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Hawaii Organic Act: Congressional debates on Hawaii Organic Act

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3802
Mr. DE ARMOND.   Will the gentleman yield for one more 
question? Mr. KNOX.   Certainly. Mr. DE ARMOND.   Can the 
gentleman point to the provision in the Constitution that gives 
authority to extend it in pieces or parts to any Territory, or any 
part of a Territory? Mr. KNOX.   I think I can. Mr. DE ARMOND.   
I would like to have the gentleman do it. Mr. KNOX.   I will cite the 
gentleman to the Revised Statutes, Title XXIII, chapter 1, section 
1891, which says:
The Constitution and all laws of the United States which are not locally 
inapplicable shall have the same force and effect within all the organized territory 
or in every Territory hereafter organized as elsewhere in the United States.
Now, either all the Congresses that have sat in this Hall from 1830, 
when the Territory of New Mexico was organized, have Believed that 
the Constitution did not go to the Territories of its own force, but 
must be extended by an act of Congress, or else that declaration of 
the Revised Statutes is mere empty babble and boys' play. The 
question being taken on the amendment offered by Mr. DE ARMOND, 
there were - ayes 65, noes 77. Mr. RICHARDSON.   I call for tellers. 
Tellers were ordered; and Mr. DE ARMOND and Mr. KNOX were appointed. 
The House again divided, and the tellers reported - ayes 78, noes 
87.                                            So the amendment was rejected. Mr. 
McRAE.   I move to amend by striking out the proviso beginning 
with the word "Provided," in line 2, page 53, and ending with the 
word "Hawaii," in the fifth line, same page. The Clerk read the 
words proposed to be struck out, as follows:
Provided, That sections 1860 and 1890 of the Revised Statutes of the United States 
shall not apply to the Territory of Hawaii.
Mr. McRAE.   Mr. Chairman, I do not see any reason why the 
sections named in this proviso which apply to other Territories of 
the United States should not apply to Hawaii.   The first of the 
sections cited - section 1850 of the Revised Statutes - is as follows:
All laws passed by the legislative assembly and governor of any Territory, except 
in the Territories of Colorado, Dakota, Idaho, Montana, and Wyoming, shall be 
submitted to Congress, and if disapproved shall be null and of no effect.
The other and more important section referred to in this proviso is as 
follows: SEC. 1890. No corporation or association for religions or charitable 
purposes shall acquire or hold real estate in any Territory, during the existence 
of the Territorial government, of a greater value than $80,000; and all real 
estate acquired or held by such corporation or association contrary hereto shall 
be forfeited and escheat to the United States; but existing vested rights in real 
estate shall not be impaired by the provisions of this section.
Now, sir, I can not understand why these laws, which are ap-
plicable to other Territories, should not be applicable to Hawaii. If 
the gentleman from Massachusetts [Mr. KNOX} can give any good 
reason tor exempting Hawaii from the operation of these 
provisions, I should like to hear it. Mr. KNOX.   Mr. Chairman, 
there are at the present time in Hawaii a number of charitable 
institutions now possessing larger amounts of real estate than 
section 1890 permits to be held by a religious or charitable 
institution in the Territories heretofore established.   According to 
the universal testimony - testimony to which there is no dissent - 
these institutions in Hawaii are now doing a very great and noble 
charitable work. It was thought not wise to extend to those 
institutions the pro-visions which the gentleman has read, either as to 
property which these institutions of Hawaii now hold or as to that 
which they may hereafter acquire.   Very careful examination was 
made in regard to all these institutions.   I have a list of them here, 
which it would take sometime to read; but according to the universal 
testimony they are all of a commendable; unsectarian character, and 
are engaged in performing the highest class of charitable work. Mr. 
McRAE.   Mr. Chairman, it is against the theory and policy of this 
Government to permit large landed estates to be held by religions 
and charitable institutions; and as this has been our policy with 
respect to all Territories in the old United States, I think our new 
possessions should not be exempt from this rule. Mr. KNOX.   The 
gentleman will allow me to suggest what I think is possibly an 
answer to his objection.   When we have formed Territories 
heretofore, they have always been sparsely settled, generally 
inhabited largely by the natives or aborigines. In the present case 
the conditions are entirely different from those which have existed in 
respect to Territories formerly organized, conditions which lay at 
the foundation of the provisions of law heretofore applicable to 
such Territories. In the present case we have an ancient country, 
embracing a monarchy that has existed for years and a republic that 
is already four years old.   Charitable institutions have grown up 
there; and we have in that respect a condition that has never existed 
in any of our Territories formed under the Constitution heretofore. 
Hence it seems to us neither proper nor necessary that the same

