The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1903-05-22

IS REFUSED
Sugar Company
to Pay for New
Mill.

decisions yesterday in both cases de-
nying a motion for a rehearing.
SUGAR COMPANY MUST PAY.
The court denied new hearing in
the appeal Of the Hawaiian Commercial
and Sugar Co. from the decision of the
tax court, and the plantation must pay
on it's income of about S230,OO0. The
point at issue was whether money spent
for a new mill could be deducted from
the income.
The syllabus of the court follows:
THE provisions of the income tax
law that no deduction shall be made
for any amount paid out for new build
ings, permanent improvements or bet
terments made to increase the value of
any property or estate, does not imply
that the deduction may be made for
all amounts so paid out which do not
in fact increase the value of the prop
erty.
1.-The loss of any old MILL in good
condition, by voluntary abandonment
because of the erection of larger mill
in a different location on account of
the enlargement of the plantation is not
an expense with the meaning of the
income tax law.
Tine reneaflng is denied.
The opinion is written by Chief Jus
tice Frear and among other things the
court says: What is expended for per-
manent improvements is not expense.
The tax is levied upon the income. not
upon the increase in the value of the
estate"
AS to the section referring to eX.
penses actually incurred the court says
IL, ,.s,,-, 1F ,l,s
apply if the old mill had given out so
that it was practically necessary to
erect a new mill on that account. The
amount expended in the new mill up to
the extent not merely of the value of
the old mill, but of the amount that
would be required to put the old mill
in good repair or to replace it, might
perhaps be deducted as an expense.
But such was not the case here. AS
shown by the appellants own witnesses
the old mill was in good condition and
was voluntarily abandoned and the new
mill was erected solely in order to have
a larger mill and in different loca-
. Q . . . . . . . .
roads and bridges Koolauloa $685. to
$500, roads and bridges Waialua $4,000
to $500: item of $l25O0 inserted for
roads and bridges Eva district. New
item of $1,000 inserted for road to Kalihi
cemetery: regarding road Huleia Val
ley, Lihue cut from $4,000 to $500; re-
grading road Niumalu valley reduced
from $4,000 to $4,000, new item inserted
$500 for bridge Laval valley; Hawai-
hau roads and bridges cut from $4,000 to
$3225; Niihau roads $500 to 1925.
SCHOOL ITEMS.
The item of fixtures for schools was
reduced from $4,000 to $4,000; new item
of $3.50 inserted for installing kindergar-
tens, new item of $4,000 inserted for
fencing. artesian well, etc, at Indus
trial school.
Senator McCandless objected to the
SIG increase in clothing for lepers, say
ing the allowance should be on the
basis of light labor performed by the
lepers. Kalauokalani said the present
allowance was insufficient for children
of lepers. Senator Brown moved an
amendment that no money be issued in
lieu of such rations.
Senator Achi wanted all the leper
items consolidated al s57 200 which was
under discussion when a recess was
taken.
AFTERNOON SESSION.
An item of $3.50 was inserted for ex-
penses establishing bureau of Stats
tics. Incidentals Governors office was
reconsidered and fixed at $3.50
THE LEPER SETTLEMENT.
Senator Brown moved to strike out
$24 500 for segregation, $4,000 for medi-
cal treatment and sS5,50O for rations for
lepers and to insert one item of s67 900.
IA O., /, l,n
items segregated so that the lepers
might know where the money Is COM
ing from He said he didn't favor
economy where these poor unfortunate
We're concerned.
Achi objected to the paiai and beef
allowance saying Chinese might not
want paIai and there would be no
money to buy other things for those
who did not eat poi. McCandless was
against segregation of the items saying
that the Senate didn't know how much
the lepers needed to eat.
The items were finally referred to a
special committee composed of Nc
Candless, Baldwin and Kalauokalan.
Senator Achi moved that the item of
sl2 500 for Queens Hospital be reduced
to $4,000 and said a report should be
made to the Legislature.
Senator Baldwin said the hospital
had lost its principal income and moved
that the item be referred to n commit
tee The same committee as above was
appointed.
MONEY FOR KoNA ORPHANAGE.
Senator Dckey moved the insertion
of an item Of 1925 for Kona Orphanage
which Achi moved to increase to $1,000
Carried.
The item of $1,000 for guarantee pas
senger steamer and $1,000 for service be-
tween Molokai, Lanai and Maui was
referred to the same special commit
tee.
Senator Baldwin called attention to
the striking out of ssl29,57 for reim-
bursement of merchants for inspection,
and the item was again inserted.
The item OF $1,000 for telephone sys-
TEN at Kalaupapa was also referred
TO the special committee, Dickey say
ing there was no need of building line