34 
forth clearly at a number of different times. The Puna forest 
is par excellence a commercial forest. The question at issue is 
whether the present is the right time at which to put the policy 
of utilization into practice. 
This question has for many months had my most careful 
thought. ~\ly conclusion is that it is right to cut and that the 
interests of the Territory will be better served if the rights to lum- 
ber this tract are sold now rather than that if work is delayed 
until some future time, in the hope of then securing somewhat 
more favorable terms. 
My reasons for this conclusion are that the forest on this gov- 
ernment land is mature and ready to be cut ; that while it might 
not deteriorate in quality during, say the next decade, it cannot 
be expected to improve ; that the government may reasonably ex- 
pect to obtain as favorable terms for its lumber now as at any 
time in the near future; and that a considerable part of the land 
proposed to be cut over, being justly to be regarded as agricul- 
tural in character, it is right that it should be developed and put 
to use. 
If this area of agricultural land is made available it will serve 
botli as an added source of revenue to the Territory and also ulti- 
mately, for the purpose of settlement and home making. It is 
proposed as one of the terms of the logging contract that the 
Licensee shall make this land' available for settlement through 
the construction of a road bed for a railroad, thus bringing the 
area into easy communication with Hilo. The need in Hawaii is 
for additional areas of agricultural land. This seems a way in 
which to help meet the demand. 
I think it is obvious that where the Territorial Government 
has agricultural land capable of development, the requisite steps 
should be taken to make that area available. It is true that in the 
present instance there is little exact information in regard to the 
tract, but I believe it is fair to assume that a considerable part of 
the land proposed to be cut over can be used for agriculture. This 
being so I believe the government is justified in seeking to obtain 
returns from an otherwise unproductive asset while at the same 
time fulfilling its policy of putting all its land to its highest pos- 
sible use. 
For these reasons and provided it appears that a suitable price 
can be secured at public auction for the stumpage rights on these 
lands, I approve the proposal to lumber the Kaohe forest, both the 
homestead lots and the mauka lands and accordingly I recommend 
that the Board give its sanction to the project. 
I further recommend that the non-arable area be set apart as 
soon as may be as a forest reserve and the money derived from 
the sale of the stumpage on that area held, as the forest law pro- 
vides, as a special fund to be used for forest work. If this is 
done I believe the interests of the Territory will be better served 
