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sheds of streams important for irriq-ation, power development 

 or other use. They are all essentially "protection forests" and 

 as such it is desirable that the forest within their boundaries 

 be kept strictly intact. The same statement holds true of the 

 projected reserves on Maui and on the Kohala ^Mountain. 



Change ill the Forest Reserve Law. 



At the last session of the Legislature, during the spring of 

 1907, a very important step in forest work was taken when 

 the forest reserve law was so amended as to permit the Gov- 

 ernor to set apart government land within the forest reserve 

 boundaries, whether it is under lease or not. It is specifically 

 provided that such action shall be subject to existing leases, 

 but being set apart, at the expiration of the lease the land 

 automatically comes into the class of land definitely reserved. 

 The advantage of this is that it leaves no uncertainty as to 

 what the government's policy will be in regard to given forest 

 tracts. It also makes for permanency in the management of 

 the various reserves. 



FOREST UTILIZATION. 



During the last year and especially during the last two 

 months much interest has been awakened in the subject of 

 the utilization of the Hawaiian forests for Koa lumber and 

 Ohia Lehua railroad ties. This development of what promises 

 to be an additional industry to the Territory deserves special 

 comment for it involves questions of forest policy of vital 

 importance. 



Tzvo Classes of Forest. 



It is perhaps pertinent at this juncture to consider certain 

 essential dififerences between the two main classes of forest 

 in Hawaii. As I have pointed out in previous reports the 

 primary importance of the Hawaiian forests lies in their value 

 as a protective cover on the watersheds of the streams of the 

 Territory, of which the water is needed for irrigation, power 

 development, domestic supply and other uses. In practically 

 all of the forest reserves on the windward side of the islands, 

 or in districts where the reserve protects permanently run- 

 ning streams or springs, the forest cover should be kept intact, 

 in order that the forest as a wdiole, including both the trees of 

 the main stand and the shrubs and smaller plants of the un- 

 dergrowth, may exercise to the full their function of retarding 

 the run-off and thus helping to maintain a moderately even 

 flow in the streams. For this reason I reported adversely, last 

 July, on a proposition to lumber the forest on the government 



