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HONOLULU STAU-BULLETIN, WEDNESDAY, OCT. 2, 1012, S T y 0 0 if We Will Please You If you have a certain pose or picture in mind, we will execute it forjrou or just leave it to us. We produce the latest and best styles in photographic portraiture. Our line of sample photo graphs will convince you of the quality we put into our work. Come in and look them over. PtlOTOG&APrlEB (Continued from Pag 2) . 1 Kociatiom II thought the system-in vogue in New Zealand and Auttralia Abould be tried,- That system is gov ernmental control of the markets and responsibility for handling the grow ers crops. ' s He outlined a system of somewhat FISHER HEARING the same character that he thought might be used. The trougle in organ irJng an association such, as the fruit grawert' association of California lies it! the heterogeneous population and mixed nationality of .the tanners, t Asked -what he thought of the-appointment of a Vocal public utilities commission, Mr. Thurston said he . thought that if it, were, to be chosen IjNappolntment by the Governor and approvaf of the Senate, he would say It would be a good thing, but If the -members were to be, elected It would prove ; disastrous to the. country. - He told of the formation of the co partnership idea, on Maui, resulting iu the passage of the law and the ap " iearance . then, of the Maul Agricul .ytural Company. He stated, in de . f ense of the statute, that the com panies would eventually have amalga mated anyhow. . , , , :. Attorney Hemenway, called upon, then explained the detalteof how the - Ltatute was drafted, and indicated that it was done especially for the benefit of the two companies com ; Mned in the Maui Agricultural Com pany. . ; : . Mr. Thnrston made a statement of the circumstances surrounding the Olaa Plantation, which has been ac cused of., reducing its payments to , planters for small crops, of - 35 per cent, from the rates paidjn former . years. .; He ; said that when he; first, went into sugar planting business he was enthusiastic rer ? the -small homesteader,7 and having - charge of The contracts, gave the small plant ;cre far better terms than any of the 'other plantations .would do.; Bventu r ally he had about 400 such contracts out, and some three or four years ago discovered Ato his chagrin, that only onel. white planter actually remained onthe landy the others applying ab sentee landlordism, leasing to for-t-igners Homestead conditions were not Improved, he found, and the plan tation found itself under.- & bonded debt of $500,000. A large number of these homesteaders . were finally bought . In , by. the,. Olaa. .Plantation, c Put up by California Fruit Canners Ass'n these purchases amounting to aout : U. 2 .".". He said the corporation.; and said that as far as freight rates, pared to bu;id north from Hilo. To j now in its thirteenth rear. has never, including Inter-Island rates, are aii make a long story short, the Hilo jet paid a dividend. ! right except that perhaps in one or Railroad Company gave up the idea Then the contract was reduced to two cases the landing charges are of building north, and left the Ko , make up for the extra high previous I exc essive. jram-Hilo Company to run their lines 'one, probably to terms lower than! In answer to Mr. Fisher's question, north, so as not to duplicate the what the corporation really needed to Gov. Frear said it is a question' roads, and decided to build south, ter- iitmii ruu,js to siniiwneuier me namor commission nas enable the .small growers to make ! authority to regulate, rates at private- good profit on their crops. j lv owned wharves where the general Some of those homesteaders who;IM,blic is served, have offered to pay all excises, call I Mr. Starrett thought that if the inc on t he mill only to take their ! Government would help small grow- crop and pay them the cash, he said have received a little better terms than others for whose crops the mill is required to assume some responsi bility. Thurston reiuterated the statement of other big planters, that the white man is inclined to keep away from actual manual labor in the fields. Air. I vers was tiien called and ask ed for information on contracts- be tween plantations and growers. He told of the new contracts be had drawn, after a careful study of condi tions, thac was intended to be fair to ! mill and homesteader alike. ! Regarding the contract used at Ko hala, Mr. Fisher remarked that the sliding scale did not provide for cane having sucrose content of less than 87 per cent. Ivers agreed it was hardly fair, though arguing that cane seldom haa less sucrose content than that, and explaining that such sliding scale does provide for rates for cane under 87 per cent analysis in the case of the plantation at Hilo. Figuring out his contracts on the 4 cent market basis, Ivers said that in a S-year period the cost to the grow er per acre