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leases.

Proviso.
Lands ex-

surveys, construction work, and so forth; that the rent Rent, etc. to be paid for said lands shall be at the rate of one dollar per acre per annum, payable to the Territory, at its option, either in water from the waterways of the Ditch Company at the lowest rate payable by any consumer of water furnished by the company, or in cash, or partly in water and partly in cash, in such proportions as the Territory may elect; that the Ditch Company shall furnish to homesteaders or settlers along the line of the company's waterways, or such other person or persons along said waterways as the commissioner, with the approval of the governor, may direct, at a point or points to be designated by such officials, such water as the Territory at its option elects to take by way of rental for said public lands. The Ditch Company shall have full right to sublet the said lands or any part thereof, or to assign the lease in whole or in part, either by way of security or otherwise, subject, however, in all things to the provisions hereof. The lease shall be made subject to any Existing unexpired and outstanding lease of any or all of such lands and shall contain appropriate provisions to secure the construction and maintenance of the necessary works for supplying such lands with water, and the reversion of such works to the Territory upon the termination of the lease, as hereinafter provided : Provided, however, That nothing herein shall authorize the withdrawal of cluded. any lands now open or applied for for settlement purposes. Sec. 6. That not more than thirty per centum of the

opening leased lands so held under lease by the Ditch Company may at lands for any time after the expiration of six months from the date of the first delivery of water as aforesaid by the Ditch Company be withdrawn for public purposes or homesteaded or sold for other purposes under the laws relating to public lands in Hawaii, such withdrawal of lands to be, as far as practicable, in blocks of not less than five hundred acres, and the right of way of the Ditch Company through such land so withdrawn to be reserved to it, in which case the rent reserved shall be proportionately reduced at the rate of one dollar per acre for the land so withdrawn, homesteaded, and sold: Provided, That written notice of intention to withdraw any portion of such public lands, together with a proper de- withdrawal. scription of the lands so to be withdrawn, shall be served upon the Ditch Company by the commissioner, with the approval of the governor, not less than three calendar months before such withdrawal is to take effect: Provided also, That growing crops, if any, upon said lands so to be Growing withdrawn may be harvested by the Ditch Company or those holding under it before such withdrawal is or shall be operative: Provided further, That the Ditch Company lands so with shall furnish to the lands withdrawn, for the purposes drawn. aforesaid, the same proportionate quantity of water per

Limit on

homestead.

Proviso8.
Notice of

crops.

Water

.

Conditions.

acre as is contracted for by the larger lease-holders for the Government lands irrigated under this project, and at the same rates, if the homesteader or other person holding the beneficial use of the lands so withdrawn desires to contract for the same.

Sec. 7. That the lease shall go into effect when the Ditch Company shall have constructed a ditch from said district of Hilo to Pahala, in said Kau, with a delivery capacity of one hundred million gallons of water per day of twenty-four hours, and when fifty million gallons of water shall have been actually delivered by means of said waterway to said Pahala within a period of twenty-four consecutive hours, such date to be ascertained by the commissioner and fixed by him with the approval of the governor. Notice of the fixing of such date and the consequent beginning of the term of the lease shall be communicated in writing to the Ditch Company by said

officials within ten days from the date thereof. Amounts to Sec. 8. That a sum not less than fifty thousand dollars be expended.

in cash shall be actually expended by the Ditch Company in preliminary surveys, construction work upon said ditch or reservoirs, or for other good and useful purposes in that behalf within one year, one hundred thousand dollars within two years, and one million dollars within three years from the date of the approval of this Act

by the President. Completion. Sec. 9. That the ditch shall be completed as far as said

Pahala within four years, and as far as Waiohinu, in said
Kau, within five years from the date of said approval.

Sec. 10. That if the Ditch Company shall fail to exexpend sums, pend such respective sums of money, or any of them.

within the respective times aforesaid, for the purposes aforesaid, then, and in any such case, all of the rights, powers, and privileges hereby granted, and the said lease shall be forfeited and be null and void and of no effect, and all works and improvements up to that time erected or constructed shall immediately revert to and become the property of the Territory.

