FROM: Chas R. Bishop
TO: S.M. Damon
PLACE: San Francisco
Date: October 9, 1911
My dear Mr. Damon:-
          I am so deeply indebted to you for your good letters under dates of March 24th, August 25th, and Sept. 3rd that I fear bankruptcy unless you accept from me a poor compromise.
          You kindness to my Cousins, Edgar Bishop and Leland Dunham, is gratefully acknowledged. Edgar writes me that your grounds at Moanalua are very beautiful and in perfect order.
          A letter from E. F. Bishop dated Paris, Sept. 21, informs me that he expects to arrive here on the 21 st instant.
          In yours of March 24th you ask me: "How did Mrs. Bishop and yourself and others come to the conclusion that the lands of the Kamehameha, the Estate of Mrs. Bishop and your own gifts should all be directed toward the education of the Hawaiians?" My wife and I had talks about the disposal of her estate, after proof of Keelikolani's will and up to date of her (Mrs. Bishop's) will, Oct. 31, 1883, but nothing was said about my property. She wished to establish an institution bearing the name of Kamehameha, for which name she had high respect and preference, and a hospital or hospitals for boys and girls were mentioned and in consideration of the Queen's Hospital already established, in which Kamehameha Fourth and Fifth and Queen Emma and the government had shown much interest, it was decided that schools should be preferred, not for boys and girls of pure or part aboriginal blood exclusively, but that class should have preference; that is they should have the first right, provided, of course, that they took advantage of the opportunity and complied with the conditions and rules of the Will and of the Trustees of the Estate. See will of Mrs. Bishop dated October 31, 1884, especially article 13 of the instrument. Owing to the critical condition of Mrs. Bishop's health the will and codicil were somewhat hurried, but that it was intended to give full power to the executors can hardly misunderstood. She no doubt had given more thought to the matter than I had. I did not promise to do anything for the Kamehameha Schools out of my estate, but being interested in her plans and wishes and because of her very generous gifts to me in life interest in some of her property, I decided to help carry out her wishes regarding the schools and promised to do something toward a Museum of Hawaiian and other Polynesian objects, of which she and Queen Emma had some already in hand, but not on an extensive scale. After the time came for the establishment of the Schools and in order to accomplish something quickly without sacrifice or embarrassment of her estate, I soon reconveyed to her estate the life interests given by her will and added a considerable amount of my own property on Oahu, Hawaii, and Molokai, as shown mostly in the bound volume of "Wills and Deeds of Trust." It is decidedly my wish that the native Hawaiians of pure and part aboriginal blood shall, in sufficient numbers to form convenient and efficient schools, take advantage of the preference given them by the Will, with the understanding, of course, that they be obedient to the rules and conditions made by the Trustees under the Will; if they not do so, they cannot expect that others not of their class shall be perpetually excluded. So long as the number of applicants keeps up as it has done so far, it seems to me better that the young people of other nationalities should not be admitted.
          The schools are doing good work now, and I do not see at present any necessity for any considerable change in the system. Thoroughness in teaching both in the academic and in the manual branches should be kept up, and in the discipline and moral influence there should be no letting down. I think it would be a good thing to keep a permanent record of all who enter the Schools as to their whereabouts, how and what they are doing after they leave school. I think something of that sort has been kept from the beginning, as I asked Mr. Olson to do that and to keep up an acquaintance with the alumnae and alumni by sending some of the teachers to visit then in their homes.

In reading Mr. Home's reports and suggestions about expenditures favored by him I have received the impression that in the matter of economy he is drifting away somewhat from his good New England ideas which he had when he came to Honolulu. The extraordinary thrift of Hawaii of late year has had a demoralizing effect on many people in the Territory, The maintenance of the Kamehameha Schools and many other good things depend upon the prosperity of the sugar plantations, and then the plantations depend upon the stability of the federal tariff and the cost of labor, all of which are unstable and uncertain. The value of the stocks and bonds depends upon the same things. It is quite possible that some changes in the tariff that will effect the profits of the plantations may be made by Congress; in any case sensible economy and good management are necessary. It is not good economy, it seems to me, to tear down or neglect any building more new buildings than are absolutely necessary. The expenses of the Schools for salaries, for living, or for any other purposes may not safely be left in the judgment or wishes of the employees to any considerable extent. The fancy for new things and changes in methods lead to unnecessary expense and not always to improvement. The effort to get more pay and privilege is and will be constant, and the plea of the "higher cost of living" is used by those who receive their living without increased cost to them nearly as much as by those who have to pay for their lodging, board, etc., etc. Were the income of the Estate certain to be in the future equal to the present income. Caution and economy would not seem so imperative as they now seem to be. There is nothing more important for the young Hawaiian to learn and practice than the habit of economy, ---industry and self-reliance. When and how can those boys now in the Schools and those who have graduated be fitted to be heads of families unless they are industrious and economical?
