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

uv followed in all cases varying are the factors 90
determine the values the different but the itself
provides that there shall be taken into consideration besides
the matters specially enumerated al other and consider
aons which reasonably and fairly bear upon such valuation
The question is what the fair and reasonable value of the
property a whole, all things codered not what the
arbitrary (Which could scarcely be called vaue) that
would be obtained by considering only certain things
distinction should be made between properties yielding
profits number Of and those the profits from
which variable.
Dividends should not be COMPOUNDED with profits In
most the cases now have the profits for only
wears, and only the dividends for other In
planters have returned running what
really capital expenditure for example, expended IN
purchasing lands otherwise increasing the permanent property
earning of the plantation In vaung properties there
FORE far earnings considered dividends alone not
correct criterion What expended by OF investment
distinguished from running expenses should be added
dividends. Further there be distinction between plan
respect what expended for running expenses
No doubt planter include running expenses whatever
maintain the plantation efficiently Now it
plantation kept the top notch of efficiency and another is
allowed TO down through failure to replace worn
quaed machinery with improved machinery other
although the plantations equal dividends
the latter really pays dividends what should have been put
running expenses and allowance should be made that
In other words what laid in capital expendi
should be considered in addition dividends, what should
BEEN not been laid out maintaining proper
efficiency should be allowed for in the other direction Of
this cannot be accurately estimated but be allowed only
general Some plantations evidently kept up properly
and others have been sometimes probably through
lack of means
An important question in considering the past of panta-
ton whether it has been growing declining plantation,
for example, through changes its supply the
of its of cultivation other respect-th of
far such changes tend Indicate what the future
will be- In districts for instance the rainfall perhaps the
only principal of the supply has been gradually
diminishing while in other the supply, whether from rain,
streams wells, assured indefinitely In cases.
plantation have apparently just taken fresh
tered upon lease of life through the acquisition
of additional lands supply change its variety of
extensive of fertilizers, for other
In such the profits of the past would be
be nd the
prospects for the future in such should
sldered or the value be placed the full which
such prospects anicipaons may Justify,
for experience them to be largely isor The
servative not the speculative, spirit should control in
OF assessment
the amount and character of the actual tangible
property has important bearing the value of plantation
whole The of its land location and topography
the the SOIL transportation and shipping facilities
the character and of the supply and other
matters and should be considered and yet after all the
resultant effect of these shown largely by the profits
Each of these elements considered in consider
Ing the net profits for each rule helps to increase diminish
these Still this is always the plantation may, for
example, of forest land fee simple of which
it makes at present and which does affect the profits
OF the plantation and yet such land contribute materially
to the value of its property whole for example if
should be suitable for the cultivation of coffee other products
although not at present devoted to those purposes
In connection with this of the specific property
OF plantation may be noticed under which least
company abored This company at least its principal wit
failed to distinguish between the value of its easehod in
terest and the value of its lessons interest and under the i'm
preston that if paid the lessons under in its
lease the value of the lessons
from the total value of the plantation In determining what
OF It's the should pay payment of under
covenant lease clearly in the of payment of
to the lessor and payment of far the lessee
sconcened It of that the lessons interest should
not be assessed to the lessee well the lessor Only his
interest should be assessed to the lessee.
Having considered to the past and present
throwing light the future let to what lies
particularly the future Facts that have ranspred
since the date of and date of the hearing
TO he
value of property given time determined bv what people
then believe to be WORTH not by what after
wards to have been worth Consequently future prospects but
not subsequent events may be considered.
very important point of difference between plantations
found in the character of their landed estates plantation
which its land in fee simple is worth than which
has only easehod others short
Generally only portion of the lease the
portion varying greatly Often there many leases expiring
different times The probability of being able the