353 
good,  yet  they  are  usually  the  main  highways  and  do  not  extend 
to  areas  that  are  most  favorable  for  homesteads.  This  will  be 
corrected  in  time,  but  the  fact  remains  that  your  highways  should 
go  ahead  of  your  homestead  settlements. 
The  second  difficulty  is  the  lack  of  railroads  on  the  islands. 
Each  island  should  be  belted  by  a well  equipped  road  which 
sends  spurs  into  the  interior,  and  moreover,  the  construction  of 
these  roads  must  precede  extensive  homestead  settlement ; especi- 
ally will  this  be  true  if  the  Reclamation  Act  is  extended  to  these 
Islands.  It  is  not  likely  that  the  Federal  Government  will  ex- 
pend vast  sums  of  money  to  reclaim  homestead  lands  unless  there 
is  guaranteed  in  some  way  suitable  railroad  outlets  to  harbors. 
Right  here  we  must  face  the  fact  that  the  bonds  of  any  railroad 
constructed  in  advance  of  traffic  or  terminal  outlets  are  not  sale- 
able at  the  present  time.  This  difficulty  is  a practical  one  so  far 
as  railroad  construction  is  concerned,  but  it  does  not  change  in 
any  degree,  the  necessity  for  the  railroad  construction  in  advance 
of  settlement  in  this  Territory.  It  is  a plain  business-like  propo- 
sition that  in  order  to  secure  the  construction  of  such  roads  the 
interest  on  the  bonds  thereof  should  be  guaranteed  by  the  Terri- 
tory. A socialistic  proposition  is  it  not.  I grant  that  it  is  ex- 
ceptional, yet  in  urging  exceptional  things,  I am  merely  taking 
my  cue  from  the  citizens  of  this  Territory.  You  are  constantly 
urging  that  the  political  and  industrial  problems  of  this  Territory 
should  not  be  interpreted  from  the  same  point  of  view  as  similar 
problems  are  in  the  States.  In  that  contention  you  are  correct, 
but  I contend  that  the  exceptional  conditions  extend  into  trans- 
portation as  they  do  into  everything  else.  You  must  have  the 
railroads  in  advance  of  traffic.  The  only  way  to  secure  them  is 
to  guarantee  the  interest  on  the  construction  bonds. 
The  third  transportation  difficulty  is  the  lack  of  harbors.  It 
costs  a heap  of  money  to  tranship  freight  by  small  boats  from  shore 
to  steamer.  It  is  a very  familiar  saying  among  transportation 
men  that  it  costs  very  little  to  turn  the  wheels  of  a car  or  of  a 
steamship  after  you  have  once  delivered  the  freight  on  board,  but 
the  major  part  of  the  charge  is  the  transhipment  and  terminal 
charge.  Harbors  are  necessary  and  the  steamers  should  be  able 
to  go  to  docks  to  receive  and  discharge  their  freight.  Fewer  and 
better  landings,  enormous  freights,  better  service  and  lower 
charges  would  result. 
The  Territory  would  profit  greatly  by  an  increase  in  inter- 
island traffic.  Productive  trade  relations  should  always  begin  at 
home.  You  cannot  expect  to  serve  the  world  markets  with 
diversified  products  until  you  are  successful  in  serving  each  other. 
You  have  great  home  demands  which  you  could  supply  your- 
selves but  which  are  now  served  by  imports.  The  fault  does  not 
lie  in  the  lack  of  productive  soil,  but  in  the  fact  that  it  is  cheaper 
to  serve  the  local  markets  with  supplies  from  San  Francisco  than 
from  your  own  fields.  Transportation  is  the  preventive.  The 
