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rights  already  appropriated,  until  such  time  as  there  shall  cease  to 
he  any  private  ownership  of  water  rights  in  this  Territory. 
The  Federal  Government  has  long  followed  the  policy  by  which 
it  disposes  of  government  land  situated  within  town  limits.  There' 
is  no  reason  why  this  Territory  should  seek  a financial  profit  by 
holding  town  property  for  increased  values.  A considerable 
amount  of  property  is  now  owned  by  the  Territory  within  the 
limits  of  growing  towns.  One  tract  on  the  main  street  of  Hilo 
contains  three  acres  and  is  put  to  no  purpose.  Either  this  land 
should  be  devoted  to  park  purposes  or  sold  at  auction. 
A very  considerable  amount  of  complaint  has  been  made  to 
our  commission  by  people  who  have  asked  for  information  con- 
cerning government  land  at  the  office  of  the  Land  Commissioner. 
The  Commissioner  and  his  agents  have  also  pointed  out  a defect 
in  the  administration  whereby  the  government  land  now  available 
for  settlement  is  without  survey  and  without  classification.  To 
meet  these  two  situations  I recommend  that  the  next  Legislature 
be  requested  to  furnish  a sufficiently  large  sum  to  the  Survey 
Department  to  carefully  survey  all  of  the  public  lands  of  the  Ter- 
ritory, both  by  boundaries  and  by  classification,  and  to  furnish 
the  Land  Commissioner  with  complete  data  and  maps.  While 
this  work  of  surveying  is  going  forward  competent  persons  should 
be  appointed  by  the  Governor  to  classify  the  lands  into  the  several 
classifications  provided  by  the  Land  Act. 
The  general  survey  and  classification  which  is  here  proposed 
will  avoid  a repetition  of  needless  surveys. 
One  matter  of  administration  involves  a sufficiently  large  tract 
of  land  to  Avarrant  its  consideration  in  this  report : 
Many  years  ago  the  government  leased  to  the  Waiakea  Mill 
Company  a tract  of  land  on  the  Island  of  Hawaii  of  about  95,000 
acres  in  extent,  at  an  annual  rental  of  $2,000.00.  With  the  growth 
of  the  sugar  industry  a portion  of  this  land  has  come  to  be  of 
immense  value  for  cane  purposes,  and  other  portions  have  been 
rented  out  by  the  lessee  for  town  lots.  The  lease  will  expire,  in 
less  than  ten  years.  The  lessee  has  erected  costly  improvements 
upon  the  land  which  must  be  kept  in  repair  at  a heavy  expense. 
With  no  guarantee  of  a continued  existence  the  lessee  is  in  a posi- 
tion where  it  must  obtain  all  the  benefit  from  the  land  without 
making  a corresponding  return  to  the  soil  or  any  adequate  upkeep 
of  the  improvements.  This  is  to  the  great  disadvantage  of  the 
Territory  as  well  as  the  lessee.  Under  the  Organic  Act  the  lessee 
will  be  entitled  to1  own  in  fee  simple  only  1000  acres  of  land. 
Lender  the  circumstances  which  I have  detailed  I suggest  that  the 
government  enter  into  an  arrangement,  if  possible,  with  the  lessee, 
whereby  the  lease  is  mutually  cancelled,  for  a proper  considera- 
tion, and  a fee  simple  title  to'  at  least  1000  acres  be  granted  to 
the  lessee.  The  balance  of  the  cane  land  consists  of  more  than 
6000  acres  and  can  be  opened  to  settlement  under  the  present  law. 
Several  hundred  acres  of  beach  property,  and  land  lying  within 
