PROPOSED AMENDMENTS TO THE ORGANIC ACT OF THE

TERRITORY OF HAWAII.

COMMITTEE ON THE TERRITORIES,
HOUSE OF REPRESENTATIVES,

Thursday, June 9, 1921.

The committee met at 10 o'clock a. m., Hon. Charles F. Curry (chairman) presiding.

The following persons were present: Charles A. Rice, chairman of the Hawaii Legislative Commission; Senator John H. Wise; Senator H. W. Rice; Attorney General Harry Irwin, legal adviser of the commission; W. W. Goodale; John R. Desha; and Senator Charles Chillingsworth, president of the Territorial senate.

The CHAIRMAN. The committee will come to order. We have met this morning for the purpose of considering H. R. 6207, which is known as the Hawaiian rehabilitation bill. The title of the bill is: "To amend an act entitled 'An act to provide a government for the Territory of Hawaii,' approved April 30, 1900, as amended, to establish an Hawaiian homes commission, and for other purposes.

This bill was considered by this committee at the last session of Congress and by a unanimous vote was favorably reported and passed the House by a unanimous vote. It was favorably reported by the Senate committee, but was not acted upon by the Senate.

The bill as presented at this session contains a few amendments to the bill that were considered by the House at the last session of Congress. At the last session we had full and complete hearings on this bill. I do not suppose it is necessary, as those hearings are in print, to go as thoroughly into the merits of the bill as we did at the last session. There is a commission from Hawaii present to explain the amendments to the bill and to explain any features of the bill that the committee may wish to go into. The commission was appointed by the Legislature of Hawaii, and if there is no objection I will call upon the chairman of the commission to make a statement.

STATEMENT OF MR. CHARLES A. RICE.

Mr. CHARLES A. RICE. I would like to present this bill as the bill that was passed by the legislature (H. R. 6207), with concurrent resolution by the legislature, and I have a typewritten copy of the bill containing the amendments to the old bill, the amendments being underlined. I will ask the attorney general to explain the amendments to the committee.

The CHAIRMAN. The number of the bill considered at the last session was H. R. 13500. The bill you present at the present time is the one that was approved by the Legislature of Hawaii.

Mr. CHARLES A. RICE. Yes, sir.

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The CHAIRMAN. This is the bill that the legislature wishes to be approved by Congress.

Mr. CHARLES A. RICE. Yes.

The CHAIRMAN. The typewritten copy of the resolution and bill referred to by Mr. Rice will be incorporated in the record, and the amendments, which are underlined, will be printed in italics. (Said resolution and bill follows:)

CONCURRENT RESOLUTION.

Whereas the Legislature of Hawaii, during its 1919 session, passed a number of concurrent resolutions recommending to the Congress of the United States that certain amendments be made to the Hawaiian organic act, and further recommending the enactment of legislation having as its purpose the rehabilitation of the Hawaiian race; and

Whereas in compliance with the requests contained in said concurrent resolutions, House resolution No. 13500 was introduced in the Sixty-sixth Congress and passed by the House of Representatives, but was still pending before the Committee on the Territories of the Senate on the date of the adjournment of said Congress; and Whereas certain objections were urged against the rehabilitation features of said House resolution No. 13500 at the hearing held by said Committee on the Territories of the Senate; and

Whereas this 1921 Legislature of the Territory of Hawaii has previously gone on record as favoring the passage of said House resolution No. 13500, and is still of the opinion and belief that the proposed amendments to the organic act and the principles of rehabilitation substantially as set forth in said House resolution should be speedily enacted into law; and

Whereas certain amendments have been prepared for the purpose of meeting the objections that have been made to the rehabilitation features of said bill: Now, therefore, be it

Resolved by the Senate of the Legislature of Hawaii, the House of Representatives concurring, That the Congress of the United States be and hereby is respectfully requested to amend the Hawaiian organic act and to provide for the rehabilitation of the Hawaiian people by the enactment of a law substantilaly as set forth in the bill which is hereto attached and made a part hereof; and be it further

Resolved, That certified copies of this resolution be forwarded to the President of the United States, the President of the Senate, and the Speaker of the House of Representatives of the Congress of the United States, the chairman of the Committees on Territories of the Senate and of the House of Representatives of said Congress, and to the Delegate to Congress from Hawaii.

A BILL To amend an act entitled "An Act to provide a government for the Territory of Hawaii,” approved April 30, 1900, as amended, to establish an Hawaiian Homes Commission, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled:

TITLE I. DEFINITIONS.

