The Hawaiian gazette., 1882-05-17


20 Il Is rnatheEaiieally true that The sum q
al the credits ard e al he debts are jest
eqral. ard II al the credits ART ecGrtcd As
property, and al Of the debts deducted. The
/ pgcperky reresisisg vii be Just What i weala
have heen L beth credit ard debit had been
len eet altogether. 90 by this last ard simpicst
metho6 hoth TIE state and the taxpayers gst
| their due, and there Is less chsnce for double
tsxstScr.
The krst system ef taxation has been the one
sdcpted ard practisei in this kingson frpr
the krsi crgsaiEstion Ct any internal property
tax system. But under Is serious abuses have
ARISEN, demanding ecrectiop, ard learn that
ministerial bill, eorreetieg abuses, or inseg
uratiug system less liable to them Will. Be
h-o1Sht before the Hoese. Until l SIS. solvent
dehts were taxed, as property, % TIE creditor,
bui b. VAS allowed 70 deduct al the debts
that he cve6, both secured and unsecured
The taxes upca these, unless specially pro
vi6ea icr. were paid BY the creditor, Aost Of
the mortgages were held in Hoacluiu, where
tie taxes upcr the mortgages were assessed
and collected this raissS the complaint in
ether districts frp- the assessors that, whilst
they bad the labor Ct assessing such properties,
the Ecuclulu cfscers received the pay. The
complaint vas inst, ard The law OF lS7e was
designed 70 correct the iplcStice.
Tbs vas dcne BY striking ou. "seassyS
k,rzsf sris.i vs- rs'cc5sS' frcn the GsknSs;on q
items Ct pSrScn8i property in Section 4Ss, Civil
Code, ard inserting II place thereof, the words
'HaotsS y brHi. sa1Serarstf dds The iaten-
ticr Of the authcr ard legislature was to tsx
the property u the district where il Law. ard
that the mortgage ShcRld not be taxed as per-
scuSl property, a. befcre. leaving the rate Of
interest 70 be adjusted between the borrower
and he lender with the knowledge that the
lender wOult have nc taxes to paw. This IL
depreciation was fully explained to the Lesis-
lGturs ard seemed &c give satisfaction. ard the
tlll passed by unanimous vote. The words
notes u hand are redundant ard uuneces-
ssry, aud rather obscure the meaning, for al /
notes are either unsecurss or secured debts
Il secured by mortgage. the consideration Is
identical with the consideration fer the mort
gage, and not subject 70 be returned fer as
sessueni. but the assessors have, where j |
note vas secured ~ J mortgage. insisted upCn |
the ncse beinS reported for assessment. Though |
The mortgage given % secure It be exempt. |
Thus, the n0te Is taxed, ard the property for |
which Il was given s taxed, equivalent &c 4 |
double taxatior Of the property. II there be |
nc rcte with the mortgage, then the property /
only Is taxed according &c the intention Of the |
law. The meaning Il ebscursd BY the redund /
AZ. words, and possibly the words nay b 1
10 admit Of the taxation Of s.srt 1
notes, bat i. can oaly he done conStlutiop-
ally, BY denying that 10 tax property and /
the mortgage upon Il Is double taxation
CT the only property there IS in The case
The irtrcducer Of that act, and the Leg
stature tia. passed 1t, considered il double
taxation, and consider Il 50 now. Ard If the
words are obscure, the authCr's Interpretation
q its meaning ought to be allowed more
weight than IN assessors, who iuterprsts
il 70 mean just the reverse Of VIA. the
author intended, however great the Oh
scurity Of the language be may have
used. But with all the cbscurity Of language.
ANY such scrsSSy--g construction OF the law Is
not admitted, for ]! involves an ahSuriity il
making note taxable as property when a
given for the sane isisatie1i consider
lticu : net taxable. If there does not happen to
e no;e for tie sane thing, and uncCnstitu-
.ioral If i be to1ble taxation. as Is claimed by
many jGrists and large numbers Of business
re1,
As regards returning debts due to one as
property. Il Is some guide, bat can aeyer Be
7racticaLly accurate Where credit Is given.
very dealer has many names, and some sew
,ral hundred &C bis hooks Of persons scattered
ErcughcCt tie Kingdom, and to ue any in
,ortS1s cheek upoa the accuracy Of the returns,
be assessor Of every district where deduction
u debt Is claimed, must write to every as
essUr where the claim Is made 70 ascertain
rc1 Liu whether the alleged creditor has
late returns 70 correspond. This proposes
z extensive correspondence which never eau
2 viii take place, whilst if It could he carried
q, 1t would produce the same results as the
sccud method with far more labor and fire.
.gu and trouble.
I ought to add that any charge made viii
ct impair any existing contract. Where the
iortg1se las paid interest, and the payment
J transferred 70 the nortgagor, the latter viii
Z entitled 20 charge It ls interest or principal
ald upon his mortgage Yours respectfully,
5. y. Castle.