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precedent to the establishment of such governments, and the principles and limitations to be recognized in their organization, under which any community within the conditions may proceed to acquire corporate existence whenever it shall so desire.

Should the Legislature find itself unable, at this session, to agree upon satisfactory legislation in this matter, it would doubtless facilitate the progress of the work in the future if it should make provision for the appointment and adequate pay of a commission of several persons to prepare a general scheme for both county and city government, and report to the next regular session of the Legislature.

The Executive is in correspondence with the Bureau of Forestry of the Federal Government in regard to the temporary services of an expert forester to examine the forests of the Territory and advise the Government on questions pertaining to their preservation, the need of reforesting and the extent to which deforesting may be safely permitted. The Bureau favors sending one of its own skilled foresters as soon as one can be spared. The Territory will, however, be required to pay his expenses and a reasonable salary. An item has been placed in the Estimates for this purpose.

The plan of the Department of Agriculture at Washington to establish an agricultural experiment station here is one of great importance to the Territory. Such a station conducted by trained men will be of inestimable value to our agricultural population in testing the capabilities of various plants producing food, fibre and other valuable products in our climate and soils, and in introducing scientific methods of cultivation. The small farmer will be especially benefited by such experiments, and it is to the prosperity of the small farmer that much of our social and political advancement will depend. Our own Department of Agriculture and Forestry will work with such a station in promoting the development of our agricultural resources.

A considerable appropriation is recommende:l for roads and harbor improvements. Roads are a necessary condition of commercial and agricultural growth. Much progress l:as been made in this direction during the past four years. I highway for wheeled vehicles has been nearly completed around the Island of Ilawaii. It should be finished in the coming period. The increase in the number of homestead settlements requires many new roads; the growtli of Ilonolulu and Ililo demands new streets of the best quality.

The increase of our commerce calls for more wharves and fome harbor enlargement. The Territory must carry on this work until such time as it may be taken up by the Federal GovernThe Territorial Act requires the Legislature at its first regular session after the census enumeration shall be ascertained to reapportion the membership in the Senate and Ilouse of Representatives among the Senatorial and Representative districts on the basis of the population of citizens of the Territory in each of said districts. The Executive is in correspondence with the Director of the Census in the matter of such information and is assured that it will be furnished as soon as it is ascertained. ' l'pon the receipt of such information by the Executive, it will be promptly sent to the Legislature.

dent.

Previous to the going into effect of the Territorial Act, the Post Office Inspector in charge at Honolulu directed the country postmasters of these Islands to forward the Hawaiian postage stamps in their possession on the 14th day of June to the Post Office Department in Washington, which direction was generally followed. These stamps in every case were owned by such postmasters, it having been the practice in the postal bureau under the Republic of Hawaii to require the postmasters outside of Ilonolulu to purchase the stamps required by them for the business of their respective post offices, and to sell them to customers on their own account. A number of these postmasters requested the Washington Department to return either the stamps or their value in money or American stamps. Such requests were refused, and the applicants were referred to the Territorial Government. As but two or three of these claims have been sent to be, I would recommend the Legislature to notify such postmasters to send ir sworn statements of the amount of their losses in this matter, and thereupon to place an item in the appropriation bill for their payment.

l'nder the appropriation of the Council of State for the expenses of a Hawaiian exhibit at the Paris Exposition, Mr. William G. Irwin, of Honolulu, was appointed a Cornissjoner to take charge of the enterprise, and later Mr. Alfred Iloule, formerly Ilawaiian Consul General at Paris, was appointedl Assistant ('ommissioner. The prevalence of the bubonic plagne in Honolulu last winter seriously interfered with the preparation of articles for exhibition and, through the quarantire regulations, delayed and well nigh defeated the undertaking. From these causes the installation of the exhibit was barely in time to receive the inspection of the jury on awards.

In spite of these drawbacks, the articles displayed, especially those illustrative of educational work in the public and Kamena meha school, attracted interest. The Department of Public Instruction received a grand prize for primary instruction; the Kamehameha schools received a gold medal for manual training work, and the Hawaiian Planters' Association was awarded a

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gold medal for exhibit of Hawaiian sugars. Commissioner Irwin was tendered the decoration of a Chevalier of the Legion of Ilonor in recognition of the participation of the Territory of Hawaii in the Exposition.

I have recommended an increase in the appropriation for Kapiolani Park. This pleasure ground has become essential to the Honolulu community. Much has been done with small ppropriations for carrying it on in past years, but there is much more that is necessary to be done. The race course cannot be mitted to absorb a large part of the park area indefinitely. The release of such area will make an important addition to the Park proper, which will require skill and money for its arrangement in conformity with the surrounding grounds. A greater attention to landscape effects than heretofore is desirable. This means more skill at a greater cost.

