Wailea Mill and Railroad over the Kolekole River, late 1920s-early 1930s.
Introduction
Wailea Milling Company was a sugar cane operation on the Hamakua Coast of Hawaii Island. In operation from 1921 to 1944, it was exclusively for homesteaders. The homestead lands were interspersed with Hakalau Plantation lands owned by C. Brewer and Co., one of the “Big Five” sugar industry corporations in Hawaii. C. Brewer was openly doubtful that Wailea could be successful but also saw it as a threat. As for the homesteaders, they did not trust Hakalau Plantation to give them a good price and were eager to be independent.
The primary source of information for this history comes from the newspapers of the time. In the period from about 1906 to 1944, they addressed some of the basic questions that tell much of the story:
The primary source of information for this history comes from the newspapers of the time. In the period from about 1906 to 1944, they addressed some of the basic questions that tell much of the story:
- How was homesteading even possible on the Hamakua coast?
- Who were these homestead-seekers?
- What was their homesteading experience before Wailea Milling Co?
- How did the idea of an independent homesteader-run mill develop?
- How did the Wailea Milling Co. itself come to pass?
- How did it do in its 23-year life?
- How did the Wailea and Hakalau plantations get along?
- Why did Wailea end and what happened to its people?
Government & Public Support for Granting Lands for Homesteading
The Big Five sugar processing corporations were among those who worked towards the overthrow of the Kingdom in 1893 and promoted the later U.S. annexation in 1900. But not all of the changes to come favored them. “American values” had long driven a homestead movement on the mainland U.S.--individual farmers, free to make their living on their own lands.
The Demand for Hakalau-area Homesteading
The “valuable” public lands with leases coming due
The first homestead-seekers 1906-1907 -Kawiki III and some other locations
The next big group of homestead-seekers - Hakalau Iki 1912
The first homestead-seekers 1906-1907 -Kawiki III and some other locations
The next big group of homestead-seekers - Hakalau Iki 1912
Hakalau Homesteading Before the Wailea Milling Co.
Valuable public lands leased to Hakalau Plantation expired in 1906 and 1912. This coincided with the newly formed government of Hawaii -a Territory of the U.S.- that actually advocated for homesteading. Other advocates included a sugar plantation management who saw it as a means of stabilizing an unsettled workforce. Homesteaders were, of course, expected to form a partnership with Hakalau Plantation for harvesting, milling and marketing the cane. This didn’t happen easily, but it was doable.
Desire for an "Independent" Homestead Mill
The idea of an independent homestead mill first appears in the Hilo newspaper in 1912, but it was about Laupahoehoe, not Wailea. Then came accounts about the prospects for Waiakea (Hilo) and Kaiwiki (above Wainaku). Finally, in 1919, Wailea came into the news in a big way.
The Formation of the Wailea Milling Company
The first newspaper accounts of plans for the Wailea Mill don’t appear until May 22, 1919 in the Hilo Daily Tribune:
“Plans are underway for erection of a homesteaders mill at Hakalau but nothing definite has yet been announced by the trustees acting for the homesteaders concerned…The site for the mill has already been secured at Wailea.”
“Plans are underway for erection of a homesteaders mill at Hakalau but nothing definite has yet been announced by the trustees acting for the homesteaders concerned…The site for the mill has already been secured at Wailea.”
This homestead mill wouldn’t have happened were it not for the demand coming directly from the homesteaders, but it needed strong advocacy and a dogged search for capital to get it off the ground.
There was much to get right:
There was much to get right:
- Assemble a management that homesteaders could trust and a deal they could trust.
- Acquire a good mill site.
- Give the homesteaders a good deal.
- Fend off public criticisms from a sugar industry threatened by this idea.
- Find serious capital for an unproven venture-sugar mill, fluming system, other assorted costs.
Wailea Milling Company's 23-Year Life
Some thoughts:
- The example of a successful independent homestead mill was a threat to the all-powerful “Big Five” sugar industry corporations in Hawaii. But they could not stop it. Even in the early part of the 20th century, there were contending forces. The Wailea mill expressed an “American ideal” with strong advocates in the government and the community.
- It’s also true that, after the Kaiwiki Milling Co. (above Wainaku) failed in 1923, Wailea remained the only independent homestead mill. It was not replicated. The reasons for this were not described in newspaper coverage but some factors could be considered: 1) the daunting task of raising enough capital; 2) some indication that the Big Five plantations began to offer the homesteaders a somewhat better deal; 3) the strong advocacy and willpower that was apparent in forming the Wailea Milling Co. was, perhaps, unusual and not easy to replicate.
- Leadership matters. Plantation Managers August Costa and John M. Ross got off to a rocky start. This could have spelled trouble for the operations of both plantations and for the larger Hakalau community. We don’t know how these two men went from hostility to mutual respect, but it happened, and it was important that it did. (Mr. Ross was Manager of Hakalau Plantation for nearly the entire life of Wailea Milling Co.)
- Wailea Milling Co. was a problem for Hakalau Plantation but there is no indication that the homesteaders themselves had regrets about their association with the mill. For as long as it lasted, it was an opportunity for greater independence and a deal they preferred.
- The lack of sufficient capital for mechanization appears to have been the immediate cause for ending operations and selling the mill to Hakalau Plantation, but there would have been other serious headwinds ahead. Had Wailea lasted for another two years, it would have had to face the end of the railroad (caused by the tsunami of 1946). It would have also had to navigate the industry-wide labor strikes and wage increases that began around the same time and continued through the 1950s.