The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1901-04-05
LIQUOR MEN IRE
HOT MUCH PLEASED
Big Fellows Enter a
Very Hearty
Protest.
The OTHER SIDE OF THE STORY
BOOZE MERCHANTS SAY THAT
THEY ARE MUCH
ABUSED.
Tax Record Sticks In the craws Of
the Local Deslers-They Say
that the Licenses Should Be
Counted as Taxes.

The liquor men Of this city do not
Ike the article which appeared In
yesterdays issue Of The Republican.
They enter protest against the article
and two OF the protests which appear
below indicate the spirit in which the
article was received. The Republican
takes pleasure in printing the com
munications. for the text and spirit
OF the letters demonstrate the truth
Of the statements OF the offending
article and make the position of The
Republican even more secure
Mr. Rothwell OF the Peacock Com
pany says that the concern with which
he is connected. pays taxes on basis
OF more than $500 600. and that the
liquor men are taxed throughout the
islands on a basis OF FIVE millions CT
dollars.
With tears The Republican hastens
TO assure the liquor men. that il APP
preciates the position they are placed
in. Il admits that each saloon in the
city has TO pay s102l before II can
open its doors for business beside the
amount with which the article credit
ed the liquor concerns on account OF
taxes
Leaving the question of the status
OF the license and all other questions
raised by Mr. Rothwell's letter TO one
side. The Republican wishes merely 20
consider one little matter In this con-
nection.
II the liquor men tell the truth,
there is much over a million dollars
Invested in the liquor business OF the
Territory II the records OF the
Customs department are correct their
statements are carried out with
strength. II the tax-records are true.
the liquor men on their own showing
are not taxed enough. The stocks
OF the local saloons, together with the
stocks of the wholesale houses which
are not in bond. surely are not suffi-
GENTLY burdened with taxes when
they are called upon TO pay $1,000 to-
ward the support of the government
with a million dollars worth OF
taxable liquor in the city. how does 1t
happen that the liquor is only rated
al 10 per cent Of that amount?
II IS true that the licenses figured
with the taxes on the liquor make an
amount something like that stated by
Mr.. Rothwell. but how does IL happen
that a single business concern like T..
o. Hall & Son has to pay as much
taxes on the stock carried in its store
as the entire liquor fraternity? Was
the amount OF the taxes of the liquor
men. tempered by the fact that a
license fee was 10 be charged for the
retailing or jobbing OF their stocks?
The letters of Messrs Rothwell and
Macfarlane are as follows:
To the Editor OF The Republican:
Sir:-T have read with much inter
est and some amusement your article
in this mornings issue purporting to
be r statement of the taxes paid by
the liquor interests in Honolulu. and
am assured. had you been better in
formed. your article would not have
been so manifestly unfair in charac-
ter. II you had investigated. you
would have found that the bulk of the
stock in trade of all wholesale houses
is stored In the bonded warehouses
until required for use. and that the
duties are only payable on withdrawal
Thus Il happens that stocks carried
by wholesale houses. may easily ap-
pear TO be very much less in value
than would be supposed. and no firm
can be expected 10 withdraw their
goods from bond 10 pay the duties be-
fore Il becomes necessary in the con-
duct of their business. for the priv
ledge of paying an additional Terri
torial or any other tax that may be
lawful.
would also point out that assum-
ing. as you state. that the duties levied
~ hor hn tAto
cost OF liquor on the market. IL must
be evident that liquor dealers are
taxed not only on the original cost
OF the goods. but also again on the
duties already paid in cash to the
Government. This refers. OF course.
10 duty paid goods in store.
On looking up the taxes paid by our
own firm for the year 1900. we find
that We paid in licenses and taxes to
the Territorial Government the sum OF
s6Ti0lo and 10 the Federal Govern
ment s595. Thus we paid TO the Ter
ritOrial Government l per cent on q
total valuation OF s67i 600 and to the
Federal Government on s5s500, or q
total taxation value OF s7sS.5o0
This statement hope will have the
effect OF correcting in the minds OF
the public the impression by your
article, that the liquor interests are es-
Gaping lightly. and you win notice
that wherein our capital stock is I'm
tied az present TO 5000. 900. we are
actually being taxed on the equivalent
Of over So times that amount. which
cannot be said OF any other industry
or business in the islands.
Please also take notice OF the taxes
thus assessed and collected against
the individual retailer OF spirituous
liquors He paws TO the Territorial
Government sl.e2i per annum for H.
cense tax and se5 per annum to the
Federal Government, thus paying q
tax equivalent in property value TO
sios.s0o In addition 10 this he is
taxed for his stock on hand. and from
my knowledge OF the stocks carried
nv Retailers cbnr,iS that Tho