The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1894-05-11

| Assessor becomes apparent, IOr IN the
| returns made to him as the value fol
| taxation,
Real Estate is assessed S 3,722,040 OF
Personal Property ~ 6,977,640 OF
| A total OF $40, 699,600 OF
The difference in these returns to the
| Minister of the Interior, of 500, 291, $40 0C
and to the Assessor of S10,699, $50 CO.
| Justlties the conclusion that the cOrpor-
| alton returns for taxation are, in many
| cases, not carefully made.
These do not cover all the differences
for each year nearly all the corporations
expend a portion of their earnings in
| new works and extended operations, add
ing materially to the paid up investment,
and forming the basis for increased
dividends. If we take the sworn gross
income of eighty-one corporations as a
basis (and it is for 1893, $4,000, 1877 00),
and desire to know what percentage
shall be charged on this income to pro-
duce a tax of one per cent. on the actual
property which is returned to the Minis
ter of the Interior, as $40, 291 $40 90, we
find that an annual charge of two per
cent. on the gross income Will have to be
made; whereas, If we take the returns
made to the Assessor, of $40 699, $50 90
as the value of the property, a tax of one
per cent. on the gross income Will suffice
The question naturally arises, which of
the two statements is nearer the actual
value. Both will have advocates, and
both may be in part right; and offer as
a suggestion only, as basis of equitable
taxation, to allow for the rise and fall of
incomes for (say) five years, that the tax
be placed at one and one-half per cent.
on the gross income. This gives the cor
pOration In bad year reduced charge,
which the government, or the people,
bear the loss of, and recoup themselves
in good year.
The serious difference between the two
returns leads me to the belief, that the
corporations are not bearing their pro-
portion of taxation, and the government
comedies point of value by averaging
the tax over period of years.
A serious practical obstacle to collect
ing statistics such as the above is found
in the imperfect and incomplete returns
rendered by many corporations. The
law seems reasonably clear, and to secure
uniformity, the blanks are furnished by
the government But there is no uni
forn1ity in the way in which they are
filled out, many corporations emitting at
their own pleasure any information they
do not care to give, or which they con-
slider it too much trouble to prepare. For
instance, when / began to cOllate the
facts embodied in the above statement,
I found that no less than twenty-eight
corporations, embracing some of the
largest mercantile and planting concerns
In the country, had failed to make any
return of their gross income as required
by law. TO supply these and similar
omissions has required considerable time
and the exercise of much patience. This
difficulty arises from the fact that the
law is regarded as directory only, and
there is no penalty provided for failing
to comply with its requirements. An
amendment to the present Act, provid
ing a substantial penalty for failure to
report, and to report within the time and
that Will meet the case. L therefore re-
commend that the law be SO amended.
SUBSIDIES.
Some complaint has been made during
the period, of the payment of subsidies
to the steam line, in addition to the
amounts allowed by way of wharfage,
storage, and water. For these consider
atoms the mails have been carried free,
and tacit understanding that rates for
passage and freight should not be in
creased.
For your guidance and as basis for
recommendation, the Collector General
and Postmaster General have prepared
statistics of the allowance made to the
Oceanic Steamship Company, for the
year 1898, in excess of the subsidy; and
what it would cost if sea postage were
paid on letters and prints outward.
The allowances to the Oceanic Steam
ship Company for 1893, were
Wharfage. 81, 105 IA
Harbor Masters fees. 234 90
Custom House fees =. 234 90
Storage. :. ..... 1872 90
5,s45 is
Water, estimated and based on
the amount paid by other
steamers, with discount for
safety of estimate .. 1910 90
Total . ....S 9,1S5 16
The total number of letters
carried was ...... III, 1862
The total number of prints
carried was. ......--....... 1888
Total. 168,S45
Letter weight ..............- 1884 lbs.
Print weight. ... 1O,397 lbs
Total. 1881 lbs.
Ii the high rate of two cents letter
and print were to be paid, the cost would
be $4,000.
Taking these facts, [ would recon-
mend that any steam line calling at this
port monthly, carrying all mail matter
free, and at the same time not increasing
the present rates of freight and passage,
should be allowed water, wharfage, har-
Dor master, and custom house fees, and
reasonable amount of storage space free:
the latter to be calculated on the basis of