The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1885-02-11

owed the corporatiot on tnis account. HiiIs
explanation makes it plain that the Reserve
Fund was simply credits or debts due the
corporation. 1t has no concrete existence and
is not by the law now IN force taxable prop
erty, and comes within the principles of Nc
Bryde VS.. Kala, decided by me in September
last.
On this count, Judgment must be for the
plaintiff.
The second count in the declaration is for
two hundred and 6sfeep S. 100 dollars taxes on
SOS .754 worth Of sugar shipped on boar,i the
American S. s. AE18ssdd. Af&F
Its in evidence that there had been ship
ped by plaintiff corporation on board the Ala
media some 54s5 bags of sugar. The bill of
lading is dated The 2eth June, 1884, and |
think the proofs make 1t certain that it was all
laden on board the vessel before the lst July.
The vessel sailed at about noon of the LIST July.
The sugar was proved to be the property Of
some eight different corporations and individ-
uals, of whom The plaintiff corporation was the
agent, and was consigned to WEIGH & Co. of
San Francisco, to whom the bill of lading had
been mailed. a
II is commended by plaintiffs that This Sugar
is not taxable:
LIST. Because 1t was not the property of the
| plaintiff-but was the property Of corporations
which have corporate existence within this
Kingdom and of individuals within this King
dom,
End. Because the sugar being laden on board
Of a foreign vessel, is not, in contemplation OF
law, within this Kingdom.
Bird. Because the sugar was not IN the pos
session, custody or control orthe plaintiffs.
La nv opinion See 81 Of the Act Of 1852. as
well as other Sections, make property ASSESS
able 10 toe persons in whose possession or
control it may be on the LIST of July OF each
year. The duty of ascertaining who the true
owner MAJ be is not cast upon the assessor.
| The law imposes taxes in rem and the res is
taxable in the hands of the person holding it
and the collector need not look further. To
require That each assessor should try and pass
| upon titles to personal property and decide
correctly at the peril of losing TO the State the
tax upon it, would operate to encourage eva
sions and consequently to place heavier bur
dens on the honest. / think sugars in the
hands of corporation acting as commission
merchant or plantation agent are properly tax
| able 10 IT,
The sugar vas within this Kingdom, al
| though laden in the hold of an American
steamship. Any other construction would adj
nit Of articles of great value being placed on
board of a foreign vessel in the harbor oil the
3Oth June, and returned on shore on the End
| July, and thus escape taxation. The case
cited, Grape as. KELLEY, 10 Wallace 6l0, does
not apply. This was a question whether the
transfer of all the property of debtor resident
in Massachusetts, by Judge of the Insolyent
Court, passed the title to his assignee in insol-
Tency, of ship then on the high seas. The
Court held that for the purposes of this suit
the ship though on the high seas was aportion
| of the territory of Massachusetts, and the title
to her passed with the like effect as if she
were physically within the limits OF the State
Of Massachusetts,, and so a subsequent attach
ment on her arrival in the port of New York
was invalid.
The sugar, though its bills of lading were
mailed 10 the consignees in foreign port, was,
for the purposes of taxation, still in the pos
session and control of the shipper.
On this count judgment must be for defend =
and.
W.R Austin for plaintiffs; Attornsy-Gen-
eral Neumann for defendant.
Honolulu, February 9Th, 1885.