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Hawaii the feasibility of air transportation to connect this Territory with the mainland and bring us within 18 hours of the Pacific coast.

The United States Navy, Army, and Coast Guard, as well as other branches of the Federal Government stationed here, have been most helpful and have at all times demonstrated their willingness to cooperate with the Territorial authorities.

During the latter part of May, the United States fleet visited Honolulu, bringing to our shores about 55,000 officers and men. This great influx presented many problems in transportation, entertainment, etc., all of which were satisfactorily solved by a committee appointed by the Governor, cooperating with naval and civil authorities. The people of Hawaii were highly gratified over the opportunity to play host to the commander in chief, officers, and men of the fleet. Hawaii as a tourist center is becoming more and more appreciated by the residents of the mainland, United States of America and other countries. Tourist travel has been heavier during the past year than during any year since 1930. A very active campaign of advertising Hawaii's charms has been carried on by the Hawaii Tourist Bureau, and the last session of the legislature, realizing the value of Hawaii's "third industry" appropriated $100,000 to assist in this work, earmarking $25,000 for radio broadcasts originating in Hawaii.

Hawaii has continued to share in various features of the New Deal, receiving Federal Emergency Relief Administration funds for the relief of unemployment amounting to $2,358,000. The Territory's contribution to this program, raised by a levy of one-half of 1 percent on income, amounted to $496,557.48. On June 30, 1935, there were 4,649 persons on the relief rolls, a reduction of 630 as compared to June 30, 1934. Projects undertaken have included work on roads, highways, bridges, parks, flood control, schoolgrounds, playgrounds, public health and safety and many others. Work on Moana Park, Honolulu, the portals of which were dedicated by President Roosevelt during his visit to Hawaii in July 1934, has progressed very satisfactorily, and the park is well on the way toward becoming what many have termed "one of the most beautiful waterfront developments in the world."

Brief résumés of the activities of other emergency organizations follow:

AGRICULTURAL ADJUSTMENT ACT

As provided for under section 15 (f) of the Agricultural Adjustment Act, the Secretary of Agriculture, with the approval of the President, is authorized to use funds from the processing taxes on Hawaiian sugar for the general benefit of agriculture in the Territory of Hawaii.

To assist in formulating a well-balanced program for the benefit of agriculture and the development of diversified agricultural industries in the Territory, the Secretary of Agriculture has appointed:

The Governor of the Territory of Hawaii; Dr. David L. Crawford, president of the University of Hawaii; Mr. John E. Russell, vice-president and manager of Theo. H. Davies & Co., Ltd.; and Mr. Chauncey B. Wightman, representative of the Secretary of Agriculture and chairman of the committee.

as an Hawaiian Agricultural Advisory Committee. This committee, familiar with local conditions, has been actively engaged in studying and selecting various projects which will solve some of the local problems and assist in developing general agriculture in the Territory. The following résumé will show the general plan and the progress made by this committee to date:

Project No. 1-Soil Survey.-General survey and classification of the soils in the Territory and to include pertinent information which will be of great value in the development of agriculture in general. Approved March 21, 1935. Work well under way-about 25 percent completed. Estimated cost, $30,000.

Project no. 2-Fruit-fly control.-Control of the Mediterranean fly and melon fly by means of parasites and natural enemies. The destruction of these pests by means of poisons, fumigation, etc. The study and development of resisting varieties of host fruits. Estimated cost, $80,000.

Project no. 3-Taro investigation.-Developing methods of control of diseases of taro plants, experiments and development of better methods of fertilization and cultivation and the introduction of improved types of plants. Studies and experimental work leading to increased use of taro and poi and development of marketing facilities. Estimated cost, $50,000.

Project no. 4-Liver fluke eradication.-Study of liver fluke and developing means for control of this pest. Will be a great aid to dairies, especially in wet districts. Estimated cost, $40,000.

Recommended by the Hawaiian Agricultural Advisory Committee and submitted for approval to the Secretary of Agriculture

Project no. 5--Rat abatement campaign.-A campaign to eliminate and control the damage done to fruit and nut orchards, to pineapples and mangoes, small crop, and vegetable products. Estimated cost, $110,000.

Project no. 6-Development of truck farming and improvement of marketing facilities for farm products.-To assist small farmers in raising and marketing their products by means of expert supervision,

instruction, and advice whereby costs of production may be decreased and the marketing returns increased. Estimated cost, $60,000.

