The Hawaiian gazette., 1901-08-16
THE STATUS
OF HAWAII
IsMidwayBetween
Territory and
States.
oFrom Wednesdays daily


different grounds. The point generally
thought to have the most weight in the
arguments to the Supreme Court was
TINT of discrimination between corpora.
lions and individuals, which If held to
be illegal is admitted will throw out
the entire law IT. on the other hand,
some of the minor objections to the law
are sustained, the defense claims that
this would simply result in the law be-
ing remedied to the extent of striking
out these sections, and the raw would
still remain in force.
A new and novel fact brought out
by the arguments yesterday was that
the powers delegated to the Territory
OF Hawaii far exceed that OF any other
Territory. and that the status Of Ha-
wall is midway between that Of state
and Territory.
Both cases, that OF the Waimea
Plantation Company, corporation, ana
OF C. II. Robertson, We're presented to-
Rether
GENERAL HARTWELL'S ARGu-
MENT.
General Hartwell opened the argu-
ment with a general statement of the
agreed facts in the case at bar the
reading Of the papers being waived. He
stated that the tax had been paid on
the agreement that the money would
be held by Assessor Pratt subject 20
the order of the Supreme Court.
Il am aware" said Mr.. Hartwell, "ol
the extreme caution with which court
always approaches question OF leEis-
lative power II may be assumed that
the court will not declare this act in
valid. unless the reasons for such ac-
tion are clear; but I take II that the
tax law will receive strict construction
by this court.
I'm 1897 an income tax laW was pass
ed by the Legislature OF Hawaii, fol-
lowing closely the law Of the United
States adopted in 1894 The Supreme
Court of Hawaii declared this law un-
constitutional because OF Its lacking In
uniformity. and because of It's being
against the Constitution of Hawaii,
which. however. Is no longer In effect.
The provisions Of such a law 40 far as
proportionate taxation Is concerned, Is
inherent In the taxable power Of any
country. This proposition Is admitted
by Chief Justice Frear In the decision
quoted, ne dissenting from the opinion
of the majority
Mr.. Hartwell quoted from this opin-
the first income tax law, and also from
Cooley on the powers OF states as re-
CARDS taxation being subject to limita'
tons also on the uniform ratio, pro
lection against exceptional taxation
etc. He argued that the law laid down
in this case OF Campbell VS.. Shaw was
to be considered as the law Of Hawaii
TODAY. the Organic Act providing that
Judgments in force previous to anncNa-
ton remained in force unless different
~ specified in the Organic Act.
IF 1t does not" he said, such deci-
sion cannot he as effectual as II the
Organic Act had not been passed and
as long as II is not unconstitutional
IL shah serve as n precedent. This law
no more than that law, has the proper
uniformity and equality.
''The Legislature has no inherent
power of taxation, no other power than
that granted in the Organic Act, which
gives the Legislature power to enact
laws not inconsistent with the Cons'i'
tuition. Congress itself would be bound
in exercising taxing powers, by the linn
itations of the Constitution. and the
Legislature of Hawaii could not ex-
coed the powers OF Congress, which II
attempts TO do in this act.
ferent from that of any other Terri
tory in the United States. In other
Territories the Organic Act requires
that all laws passed by the Legislature
must be submitted to Congress: there
IS no such requirement for Hawaii. In
every Territory there is provision
that there shall be no tax on a public
domain. or discrimination against non
residents. The later acts providing for
the government Of Territories contain
the provision that taxation must be II
accordance with the valuation of prop
..rty. there is nothing of that sort II
Ehe Organic Act of Hawaii. Is 1t TO b'
inferred that Congress did not intend 4
place limitations upon the taxable pow
er of Hawaii? Did ii intend to give tn
LEGISLATURE greater power than tina
hell Nv Congress? I think not Tn
limitations Of the Constitution and o
the laws of the United States We're ais
TO have effect here. 1t was no doubt tn
intention to place Hawaii midway be
tween the status of a Territory an
that or a State. and give il certain ben
efits not allowed other Territories"
Mr.. Hartwell then quoted the taxa
ton provision OF the Constitution an
argued that in view of this section tn
rule of proportionment and equalit
was necessary to make the law valit
For instance, the provision imposiA
Ienalty Of 200 per cent by the collect
or in the event of false and frauduler
returns, is Illegal; ne Is the sole arblte
and can infiict this punishment with
out due process OF law. or trial b
jury, proceeding clearly unconstitu
tional, the act as whole is void.
there is one condition that would max
the law Impossible the act is Illegal an
void.
Now in regard to discrimination
The section of the law which provide
for the taxation of corporations, basin
such estimates upon the yearly profit
is, ! think, tax upon the privileges {
corporations, but this law goes turtle