Sec. 11. That if after such expenditures shall have been made the Ditch Company shall fail to observe or perform any of the terms, requirements, or conditions herein contained or prescribed, the governor shall give the Ditch Company written notice to furnish to him, within three months from the date of such notice, assurances and proofs satisfactory to him that such breach or failure will be remedied and all terms, requirements, and conditions herein contained or prescribed observed, performed, or complied with within one year after the date of such notice. If the Ditch Company shall fail to furnish to the governor assurances and proofs as aforesaid within such term of three months, or if, having furnished the same, there shall at the end of said term of one year remain unperformed, unfulfilled, or unob

Forfeiture for failure to

etc.

2

Compliance with terms, etc.

Forfeiture if unfulfilled.

.

from taxes.

power rates.

served any term, requirement, or condition herein contained on the part of the Ditch Company to be observed, kept, or performed, then and in such case all of the franchises hereby granted and the said lease shall be forfeited and be null and void and of no effect. Sec. 12. That the times herein fixed for completion of time. tension of

, etc., al the said ditch to various points, for the expenditure of lowed. moneys in surveys, construction, and other work aforesaid, and for the doing of any other or different act required of the Ditch Company, may for good cause shown be extended by order of the governor for a time which he shall deem reasonable in view of such cause: Provided, That such action by the governor shall be subject to secretary

Review by review by the Secretary of the Interior.

Sec. 13. That the corporation formed by the said J. T. Freedom McCrosson as aforesaid, for the purposes aforesaid, and its property used for or in carrying into effect the purposes aforesaid, or any of them, and its income shall be free from Territorial, municipal, and county property and income taxes for the term of ten years after the approval of this act.

Sec. 14. That the rates at which water flowing along Sale of said ditch, and power produced thereby or incidental water and thereto, shall be sold to applicants shall be fixed and published from time to time by the Ditch Company, with the approval of the governor, and such rates shall be the same to all.

Sec. 15. That such rates shall be based upon the yield- Basis of ing of not more than sufficient revenues, in connection rates. with all other revenues of the company, to pay the following, namely:

First. The reasonable expenses of maintenance and Operation. operation of the ditch and other plant and appurtenances.

Second. Interest on any bonds issued to procure money with which to construct the ditch and other plant and appurtenances at a rate not to exceed six per centum per annum, payable semiannually.

Third. An annual sinking fund to redeem all of such Sinking bonds within the term of the lease and franchises hereby granted.

Fourth. Dividends on the capital-stock issue of the Ditch Company at a rate not to exceed eight per centum upon the actual cost of the ditch and other plant and appurtenances.

SEC. 16. That if at any time the income of the Ditch Reduction of Company shall exceed a sum sufficient for the purposes aforesaid the rates for water and such power shall be reduced to an estimated figure, approved by the goverpor, which will produce an income in compliance with the provisions of the section last aforesaid.

Sec. 17. That the Ditch Company shall at the end of Reports reeach fiscal year ending June thirtieth file with the gover-nually.

quired annor a report showing what its transactions have been

Interest bonds.

on

fund.

Dividends.

rates,

revert to Ter

of lease.

thorized ten years.

during the previous year; what additions to the plant, if any, have been made; the actual cost thereof; its receipts and whence derived; and expenditures and for what made during the previous year. Such reports shall be open to public inspection. The books, papers, accounts, and records of said Ditch Company shall at all times be subject to the inspection of the governor or the commissioner and to any agent or representative of said

officers or either of them. Property to Sec. 18. That at the end, or sooner determination, of

to Tera the lease and franchises herein provided for the ditch ritory at

and other plant and appurtenances shall revert to and become the property of the Territory of Hawaii, without payment therefor and free of all charges, expenses,

liens, or obligations whatsoever. Purchase by SEC. 19. That the Territory of Hawaii may at any Territory au

after time after ten years from the completion of the ditch

purchase from the Ditch Company the ditch, together with all property and rights of whatsover nature appertaining thereto, or used in connection therewith, for a

sum equal to the cost thereof plus twenty per centum Determina., of such cost. The amount to be paid to the Ditch Comtion of prices.

