In 1876, Capt. James Makee (1813-1879) and his son-in-law, Col. Zephaniah S. Spalding (1837-1927), founded Makee Sugar Co. on several thousand acres of land at Kealia they’d purchased from the estate of rancher and dairy farmer Ernest Krull for $30,000, and on substantial acreage acquired at Kapa‘a.
Krull, by the way, had started his ranch and dairy on a large tract of land in the Kealia ahupua‘a he’d bought from the Hawaiian government in 1854 for $200.
In 1866, he’d enlarged his holdings by purchasing the remainder of the Kealia ahupua‘a from Levi Ha‘alelea for $3,100.
Work at Makee Sugar Co. commenced when sugarcane was planted behind Kapa‘a and a mill was built in Kapa‘a in the vicinity of today’s Mo‘ikeha Canal.
Then in 1877, King David Kalakaua set up a few courtiers and members of his recently-deceased brother’s (Prince Leleiohoku’s) Honolulu choral society in the sugar business at Kapahi.
Many of the 32 working members of the “Hui Kawaihau” (Ice Water Company) arrived on Kaua‘i off the mouth of the Wailua River aboard the steamer Kilauea in August 1877.
The hui constructed houses and a meeting hall in Kapahi, where the Hawaiian Fruit Packers pineapple cannery was later built, and contracted Makee to plant 240 acres of sugarcane and grind the cane at his Kapa‘a mill.
After startup costs were paid, the hui’s first crop netted each member $500 profit, but a fire destroyed much of the second crop, which disheartened the hui, and they drifted away from Kaua‘i.
The hui’s possessions and leased lands were sold to Spalding, who had taken over Makee Sugar Co. following Makee’s death in 1879.
In 1884, Spalding purchased the ahupua‘a of Waipouli, comprised of 2,904 acres, from the Lunalilo estate, built a second mill at Kealia, and demolished the Kapa‘a mill.
Makee Sugar Co. grew and prospered so that Spalding was able to sell the controlling interest of his company to Lihu‘e Plantation in 1916 for $1,500,000.
Lihu‘e Plantation acquired Spalding’s remaining stock in 1933, and in 1934 absorbed the plantation and dissolved Makee Sugar Co. as a corporation.
Source: The Garden Island