The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1890-09-30

SUBMISSION or CASE BETWEEN THE
OAHU RAILWAY AND LAND Con-
P4NY AND CHARLES A. BROWN.
AsSEssoR-N-CHrEF FOR THE Isl
AND OF Oahu.
Ihe plaintiff company Is considered 10 be
private and not public" corpora
ton
The provision OF the tax statute which
makes public stocks and bonds tax
able as a species OF personal property
does not. therefore. apply 10 the bonds
% the plaintiff company. and they are
excluded from the description OF tax
able property.
OPINION or TEE COURT BY M'cULLY. J..
The following is the submission:
Submission of controversy with
out action.
Case.
The Oahu Railway and Land Com
pany, duly incorporated under the
laws Of the Hawaiian Islands, is the
owner of q railway connecting Homo
lulu with Eva on the Island Of
Oahu. The said railway is in good
order, thoroughly equipped and is in
active operation. Besides the rail
way and It's equipment. the said
company owns certain other proper
" consisting OF lands and chsttels.
In order to build and equip its
said railway. the company as by its
charter allowed. issued certain mort
gage bonds Of the total amount of
$4,000: OF these bonds S260,000
were issued on construction and
equipment account, and said amount
was actually used in such construc-
ton and equipment. The remaining
$4,000 was used in the purchase
ard development of its other said
property. Upon the issue OF said
bonds the said company guaranteed
them free of taxes: without such
guarantee it might not have been
possible to have sold the bonds and
TO have built the road. A form of
said bond Is hereto attached and
made part hereof.
By the contract authorized by the
law of 1855 Chapter 62), under
which the said company was organ
lied and has its existence, " the
propertv- of said COM
pany which shall be fairly necessary
70 the reasonable construction. main
tenance and operation Of said road is
exempted from all taxes for twenty
years" {see Section 10. S26O,OOO Of
said bonds cover such portion of its
property. The remaining portion Of
.the property Of said company Is la
bic for and is actually taxed. 1t is
for the said remaining portion that
$4,000 OF said bonds were issued.
Upon the foregoing facts 1t Is
claimed by said company that its
bonds are not liable TO taxation. be-
cause.
Ist The S26O.0OO Of the sum
above mentioned cover property ex-
pressly exempt from taxation by law
Al the present time, and,
ID. That the $4,000 Of the sum
aforesaid, cover property already
taxed. and it would be taxation to
tax both the mortgage bond and
property covered thereby.
II Is claimed by said tax assessor
that said bonds are personal prop
zrtv srbioct 70 tardtioR by our laws.
1t Is agreed by and between the
parties hereto that the case above
set forth shall be submitted to the
Supreme Court for its decision and
that such decision shall be final and
binding between the parties hereto
and decisive as 70 the right to tax
said railway bonds, and that II neces-
sary a writ of prohibition may issue
Oh such equipment, If favorable to
the plaintiff. or IL in favor OF the de
faudant that the total issue OF such
bonds shall be assessed to plaintiff,
or such proportion thereof as the
Court shall hold liable TO taxation
Bx TIE COURT.
The bonds here under considera-
ton can be taxed only If they are
-.public" bonds. The statute detin-
ing personal property" for the pur-
n0Sa of taxation Is Section 3 OF
Chapter 81 OF the Acts Of 1886.
-.PubIic stocks and bonds" are the
only bonds included. This statute
Is an amendment of the Act Of 1852,
and the statute is an amend
ment of the law providing for taxa
tiiou as first enacted IN the Civil Code
of 1859 Section 483 provided that per
soDsi uroperty be construed to in
cIude sTaH moneys N hand
and MONEYS loaned. all mortgages,
nTllic stocks. stocks IN corporations
and every species of property not In
cluaea IN real estate" The amend
nant of 1882 and the amendment OF
IS86 make public stocks and bonds
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