The report of the Commissioners shows forcibly the need of an increased outlay for watering facilities among other things.

The Legislature of 1898 made provision for the appointment of a Commission of three persons to investigate the subject of taxation and report at the succeeding session. Mr. William R. Castle, of Honolulu; Mr. Henry P. Baldwin, of Mani, and Nr. Alexander G. M. Robertson, of Ilonolulu, were appointed on this commission. Considerable preliminary work was done, but he

failure of a regular session in 1900, together with the long-continued uncertainty as to the time when the Legislature would -it, led to a cessation of the work of the Commission. iust before the election of last November, Mr. Baldwin and Mr. Robertson, who had decided to become candidates for election to the Legislature, resigned from the Commission.

I recommend legislation providing for the appointment of Commissioners of Deeds for the Territory in other parts of the world, amending the laws relating to the Board of Ilealth to allow the President of the Board to receive a salary, amending the statute of vagrancy to include as vagrants all persoas conducting an illicit business, creating tire limits in the town of Ililo, and extending the fire limits of Honolulu, providing for merchandise licenses, repealing statute reserving belts of trees along new forest roads, amending the military law and creating the office of Adjutant General, enlarging the list of articles exempt from attachment, requiring building permits within certain limits in Bionolulu and Ililo and perhaps other towns to be passed upon by an officer of the Board of Ilealth as to sanitary condition of the ground and sanitary character of the plans, providing for the election of a Delegate to ('ongress, amending the lie: law to require plantiff to prove delivery and good faith, rastricting the sale and use of opium, regulating the sale of spirituous liquors, pro

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tecting the Territory from the immigration of persons afflicted with contagious diseases, and carrying out the recommendations of the Attorney General in regard to the status and punishment of offenses, and the jurisdiction of District Magistrates in crinninal proceedings, the custody of kerosene anii gunpowder, and Chapter 56 of the Penal Laws.

I also recommend legislation for the protection and increase of Hawaiian food fish.

I shall submit in a few days a brief list of supplementary estimates.

Reports making recommendations for appropriations from the different departments and bureaus together with the annual reports of departments have been prepared and will be submitted for your assistance. I commend them to your careful study as giving a comprehensive statement of the conduct of all executive and judicial matters.

During the past year the Hawaiian community has twice been called upon to mourn the death of members of the last royal line of the monarchy--her late Majesty Queen Dowager Kapiolani, widow of his late Majesty King Kalakaua, and her late Royal Ilighness Princess Kaiulani, daughter of her late Royal Highness Princess Likelike and the Ilonorable Archibald S. (leghorn.

State obsequies were tendered to the remains of both of these esteemed Aliis, and the mourning for them by all classes and nationalities was general and sincere.

Public feeling was deeply aroused by the death of Princess Kaiulani. ller beauty and charm, the romantic iucidents of her short life in connection with her brilliant political prospects as

presumptive to the Hawaiian throne, and their frustration by no fault of hers, her brave acceptance of the new and difficult situation, and the tact and sincerity she displayed in her changed relations with the Government and the people, had won for her a widespread interest and the respect and regarl of the commuunity. Her sudden death coming when she bad vindicated her superiority to circumstances and bad with sweetness and gentleness turned her feet to the humbler life, feeling that the best things were still hers to live for, and people were fast recognizing her nobility of character, was most pathetic and at the same time most favorable to the permanence of tender and affectionate memories of her life and personal qualities.

In inaugurating local legislation for Hawaii nei in its new political departure, you hold a most conspicuous position before present and future generations, and one probably of unusual in

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fluence.

The past with its record of success and failure cannot be changed. You may go to it for lessons, but your work is for the future. You can hardly fail in your legislative procedure to make important precedents. It is in your power to create useful or injurious ones. When the people of the future years shall talk about the first Legislature of the Territory of Hawaii

, the first Hawaiian Legislature of the Twentieth century, their verdict of your work will be such as you now lay the foundation for.

SANFORD B. DOLE. Executive Chamber, February 20th, 1901.

ESTIMATES

SUBMITTED BY THE GOVERNOR

TO

THE LEGISLATURE OF THE TERRITORY OF HAWAII,
AT ITS REGULAR SESSION FOR THE YEAR
1901, FOR APPROPRIATIONS FOR THE

SC'CCEEDING BIENNIAL PERIOD.

To the Legislature of the Territory of Hawaii:

I herewith submit to your Honorable Body estimates for appropriations for the succeeding biennial period.

SANFORD B. DOLE.

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SALARIES AND PAY ROLLS.

PERMANENT SETTLEMENTS. Mrs. Emma Barnard

600 00

Mrs. Kamakani Simeona

400 00

Mrs. Kaulua

400 00

720 05

Mrs. Mary Stolz
Mrs. Paahao

400 00

Sergeant H. E. Petersen

900 00

3,420 00

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