54 
so  long  will  the  settlement  of  public  lands  be  retarded.  To  meet 
this  I propose  that  appropriate  legislation  be  urged  whereby  a 
certain  proportion  of  the  Territorial  revenue  received  from  the 
sale  of  public  lands  be  set  aside  as  a special  fund  for  the  building 
and  maintenance  of  homestead  roads.  Homesteads  should  not  be 
offered  for  settlement  until  roads  to  them  have  been  provided. 
It  is  the  experience  of  every  country  producing  fruits  and  farm 
products  that  the  producer  falls  an  easy  prey  to  unscrupulous 
commissfbn  agents.  The  banana  growers  in  the  first  land  district 
have  been  compelled  to  abandon  an  otherwise  profitable  industry 
solelv  because  of  the  dishonesty  of  commission  agents.  To  guard 
against  this,  and  for  the  purpose  of  creating  a greater  demand  for 
Hawaiian  fruits  and  other  products,  I propose  that  the  Territory 
adopt  a plan  which  has  proved  of  such  a vast  benefit  to  the  British 
Colonies.  By  this  plan  Territorial  agents  are  stationed  at  various 
points  for  the  purpose  of  inspecting  fruits  and  other  products  upon 
arrival  at  their  market  to  protect  the  producer.  These  agents  also 
work  to  increase  the  demand  for  such  products.  The  plan  which 
is  suggested  has  revolutionized  the  handling  of  foreign  products 
shipped  from  New  Zealand  to  London. 
With  transportation  problems  and  market  problems  solved  the 
settler  is  confronted  with  a financial  problem,  especially  in  the 
early  period  of  his  settlement.  I know  of  no  place  in  the  Ter- 
ritory where  a homesteader  who  has  valuable  improvements  made 
upon  land  which  he  holds  from  the  government,  but  to  which  he 
has  no  title,  can  go  for  financial  aid.  The  banks  seem  to  be  un- 
able to  advance  him  any  money,  and  the  terms  imposed  by  private 
lenders  are  impossible.  To  meet  this  it  is  recommended  that  the 
Territory  loan  money  to  bona  fide  settlers  who  have  with  capital 
and  labor  improved  their  holdings  to  such  an  extent  that  the  im- 
provements are  fair  security  upon  the  money  advanced.  Every 
precaution  should  be  taken  to  prevent  the  Territory  from  entering 
into  competition  with  banks  and  other  private  financial  institu- 
tions, but  this  can  be  done  without  difficulty  for  the  Territory 
will  be  lending  its  aid  to  persons  who  do  not  obtain  any  assistance 
from  private  concerns. 
The  foregoing  recommendations  concerning  transportation, 
homestead  roads,  government  commission  agents,  government 
loans  to  homesteaders  affect  all  portions  of  this  Territory  alike. 
I have  many  special  recommendations  to  meet  difficulties  which 
are  more  or  less  local.  One  of  the  most  important  of  these  is  that 
concerning  irrigation.  In  the  irrigated  districts  water  has  come 
to  be  of  vital  importance  as  some  recent  and  pending  litigation 
indicates.  Following  somewhat  in  the  line  of  policy  adopted  by 
the  Territorial  Government  in  the  Reclamation  Act,  but  going 
beyond  that,  I recommend  that  the  Territorial  Government  should 
at  once  take  over  all  unappropriated  water  rights,  and  from  time 
to  time  hereafter  condemn  and  take  over  irrigation  and  water 
