The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1901-09-11


therein render it void and 2 that the classification results in
double taxation and unequal and unjust distribution OF the
burdens of taxation
For the purposes of these submissions will only be necessary
to consider these two objections.
It is claimed on behalf of the defendant that the power OF
the legislature the subject of taxation practically un
the Act whole Two of the objections go to the validity OF
the law whole that "a that the exemptions contained
ed that the Legislature given the power to iegsae on the
subject OF taxation and that the exclusive Judge OF the OBJ
ects of taxation and the method to be pursued IN eyng and
collecting
Section SIS of the Organic provides part chat the
legislative of the Territory shall extend to all ghtful
subjects OF legislation not inconsistent with the Constitution
and laws of the United States locally applicable 1t is
ceded that taxation 'rightful subject of legislation
Is it true that there specific limitations IN the Organic
Act the exercise OF this power An examination OF the FUR
Their of Section SIS dscos the fact that it contains
most of the provisions prohibiting the passing OF "loca
special laws by the Legislatures of the Territories OF the
United States hereafter be organized found in the
Act of Congress of July 80 1886 ga Statutes at Large
1907 Is is well understood that this Act of Congress was
passed prevent the Territorial legislatures playing favor
es in legislation 1t is that the limitation the taxing
power of the legislature the usual terms found in the Organic
Acts for the Territories absent from the Organic Act of this
Territory do think safe conclude from this fact
that Congress did intend place limitation the
ercise of this power by the legislature of this Territory There
in Section SIS of the Organic Act the following provision
but the legislature shall not grant any corporation aoca
ton, individual any special exclusive privilege, immunity
franchise without the approval of Congress This
broad restriction and my opinion be violated by the
legislature in passing law well granting charter
private corporation and that absolute inhibition
against the exemptions contained in Act20 under consideration
That to exempt from taxation because his income less
than thousand dollars year exempt insurance
panes from taxation to grant such individuals and to such
insurance companies special privilege immunity not
oyed by others of the community. That of these
exemptions being prohibited by the Organic Act without the
consent of Congress the whole law null and void This point
not raised the and for that decision
based it be made without Co. L. Sec
HID and reargument is practicable at this time.
do agree with counsel that the 18th Amendment has
any application in this 1t is well settled that this amend
restraint the State Governments only and does
restrict Congress in egsang for the Territories the Ter
rtories in legang for themselves Brannon 14th Amend
ment p. 49, and cited in
IF it admitted that there is express limitation the
Organic Act the power of the legislature when passing
laws it does follow that there restraint the exercise
of this power The Campbell decided by the Supreme
Court of the Republic in 1897 declaring the Income Tax law
of 1896 be in violation of that provision in the Constitution
requiring each member of society contribute his proportion
share to the expense of protection This similar
qurement whether found in the Organic Act written Con
stitution understand be fundamental and be
served in all tax legislation.
at has been focbly, and very truly said that unlimited
power the legislature make any and everything lawful
which it might fit call taxation, would when plainly
stated be unlimited power plumber the citizen Cooley
Taxation, p. sc.
'There no such thing" said Mr. Justice Field 'in the
theory of national government unlimited power of
alton in Congress There limitations of its arising
out of the essential nature of all free governments there
reservations of individual rights without which society could
not exist and which respected by every government The
right of taxation subject these limitations Getting Loan
Association Topeka 90 WALL 655, and Parkersbrg a.
Broacn, 100 q. S. 4S. Continuing the Justice said: The
inherent and fundamental and character OF that
of contribution to the support of the government levied upon
the principal of equal and uniform pporonment among the
taxed and any other exacon does within the
legal definition of tax
"This inherent limitation upon the taxation power forbds
the imposition of which unequal in their operation
similar kinds of property and necessarily strikes down the
gross and arbitrary distinctions in the income law passed
by Congress" Pollock Farmers Loan Trust Co., 157
Z. S. 800 600
The Congress of the United States the creator and absolute
monarch of the Territory and its legislature being thus limited
and restricted in enaeng tax law, follows as matter OF
that the legislature of the Territory OF Hawan limited
in like the absence of any written restrictions
Was the legislature acting within the limitations OF It's pow
making the exemptions prescribed IN this acts
Section provides "From and the first day of July,
A. d. 1901 there shall be levied assessed, collected ana pao
annually upon the gains profits and income oc ana dOope one