Japan immediately asked why this regulation was made, and Hawaii replied that she had a right to import laborers from what country she pleased. This was the commencement of the bad feeling between the two countries on the emigrant question. Japan, however, still continued to send over her laboring class in vast numbers. Under the immigration laws of Hawaii, every immigrant seeking admission to the country is bound to have not less than fifty dollars in cash in his pocket and a contract in his possession that will guarantee him employment for two years. It was brought to the attention of the Hawaiian Government by the agents of the two steamship companies that a fraud was being practised upon the country by these same steamship companies; each agent accusing the other company of the misdeed. The fraud was this: To enable the emigrants to pass the customs officials safely, the steamship companies agreed to carry the passengers over to Hawaii for so much money per head, in return for which they also loaned them the necessary fifty dollars to show the officials, and they also furnished the required contract for their employment when they landed. [**Transcriber's Note: funished changed to furnished] It is hardly necessary to say that the fifty dollars was taken from them after they were safely landed, and that the promised employment was not given. The laborers were turned adrift to look out for themselves, as soon as the formalities of the Immigration Bureau had been complied with. After the Hawaiian Government had received this information, arrangements were made to inspect the next Japanese emigrant ship very closely. It was found that the agents had stated the matter correctly. Nearly all the emigrants on board had fraudulent forms of contract. They were refused admission and sent back to Japan. Of twelve hundred Japanese emigrants to Hawaii in two months, over one thousand were found to have false contracts. Mr. Akiyama, having been acquainted with the Hawaiian cause of complaint, persisted in declaring that it was wrong to send the emigrants back, because it had caused much trouble and loss of money to Japanese subjects; he further declared that by sending the emigrants back the Hawaiian Government had broken the treaty with Japan. He demanded that the Government should pay a sum of money to recompense the emigrants, and give Japan an assurance that its emigrants should not be interfered with in future. After very careful thought, and consultations with the best lawyers in the Sandwich Islands, the Hawaiians absolutely refused to agree to Japan's demands. They denied absolutely that the treaty had been broken, and refused to admit Japanese emigrants unless the laws were properly complied with, stating very clearly that any Japanese who attempted to enter Hawaii on fraudulent contracts would be at once sent back to Japan. This answer was sent to the Japanese Minister.