SECTION 1. This act may be cited as the "Hawaiian Homes Commission Act, 1920." SEC. 2. When used in this act the term "Hawaiian organic act" means the act entitled "An act to provide a government for the Territory of Hawaii," approved April 30, 1900, as amended.

TITLE II. HAWAIIAN HOMES COMMISSION.

SEC. 201. (a) When used in this title

(1) The term “commission" means the Hawaiian Homes Commission;

(2) The term "public land" has the same meaning as defined in paragraph (3) ot subdivision (a) of section 73 of the Hawaiian organic act;

(3) The term "fund" means the Hawaiian home loan fund.

(4) The term "Territory" means the Territory of Hawaii.

(5) The term "Hawaiian home lands” means all lands given the status of Hawaiian home lands under the provisions of section 204 of this title;

(6) The term "tract" means any tract of Hawaiian home lands leased as authorized by section 207 of this title, or any portion of such tract; and

(7) The term "native Hawaiian" means any descendent of not less than one-half part of the blood of the races inhabiting the Hawaiian Islands previous to 1778.

(b) Any term defined or described in section 347 or 351 of the revised laws of Hawaii of 1915, except a term defined in subdivision (a) of this section, shall, whenever used in this title, have the same meaning as given by such definition or description.

SEC. 202. (a) There is hereby established a commission to be known as the "Hawaiian Homes Commission" and to be composed of five members, as follows: (1) The governor of the Territory, and

(2) Four citizens of the Territory to be appointed by the governor, by and with the advice and consent of the senate of the legislature of the Territory. At least three of the appointed members of the commission shall be native Hawaiians.

(b) Any vacancy in the office of an appointed member shall be filled in the same manner and under the same limitations as the original appointment.

(c) The governor of the Territory shall be the chairman of the commission. The commission shall designate one of its members to serve as the executive officer and secretary of the commission. The executive officer and secretary shall receive such annual salary, not to exceed $6,000, as the commission may determine. The members of the commission, except the executive officer and secretary, shall receive an annual salary of $500. Of the original appointed members of the commission, one shall be appointed for a term of one year, one for two years, one for three years, and one for four years. Their successors shall hold office for terms of four years, except that any member appointed to fill a vacancy shall be appointed only for the unexpired term of the member whom he succeeds. A member may after due notice and public hearing be removed by the governor for neglect of duty or malfeasance in office, but for no other cause.

SEC. 203. All public lands of the description and acreage, as follows, excluding (a) all lands within any forest reservation, (b) all cultivated sugar-cane lands, and (c) all public lands held under a certificate of occupation, homestead lease, right of purchase lease, or special homestead agreement, are hereby designated and hereinafter referred to as "available lands":

(1) On the Island of Hawaii: Kamaoa-Puueo (11,000 acres, more or less), in the district of Kau; Puukapu (12,000 acres, more or less), Kawaihae Island (10,000 acres, more or less), and Pauahi (750 acres, more or less), in the district of South Kohala, Kamoku-Kapulena (5,000 acres, more or less), Waimanu (200 acres, more or less), and Nienie (7,350 acres, more or less), in the district of Hamakua; 53,000 acres to be selected by the commission from the lands of Humuula Mauka in the district of North Hilo; Panaewa, Waiakea (2,000 acres, more or less), Waiakea-kai, or Keaaukaha (2,000 acres, more or less), and 2,000 acres of agricultural lands to be selected by the commission from the lands of Piihonua, in the district of South Hilo; and 2,000 acres to be selected by the commission from the lands of Kaohe-Makuu in the district of Puna;

(2) On the Island of Maui: Kahikinui (25,000 acres, more or less), in the district of Kahikinui; and the public lands (6,000 acres, more or less) in the district of Kula; (3) On the Island of Molokai: Palaau (11,400 acres, more or less), Kapaakea (2,000 acres, more or less), Kalamaula (6,000 acres, more or less), Hoolehua (3,500 ocres, more or less), Kamiloloa I and II (3,600 acres, more or less), and Makakupai (2,000 acres, more or less), and Kalaupapa (5,000 acres, more or less);

(4) On the Island of Oahu: Nanakuli (3,000 acres, more or less), and Lualualer (2,000 acres, more or less), in the district of Waianae; and Waimanalo (4,000 acres, more or less), in the district of Koolaupoko, excepting therefrom the military reservation and the beach lands; and

(5) On the Island of Kauai: Upper land of Waimea, above the cultivated sugarcane lands, in the district of Waimea (15,000 acres, more or less); and Moloaa (2,500 acres, more or less), and Anahola and Kamalomaloo (5,000 acres, more or less).