Project no. 7-Development of livestock feed.-A survey of range grasses and forage crops. Field experiments to determine types of grasses and forage crops best suited to various soil and climatic conditions. Feeding experiments and laboratory determination of nutrient components. Estimated cost, $70,000.

Project no. 8-Development of tropical fruits and nuts.-Introduction of new tropical fruits and nuts, development of those best suited to local conditions and assistance in solving many problems now confronting fruit and nut growers. Estimated cost, $50,000.

Project no. 9-Promotion of the poultry industry.-Develop control methods of various poultry diseases. Experiments in growing green feed for poultry. Study and development of better types of pens and poultry houses to meet local conditions. A survey leading to an improvement of marketing conditions. Estimated cost, $30,000.

In all these projects, the plan of work and the estimated cost is based upon a 1-year program. No doubt as they are developed, there will be brought to view new lines of attack and other angles to consider. The second year's program will be modified to meet these conditions.

There are other projects, such as an adjustment program for the Hawaiian coffee industry, and the control of various insect pests, plant diseases, and noxious weeds, which will be considered by the Hawaiian Agricultural Advisory Committee at an early date, and which, with those already recommended, will present a well-balanced program for the development of diversified agriculture in the Territory of Hawaii.

EMERGENCY CONSERVATION WORK

During the 1935 fiscal year, new barracks have been erected at Keanae Camp on the island of Maui; Waimea Camp on the island of Hawaii; Wahiawa Camp at Schofield and the Kokee Camp on the island of Kauai. As there was some delay in obtaining the final approval of the continuation of the E. C. W. activities for the fifth enrollment period, it was not possible to enroll the authorized number of men promptly on April 1, 1935, and as a result there had been accumulated a reasonable balance in the allotments so that on August 1 each of the camp directors was requested to increase his enrollment to the full amount authorized in the approved program.

It is pleasing to note that there has been some delay in obtaining full enrollment for the camp at Schofield which indicates that there is not so much unemployment at this time among the class of employees eligible for enrollment at Emergency Conservation Work camps.

Following is a brief statement of accomplishments of the Emergency Conservation Work for the fiscal year ended June 30, 1935:

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FEDERAL HOUSING ADMINISTRATION

The Federal Housing Administration launched its first campaign or better-housing program in Honolulu on April 8, 1935. With 32 Federal Emergency Relief Administration workers, a house-to-house canvass was started, and although the canvass is just about one-third completed the following results have been obtained:

146 loans made, totaling.

Loans made not under F. H. A. plan, but stimulated by F. H. A.

$84, 070. 22

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Building permits show an increase of approximately $650,000 from January 1 to June 30, 1935, over the corresponding period of last year.

The building-supply houses report their business better than any time since 1931.

The newspapers report that through the F. H. A. activity about 98,000 additional lines of paid advertising have been sold.

Similar programs are in operation on the islands of Hawaii, Kauai, and Maui, and reports from the various chairmen of these programs indicate that they have secured a potential business of approximately $100,000.

Title 11 of the F. H. A. program up to the present time, is in the preliminary stages. However, much groundwork has been laid, and plans are well under way toward actively launching this phase of the campaign.

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HOME OWNERS' LOAN CORPORATION

The Home Owners' Loan Corporation started operations in Hawaii in December 1933.

Pending the action of Congress, effecting an amendment to the act, no applications were received during the period from November 15, 1934, to May 28, 1935. The amended act allowed 30 days from the latter date for the final filing of applications, and during that period there were received 170 new applications; and 34 former applications in which recent developments seemed to qualify them for further consideration under the act, were received.

At June 30, 1935, there were 266 cases pending settlement. It is possible that 50 percent of these will become loans.

The total amount expended for operating the Home Owners' Loan Corporation office in Hawaii for the period, was $78,621.36. The following tables show the results of their activities:

Loans by races

Hawaiian..
Portuguese-

Chinese..

Caucasian..

Japanese-
Korean.
Filipino.
Others...

Total.

Oahu..
Hawaii.

Maui..

Kauai..

Total..

Oahu.
Hawaii.
Maui..

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FOR THE 12 MONTHS' PERIOD, JULY 1, 1934, TO JUNE 30, 1935

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APPLICATIONS RECEIVED DURING THE PERIOD SET BY THE AMENDED ACT FOR

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