The Hawaiian gazette., 1905-04-14
MERCHANTS
IN SESSION
Debate Telephone and
Foreign Tax
Bill.

There was much oratory unloaded on
Merchants Association yesterday aft
the desert air at the meeting of the
ernoon without results commensurate
with its profuseness. There were but
two propositions brought up, sub
stitute for the foreign corporation tax
bill introduced into the legislature at
the request of the association and the
matter of endorsement of the proposed
Standard Telephone franchise. The
tax bill was presented by Mr.. III. e.
Cooper and had been prepared by him
and l. A. Thurston in the interests OF
fairness to the foreign corporations
which do pay heavy taxes to the ter
ritory. The bill introduced at the re-
quest of the Merchants provided for
tax on capital stock Of foreign corpor-
ations in order to make them bear
their share of the territory's burden.
This bill Mr.. Cooper stated was un-
fair to corporations which had large
property holdings here and were pay
ing taxes in as large proportion as
domestic corporations. The bill was
aimed at companies which merely had
small offices here and took away BUSH
ness from local firms without paying
the territory anything. However, Mr..
Cooper said that the bill did not ac-
eomplish its purpose but inflicted an
unfair burden on other corporations.
He particularly spoke of the Union
oil Company and the Pacific Oil
Transportation Company, foreign cor
porations which are paying heavy tax
es ~ the territory on their property.
1t was unfair 10 saddle an additional
tax on their capital stock. on the 9TH
er hand corporations doing a small
business here like the Singer Sewing
Machine Company would have to pay
a large tax on a capitalization of some
thing like $4,000, OOO-manifestly an I'M
fair burden.
Mr.. Cooper then presented a new act
which provided that foreign corpora
tons doing business i'm the territory
should pay an annual license of 5000
providing that they did not pay taxes
to the territory in the sum of 5000
annually. This he said would be "a
fair bill. He and his interests were
anxious TO cooperate with the asso-
citation in properly protecting local con-
Germs but they thought that there was
a lin.t which should be set. He also
stated that If heavy tax were inn
posed he was sure that foreign corr
porations would combine and associ-
ate as domestic corporations. He was
sure that there would be no contest OF
the bill he presented which was a COM
bination OF the present law and the
proposed Merchants bill.
There wac Some littIa nP
the new bill but nothing definite was
done. the matter being referred to the
Public Affairs Committee for investi-
cation.
THE TELEPHONE FRANCHISE
The next business was the consider
alton of the reports of the committee
on the proposed telephone ftanch Sc.
There were two reports, the majority
report, presented by Mr.. Cation, fav-
oring the franchise bill as now before
the legislature and the minority re-
port presented by Mr.. Emmeluth, scor-
ing 1t as "bristling with 'cinch
clauses" AS soon as the reports ere
presented there was a hot debate.
Practically everyone seemed to favor
the granting of the franchise but the
was ONtT tue uelpllS.
The minority committee presented
substitute bill which provided for an
extension of the conduit system as far
as Asylum road, Judd ard Punahou
streets, the COMPLETION of the system
in two years, supervision by the Super-
intendent of Purlc Works, and pro-
hibiting the requirement of any other
system by the STANDARD as Well as the
working OF any employee over forty
eight hours a week. The bill also fixed
maximum rates and cut out the right
of eminent domPin.
Mr.. Emn clrth was very earnest in
his presentation but the N jority of
the members were of the opinion that
his bill restricted the company so
much that II would not care for the
franchise. The opinion prevailed that
the present service was rotten" as
several of the members said and that
the only way to improve the situation
was to introduce competition. The i'm
preston seemed to be quite general
that the automatic system was n good
one. After much wransling 1t was de-
cided to endorse the granting of the
pending franchise to the Standard
Company subject to such amendments
as the legislature sees fit to make. A
resolution to that effect was intro
-d1ced by Mr.. Macfarlane and passed
after which the meeting adjourned
L