would be $107. He would receive, figuring 45 tons of cane per acre, $191 or a profit of $42 per acre, not counting out the interest on the money Invested. He gave figures showing what he thoueht the small grower should make per acre with New York mar ket prices at various points, and the production of different amounts per acre, He explained that the San Carlos coniracc given in the Philippines is about $2 per acre more favorable to the small grower there than in tnese Islands.' . The Secretary then began an in quiry into immigration matters. Ivers In answer to Mr. risner s statement that he understood abuse of the prl: vilege was made in Importing fm plnos, in that they were not exam lnH carefully enough. Ivers replied that 'Federal officials have entire charge of such examina tions and are responsible. I The Secretary said that he had been informed by responsible plantation. men, who for obvious reasons did not care to have their names given, that Immigrants had been forced to leave the immigration station and some times to go to certain plantations when they wanted to go to others, or to none at all. v . ' .Mr. Iverg said that a few instances had:- occurred in which he had com pelled them to leave the station, when they didn't want to go away from it at all and had already loitered around for. a long time, 'living off the Terri tory: V ": VY : ' In answer to a question from Olson, Ivers said no mere labor contracts are made by plantations with immi grants. They do make crop contracts, howdver ' He said, In -answer to a .question from Ashford that not more than one or two were ever physically forced to leave the immigration station. He told of the troubles that arorie with the Russians brought' here, end lag with the statement that of the 1, 086 brought here, about half have gone to the mainland, and that of the 1000 Russians now in' the Territory, about 250 are on plantations. . -.-.. .- Mr, Thurston volunteered an expla nation of the blowing open of the safe with dynamite during the strike some years agoHe.5 spoke for Attorney Kinney, whoould not be present, and told Kinney's "story of the entire af fair. According' to it, Kinney figured that the end justified the means. 'The explanati6n does not leave me with any clearer view of just why Mr.-Kinney did it than I had before," remarked Secretary Fisher Kinney, Thurston said, faced two horns of a dilemma one the question of going Into the court without sufficient evi dence to convict; the other, the ques tion of violating the law to get the incriminating evidence. i S. T. .Starrett, Superintendent of Public Marketing, was asked a few questions. Starrett said he feels that freight rates to the mainland are very lair. . He said he is. optimistic as to 2Z L KJJ II I n ii in . iiiJiLJL hp development of small farming, ! rs in the matter of water the diver - sified farming could be made profit able in the Territory. He was then excused, and the Gov ernor asked if he had any statement to make that he had overlooked. He recalled none, and Attorney Ashford asked him regarding the license for water held by the Laupahoehoe Plan tation. This, with the general statements by the Governor, Ashford and Mr. Ashford, ended the hearings. THURSTON ON STAND Fisher: .Mr. Thurston, I think if it suits your convenience, we will start with you this morning. Olson: Before starting I would like to call your attention to the opinion, which was referred to yesterday, on subject to Licenses, Volume 31, page 281 of. The Opinion was rendered under date of April 4, 1912 by Assist ant Attorney General , to. the Minis ter of th Interior, and approved on March 4th by A. F. Hitchcock. I want o substitute a copy of -this Opinion. Fisher: Mr.' Tuurston ,as a matter of record, will you give us your full name? Thurston: Lorrin A. Thurston. Fisher: You have been identified fir many years with these Islands? Thurston: I have; I was born here Fisher: You were born here; and were your father and mother born here? rnurston: JBotn my parties were born here. My grand parents came here as missionaries. Fisher: Since you have lieen an adult, what has been your occupation? Thurston: I am a lawyer by prof es eion, but I have not been practicing for about twelve years. At present acd for some time past I have been connected with railroads and plan t& tions. ' - Fisher: What railroads and planta tions r Thurston: The Olaa Sugar Com p.my, the Puna Sugar Company and the riiio Kauroaa company. Fisher: What position do you hold w 5th these companies? f Thurston: I am President of .the two sugar plantations and vlce-presl dfnt and general manager of the Hilo Railroad Company. Fisher: How active is your posi tion in the affairs of the Hilo Rail road Company? " Thurston: -1 am actively acting as General Manager. .. Fisher: The railroad Is on the Is land of Hawaii? Thurston: It is. v Fisher:. tk you" maintain a resid ence there? Thurston: I am supposed