The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1897-02-15
IN UPPER COURT
Important Tax Suit De.
cided by Supreme Court.
Inter-Island s. N. CO. and o. r. g.
L. Co. Have Cases Heard.
Sentence Day.

The very important tax appeal case
of the Inter-Island Steam Navigation
Company was decided by the Supreme
Court Saturday in favor of the assess
ment made by the Assessor. This case
directly involved the new tax law in an
important point, i. e.: The assessment
of a corporation upon the market value
of its stock. Regarded as separate
items. the total value of appellants
property Of all descriptions was re-
turned at 1868 5000. But figuring the
market value OF the stock as a part OF
the base to work upon, the Assessor
found SAT- 300 as his basis of assess
ment. The Court sustains this basis
as correct under the law.
In it's decision the Court expresses
the opinion that the market value OF
a corporations stock should not be ia
ken as ga sole or conclusive test of the
market value of the property, but that
it is an important factor in determin-
ing such valuation.
While the decision is very important.
IL is the opinion among corporations
: that other cases may arise under sim
liar issues. 1T is pointed out that no
stock has a fixed market basis; and
prices paid for small blocks represent
a fictitious valuation and cannot be
used as a sole test or even compe-
/ tent basis For instance, a few shares
of a certain sugar plantation has found
I ready sale at S165 to $175. But short
/ time ago a block of over 500 shares
tipped the maximum market at 1924.
Few corporations have the opportunity
of testing, in this way the real market
value of it's stock, and stand liable to
! assessment on the fictitious basis of
small sales.
! In the case above cited, Messrs. Kin
ney & Ballou appeared for the appel
lants: Thurston & Stanley for Asses
Hsor Shaw.
James /. Dowsett and John K. Sum-
ner VS.. Jonathan Shaw, Tax Assessor,
First Division, appeal from the Tax APP
peal Court, was also decided by the
Supreme Court Saturday morning, Car
| ter. j., in place of Frear, j., disquall-
! fed This case is an appeal from the
| Tax Court from the valuation OF $685.
| 900 on the real estate of defendants
off the port of Honolulu. An undivided
| half interest in the estate reserves an
annual rental of $500. 1t was con-
tended that if a half was worth $4,000
! in rentals, the whole, or with the adj
ditional Unbiased half interest, would
be worth 81 900. Multiplying this as
sumed realization by eight, as by stat
ute provided, the Court declared the
valuation of the property to be $4,000
| Appellants contention was that, as
only S.. 500 was realized and no rent
ais had been received from the other
undivided half. the basis of valuation
should be S44 900. In it's decision the
Supreme Court affirms the judgment
of the Appeal Court, and fixes the val
uation for taxation purposes at SSS,OOO
Cecil Brown, for appellants; Thurstor
& Stanley, for the Assessor.
The appeal of the Oahu Railway anC
Land Company went against the Tar
Assessor. In condensing its finding:
the Court said: "A leasehold may var!
in value from year to year. We might
using our own judgment, and consid
ering all the circumstances OF this par
ticular case, put the valuation at va
rious amounts between that put by tn
, [ ASSeSSOr-SlU .UUU- anu JudI ISlui IlS'
by the taxpayer 1000. But in view
of the meager evidence before us, w
, prefer not to make an arbitrary as
sessment which might be wide of tn
, mark. and we, finding the Assessor
method of calculating the value er
, roneus. hold that the amount returne
by the taxpayer must stand. Ceci
o Brown, for appellant; Thurston & Stan
I ley. for the Assessor.
s Saturday was sentence day in tn
= Circuit Court. Two Chinese were fine
= So each and another S25 for assault an
= battery This was in the Lee Yam case
f d. Pipi was fined 5000 for selling liquo
e without license, and, in default c
i cash. was sent TO prison. For opium
= All Tuck and Chu Kun were fined $40
= each. and All Chin SIS.
e The Dimond case was on befOr
e Judge Carter in closed court. Two wit
q nesses were examined up to a late hou
I in the afternoon, when the case wen
Il over 10 today.