PUBLIC LAND POLICY IN HAWAII: AN HISTORICAL ANALYSIS ROBERT H. HORWITZ JUDITH B. FINN Director, Land Study Project Center for Natural Resources Professor of Political Science Policy Studies and Programs Kenyon College University of Wisconsin LOUIS A. VARGHA JAMES W. CEASER Formerly, Urban Economist Department of Political Science Land Study Bureau Kenyon College University of Hawaii Assisted by MARIE GILLESPIE GEORGE K. IKEDA Formerly, Research Assistant Associate Researcher Legislative Reference Bureau Legislative Reference Bureau University of Hawaii University of Hawaii LORNA H. MIYATA PHILIP N. MARCUS Legislative Reference Bureau Department of Political Science University of Hawaii Kenyon College Report No.5, 1969 LEGISLATIVE REFERENCE BUREAU UNIVERSITY OF HAWAII Honolulu, Hawaii 96822 Price $4.00 FOREWORD Publication of this report concludes a research program dealing with public land policy in Hawaii and undertaken by the Legislative Reference Bureau in 1963. In response to a request by Hawaii's state Legislature, the Legislative Reference Bureau sought to prepare anhistoricalsurvey of public land policies and practices of the federal and state governments and to give particular emphasis to a review and analysis of land policy in Hawaii from 1893 to the present. Three major monographs were prepared in response to this request: Hawaii's Public Land Laws: 1897-1963 (1963); Land Exchanges (1964); and The Multiple-Use Approach (1965). The legislative request for research on land policy in Hawaii was broadened and extended in 1965 through Senate Resolution Number 128, which requested that the Legis­ lative Reference Bureau update its 1961 study of Hawaii's "large private land owners" inasmuch as "current data concerning land owner­ ship and use are not sufficient to permit adequately informed major policy determinations affecting this vital community resource." Specifically, this Senate Resolution requested the Legislative Reference Bureau to study Hawaii's "large private land owners and land use, giving special attention to the many important factors relating to our land resources." Three additional monographs were prepared in response to the 1965 legislative request: Land Reserved for Public Use (1966); Major Landowners (1967); and An Historical Analysis (1969). These monographs have been designed in part to complement the intensive and sustained research programs of the Land Study Bureau of the University of Hawaii, as well as the work of the Planning Office of Hawaii's Department of Land and Natural Resources and other govern­ mental agencies. The generous cooperation afforded us by these agencies has contributed substantially to the successful completion of the entire research program. Special acknowledgment is gratefully accorded to the Land Study Bureau for its major contribution to this concluding report. The initial research and writing for Part III, "Leasing of Land in Hawaii", was carried out by Mr. Louis A. Vargha, who was then serving on the staff of the Land Study Bureau. Sub­ sequent drafts of this section were carefully reviewed by Dr. Harold Baker, Director of the Land Study Bureau, who extended us his enthusiastic cooperation from the inception of this research. We are also deeply obligated to Mrs. Faith N. Fujimura, cartographer at the Land Study Bureau, for her assistance in preparing the graphics for these reports. Special acknowledgment is due also to Miss Marie Gillespie, formerly associated with the Legislative Reference Bureau, who for several years carried chief responsibility for directing and conducting ii research work for this project in Honolulu. Miss Gillespie was ably assisted in these efforts at various periods by Mr. Robert T. H6kama, Miss Susheila Horwitz, Mr. Thomas Tjerandsen, Mr. Ronald Wong, Miss Carolyn Ige Chang, Miss Carol Iijima, Miss Merrily Brown, and by the youngest member of a numerous and enthusiastic team, David D. Horwitz, whose youthful inexperience was compensated by his unbounded confidence and enthusiasm. We are especially indebted to Mr. James Dunn, Hawaii's genial and venerable Territorial and state Surveyor, whose unique grasp of land matters in Hawaii is based on experience and information extending back to the days of the monarchy. Miss Agnes Conrad, State Archivist, and her devoted staff were unfailingly helpful in securing answers to difficult questions and in assisting in the continual search for hard-to-find maps and documents. Mr. August H. Landgraf, Jr., formerly Assistant Director of the Property Technical Office, State Department of Taxation, provided invaluable assistance in gathering current data on land values. Mr. Michael G. Finn provided many theoretical insights in the formulation of the economic analysis presented in Part III . Lieutenant