                         The Museum is as complete as I originally intended it should be, except that an Aquarium was at one time a part of my plan, but the estimate of cost for such an object added to the cost of the Museum, as enlarged, made me hesitate and to approve of the action of others who became interested in the same object and have made an attractive aquarium on a less costly plan, but minus the laboratory, etc., etc. The C.R.B. trust could have provided sufficient funds for an aquarium had it been decided to stop all extensive improvements and protection of the Museum and to cut off the Girl's Family Schools, etc., and discontinue aid to such schools. etc., etc., as are receiving further support from the Trust. I do not favor further extension of the museum that may call for new buildings or a larger staff, but rather prefer that the expense be cut down by dropping some of the scientists now employed, which will leave it possible to continue some of the benefactions now provided annually from the C.R.B. Trust. It should be borne in mind that the present Museum buildings are subject to deterioration and damage which may require large expenditure for replacement and repairs, for which the Trust is intending to provide out of the revenue of the future.
                         I am greatly obliged to you, my dear friend, for your kind thought of me, but really I do not quite feel like saying 'yes' to your idea of employing Miss Krout or anybody else for giving me any further writing up. I appreciate your good wishes more than I can tell you. A man named Davis went to the Islands with the intention of making an encyclopedia of Hawaii, and also of this State, and he engaged a number of people there to write more or less for his book, and afterwards came to me, giving me to understand that Senator Perkins had favored him and his work and had sent him to me. He worried out of me a statement something like the page published by the Chronicle, which you mentioned. I do not think he is the right sort of man for such work, although I do not want to injure his reputation of his work. I found it difficult to keep him within strict bounds. He got in some things that did not approve of, but nothing very bad.
                         You will, I hope, be coming this way before very long and I would like to talk with you, but in the meantime I do not favor suggestion of employing Miss Krout.
               In your letter of the 25th of August you make some remarks as to the Annual Report of the C.R.B. Trust about the percentage of income to capital, etc., which I find perfectly correct, and you also spoke about bringing water from Koolau side of Oahu to the Oahu Plantation, and I have noticed that there is likely to be a suit at law; whether the result of that suit is likely to be detrimental or otherwise to the estate, of course, I cannot tell, but there seems to be quite a new idea regarding water rights on private lands etc., which may be important.

It has been my wish, as you know, to have more investments made here of Trust funds. I made some purchases for a small amount and I think I could place more here safely at 5% and perhaps at 6%,. and would like to do so. There is a very big reclamation company here called the Natomas Consolidated of California that is improving a very large amount of land on the Sacramento. They have first mortgage bonds, 6%, selling now at 92. They did have second mortgage bonds that were selling at about 66, but there are no more of these. I would not, of course, invest funds of the Trust in nay but first mortgage. I would not hesitate to but perhaps anywhere from $10,000 to $20,000 of the first mortgage bonds of this Company. of course, they are not so certain to sell again in a hurry if one should want to realize, but I think they are founded on excellent property. It seems to me in the interest of the Trust to get more securities placed here, even if they do not get a high rate of income.
                     Mr. Anderson showed me a letter from, and I wish to congratulate you upon the good crop of Olaa and upon your getting so considerable a share in the advantage of the high prices of sugar this year.
                     I am interested a good deal in what I read in your papers about what is being done in the matter of sanitation in Honolulu. improvements of that kind, of course, are expensive, but they are absolutely necessary. The clearing out of old shacks in Kakaako and the prospect of selling more of the low lying land are all good moves. It is possible that the Democratic Congress may cut the tariff enough to make the planters feel it somewhat, though I am hoping that if they cut it at all, it will not be very severe.
                     I am, of course, wishing that something may be found to help you in getting rid of the Mediterranean fly. It is unfortunate that it does not attack the pineapples."