The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1906-10-18
TAX GAINS
ON APPEAL
Rapid Transit Company
Loses Both Its
Cases.

AS between the Government and the
Rapid Transit Company, the Govern
ment is winner by about $4,000 in prop
erty tax and nearly $500 in income tax.
It represents what the treasury makes
out Of it's contesting the company's as
sessment returns.
AS between the Government and the
Tax Appeal Court. the Government is
loser by $4,000 of property tax claimed
of the Rapid Transit Company. This
loss is negative. 1t represents what
the treasury failed to recover on ap-
peal from the reduction made in the
assessment OF the company by the AS
SCISSOR.
An oral decision was rendered by the
Supreme Court yesterday, sustaining
the Tax Appeal Courts ruling on both
the property and income tax appeals
of Honolulu Rapid Transit & Land
Company The Assessor valued the
franchise of the company at 100000 and
made the assessment of the aggregate
value of the combined real and per
sonal property. which is the basis OF
the business enterprise for profit"
81. 1871 ,0O0 To get this amount. part of
the process was assessing the bond is
sue of s690.000.
The Tax Appeal Court sustained the
contention of the company, holding
that the value of the bonds should not
be included in the capital issues. 1t
further found 'tthat the property of the
company was taxable at its true value,
whether the same be determined by
consideration of specific items, of which
the franchise is one, or by considera-
ton of the value of the whole as an
enterprise for profit, and arrived at its
determination of the value of the prop
erty by accepting the specific items as
returned by the taxpayer and adding
thereto certain items omitted in the re-
turn and increasing other items as fol-
lows:
Specific items as returned, STA
04177; to which is added: On Bereta-
nia-Alapai street property Gncrease),
s7141: on track roadbed and overhead
structure (increase). sos. 291; franchise,
$4,000 total. 1880, 47S.77."
Both the Government and the Rapid
Transit Company appealed from this
decision. Ballou & Marx and Castle &
Wilmington represented the Rapid
Transit Company and Attorney General
Peters and Deputy Attorney General
Prosser the Assessor.
In the income tax appeal of the Rapid
Transit Company the dispute was over
a deduction of $40 .43 for depreciation
from the gross income of 1859, 1862. II
it could not be deducted for deprecia-
ton, the taxpayer claimed, the amount
could be deducted as representing what
the company was entitled to carry to
it's sinking fund account.
The item was disallowed by the Tax
Appeal Court, and the assessment made
on the difference between s169, 1862
and s139 SS723, or upon s29,409.
At 2 p. m. today the Supreme Court
will hear the tax appeal of Makee Su-
gar Company.
spy EVIDENCE WENT.
Wioka was found guilty of selling
liquor on Sunday in his saloon at Aiea.
Judge Lindsay sentenced him to pay a
fine of $3.50 and costs. This is a raise
from the fine of 500 in the District
Court, from which the japanese had
appealed. J. w. Cathcart prosecuted
and S. F. Chillingworth defended. The
defense was mainly that of discrediting
the evidence of police spies, but it did
not impress the jury, consisting of w.
K. Waiaman, S. w. Spencer, B. F.
Beardmore, J. D. Cockett, ]. w Nc
Donald, w. Starbird, A. c. Dowsett, S.
D. Koki, c. NJ. Lovsted, H. NJ. Rodg-
ers, A. Nelson and Charles Spencer.
A. J. Campbell, Treasurer. VS.. Pacific
Oil Transportation Company, a suit to
recover the foreign corporation license
fee, was heard by Judge De Bolt yes
terday. Attorney General E. c. Peters
appeared for plaintiff and H. E. Coop
er for defendant