Pālama, then a sleepy neighborhood of neat little cottages and taro patches, was chosen by philanthropist and Central Union members Mr. and Mrs. PC Jones as the site for a new chapel. On the makai side of King street, opposite Liliha Street, the chapel was dedicated on June 1, 1896, and presented to Central Union by the Joneses. Social worker James Arthur Rath, Sr. and his wife, Ragna Helsher Rath, turned Pālama Chapel into Pālama Settlement (in September 1906).
The Raths established the territory’s first public nursing department, a day-camp for children with tuberculosis, a pure milk depot, a day nursery, a night school, and low-rent housing. Pālama Settlement – a smaller one due to the widening of Vineyard Boulevard and the construction of the H-1 Freeway – continues to exist as a nonprofit, nongovernmental agency dedicated to helping needy families and at-risk youths.