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beneficial.   It seems to me that we can not properly organize the government of 
Hawaii unless we provide for a department whose special function it is to collect 
statistical informal on in relation 'to the labor conditions of that country and to 
present it to the local governing body and the supervising and controlling 
Government of the United States. Mr. KNOX.   Will the gentleman permit me to 
ask him a question? Mr. NEWLANDS.   Certainly. Mr. KNOX.  Does not the 
jurisdiction of our Labor Commissioner extend to-day to the Territories? Mr. 
NEWLANDS.   No; I do not so understand.   I present this amendment after  
consultation with the Labor Commissioner to-day. Mr. KNOX.   Mr. Wright.   
Does he approve it? Mr. NEWLANDS.   There are some additions made; but noth-
ing at all that antagonizes his recommendation. Mr. McRAE.   I would like to ask 
the gentleman a question. Mr. NEWLANDS.   Certainly. Mr. McRAE.   Can not he 
so modify his amendment as to impose these duties upon the commissioner of 
agriculture and forestry there? Mr. NEWLANDS.   The commissioner of 
agriculture and forestry there is elected by the people. Mr. McRAE.  If you require 
him to perform this duty, I think it will be a saving to the government. Mr. 
NEWLANDS.   I do not want this duty to be performed by any official who will 
be a representative of the very land system which is interested in maintaining 
and preserving this system of labor.   I wish this commissioner to be appointed by 
the President of the United States. Mr. McRAE.   The objection I see to it is that 
he has very little to do, and this other officer has very little to do, and these are two 
big salaries. Mr. NEWLANDS.   That can be taken in hand by the conferees and 
disposed of. The CHAIRMAN.   The question is on the adoption of the 
amendment offered by the gentleman from Nevada. The question was taken; and 
the Chairman announced that the "noes" appeared to have it. Mr. NEWLANDS.   
I call for a division.      The committee divided; and there were - ayes 39, noes 83. 
So the amendment was rejected. Mr. NEWLANDS.   I offer the following 
amendment. The Clerk read as follows:
Amend section 102 by adding: "That it is hereby declared to be the purpose of 
the United States to promote the increase of free white labor in the Territory of 
Hawaii and to discourage the employment of Asiatics, and to that end it is 
enacted that every corporation employing labor in Hawaii shall, within one year 
from the passage of this act, employ at least one-tenth of its laborers from 
citizens of the United States, citizens of the Territory of Hawaii, and other free 
white persons, and that such corporations shall increase the number of such 
laborers one-tenth annually, until at least three-fourths of their laborers shall be 
citizens of the United States, citizens of the Territory of Hawaii, or other free 
white persons.   Any violation of this provision shall subject the corporation 
guilty of such violation to the forfeiture of its franchise and to such other 
penalties as may be prescribed by the legislature of Hawaii."
Mr. NEWLANDS.   Mr. Chairman, the purpose of this amendment is to gradually 
relieve Hawaii of the intolerable conditions arising from the employment of 
Asiatic labor.   As it stands to-day these islands are almost entirely devoted to the 
production of sugar, a production which has been made vastly profitable by the 
markets which this country has afforded.   Lands have risen to fabulous values.   
The prices received for their products and the profits made have been such as 
to warrant the employment of a higher class of laborers and a much more 
expensive system of labor. Notwithstanding that fact, these corporations which 
own or control almost all the sugar lands and whose influence is potential in 
government have steadily encouraged Asiatic immigration to those islands, 
instead of endeavoring to increase white immigration to those islands.   Their 
contention has been that the climate is unsuited to white labor.   I have it from 
those who are informed as to the climate that it is not unsuited to white labor, 
and especially not unsuited to those white laborers who live in semitropical 
countries and semitropical climates, such as the Portuguese and Italians, who 
constitute a most useful portion of our population, whose children are educated 
in our schools, and who soon become, as citizens of a republican government, 
devoted to its institutions and its principles. Now, the question is, How can we 
relieve these islands from the Incubus that has been fastened upon them by a false 
labor system without injustice to existing rights and without the destruction of 
the business now conducted there?   It is obvious that it must be gradually 
done.   We can accomplish it by the control which the State has over the 
corporations which it creates.   The Government can determine the class of 
labor which these corporations shall employ, and it can subject them to the 
penalty of for-

feiture of their franchises if they violate the injunction of the law. These 
corporations control all the sugar lands of Hawaii: and as that is the occupation 
which employs almost all the laborers in that country, by controlling the 
corporations in the employment of Asiatic labor you regulate the evil complained of. 