provisions which have been extended to other Territories should be 
applied to Hawaii.          The CHAIRMAN.   The time of the 
gentleman from Arkansas [Mr. McRAE] has expired. Mr. KNOX.   I 
ask that his time be extended for five minutes. There was no 
objection. Mr. McRAE.   Mr. Chairman, I think that the sooner the 
people of Hawaii learn that the religions or charitable institutions 
now existing there, however laudable and worthy they may be, 
most be divorced from their government and that the old 
conditions can not continue the better it will be for them.   I do 
not agree that as a matter of Government policy we should continue 
to permit any associations of the character contemplated to 
acquire unlimited amounts of real estate that go untaxed.   The true 
rule is that no such institutions should own more real estate than 
is necessary for the actual use of them. Now, this section, from which 
this exemption is sought, protects all vested rights up to this time; but 
it permits them to go on acquiring real estate indefinitely and large 
sums of money without limit, all free from all taxes, and the sooner 
we stop this the better.   So I hope that the gentleman in charge of the 
bill will accept the amendment, but if he does not, that the House 
will vote for the amendment and let this Territory stand exactly on 
the same footing as other Territories. Mr. NEWLANDS.   Mr. 
Chairman -- The CHAIRMAN.   The gentleman from Nevada. 
Mr. HAMILTON.   I can make a statement which will make plain 
to the gentleman -- Mr. NEWLANDS.   Mr. Chairman, was I 
recognized? The CHAIRMAN.   No member of the committee 
appearing to desire the floor, the Chair recognized the gentleman from 
Nevada [Mr. NEWLANDS]. Mr. NEWLANDS.  I yield, then, to the 
gentleman from Michigan for a moment. Mr. HAMILTON.   Perhaps I 
can be of assistance to the gentleman in throwing some light upon the 
subject.   There are several institutions which are of charitable or 
educational nature, among Which should be first named the 
Lunalilo Trust.   This trust was established under the will of King 
Lunalilo, who devised all of his property to establish a home for 
indigent Hawaiians.   Under the provisions of his will the Lunalilo 
Home was established and has been in operation for about fifteen 
years. The property which Lunalilo left consisted mainly of tracts 
of land in various parts of the islands, which at the time were not of 
very great value, and he directed that when the property became of 
the value of $25,000, the home should be established, his views being 
that if his property was sufficient to establish the home, the 
maintenance of it would have to be provided largely by the public. The 
value of the lands, however, increased very much, and now the 
home, which was established at a cost of over $30,000, has been 
maintained for a number of years, and the funds derived from the 
proceeds of the sale of the land amount to over $200,000, which are 
invested in securities subject to approval by the judges of the su-
preme court. This institution has proved of great benefit to the 
aged and dependent Hawaiians. Second. The Princess Pauahi Bishop 
devised her property, consisting of a large number of lands, for the 
establishment of industrial schools for the education of Hawaiian 
boys and girls, also making provision for certain charities.    
Later, and after her death, her husband, the Hon. Charles R. Bishop, 
made large provisions by various deeds of trust for the 
establishment of a museum, and also for aiding the various 
charitable organizations in the islands.   The property devised by Mr. 
Bishop for these charitable and scientific purposes is now worth more 
than $1,000,000 and will probably increase in value.   These 
institutions, maintained by the munificent provisions made by these 
friends of the Hawaiian race, are of the greatest value to those 
people. Third. The Young Men's Christian Association of 
Honolulu owns property in excess of $50,000 in value and is an 
undenominational organization exercising a great influence for good 
in that community. Fourth. Efforts are being made in Honolulu to 
establish a home for incurables.   The public hospital in Honolulu, 
known as the Queen's Hospital, can not receive persons afflicted with 
consumption or other similar incurable diseases, and the need for a 
home for such persons is becoming very great. Consumption is not 
very prevalent among the natives of the country, but many people 
come to that climate hoping to recover their health.   Many of these 
people have limited means, and some of them have no more than 
sufficient to enable them to reach the islands.   The care of these 
people devolves upon the residents of the islands, and the 
responsibility has reached a stage where it is deemed necessary that 
a home should be provided for them. Funds or endowment sufficient 
to provide an income to maintain such an institution would have to be 
more than $50,000. The insular and isolated situation of the islands 
is such that the

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