Hawaii Commercial and Sugar | Images of Old Hawaiʻi

In 1843, Samuel Thomas Alexander and Henry Perrine Baldwin, sons of early missionaries to Hawaiʻi, met in Lāhainā, Maui. They grew up together, became close friends and went on to develop a sugar-growing partnership.

Alexander was the idea man, more outgoing and adventurous of the two. He had a gift for raising money to support his business projects.

Baldwin was more reserved and considered the “doer” of the partners; he completed the projects conceived by Alexander.

After studying on the Mainland, Alexander returned to Maui and began teaching at Lahainaluna, where he and his students successfully grew sugar cane and bananas.

Word of the venture spread to the owner of Waiheʻe sugar plantation near Wailuku, and Alexander was offered the manager’s position.

Alexander hired Baldwin as his assistant, who at the time was helping his brother raise sugar cane in Lāhainā. This was the beginning of a lifelong working partnership.

In 1869, the young men – Alexander was 33, Baldwin, 27 – purchased 12-acres of land in Makawao and the following year an additional 559-acres. That same year, the partners planted sugar cane on their land marking the birth of what would become Alexander & Baldwin (A&B.)

In 1871, they saw the need for a reliable source of water, and to this end undertook the construction of the Hāmākua ditch in 1876.

Although not an engineer, Alexander devised an irrigation system that would bring water from the windward slopes of Haleakala to Central Maui to irrigate 3,000 acres of cane – their own and neighboring plantations.

Baldwin oversaw the Hāmākua Ditch project, known today as East Maui Irrigation Company (the oldest subsidiary of A&B,) and within two years the ditch was complete.

The completed Old Hāmākua Ditch was 17-miles long and had a capacity of 60-million gallons per day. A second ditch was added, the Spreckels Ditch; when completed, it was 30-miles long with a capacity of 60-million gallons per day.

Before World War I, the New Hāmākua, Koʻolau, New Haiku and Kauhikoa ditches were built. A total of ten ditches were constructed between 1879 and 1923.

Over the next thirty years, the two men became agents for nearly a dozen plantations and expanded their plantation interests by acquiring Hawaiian Commercial & Sugar Company and Kahului Railroad.

In 1883, Alexander and Baldwin formalized their partnership by incorporating their sugar business as the Paia Plantation also known at various times as Samuel T Alexander & Co, Haleakala Sugar Co and Alexander & Baldwin Plantation.

By spring of 1900, A&B had outgrown its partnership organization and plans were made to incorporate the company, allowing the company to increase capitalization and facilitate expansion.

The Articles of Association and affidavit of the president, secretary and treasurer were filed June 30, 1900 with the treasurer of the Territory of Hawaiʻi. Alexander & Baldwin, Limited became a Hawaiʻi corporation, with its principal office in Honolulu and with a branch office in San Francisco.

Shortly after, in 1904, Samuel Alexander passed away on one of his adventures. While hiking with his daughter to the edge of Victoria Falls, Africa, he was struck by a boulder. Seven years later, Baldwin passed away at the age of 68 from failing health.

After the passing of the founders, Alexander & Baldwin continued to expand their sugar operations by acquiring additional land, developing essential water resources and investing in shipping (Matson) to bring supplies to Hawaii and transport sugar to the US Mainland markets.

A&B was one of Hawaiʻi’s five major companies (that emerged to providing operations, marketing, supplies and other services for the plantations and eventually came to own and manage most of them.) They became known as the Big Five.

Hawaiʻi’s Big Five were: C Brewer (1826;) A Theo H Davies (1845;) Amfac – starting as Hackfeld & Company (1849;) Castle & Cooke (1851) and Alexander & Baldwin (1870.)

What started off as partnership between two young men, with the purchase of 12 acres in Maui, has grown into a corporation with $2.3 billion in assets, including over 88,000 acres of land.

(In 2012, A&B separated into two stand-alone, publicly traded companies – A&B, focusing on land and agribusiness and Matson, on transportation.)

