The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1897-02-20

enterprise taken place during twelve months next
preceding, giving the of the selling the
buying, the number of shares proportion OF interest
each sale; and, when known the purchase price
The plaintiff corporation returned It's tangible properly
consisting chiefly of steamships, ship chander coal ana re
1863 59O4S the aggregate value OF the cono
property forming the basis of its business enterprise Inns
amount, however, merely the of the values OF the
different items valued separately under the old lay" Inc
raised S47 This amount he obtained
according testimony before the appeal court by
taking the capital stock (hen consisting OF 1870 shares OF e
par value of 800 each its market value $40 per snare
reducing this fifteen per allowance for probable
reduction in the of the shares If sold large qua
and then making further reduction of per means
of equazaon with the of other corpor
aons; gross receipts $61S 4507, the
running expenses ($5566S65S the earnings cover
$62000 fourteen per the capital stock and
the dividends paid twelve cent? during the then Just
ended also the dividends paid during the preceding years
$4250OO he the principal real
and personal property other than the steamships The tax
peal sustained the made by the assessor
1t is contended for the plaintiff that the law like the
old far bears upon the present provides tor
tax upon property only that business or enterprise 70 pe
distinguished from the property which forms Its basis IN that
the value of the former depend many things
besides the property example, upon labor Skill
rapid turning of capital of competition and
especially good WILL that all these elements combine produce
earnings determine market stock
well the value of the enterprise that although the
and the market value of the stock be regarded as t
of the value of the enterprise they should not be
sdered ascertanin the value of the property this
only of elements which determine the amount
of the earnings the market value of the stock the value of
but that the statute in question itself recognizes it, for 1t ex
pressy provides property, and that
portion of he third paragraph of See I'D which directs the
consideration of the and the market value of the stock,
does only for the purpose of estimating the value of the
enterprise; that the by considering chiefly almost
rey the earnings and the market value of the stock pro-
ceedd wrong principle and really estimated the value OF
the enterprise and enormously took this the value of the
property, if there distinction the
also conended that the made by the plaintiff
only because aggregate vaue, at which combined
required v the statute to be assessed merely
of Of tho aI1oI
separately but also because of fact aside from the
language of the statute parcel of combined property Cat
least If it manufactured personal property like steamship
and capable of indefinite multiplication has value
part of whole because of its in connection with the
other parts than it would have taken by itself
We may readily concede that conended for the plaintiff,
the sections question well other portions of
legislature intended the
property forming the basis of enterprise for profit and did
intend the enterprise such itself. We may also
concede that there be great difference between the value
of enterprise and the value of the property which constitutes
its basis especially if such property considered whole
but aggregate of isolated parts also that the earnings
the market value of the stock of enterprise may alone
of the of property which
its basis 1t is to see that owing to good will sful man
agement responsibility and popularity of the popreos lack
of competition other the capitalized earnings
of of enterprise may greatly
ceed the value of its tangible property especially if regarded
separate items; the other hand that the market value
of the stock be much less than the value of the
property, whether regarded whole separate
for instance if the enterprise greatly in debt for then the
market value of the stock would only the
the value of the enterprise the Indebtedness
But while neither the earning power the market value of
the stock of enterprise necessarily alone
of the value of the property by follows that these
may be considered with other things determining the
value of the property As well might be said that
production of personal property the price paid for
which certainly often different from the
the property be considered with other things emat-
ing the value of the property And this the dis
tnctiOn recognized the examined bv us
namely, that the earnings and the the stock
corporation be regarded furnishing cor
criterion of the value of the property all but NAV
be considered estimating the value of the property whether
tangible property alone, both tangible and intangible
that the weight be these
upon the particular circumstances of each cases
these considerations taken alone be the best guide TO the
the while other be LITTLE
importance This also the rule recognized our statute
which provides that shall taken into
only these facts but also a other and
which reasonably ana larry pear upon such valuation 1t is