Now, I provide in this amendment for the gradual increase in the white labor 
employed by these corporations.   The amendment provides for the employment of 
one-tenth within the first year and an increase of one-tenth every year, until at least 
three-quarters of the employees of these corporations shall be citizens of the United 
States, which includes white and black citizens of the United States, citizens of 
the Territory of Hawaii, which includes the Kanakas and other white people, such 
as Italians and Portuguese, who can migrate to these islands, and thus gradually three-
quarters of the now Asiatic population of these islands will increase by the addition 
of such persons, white or black, as are now citizens of the United States and by 
the immigration of laborers of the white race who are accustomed to a semitropical 
climate. The CHAIRMAN.   The time of the gentleman from Nevada has expired.   
Mr. NEWLANDS.   I ask an extension of five minutes. The CHAIRMAN.   The 
gentleman from Nevada asks that his time be extended five minutes.   Is there 
objection?   [After a pause.]   The Chair hears none. Mr. COX.   Now, will the 
gentleman yield to me for a question? Mr. NEWLANDS.   Just for a question. Mr. 
COX.   Why do you exclude the negro there? Mr. NEWLANDS.   I do not. Mr. 
COX.   You say free white people. Mr. NEWLANDS.   No, I do not; I say citizens 
of the United States, citizens of the Territory of Hawaii and other free white 
persons,   Now,  of the United States includes the negroes
that are in the United States.
Mr. COX.   Well, put my nigger in, and that is all I want.
Mr. NEWLANDS.  Negroes of the United States can go to 
these islands.  The plan which I advocate will not work any vio-
lent change in the existing system of labor, nor will it operate in
the end to the disadvantage of the capital employed there.  I am 
as anxious as anyone to avoid that.  The process is merely one
which reaches out for corporations which are creatures of the
State and whose franchises are subject to the control of the State.
It exercises reasonable control over their employment of labor,
to the advantage of the Government and to the advantage of the
republican institutions.
Nor will it work an injustice to the Asiatic labor now employed there.   The change 
will be gradual; and as these islands grow in business, as they are bound to do, it 
is probable that the Asiatic laborers now employed there and displaced by the 
gradual system which this amendment provides for will be absorbed by new 
enterprises, or will be glad to return to their homes with the accumulations which 
most of them acquire. Mr. KNOX.   Mr. Chairman, I have only one word to say 
in regard to this amendment, and that is. I trust that it will not prevail.  The labor 
problem in Hawaii is a very difficult one and a very uncertain one, and what the 
future result is going to be there no one can foresee.   The hope is, and the best 
hope is, that as these valuable lands which are now leased on long terms of years 
expire, an 3 as they become a part of the public domain, inasmuch as under this bill 
no future leases but for a short term can be made except by an act of Congress, it 
is the hope that these lands will be taken, not by men who my friend says work 
for corporations, but that they will be taken by individuals who go to Hawaii in 
good faith to take these lands as homesteaders. Mr. NEWLANDS.   The gentleman 
has reference to the crown lands. Mr. KNOX.   I refer to all public lands.   This is 
the best hope for Hawaii.   Now, the great corporations that are there, which own 
the great sugar plantations and great rice fields, I do not believe with reference to 
them that any Americans are going there to work in the rice fields.   I do not 
believe that citizens of the United States, the men who have the enterprise to-day, 
who go to Alaska, are going to Hawaii to work on a sugar plantation. I believe the 
best hope for the Asiatics, the Japanese, and the Chinese is that they may acquire 
sufficient of their own means to buy these lands and own small plantations and have 
families there. I do not believe in opening the door and saying that these Chinese and 
Japanese shall ever be citizens of the United States; and I do not believe that 
anyone will ever work in the rice fields in Hawaii or in a tropical country unless he 
be a Chinaman or a Japanese or some native of a tropical country. Mr. 
NEWLANDS.   Are there any rice fields in Hawaii? Mr. KNOX.   Oh, yes. Mr. 
NEWLANDS.   How extensive? Mr. KNOX.   I do not know, but the report will 
give you the information.                     

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