John Page prepared the materials on the sale of public land. The extensive computer programming and analysis required for these studies were carried out at the computer centers at the University of Hawaii, Michigan State University, and the University of Michigan. We are deeply indebted to Mr. Philip Marcus of the Department of Political Science at Kenyon College for coordinating the work of an array of specialists who provided technical advice and assistance. Mr. Marcus also analyzed and prepared for publica­ tion extensive portions of the data, while contributing significantly to the execution of these studies in ways that defy enumeration. Subsequent research on public land policy in Hawaii may be facilitated by the generosity of Professor Warren Miller of the Institute for Social Research of the University of Michigan. The Survey Research Center, one of the three centers comprising the Institute for Social Research, will serve as a storage and information center for all of the computer data collected in the course of these studies. These data will be available to future researchers in this field. iii Editorial work has, from the inception of this project, been carried out by Nancy K. Hammond of the Social Science Research Bureau, Michigan State University. Mrs. Hammond's contributions have not been confined to editorial work, but have included among other things coordination of the work of various writers. Miss Hanako Kobayashi of the Legislative Reference Bureau assumed the heavy responsibility of checking and ordering all foot­ note materials in these studies, and Mrs. Maizie Yamada and Miss Evelyn Goya of the Legislative Reference Bureau typed the manuscript. There is no way in which we can adequately express our apprecia­ tion to the nearly two score readers who scrutinized successive drafts of this report. They represented a cross s·ection of Hawaii's community, and we profited enormously from continuous exchange as these most constructive critics gave unstintingly of their time. To these and the many other individuals and organizations who have generously assisted us, we express our sincere appreciation and warm a.loha. Staff and financial assistance for this program of research were provided initially by the Rockefeller Foundation. Indispensable support was furnished also by the All-University Research Fund of Michigan State University. The field research and writing carried out in Washington, D.C. by Mr. James Ceaser for Part II of this report were made possible through a Ford Foundation grant administered by Kenyon College. I am grateful to Mrs. Judith B. Finn for her unfailingly devoted and skillful efforts in researching and writing which contributed immeasurably to this research program. To Professor Robert H. Horwitz of Kenyon College I should like to express appreciation for years of service as an associate of the Legislative Reference Bureau in preparing these and other studies and for having served as Director of the Land Study Project since its inception in 1963. Henry N. Kitamura Director August, 1969 iv TABLE OF CONTENTS FOREWORD . • ii I. PUBLIC LAND POLICY OF HAWAII'S PRESIDENT AND GOVERNORS .. 1 Historical Background . 1 Sanford B. Dole's position and Programs. 2 The Land Act of 1895 5 1898-1900: A Period of Uncertainty. 15 Land Reserved for Defense Installations • • 19 Public Land Policy under Hawaii's Organic Act. 21 Governor Carter's Public Land Policy 26 Governor Frear's Public Land Policy •. 29 Governor Pinkham's Public Land Policy. 33 Governor McCarthy's Public Land Policy 35 Governor Farrington's Public Land Policy 38 Governor Judd's Public Land Policy 42 Governor Poindexter's Public Land Policy · · · · 43 Governor Stainback's Public Land Policy · · · · · · · 45 Governor Long's Public Land Policy · · · 49 Governor King's Public Land Policy · · · · · · · · · 49 Governor Quinn's Public Land Policy. 51 Governor Burns' Public Land Policy •• 57 II. ACQUISITION AND DISPOSITION OF LAND IN HAWAII BY THE UNITED STATES GOVERNMENT . 59 Introduction 59 Historical Background . 60 Federal Land Acquisition in Hawaii · · · · · · · 61 Land Affected by Section 5 (e) of the Statehood Act 68 Land Governed by Section 5 (d) of the Statehood Act 73 Land Governed by Public Law 88-233 · · · · · · · · · 75 v Federal Land Acquired after Annexation . 78 Other Federal Fee Simple Land in Hawaii 92 Total: All Fee Simple Land · 100 Summary · . 105 III. LAND LEASING POLICY IN HAWAII · 108 Mode of Analysis . · • • 110 Major Considerations in Leasing Policy . · • 113 Lessees vs. Lessors ....•.••. • 113 Restrictions on Land Management by Lessees 116 Current Policies and Programs for the Leasing of Hawaii's Public Land. .. .....•.•. 119 Classification of Public Land · • 122 Rent Determination . • 124 Agricultural