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A REPORT ON THE SHIPPER'S WHARF COMMITTEE TRUST <br /> CHRONOLOGY <br /> In 1904, a group of businessmen in the City of Hilo decided that a voluntary tax contribution of 10~ per <br /> ton should be collected on incoming merchandise to the port of Hilo to be used principally for sanitary <br /> purposes. Historical evidence showed that creation of a committee was prompted by severe epidemics of <br /> bubonic plague and cholera suffered by the Territory. Approximately 18 contributors were represented on <br /> the Committee. From 1904 to 1939, the Committee had spent $127,022 on various projects, including <br /> the trapping, poisoning and control of rats, the immunization of children for diphtheria, and supporting <br /> Puumaile Home (a tuberculosis sanitarium). As of June 30, 1940, accumulations amounting to $161,415 <br /> had been set aside by the Committee.l <br /> In 1941 in response to a complaint filed by six individuals, the Court found that all expenditures were <br /> within the discretion of the Committee and were proper. The Court declared that the funds were <br /> impressed with a trust for the benefit of the public to be used on the Island of Hawaii "in accordance with <br /> the declared purposes of said trust, namely, public health and safety;" the trust is in the nature of a <br /> charitable trust in which the attorney general has an interest; and the administrators of the trust were its <br /> trustees. The Court ordered that the corpus and the income from the trust may be used within the <br /> discretion of the trustees (1) to safeguard public health and improve public sanitation; (2) to prevent the <br /> spread of and remove the possible causes of epidemics and diseases dangerous to public welfare, such as <br /> bubonic plague, cholera, diptheria, small pox and other communicable diseases; (3) to relieve distress <br /> which may be occasioned by great public disaster or destruction on a wide scale, such as lava flows, tidal <br /> waves and earthquakes; and (4) to promote public safety.2 <br /> Shipper's Wharf Committee, an eleemosynary corporation, was incorporated and became the qualified <br /> successor in trust.3 <br /> In 1953, the Shipper's Wharf Committee was legally dissolved, and the Court ordered the transfer of all <br /> Shipper's Wharf Committee Trust Fund assets to the Territory of Hawaii, to be administered by the <br /> Governor of the Territory of Hawaii or the Governor of the State of Hawai i. The Court also found that <br /> the attorney general of the Territory of Hawaii was the proper party to represent the Territory and the <br /> public at large in their interest in the assets.9 <br /> <br /> The original principal or corpus of the fund received by the Governor on December 30, 1953 was <br /> $173,861.49: $104,861.49 (certified check) and $69,000 (Hilo Electric Light Co., Ltd. bonds).5 <br /> <br /> The funds were not placed in a 'special fund' nor appropriated by the legislature. Notably, Section 37-62, <br /> HRS, (State Financial Administration) defines "'special funds' as funds which are dedicated or set aside by <br /> ~ Fourth Circuit Court DECISION dated January 9, 1941; Fourth Circuit Court DECREE dated January 9, 1941; Fourth Circuit <br /> Court AMENDED DECISION dated January 11, 1941; Fourth Circuit Court AMENDED DECREE dated February 27, 1941; <br /> STIPULATION dated February 26, 1941. <br /> ' Ibid. <br /> s Third Circuit Court ORDER dated December 22, 1953. <br /> Ibid. <br /> ` Ibid. <br /> 1 <br /> <br />