The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1907-01-11
THE GOVERNMENT
LOSES TAX CASE
Only Actual Capita! Can Be
Taxed--Jurors Weather
Bound.

Justice HartweIl is author of a unan-
sustaining the claim of Central Mill Co.
against Treasurer Campbell. The cap
ital stock of the company is $4,000
and its articles of incorporation au-
thorize it to increase it's capital to s5,-
900, 600. In addition to the stamp duty
and recording fee the law prescribes
a tax of 20 cents for each $1,000 of the
total amount of capital stock authoriz-
ed When this company presented its
articles for filing, the Treasurer of the
Territory demanded the tax for the
IS, 000 900 capital which the company
was authorized to issue.
The difference was 1925 and was paid
under protest by the company, which
with the Treasurer submitted the dis
pute to the Supreme Court. If it was
decided in favor of the company the
Treasurer would refund the money to
it, but if in favor of the Treasurer he
would turn the money into the treas
ury. The court says:
1.-The amount Of the capital stock Of
the company now authorized is the
amount which it has issued, namely,
$375, 900, and does not include any in
crease of stock which, under its ar
ticles of association. the company may
and, of course, may not issue. In other
words, the tax is imposed, not upon
the right of the company to issue new
shares, but upon the capital stock is
sued or authorized by the company.
The statute goes on to require a tax
upon increase of capital stock, twenty
cents for each thousand dollars of the
total increase authorized Whether
authority for the increase Is found in
original or amended articles of asso-
citation new shares, when issued. in
either case, constitute an increase Of
capital stock and are taxable as such.
Until the stock is issued there is none
to be taxed.
1.-THE plaintiff may take judgment &C.
cordingly."
l.. J. Warren (Smith & Lewis on the
BRIEF for plaintiff; M. F. Prosser, Dep
uty Attorney General, for defendant.
Mr.. Prosser suggests that this de-
cision makes necessary an amendment
to the law which will enable the gov
eminent to tax increases of corpora
tons capital as they are made.
Rightly speaking it is not tax but
a registration fee. Treasurer Campbell
says this fee is collectable on increases
of capital stock when corporations file
the necessary amendments to their
charters providing for such increases.
Seemingly, then, the only amendment
to the law needed is in it's wording to
make it agree more clearly with the
Supreme Courts Interpretation.
CRIMINAL BUSINESS.
Only ten jurors appeared in Judge
Robinson's court yesterday, when a
case was set for trial. A num-
Der of jurors from Eva district were
weather bound, owing to the Interrupt
ton of railway travel by the storm.
Judge Robinson issued special venire
for eleven additional jurors returnable
tomorrow, these to serve as regular
jurors of the term.
Argument on the demurrer of w. Fl.
Crawford to indictment for gambling
was heard by Judge Robinson in the
afternoon, Deputy Attorney General
M. F. Prosser for the Territory and
Geo. D. Gear for the defendant. The
demurrer is now to be submitted on
briefs, Mr.. Prosser having two days
and Mr.. Gear three.
COURT ITEMS.
A. S. Humphreys for plaintiff in
Mills v. Walker has filed an affidavit |
in opposition to defendants applica-
ton to establish his bill of exceptions |
It goes to show that the bill deals with |
matters that occurred in Honolulu Dis
trict Court and not before the Circuit |
Judge from whom the appeal to the |
Supreme Cour; is taken.
Judge Lindsay dissolved the temper
ary injunction in Middleditch " Ka-
anianaole and Kapiolani Estate, Ltd, |
which restrained any disposal of the |
shares of Kalanianaole in the corpora
ion named, pending the determination |
If the suit.
Appeals from the Honolulu District |
Court have been entered in the Circuit |
Court in the cases of Parke V. Cath
art, Assessor Holt ". John F. Colburn
md Assessor Holt v. VIM. M. Mahuka
Kinney, Mechanism & Derby have
lied replications to the answers of w.
Z. Castle and Kapiolani Estate, Ltd,
the foreclosure suit of Allen ct al.
:. Achi ct al.
1-SAO ~ DiSheS LOT pidlflCiII mas OlS-
ontinued the suit of Hawaiian Hard
ware Co., Ltd, V. Hee Fat.
THE CHIUSA LIBEL
In the Federal court yesterday Capt
L. Lane, of Hackfeld's steam scow
'1oneer; Capt. A. Fuller, harbor- mas
er. and Robt. Cation, master iron
ounder and mechanical engineer, gave
violence for the Inter-Island Steam
navigation Co. in its libel for salvage
gainst the Japanese steamer Chiusa
1aru.
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