These figures do not include persons in the military and naval service of the United States. The economic progress of the oriental races in Hawaii has been shown so thoroughly by the census statistics that little additional is necessary to reenforce those figures. According to the assessment rolls, the property of the Japanese, upon which taxes were paid, rose in value from $128,163 in 1901, to $168,545 in 1904, and $1,748,179 in 1909, an increase in eight years of over 1,264 per cent. During the same eight years the assessed valuation of property owned by Chinese taxpayers rose from $1,320,084 to $3,325,801. The total property valuation of the Territory is $146,566,222; the total reported income $669,539 annually. The full figures of taxation for Portuguese, Chinese, and Japanese are given in the following table: NUMBER OF TAXPAYERS, ETC., IN HAWAII OF THE PRINCIPAL NATIONALITIES FROM WHICH ASSISTED IMMIGRANTS HAVE COME, 1909. The property tax is levied upon an assessed valuation assumed to be nearly the true valuation, which it is in case of much of the property here affected. However, in condemnations, considerably more than assessed valuation is claimed and paid. There is a $300 exemption, which makes the sum here given much less than the total property held by these nationalities in Hawaii. The general income tax is 2 per cent on all incomes over $1,500 (formerly $1,000) per annum, and the special income tax 2 per cent on all incomes over $4,000 per annum, with an exemption of $1,000 from the aggregate income of each family composed of parents and minor children; 4 Portuguese, 6 Chinese, and 2 Japanese pay the special income tax. The report of 1905 contained a summary of educational conditions in Hawaii which requires little amendment to be equally true at the present time. The growth of educational facilities has been hardly •normal, because of insufficient appropriations; but the school system as a whole is about on a par with that of our Western States. The College of Hawaii has been established, with the assistance of Federal appropriations, under the agricultural college law, but has not yet developed advanced courses or procured a complete equipment, though favorable progress has been made. The proportion of orientals in the public and private schools continues to increase, the latest figures being as follows: RACE OR NATIONALITY OF CHILDREN IN PUBLIC AND PRIVATE SCHOOLS OF HAWAII, 1900 TO 1910. (Reports of the governor of Hawaii to the Secretary of the Interior for the fiscal years ended June 30, 1909, and June 30, 1910.) Total.. 15,537 | 17,519 18,382 18,415 20,017 21,644 21,890 23,087 23,445 24,889 25, 537 1 These numbers are as of June 30 for public schools and Dec. 31 of the previous year for private schools. The enrollment of Japanese children continues to increase both relatively and absolutely faster than that of any other race; but this rate of increase was last year less than for any other year since 1902. One of the most significant facts of the educational history of this period has been the increase in school facilities provided privately by the Japanese residents for their own children. The facts are given in the documents submitted by the Japanese laborers at the time of their strike in 1909, and are published on page 736 of this report. THE SUGAR INDUSTRY. CENTRALIZATION OF THE INDUSTRY. The sugar plantations of Hawaii are conducted under a centralized administration, in which planting and manufacture are combined. Instead of a few large centrals, buying cane from many small cultivators of more or less independent status, each mill owns or leasesusually leases—and directly operates in its immediate vicinity tracts of land varying from several hundred to several thousand acres. The number of employees on such a plantation may be 2,000 or 3,000, and the capital invested $4,000,000 or $5,000,000. This system of agriculture is due to both historical and economic. causes. Under the Polynesian feudalism, which determined land tenures in the islands, the land was originally in large domains, which have in many places persisted until the present time. The largest plantations, in the semiarid sections which are best adapted to cane culture, could be developed only by heavy capital expenditures for artesian wells and pumping plants, or by ditches to the windward side of the island, as long and as difficult and expensive to engineer as a traffic canal. The system of contract labor, at first native Hawaiian, later Chinese, and finally Japanese and Portuguese, which continued in a modified form until the annexation of the islands to the United States, favored the operation of labor in large units. Finally the extensive capital required to market in our eastern seaports a crop from a place so distant as Hawaii placed the control of the industry in the hands of large merchants or of credit institutions, who found it easier to deal with large than with small producers. Some predict that the increasing subdivision of lands now occurring in Hawaii, the abolition of the contract system and restriction of oriental immigration, the increasing competition for freights and closer commercial intercourse with America, and the movement toward the public control and conservation of natural resources which is likely to react upon irrigation methods in Hawaii, will ultimately bring about a reorganization of the sugar industry upon a centralmill, small-farm basis. However this may be in the future, the past five years have witnessed an increasing centralization of this industry; large plantations have been combined into still larger plantations; sugar-factor firms, which represent the center of financial control, are fewer but stronger than in 1905; local transportation, both