pany for such purchase shall be determined by a commission of three persons, one to be appointed by the Ditch Company, or in case it should fail to do so within thirty days after requested to do so by the governor, then by the chief justice of the Supreme Court of Hawaii; one by the purchaser; and the third by the two so appointed, or in case they should fail to agree upon the third member within thirty days, then by said chief

justice. Appeal from Either the Ditch Company or the Territory may ap

peal to the Supreme Court of Hawaii from the decision of such commission by filing a written notice of appeal with the commission within five days after the decision is rendered. It shall thereupon be the duty of the commission immediately to certify up to the supreme court the record of its proceedings, showing in such certificate the valuation claimed by the association, the valuation claimed by the purchaser, and the valuation as determined by the commission. Such certificates shall be accompanied by copies of all papers, documents, and evidence upon which the decision of the commission was based and a copy of such decision. Upon any such appeal the supreme court may, in its behalf, take or re

quire further evidence to be introduced by either party. Payment, Within six months after the determination of the

purchase price as aforesaid the same shall be paid to the Ditch Company. In the event such payment is not made within the time limited, all proceedings theretofore had shall lapse and be of no further force of effect.

Sec. 20. Congress reserves the right to alter or amend ment, etc.

decision.

etc.

this Act.

Amend.

CHAP. 263.-An Act To prohibit the importation and the inter- July 31, 1912. state transportation of films or other representations of prize [S. 7027. ] fights, and for other purposes.

[Public, No. (Applicable to Territories. See p. 199.)

246.) 37 Stat. L., pt. 1, p. 240.

Leland s. Con

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CHAP. 270.-An Act Granting a franchise for the construction, Aug. 1, 1912. maintenance, and operation of a street railway system in the dis- (H. R. 18041.) trict of South Hilo, county of Hawaii, Territory of Hawaii.

[Public, No.

251.]

37 Stat. L., Be it enacted by the Senate and House of Representa

pt. 1, p. 243.

South Hilo, tives of the United States of America in Congress as- Hawaii. sembled, That wherever in this Act the following words, Franchise to and phrases appear or are used they shall be held to have ness, and the following meaning, unless the context clearly indi- others. cates otherwise: (a) “Association” shall mean and include Leland S. Meaning of

words. Conness, W. H. Johnson, and their associates and

Associa

' assigns, or such corporation as may be organized by tion." them to take over and exercise the rights and privileges conferred by this Act. (b) "Governor" shall mean the governor designated

“ Governor." as such in the organic act. (c) “ Superintendent” shall mean the person from Superin

tendent." time to time acting as the superintendent of public works of the Territory of Hawaii referred to in the organic act, or any lawful successor in power or duty.

(d) “Railway" shall mean the rails, tracks, roadway, " Railway." with its appurtenances, appliances, and connections, and the poles and underground or overhead equipment, which may be placed in, along, or upon the highways, streets, roads, thoroughfares, and places on the island of Hawaii, under the provisions of this Act.

(e) “ District ” shall mean that portion of the island “ District." of Hawaii which is included in the political subdivision known as the South Hilo district, as now defined in Act Eighty-four of the Session Laws of nineteen hundred and nine.

(f) “Board” shall mean the board of supervisors elected for the county of Hawaii, and acting under the provisions of Act Thirty-nine of the Session Laws of nineteen hundred and five and all amendments thereto, or any lawful successor in power or duty. Sec. 2. That, subject to the provisions, conditions, re

Right grant quirements, and limitations in this Act contained,' the ed to build, right and authority is hereby granted to the association street railto take over and exercise the rights and privileges conferred by this Act; to construct, maintain, and operate a railway and railway system, for the transportation of passengers, freight, mail, and for other purposes, upon and along the streets, roads, and places hereinafter described and indicated, either of single or double track, or

“* Board."

etc., electric

ways.

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