SEC. 204. Upon the passage of this act all available lands shall immediately assume the status of Hawaiian home lands and be under the control of the commission to be used and disposed of in accordance with the provisions of this title, except that(1) For a period of five years after the first meeting of the Hawaiian Homes Commission only those lands situate on the Island of Hawaii and described by name in paragraph 1 of section 203 of this title as the lands of Waimanu in the district of Hamakua, Keeaukaha and Panawa (Waiakea) in the district of South Hilo and those lands situate on the Island of Molokai which are particularly named in paragraph 3 of section 203 of this title shall be available for use and disposition by said commission under the provisions of this title and none of the remaining available lands named in said section 203 shall, after the expiration of the said five-year period, be leased, used, or otherwise disposed of by the commission

under the provisions of this title, except with the written approval of the Secretary of the Interior of the United States.

(2) In case any available land is under lease at the time of the passage of this act such land shall not assume the status of Hawaiian home lands until the lease expires or the commissioner of public lands withdraws the lands from the operation of the lease. If the land is covered by a lease containing a withdrawal clause as provided in subdivision (d) of section 73 of the Hawaiian organic act, the commissioner of public lands shall withdraw such lands from the operation of the lease whenever the commission with the approval of the Secretary of the Interior gives notice to him that the commission is of the opinion that the lands are required by it for leasing as authorized by the provisions of section 207, or for a community pasture as provided in section 211 of this title. Such withdrawal shall be held to be for a public purpose within the meaning of that term as used in subdivision (d) of section 73 of the Hawaiian organic

act.

(3) In case any land is to be selected by the commission out of a larger area of available lands, such land shall not assume the status of Hawaiian home lands until the commission with the approval of the Secretary of the Interior, makes the selection and gives notice thereof to the commissioner of public lands. The commission shall give such notice within two years after the expiration of the five-year period referred to in paragraph 1 of this section. Any such notice given thereafter shall be deemed invalid and of no effect.

SEC. 205. Available lands shall be sold or leased only (1) in the manner and for the purposes set out in this title, or (2) as may be necessary to complete any valid agreement of sale or lease in effect at the time of the passage of this act, except that such limitations shall not apply to the unselected portions of lands from which the commission has made a selection and given notice thereof, or failed so to select and give notice within the time limit, as provided in paragraph (3) of section 204 of this title. SEC. 207. (a) The commission is authorized to lease to native Hawaiians the right to the use and occupancy of a tract of Hawaiian home lands within the following acreage limits:

(1) Not less than 20 nor more than 80 acres of agricultural lands, or

(2) Not less than 100 nor more than 500 acres of first-class pastoral lands, or (3) Not less than 250 nor more than 1,000 acres of second-class pastoral lands. (b) The title to lands so leased shall remain in the United States. Applications for tracts shall be made to and granted by the commission under such regulations, not in conflict with any provision of this title, as the commission may prescribe. The commission shall, whenever tracts are available, enter into such a lease with any applicant who, in the opinion of the commission, is qualified to perform the conditions of such lease.

SEC. 208. Each lease made under the authority granted the commission by the provisions of section 207 of this title and the tract in respect to which the lease is made shall be deemed subject to the following conditions, whether or not stipulated in the lease:

(1) The lessee shall be a native Hawaiian;

(2) The lessee shall pay a rental of $1 a year for the tract, and the lease shall be for a term of 99 years;

(3) The lessee shall occupy and commence to use or cultivate the tract as his home or farm within one year after the lease is made;

(4) The lessee shall thereafter, for at least such part of each year as the commission shall by regulation prescribe, so occupy and use or cultivate the tract on his own behalf;

(5) The lessee shall not in any manner transfer to, or mortgage, pledge, or otherwise hold for the benefit of, any other person, except a native Hawaiian and then only upon the approval of the commission, or agree so to transfer, mortgage, pledge, or otherwise, hold, his interest in the tract. Such interest shall not, except in pursuance of such a transfer, mortgage or pledge to or holding for or agreement with a native Hawaiian, be subject to attachment, levy, or sale upon court process. The lessee shall not sublet his interest in the tract or improvements thereon. Upon the death of the lessee his interest in the tract and improvements thereon shall vest under the limitations provided for homesteads in section 403 of the Revised Laws of Hawaii of 1915;

(6) Beginning with the sixth year of the term of any lease and made under the authority of section 207 of this title, the lessee shall pay all taxes assessed upon the tract and improvements thereon within 60 days after they become delinquent. If the lessee fails so to pay, the commission shall thereupon pay the taxes and have a lien therefor as provided in section 216 of this title;

(7) The lessee shall perform such other conditions, not in conflict with any provision of this title, as the commission may stipulate in the lease.