by land and by water, is more centralized and in more direct relations with sugar-producing interests; and steamship lines to the mainland are more closely allied than ever with sugar factors and planters. While the same general organization of the sugar industry prevails throughout Hawaii, the methods of cultivation and transportation, and the actual size of the plantations, are quite different according to varying natural conditions. Some plantations are small because the amount of arable land, or of land that can be put under water, tributary to a mill, is limited. The windward plantations are relatively smaller because the broken country on that side of the islands makes natural boundaries which it is not economical to transcend. The superabundant water allows cane to be flumed to these mills, while elsewhere private railways are the chief dependence for transportation. As a rule cultivation methods are not so intensive in the rainfall as in the irrigated districts, and the product per acre is not so large. STATISTICS OF PRODUCTION. The general statistics of the sugar industry are probably shown with more accuracy and detail in the report of the latest census than in compilations from private sources. These tables, however, do not show the variations of the industry during the years intermediate between 1899 and 1909. The total crops for the 10 years ending (OCT. 1-SEPT. 30), 1901 TO 1910, BY ISLANDS AND PRODUCING COMPANIES. 2,000 pounds to the ton.) 1 Beecroft Plantation. (o. 325 1.135 1.679 5, 925 8, 293 5,526 6,011 6,831 2. 134 4. 04.2 1,000 1, 271 1,589 1,746 1, 275 1.415 2,154 2, 103 2,141 2,225 1,037 9, 405 9, 431 15,795 19,179 19, 453 9,315 7. 493 4, 342 4,331 2,931 3, 459 5,263 5.055 7, 173 6,627 6,000 4,907 6, 167 6, 477 6,677 7,590 6,873 7.012 145 307 366 201 202 398 400 661 992 1, 474 550 438 500 223 169 403 835 352 2, 460 3,603 3,146 3, 147 867 1, 172 1.691 2,003 3,380 1,776 2, 166! 2,570 2,828 3, 259 10, 800 3, 160 1,811 8,700 9,954 6,151 7,661 10,766 8,186 9,761 9, 486 10, 424 Totall. 134,618121, 295170, 665 122, 865 126, 405 137, 750 143, 891 180, 159 172, 341 159, 856 Hamoa Plantation.. Sugar Co.. Total.. 22,345 19,477 33, 230 29, 829 39, 411| 43,652 44,143 56, 150 52,725 56, 865 2,720 850 2, 702 3,026 4,004 5,221 1,374 5,562 5,629 5. 461 4, 410 5,161 3, 926 1,992 1,427 1,622 1,415 1.3241 1, 464 1,809 1,843 1,960 2,046 5, 488 4,234 6,397 13,521 17,820 19,861 20,220 22,627 28,808 29,295 7,216 4,146 7,856 483 257 485 5.934 7, 190 0, 451 7,516 7,828 7,425 10,072 17,761 16, 932 58,349 56,726 84,776 77,985 100, 434102, 960 104,772 122, 629134, 605 139, 454 OAHU. Apokaa Sugar Co. (Ltd.).. (Ltd.)... Total...... 901 610 874 454 805 461 984 432 902 031 247 590 5, 128 5,490 6,214 5,686 6,469 6,614 4,404 3,845 99,534 107,870 121, 066 102,019 123,095113,750 119,273 137,013 138, 423128, 648 For 1905 the items foot up 1 less than the total glven. Items and total are printed as given in the report. TONS OF SUGAR PRODUCED IN THE HAWAIIAN ISLANDS, EACH FISCAL YEAR (OCT. 1-SEPT. 30), 1901 TO 1910, ETC.-Concluded. Estate V. Knudsen. 676 735 6661 687 680 644 680 731 769 826 1,554 2,265 1,645 1,665 2,151 2,099 2,590 2,675 3,354 3,223 2,183 2,915 1,896 1, 679 1,679 1,9331 1,807 2,508 3,376 3,673 13, 419 11,480 10,324 11,493 19,062 18,616 20,140 21, 633 23, 788 23, 422 7, 412 8,978 7,061 7,447 7,318 6, 6261 7,329 8,283 10,385 14,124 5. 364 3,762 3,012 1,850 2,290 2,700 3,844 3,194 4,975 4,102 5, 492 5,001 4,825 6,172 6,172 5,570 5,553 7,361 7,303 7,709 18,356 13,674 11,375 14, 611 14, 185 16,005 14,127 14,445 15,780 14,765 9,954 11,232 8,215 7,840 8,335 7,986 6,696 7, 408 4, 661 5,823 2, 208 9,113 11,922 10,535 13, 136 11,024 7,890 11,294 13,686 10,596 919 565 540 1,305 1,550 1,425 1,790 1,707 1,906 67,537 69, 720 61,484 64,606 76,314 74,753 72,081 81,322 89,787 90, 169 627 Totall... Grand total... 360,038 355,611 437,991 367, 475 426, 248 +29, 213 440,017 521, 123 535, 156 518, 127 1 See note 1 on page 682. A considerable extension of the cane area is still possible, with prospective water development; but at the same time the rate of yield from the longer cultivated fields is likely to diminish. FIELD AND MILL EMPLOYMENTS. Sugar cane in Hawaii is usually an 18-month crop, and must be cut at maturity to avoid deterioration. Replanting occurs every second or third crop on most plantations, though some planters rattoon (allow the cane to grow up from the old roots) in particular fields for seven or eight crops. The labor problem of a plantation consists in getting field hands; for here lies the main expense in making a crop, the pressure to get cheap labor is greatest, and the work is in many ways less attractive than on the railways, at the reservoirs and pumps, and in the mill. The field operations consist in plowing and preparing the land, including on the irrigated plantations ditching the fields (to be distinguished from constructing and maintaining main ditches), planting, fertilizing, cultivating (mostly with a hoe), stripping (or removing the dead leaves from time to time from the lower cane stalks), cutting, and loading. Several of these operations, especially the last two mentioned, are on most plantations done by contract or on a piecework basis, and are more highly paid than other field employments. The mill operations are complex enough to require for most of the specialized occupations a certain degree of skill, for which a somewhat higher rate is paid than for field work. The mill hours are usually 12, less mealtime, as compared with 10 in the fields. Field work begins at daylight and is usually over about 4 o'clock in the afternoon. Upon any large plantation are a number of mechanical employments, such as repairing implements and harness, building and |