor can it be known who will take them or, therefore, what kind of a house will be desired or in what location; even if the lots should be taken, and that, too, by persons to whom the houses were satisfactory in kind and location, there would be no certainty as to what might become of them afterwards, and, if, as often has been the case, the lots should be abandoned, there would be no assurance that they would be taken again. If any provision of this kind is deemed desirable, its execution should be most carefully guarded or should be left optional with the executive officers. Any such project would require a large amount of money and there is