The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1881-07-06
Certificates of Stocks.

The Supreme Court of California has rendered
its decson that Certificates of Stock are not prop
erty and therefore not taxable, and Savings Banks
deposits are not to be taxed as to deposits. This
point has been similarly decided in your Supreme
Court.
The question at issue and the reasoning of the
Court appears from the following extracts from
the opinion rendered:
"The claim of the petitioner however, we under
stand to be this That the Assessor must assess 70
the respective corporations all of the. property of
every kind, including their franchise, and to the
individual stockholders thereof the respective
shares of stock held by them; and must assess to
the respective savings banks all of their property
including all moneys deposited with them by de-
positors, and also TO the individual depostors the
respective sums Of money so deposited with them"
THE SECTION OF THE CONSTITUTION
Which declares that all property in the State not
exempt under the laws of the United States. shall
be taxed in proportion to its value, 10 be as
certained as provided by law, also declares: ''The
word property as used in this article and sec
ton is hereby declared to include MONEYS credits
bonds, stocks, dues franchises, and all other mat
ters and things, real, personal and mixed capable
of private ownership; provided, that growing
crops, property used exclusively for public schools,
and such as may belong to the United States, this
State, to any county municipal corporation
within this State, shall be exempt from taxation.
The Legislature may provide, except in the case of
credits secured by mortgage or trust deed for a
deduction from credits or debts due to bona-ide
residents of this State. s" Now, what is the stock
Of corporation but Its property, consisting of its
franchise and such other property the corpora
ton may own If all this is taken away what re-
mains! Obviously nothing. When, therefore,
all of the property of the corporation is assessed
its franchise and all of its other property of every
characterthen all of the stock of the corporotion
Is assessed, and the mandate of the Constitution
complied with. This property is held by the cor
poration in trust for the stockholders who are the
beneficial owners of 1t in certain proportions called
shares, and which are usually evidenced by cert.
fcates of stock The share of each stockholder is,
undoubtedly property, but it is an interest in the
very property held by the Notwithstanding
more. When the property of the corporation is
assessed to it, and the tax thereon paid, who but
the stockholders pay it 1t is true that it is paid
from the treasury of the corporation before the
money therein is divided, but it is substantially
the same thing as if paid from the pockets of the
individual stockholders.
TO ASSESS ALL OF THE CORPORATE PRoPHTT
OF the corporation, and also to assess to each of
the stockholders the number of shares held BY
him, would, it is manifest, be assessing the same
property twice, in the aggregate of the cor
poration-the trustees of all the stockholders
and again. separately to the individual stock |
held by each. As well might it be contended that
the property of partnership should be assessed |
to the firm, and in addition that the interest OF
each partner in the firm property should be as |
sessed TO him individually. If have an interest
in partnership property, my interest therein is |
property. 1t is the right have to share in the |
profits and property of the firm in proportion |
to the interest own. But my property rights are
confined TO the property held by the firm, inst as
the property rights of the stockholders in the cor
poration are confined to the property held by the
corporation In the case of the partnership take
away all of the property of the firm and share no
longer any property as partner. In the case of |
the corporation take away all of its property |
v hlch 1t must be remembered, includes its fran
,hise, and the shareholder no longer has any /
roporty. The cases are parallel.
SAVINGS BANKS DEPOSITS
the case Of the savings banks it has declared |
hat all moneys deposited with thrr, shall be as