A&B is the State’s fourth largest private landowner, and is one of the State’s most active real estate investors. It’s portfolio includes a diversity of projects throughout Hawaiʻi, and a significant commercial property portfolio in Hawaiʻi and on the US Mainland. (Information here is from Alexander & Baldwin.)

In 1843, as kids, Samuel Thomas Alexander and Henry Perrine Baldwin, sons of pioneer missionaries, met in Lahainā, Maui. They grew up together, became close friends and went on to develop a sugar-growing partnership that spanned generations and left an indelible mark on Hawaiʻi.

Fast forward 100-years to 1949, Alexander & Baldwin formed Kahului Development Co., Ltd. (KDCo) (the predecessor of A&B Properties, Inc.) to serve as a development arm of the agricultural-based entity.

This timing coincided with the sugar company’s plan to close down some plantation camps. To provide for housing for its sugar workers, as well as meet post-WWII housing demand, KDCo announced a new residential development in Central Maui, in the area we now refer to as Kahului.

“Dream City,” a planned residential community was launched and over the next couple decades 3,500+ fee simple homes were offered for sale in 14-increments of the new development.

While the community originally was planned to house the company’s workers from Hawai‘i Commercial and Sugar (mills and plantations) and Kahului Railroad Co., the company decided to not limit ownership to their own employees.

Part of the prior plantation philosophy was to house imported laborers in camps, usually segregated by ethnic groups. However, one goal of Dream City was to bring together the then-existing 25 plantation communities into a single planned modern urban setting.

Planning for the project took 2-years, under the services of Harland Bartholomew of Harland Bartholomew & Associates, St. Louis – a nationally recognized planning firm.

The first task was to identify the housing and living problems in central Maui, then develop a master plan on how best a new community could be designed.

Under this 25-year plan, Kahului quickly became one of the first and most successful planned towns west of the Rockies – and the first in Hawai‘i.

The homes were concrete and hollow-tile construction and thoroughly modern. There are 17 different designs available. Each had three bedrooms and a floor space of 1,090 square feet, plus a garage.

The price (generally $6,000 to $9,200 – with terms of $600 down and payments of $50 per month) included all the bathroom fixtures, the kitchen sink, laundry trays, clothesline, all the fixtures, including switches and floor plugs.

The price did not include the landscape or furniture or kitchen appliances. The landscape work was to be done under the direction of the University of Hawaiʻi agricultural extension service, Maui branch.

The plan for Kahului included spaces for modern business and shopping centers, schools, churches, playgrounds and recreation facilities. In 1951, the company built and opened the Kahului Shopping Center – Hawaiʻi’s third shopping center (behind Aloha (in Waipahu) and ʻĀina Haina.)

In January of 1948, Franklin D Richards, Director of the Federal Housing Administration described the new Kahului town housing project as the Nation’s “outstanding” development.

Mr. Richards said, “That house in Kahului is absolutely the best of its kind I have seen in 15 years’ experience as head of the FHA. I sincerely believe the Kahului home to represent the maximum in low-cost housing. There is nothing better in my experience in the continental United States, Alaska, Puerto Rico, or Hawaii.”

Reportedly, on July 25, 1950, Masaru Omuri carried his wife Evelyn over the threshold of their new home. It made the headlines in the local paper. The Omuris were the first of many residents to move into the Dream City (the “new Kahului.”)

As the development proceeded, the plantation villages were closed down, one by one, according to a schedule that gave the workers and the workers unions ten years’ advance notice.

It was announced that the plantation planned to be out of the housing business within ten years of the start of the project, and February 1, 1963, was the date it was all supposed to shut down. It took a little longer than that, but the schedule was implemented pretty much as planned.

The first homes were built along each side of Puʻunene Avenue on lots between 9,000 and 10,000 square feet. The average price of these homes, as announced in July, 1949, was $7,250 each.

The development outpaced all of the planners’ expectations. At its peak, it was reported, houses and lots were being sold every two minutes.

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