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 pump ing 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 with 1910 are given in the following table: TONS OF SUGAR PRODUCED IN THE HAWAIIAN ISLANDS, EACH FISCAL YEAR (OCT. 1-SEPT. 30), 1901 TO 1910, BY ISLANDS AND PRODUCING COMPANIES. [From report of the secretary of the Hawaiian Sugar Planters' Association, Honolulu, Oct. 30, 1910. 2,000 pounds to the ton.] Island and company. 1901 1902 1903 1904 1905 1906 1907 1908 1909 1910 HAWAII. Beecroft Plantation.. 325 10.932 11,700 11,293| Hawi Mill & Plantation.. Hilo Sugar Co.... 10,214 9, 255 13, 108 Honokaa Sugar Co.. 8,396 10,862 12,869 11,914 12,834 11,586 11,905 1,357 575 1.860 1,016 925 1,036 1,615 1,958 7,808 2,105] 6,950 4,691 5,925 6,358 6,835 12, 355 843 985 1,503 1,728 1,438 1,825 1,800 2,818 10.956 11,998 18,888 10,954 1,620 826 11,630 10,274 2,727 1,373 5,563 3,631 3,687 4,389 5,296 7,125 7,701 9,971 11,751 11,649 12,853 12, 291 7,402 6,895 7.940 6,898 7,657 10,533 5,489 5,909 5,852 5,502 1,135 1,679 8,293 5,526 2,838 2,313 11, 406| 11,003 6,011 6,881 12,568 7,562 9,928 8,021 7,527 Kaiwiki Sugar Co. (Ltd.). 2.134 Kona Development Co.. 1,000 1,271 1,589 Kona Sugar Co.. Kukaiau Mill Co.. 1,483 1,728 2,141 2,225 1.037 5,504 7,909 4,856 4,336 5,866 7.848 7,944 8,004) 7.970 2,501 2,452 2,768 2,231 J, 150 16,748 15,030 13,788 11,361 9,405 9, 431 15,795 19, 179 19, 483 8,722 11,880 13,472 10,940 11,049 13,930 12, 432 17,006 14,416 12,843 4,968 1, 157 3,942 2,214 3,712 3,223 5,352 5, 195 1,322 9.136 7.533 7,857 10,448 2,517 6,059 3,388 7.864 2,226 Pepeekeo Sugar Co. 7.012 Puakea Plantation. Puako Plantation. Puna Sugar Co... Waiakea Mill Co.. Total1... MAUI. Hamoa Plantation. Hana Plantation.. Hawaiian Commercial Sugar Co. 134,618 121, 295 170, 665 122, 865 126, 405 137, 750 143, 891 180, 159 172,341 159, 856 Kaeleku Plantation Co. (Ltd.). Kihei Plantation Co. (Ltd.)... Maui Agricultural Co.. Maui Sugar Co.. Olowalu Co.. Pioneer Mill Co. (Ltd). Total....... 22,345 19, 477 33, 230 29,829 39, 411 43, 652 44, 143 56, 150 52,725 56,865 1,374 5,562 5,629 5.461 7,216 4,146 7,856 257 2,720 850 2,702 3,026 4,004 5,221 1,809 1,843 1,960 2,046 13,521 17,820 19,861 20,220 22,627 28,808 29,295 485 1,240 1,035 843 1,125 1.652 1,635 1,448 1,765 1,829 1,796 6,568 9,900 16,530 17,036 25,581 22,509 23,099 27,146 27,518 27,299 7,902 5,934 7,490 0,451 7,516 7,828 7,425 10,072 17,761 16,932 58,349 56,726 84,776 77,985 100, 434 102, 960 104, 772 122, 629 134, 605 139, 454 984 432 902 33,036 38,775 33, 162 29,797 32,380 29,302 31,790 33,919 33,949 31,422 1,507 631 10.008 9,800 20,736 16,376 20,106 18,646 19,178 18,996 18,688 18,373 597 17,699 17,001 19,800 18,682 19,722 20,788 22,614 30,376 32,267 30,870 5,686 6,469 6,614 4, 242 4,404 3,845 99, 534 107,870 121,066 102, 019 123, 095 113, 750 119, 273 137,013 138, 423 128, 648 1 For 1905 the items foot up 1 less than the total given. 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.. Gay & Robinson. Grove Farm Plantation. Hawaiian Sugar Co.. Kilauea Sugar Plantation Co.. Lihue Plantation Co. McBryde Sugar Co. (Ltd.). Total1. Grand total. 676 735 666 1,645 687 1,665 680 644 680 731 769 826 2,151 2,099 2,590 2,675 3,354 3,223 1,554 2,265 67,537 69, 720 61,484 64, 606 76,314 74,753 72,081 81,322 89,787 90, 169 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 |