217 



since the fence was built. Following the completion of the fence, 

 systematic driving and shooting got the wild cattle out of the for- 

 est and since that time no cattle have been allowed in the reserve. 

 The makai or south side of the proposed reserve adjoins the 

 cane fields most of the way and is accordingly protected from cat- 

 tle by the cane field fences or by natural barriers. In other 

 situations short stretches of existing or proposed fence do or will 

 complete the line. 



WATER SUPPLY. 



By reason of the protection afforded by its private forest re- 

 serve the Hawaiian Agricultural Company has by an extensive 

 system of tunnels, ditches and flumes, been able to develop a re- 

 liable water supply, sufficient to meet the requirements of a large 

 sugar plantation. Were it not for the water obtained from the 

 forest and which depends for its continuance on the forest cover 

 being permanently maintained on the mountain side, much of the 

 agricultural land now under a high state of cultivation could 

 only be used for grazing. 



There is no question but that the Pahala Plantation has reaped 

 the chief benefit from the development of the water supply which 

 the reservation of the forest has made reliable, but it seems to 

 me that the fact that such a development of natural resources 

 would not have taken place save for the plantation, ought to be 

 taken into account by the government and put to the credit of 

 this company. 



The indirect benefits which result to the Territory from the 

 maintenance of such a forest reserve as this in Kau are some- 

 times lost sight of in the immediate gain enjoyed by the planta^ 

 tion,' but it should not be forgotten that an increase in the acreage 

 of cane land results in larger returns to the Territory, not only 

 through direct taxation on the land itself and the crops grown 

 thereon, but also through the increase of the minor and tributary 

 business interests which depend for their existence on the suc- 

 cess of the plantations. These industries, whether located in the 

 neighborhood of the plantation or elsewhere in the Territory, 

 yield in turn an increasing revenue through taxation as well as, 

 and what is more important, going to make up the general pros- 

 perity of the Territory. 



The same thing applies to what has been done in the develop- 

 ment of water on the government lands back of Xaalehu by the 