to, but ad a matter of fact I am back and forth" so much, that I am about as much in Honolulu aa Hilo. Fisher: .You are familiar then with thetransactiona relating to the recent acquisitions by the Railroad Co., of terminal sites in the City of Hilo? 4 Thurston: Fully. Fi&ner: I wish you would state what justification there Is for the ac quisition of the terminal Tract "A" (I tbmk it is) on the map. Thurston: That is at Kuhio Bay, yon refer to? Fisher: i Yes. , Thurston: Perhaps I can make the situation a little clearer if I go back and give you somewhat of a chrono logical statement of what led up to us asking for this Tract "A." Fisher: Mr. Dillingham gave us yesterday a general history of the enterprise, which it Is not necessary to repeat, but transactions relating to this terminal I would be glad to have you relate. Thurston: I will not relate to the general- history of the enterprise, but merely in connection with the ques tion of terminals. The Hilo Railroad Company's . franchise gives them the right to construct railroads ' covering all the Island of Hawaii. It was their intention to build both ways from the City of Hilo both north and south. Very early in the development of -the company's interests other parties from the mainland appeared on the Sole Agent, Waity JAMS, ALBEmi ground, stating that they were pre minaimg iu--u roau ai waiaKeo, where its terminal site now is. That. as you probably know, is about a mile from the center of Hilo town. It soon became evident that that was located at an inconvenient point; fand constant complaints were made ot the expense of getting both pas sengers and freight from Hilo to Wai akea; and a continued suggestion that the Company extend its terminal over to Kuhio Bay. In order to test the opinion upon the subject, 1 per sonally interviewed all of the prop erty owners along the lines, who were available, and found that they were unanimously in favor of the proposition; but that most of them were willing to give a free right-of-way over their property to get there; and others charged a comparatively small sum for such rights-of-way. Ac cordingly a petition was drafted by myself and submitted to the property owners and the principal residents, set ting forth their desire that this ex tension be made. Upon that being signed, and all the property owners and residents to whom it was sub mitted did "sign it, there was a peti tion and a tentative line of extension brought by me to Honolulu and sub mitted to Governor Dole and to the Superintendent of Public Works, Mr. McCandless, this being, as I recollect it, in 1901. - .The question of the location of the depot site was a vital one. ' In the opinion of the railroad administration the best place was about two-thirds of the way to.Hih, at the fpofof Waia nuenue street-rthe presenT"1 station site, being on the piece of land own ed by W. R. Castle and the Hitchcock Estate. Negotiations were had with those property owners, and the sta tion site secured and the building erected. The' matter of a station at the foot of Waianuenue street was also considered,-and it was thought mat mat wouia De a convenient loca tion for passenger travel. The only objection to it was that it Was so small, containing only an acre. More over, the. Postof flee was located there on, and about a half of it was under lease to a merchant at that time. The matter was therefore discussed with Dole and McCandless, and an objec tion was made' to granting; the portion on which the Postof f ice and this oth er store were located; and according ly the application at -that time w as limited to the portion in the rear of the Postoffice, toward tne river, ex cluding all but a very small edge leased to Mr. Holmes. The railroad company made private arrangements witn Mr. Hoimes ior tne piece leasea to him. For some' considerable time after this was approved by the Gov ernor and Mr. : McCandless,' nothing was done toward putting a station there. My' recollection is that it was a couple of jrear and the station was put on tne JUasue-hUtcncocK premises. Our expectation as to where travel and business would center proved en- tirely false. Practically nobody went to the station, and everybody wanted to get aboard at-the foot of Waianue nue street. Meanwhije,' the r other railroad . company, the Kohala-Hilo, which had undertaken to build north from Hilo, changed its lines to come down to the waterfront with its plan. The approval of 'the location of the Waianuenue street station, and the lo cation along tne . wateriront, was - a bear approval, there being no deed passed. It had been the custom with other railroads of the company to con sider such approval as passing the ti tle, and tlwre is apparently a good law supporting that view on the mainland under similar statutes. The question I am getting a little ahead of my story. Before the site applied for at the foot of Waianuenue street was ap proved, the Kohala-Hilo company ap plied for the same piece of land, both of us asking for the whole of it. Half of it was not enough. Mr. McCand less, like Solomon, finally decided to divide the lot and gave each of us half. Neither company was eatisfied, but took it as it was the best we could get. The reasons specifically given at the time of why the Hilo Railroad Company was not given the full half! of this inauka lot was that the Post- office was located there, covering an area of about 41x20 feet. The bal- ance was rented. The Kohala-Hilo company at that time intended -to run 1L The Famous Brand of Building,. King StreO ' v r , v,' y - -;.'