SEC. 209. All successors, whether by agreement or process of law, to the interest of the lessee in any tract shall be deemed to receive such interest subject to the conditions which would rest upon the lessee if he then were the party holding the interest in the tract. Provided, That a successor receiving such interest by inheritance shall not, during the two years next following his inheritance, be deemed to have violated any of the conditions enumerated in section 208 of this title, even though he is not a native Hawaiian and does not on his own behalf occupy and use or cultivate the tract as a home or farm for such part of the year as the commission requires in accordance with the regulations prescribed by it under paragraph (4) of section 208 of this title. SEC. 210. Whenever the commission has reason to believe that any condition enumerated in section 208 or any provision of section 209 of this title has been violated, the commission shall give due notice and afford opportunity for a hearing to the lessee of the tract in respect to which the alleged violation relates or to the successor of the lessee's interest therein, as the case demands. If upon such hearing the commission finds that the lessee or his successor has violated any condition in respect to the leasing of such tract, the commission may declare his interest in the tract and all improvements thereon to be forfeited and the lease in respect thereto canceled, and shall thereupon order the tract to be vacated within a reasonable time. The right to the use and occupancy of the Hawaiian Home lands contained in such tract shall thereupon revest in the commission and the commission may take possession of the tract and the improvements thereon.

SEC. 211. The commission shall, when practicable, provide from the Hawaiian home lands a community pasture, adjacent to each district in which agricultural lands are leased as authorized by the provisions of section 207 of this title.

SEC. 212. The commission may return any Hawaiian home lands not leased as authorized by the provisions of section 207 of this title to the control of the commissioner of public lands. Any Hawaiian home lands so returned shall, until the commission gives notice as hereinafter in this section provided, resume and maintain the status of public lands in accordance with the provisions of the Hawaiian organic act and the revised laws of Hawaii of 1915, except that such lands may be disposed of under a general lease only. Each such lease, whether or not stipulated therein, shall be deemed subject to the right and duty of the commission of public lands to terminate the lease and return the lands to the commission whenever the commission with the approval of the Secretary of the Interior gives notice to him that the commission is of the opinion that the lands are required by it for leasing as authorized by the provisions of section 207 of this title or for a community pasture.

SEC. 213. There is hereby established in the treasury of the Territory a revolving fund to be known as the "Hawaiian home loan fund." The entire receipts derived from any leasing of public lands under the provisions of section 212 of this title and 30 per centum of the Territorial receipts derived from the leasing of cultivated sugar-cane lands under any other provision of law, or from water licenses, shall be covered into the fund until the total amount of the moneys paid therein equals $1,000,000.

SEC. 214. The commission is hereby authorized to make loans from the fund to the lessee of any tract or the successor to his interest therein. Such loans may be made for the following purposes:

(1) The erection of dwellings on any tract and the undertaking of other permanent improvements thereon;

(2) The purchase of live stock and farm equipment; and

(3) Otherwise assisting in the development of tracts.

SEC. 215. Each contract of loan with the lessee or the successor to his interest in the tract shall be held subject to the following conditions, whether or not stipulated in the contract of loan:

(1) The amount of loans to any one borrower outstanding at any one time shall not exceed $3,000.

(2) The loans shall be repaid upon an amortization plan by means of a fixed number of annual installments sufficient to cover (a) interest on the unpaid principal at the rate of 5 per centum per annum, and (b) such amount of the principal as will extinguish the debt within an agreed period, not exceeding 30 years. The moneys received by the commission from any installment paid upon such loan shall be covered into the fund. The payment of any installment due shall, with the concurrence therein of at least three of the five members of the commission, be postponed in whole or in part by the commission for such reasons as it deems good and sufficient and until such later date as it deems advisable. Such postponed payments shall continue to bear interest at the rate of 5 per centum per annum on the unpaid principal and interest.