The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1897-12-01

producing sugar plantations but also the fact
that plantations question owned of their lands in fee
simple while those with which they compared held theirs
largely under lease second basis of comparison relied on by
the Kauai planters the capitalization of their profits
They showed that they (net smaller percentage
than earned by certain other planters the assessed values
Of their plantations. This method of comparison also leaves out
CT the that the lands of the other plantations
largely easehod The facts relating those other plantations
shown with sufficient completeness enable the court
whether the comparative valuations fair As
already remarked rule be applied all alike.
1t is natural for each select point few points
apparently favorable his and respect of which he
feels that he has been Disseminated against and rely largely
upon such point points sustain his irrespective of other
points of comparison But all that upon the
be considered We of the opinion however, that
should be taken place valuations the different
plantations regarded with each other we'll
regarded singly Discrimination between different taxpayers
unless based real differences circumstances
Objectionable than general excessive taxation
There principal matters uncertainty that affect
the plantations whole-the Treaty and labor The
certainty regard the supply of labor depends largely upon
whether annexation takes place Without annexation,
there would be comparatively little uncertainty regard
abor-reatv treaty With would be
uncertainty regard the benefits hitherto enjoyed under the
Treaty. but there would be least for time great uncertainty
regard labor An made the
to show that the first of January of this year the Treaty
great danger 1t appears that had already been received
here of attack upon the Treaty before Congressional
mttees in the United States but positive tending in
dictate that the attack might be successful received until
months later and the prospects for annexation the first
of January brighter than they had been July 1885,
the date of last year While some allowance should
be made for the special uncertainties existing the first of
January in these respects the evidence tends show that
plantation values in fact then greatly affected thereby
The most important question this what allowance
should be made general for the of the sugar
dusty of which uncertainties that regard
annexaion) is the most conspicuous On this question number
of witnesses introduced experts show that capital in
vested in the industry in these islands should yield
20 to $3.50 profits per If these witnesses who for
greater part made only general that every
case plantations worth only four five years profits
then their testimony contradced by the whole history of the
industry this country and in the of of these
witnesses by their recent But their testimony be
explained by considerations which they probably assumed
although they did not state them that plan
aons pay 25 order make for other plantations
which pay little nothing, in order Justify capitalist
investing in stocks ndscrmnately if it that
plantation must have prospects of paying ultimately $3.50 in
order to Justify capitalist investing the before
assured by actual and with the prospect of several
years during which dividends will be paid, the testimony
be satisfactorily explained This perhaps what meant by
witness who bases his statement varied experience of
twenty years and connection with many plantations But
this quite different from the proposition that plantation under
the most favorable conditions yield 20 25 in order
be worth The percentage be expected from investments
smaller than it twenty ago when the
rates of interest much higher and when the
regard to the of and the of production
greater plantation having only easehod should pay
larger percentage its value than which land
fee No single percentage be expected of all plantations
time of plantation all times One witness called
expert testified definitely and with reference the
particular circumstances In the question, What do
you consider fair for in sugar. average
investment having regard the hazardous of the
ment% he said M don't quite understand the question Ten
per less under circumstances would be
sdered good rate but that would have to be under good
csance In other words instead of answering the general
question did the other witnesses without explanation he stated
what would be considered fair under particular ccum
It that sugar plantation under favorable
conditions for example, that its land fee has for
period of paid u 129 and has besides been
maintained in of efficiency and has every prospect for
doing well in the future it has done in the would
generally be considered be worth par Of the ccum
stances of no two plantations the
The last point which shall refer that relating to the
prices of stocks Just the effect of factors that
determine the value of the property shown largely by the
profits the effect of all the factors shown largely by the
actual sales of stock for this shows what persons who actually
invest consider the property be worth And yet here also
distinctions be made Small blocks would generally sell
higher prices than large blocks large number of sales
would be than small number 1t makes difference
also whether the purchasers competent to Judge
Allowances also be made for high prices paid for
special such obtain CONTROL because OF sentiment
The value of plantation be greater than the
market of It's stock would at first to ndicae for
4bo rIofv of tho