-'; : . -: .. ; .:r--r;-:':'-';;-;v'--i ry-'.-. - -"H 'arv-- '. err-'--'-----. i-- -. - r- " - : .Bo j their lines across the Walluku river. They later concluded that they wanted to go up where the HUo market now is, swinging inland, and they accord ingly proposed to the HUo Railroad Company to exchange certain rights- jot-way. An exchange deed was exe I cuted between the two companies, which I have here. 1 produce it more particularly because the map shows the situation very clearly. Later on the suggestion having been made from responsible sources that the govern ment was approving too many loca tions, rights-of-way, etc.. cutting through government lands (there be ing up to that time 21 such applica tions), as shown in letters on file in i Mr. McCandless office, U was thought mat it would be preferable to put t hern in the form of a formal grant: J which could then go on record, and bel filed with other conveyances of gov- 'eminent land. Accordingly, in 190'i,; tendent of public works, a computa tion of all the approvals that had been made up to that time of rights-of-way and station sites occupied by the rail road company was put into one grant and a formal deed made to the Hilo Railroad Company thereof by Mr. Cooper. We had another map attach- ed to this grant showing the changes! incident to the exchange with theKo-f j hala-Hilo 'Railroad Company. (Shows uaap iu oetreiary r isuer ana Air. A8U ford, and explains the different-locations, etc., referred to in his state ments above.) ' Fisher: That is' to say, Mr. Thurs ton, as a result of the exchanges be tween the two companies, the Kohala- m h K A O . A -.- T ft . ft a fc Hilo Railroad Company acquired prop-4 erty on the side of the-shaded black line shown on the map, which is to ward Hilo Bay. . Thurston: Toward Wailuku River. Fisher: Whereas the Hilo Railroad Company retained the portion on the other side of the shaded black line, which Js toward the corner, of Front street and Waianuenue street Is that correct?- Thurston: That is correct There still remains the Postoffice lot on the corner, which was not conveyed to either company. - Usher: The, Postof f ice site was not conveyed to either company. Is that correct? i Thurston: That is correct ' T"" , Thurston: To proceed, shortly af ter this" the Kohala-Hilo Company .got into difficulties, financial difficulties, and the lot granted them was sold at public auction and 'bought in by av private party by the name of " Hum berg. He attempted to get title to It before the Courts, but failed to get a registered title. He thereupon at empted to sell the title.to the Hilo Railroad : Company, it being at . that time .- evident : that the , Kohala-Hilo Company (was apparently going out of business ;' and the Hilo Railroad Com pany took up the .project of trying to extend the line north, from, Hilp. The Hilo Railroad Company bought the title, -from ' Mr. Humberg, ; paying a nominal sum therefore, being -r. the amount of his claim against the' ' Ko-1 arose as td whether or not the Hilo Railroad Company had acquired ' a good title through Mr. Humberg, the grant to the Kohala-Hilo Company be ing made for railroad purposes only, and it having passed out of the rail road . company into the hands of. a private citizen; and the question was whether or not the title would there by , lapse. ; It seemed to be a pretty good question to look up and settle, before anybody; else raised it And we then brought, the matter up be fore the -then Governor. Fisher: Who was that? Thurston: That, was 'Governor Frear. "At that time the . Federal Government had acquired a lot for the Federal building, and an appro priation .was. made, by Congress, for the erection of the' Federal building, including the postoffice. The. lot oc cupied by the postoffice , would not then be needed for this purpose;, and the Hilo Railroad Company accord ingly applied to. Governor Frear and the Superintendent of Public Works, Campbell, for a grant covering both the lots which it' and the Kohala HUq Railroad Company had previous ly had; and also including the .corner wjiere the postoffice site was located, as the reason for not granting this corner to the company had now pass ed. The Hilo Railroad Company had perfected plans for extending north, and would require the entire lot, of approximately an acre, both for rail- road and public reasons, for a rail- road site. The matter was under con- slderation for some time, and finally1 i Phone 3876 LAIEEIT 1 T T "4 ,' : r ill V. t THE mis: m 'i . 