48 
and  other  quasi  public  enterprises,  which  from  the  nature  of  the 
venture  are  hazardous  and  involve  large  expenditures,  might  tend 
to  impair  the  Territorial  credit,  or  at  least  affect  the  rate  of  in- 
terest on  government  loans.  The  gravity  of  the  situation  is 
emphasized  by  the  fact  that  the  guarantee  of  private  railroad 
bonds  is  not  within  the  authorized  powers  of  the  Territorial  Leg- 
islature outlined  in  the  Organic  Act.  The  Congress  of  the  United 
States  has  specifically  withheld  such  a power  from  the  Territorial 
Legislature. 
Honolulu,  T.  H.,  November  9,  1908. 
Respectfully  submitted, 
A.  Lewis,  Jr.,  Chairman, 
W.  B.  Thomas, 
S.  M.  Kanakanui, 
J.  P.  Cooke. 
Members  of  the  Commission : 
A.  Lewis,  Jr.,  Chairman, 
William  A.  Kinney, 
Alfred  W.  Carter, 
Carl  S.  Smith, 
Samuel  M.  Kanakanui, 
William  B.  Thomas, 
Joseph  P.  Cooke,  Secretary. 
The  use  of  the  word  “homestead”  is  employed  to  convey  the  inten- 
tion of  homemaking  irrespective  of  the  method  by  which  the  possession 
during  the  formative  period  is  held;  whether  by  lease  with  the  oppor- 
tunity of  converting  the  occupancy  into  a fee  simple  title,  whether  by 
agreement  of  sale  or  whether  by  lease  of  very  small  areas  particularly 
for  Hawaiians  for  such  a period  as  to  constitute  a holding  for  several 
generations.  The  use  of  the  word  “homestead”  does  not  imply  that  the 
method  employed  in  creating  it  is  the  same  as  that  provided  by  the 
Homestead  Act  under  United  States  Land  Laws. 
REPORT  OF  A.  W.  CARTER. 
I do  not  believe  that  a radical  departure  of  legislation  is  re- 
quired regarding  homesteading  within  the  Territory,  hut  rather 
feel  that  the  success  or  failure  of  the  same  will  depend  upon  the 
question  of  transportation  facilities,  the  intelligent  subdivision  of 
the  property  available  and  a sympathetic  administration  of  the  law 
and  perhaps,  may  be  added,  facilities  for  disposing  of  the  products 
raised  when  reaching  market. 
TRANSPORTATION. 
V 
I do  not  favor  the  government,  Federal  or  Territorial,  guaran- 
teeing the  interest  on  bonds  issued  for  the  purpose  of  construct- 