'mm r f lfarnrri r7i? the application of Hbe railroad com- to turn over whatever it had dcr.3T:: pany was granted, but, a reservation J th'e i amount or expenditures, whl; . was placed in the grant that so 1odJ -s donV and the eovernment r" as the U. S. GovejTiment desired top as aone ana tne government I . -continue the use of the postoffice site,ithe amonnl of expenditures, wh;; . they should have trie use of it; and if were 2500. A contract ,was then n the railroad company at any, time; gotiated between the government &r. I contemplated the , erectionof a per-1 raUroad , for ext - manent building v and should erect jglon of tQelr tracks from its Walak: . be made to provide for the postoffice, giving th, same ; amount of room as it now' occupied. ' - This Is "on the face of the grant ;Those .were the condi tions i incident . to the - Waianuenue Street Lot whichAI have mentioned the line. "A" ' X- ::Xl.: ' , Up to this time .there had been no auggesJted,.platt .of the extension of the railroad to Knhia Bay or vicinity, al though it was known that in .view of the breakwater approprlatlonsobner or later, something would have to' be done at that -end of ?the line-j Here a couple' of years ago the railroad cou pany applied to the government for permission, under its general - fran chise, to build a wharf at Kuhio Hay. There was a great deal of public dis i cussion, and pubIt6 meUngs". were theld here and at. H lib, in connection with the type of wharf to be buHV lo cation ; of wharf, and other phasM of the question. ; Fisher. Including the question of their exclusive rights in any auch wharf? -i" - -.'.r: Thurston: No; that Was later- Fi nally the ' franchise was granted to the Hilo Railroad Compapytw years ago to build a ;wharf,t and they pie-' pared elaborate plana, spending a year in getting soundings, borings; etc., and were prepared to go ahead and build the wharf. In the grant, ' however. Governor , Frear inserted a ; provision that at any time the Legislature ap propriated money to build a wharf at Kuhio Bay, and the railroad had' not at that time built the wharf, the gov emment could take away the fran chise and build a wharf itself: or if the wharf. Were 'built, they could' take oyer the, wharf on paying its value to the Hilo Railroad Company, the value to be arrived at in some' stated way. The last Legislature, as a matter of fact, appropriated $200,000 with which to build that Wharf; and immediately, through the proper channels, demand was made upon the railroad company Try and be convinced It's Better Than he Best" ,ri .inii The Grace and Good Form of "BENJAMIN CLOTHE SM will impress you at a glance, but it takes wear to de monstrate th cir real worth, " BENJAMIN CLOTHES" owe their surpass ing and exquisite finish to the fact that they are made by the highest tal e nted designers and tailors, and in their own proper ly equipped work rooms. i - j 1 than two miles -to the Kuhio, E-r wharf site. The special reason fc r the negotiation of this contract wr. that there was no communication t ) get th; raUroad there first before U that point r and it; was necessary to wharf could be built It was a m'- ter of immense importance to the rail road'' for the reason that the bullil of this wharf at that location wa3 i, -lng to change its entire terminal ,1c c: tion. and facilities, . Practically c'l that they had before at Walakca to came a side issue; and they woul I need terminal grounds, switches, etc., at Kuhio Bay, They accordingly ap plied for sufficient land which woull give such facilities. The amor.t which was applied for, as I recall It, was in the neighborhood of 70 acrts. There' were negotiations, extlndlc over perhaps six to nine months be tween 'myself and Mr. Campbell, oc casionally consulting, the Governor. Forty acres' was the amount finally granted. The original location whicJi the Tallroad company. asked for wai adjacent to the waterfront, and abo to the wharf. The government re- Ifused to grant that location, statir:T that it was the polley of the govern ment to retain all of the waterfrcr.t, and that an open space of several hun dred feet (I forget exactly what it 1 3 somewhere hetween 200 and , 4 ) feet) was granted to the railroad com pany, and being inland to ; that and on the side opposite to the town of Hilo. .r . . -- . ... lack of snare prevent forthrr tall of Mr. Thnrstona statement to. day. It nin be continued tomorrow. Alexander & Baldwin. Ltd., thli afternoon received - the following cablegram from the New York office of the corporation:- - ' ' ; "Foohng Suey arrived yesterday; cargo sold 4.17 basis. , . "American, Howell and Arbucklo refineries have declined ten point 3. Business'on hand to mouth basis."