The Hawaiian star. [volume] (Honolulu [Oahu]) 1893-1912, 1908-07-01

Yesterday the TAX commission
rendered its report to Governor Frear,
which by statute was due before July
L. The FIST instalment of the report
appears below:
To the Hon. w. F. Frear, Governor OF
the Territory of Hawaii.
Sir:-Pursuant to the Provisions OF
Joint Resolution Number One, passed
by the Legis .ature of the Territory of
Travail. and approved March q, 1907,
the Governor appointed on May l,
1907, as members OF the Commission
by that Resolution provided for, the
Hon. w. f. Frear, the Hon. A. A.
Wider and Nh. A. f. Judd. On July
81 and August Is of the same year the
Hon. w. f. Frear and the Hon. A. A.
Wilder respectively resigned their OFF,
ces as members of the Commission
and in their stead the Governor in Sep
TENDER following appointed Messrs.
Antonio Perry and l.. 7. Peck.
me OOnLu.ssIOu IS IoQuI.eu ny Tue
nosUluUiUu " tuOIUusA,y eAalu4ne
1elII.UIy auu CUnoIueI lnUr leSdI Op-
eTdLIUu ana eject, lie manner Vi Lnell
uuluIyvuIynL anu e0neiaI dudptdOIIUS
WIN RESPECT " Casting COuultivns dhu
consider ways anu meals lOf lne leNl-
sion ana lulpIUy SuuSuL Vi SAID IdWo al
tney sud.I ueem necessaiy or auNlsa-
De, ana udne report o. luelr WI n
10 the Governor no, idLer IMAM Ju.y l.,
1870, VIII Juolr reCuuIuiy 1ud.iOns per-
JaIuIng Juere,O, JUsotuef wILn SOME
ON or DIus Tor me tnevLuatlOn Oh such
observation-disclosures. Inc CUmlnlooIOn
as nrsU consolidated a. once LOOK steps
10 cause the acquisition OF sucn a
liDra. y as wOdId pc uelpIuI III It's stuuy
OF the subject and reasonably aNail-
abe, and sent out circular letters 10
officers OF the Government and 10 ON
er men throughout the Territory oil
prominence, ABILITY and experience, re-
questing a statement from them OF
such detects in our tax Jaws as nad
come to their notice and such sugges-
tions as occurred to them for remedy
ing those defects and otherwise i'm
proving our tax system.
The Commission as at present con-
stituted, after organizing with Mr.
Perry as Chairman and Mr.. Judd as
Secretary, continued the eifo4t to OBJ
tain from tax payers comp .aints con-
corning existing tax laws and their OPP
Grafton and administration and sugges-
tions for amendments, these efforts
being made by means of personal in
terviews, by items in the newspapers
published in Honolulu and by an aG-
vertised public session.
But few responses resulted from
these etfO.ts. Sucn Complaints as were
communicated to the Commission were
generaly OF matters Oh administration
and few were upon matters OF SUI
stance of the law and involving ques-
lions of policy. Inquiry as to the par
ticular causes 4eading up to the pass
age of the Resolution failed to reveal
belief on the part OF the Legislators
consulted or others directly concerned
with the matter at that time, that any
radical amendment of the existing sys-
TEN or laws was necessary or dtsIIa-
BILE. The Bar Association of the Ter
ritory appointed a committee charged
with the duty of preparing a suitaD. e
reply to the Commissions request for
suggestions, but the committee made
no report and the Association took no
further action. The Honolulu Cham
Der of Commerce, likewise was asked
for suggestions, but made no repy.
The same is true of the Banks, Trust
Companies and Sugar plant9t on
agencies with one exception only as
to the last mentioned concerns.)
The time which has e apsed since the
reorganization of the Commission has
been too limited to permit of that eX
tended study of this technical and or
dinarily difficult subject which would
seem to be desirable. The members
of the Commission have made the best
possible use of the time available con
sistently with the performance of theil
other duties They deem it to be thei
duty to comply with the mandate o
| the Resolution to report not alter thar
July 1, 1908, and decline responsible lty
| for the fact that the time allotted then
for investigation and report has no
| been longer. The Commission believes
after study that the taxation system
prevailing in this Territory is, will
| perhaps one or two exceptions, modern
and advanced in character, and tina
| for the present, at least, no change
other than those hereinafter recon
mended are required or should b.
made This Territory, for example
has already adopted the principle o
the income tax Ca workable income ia,
act has been in operation since 1901
and that of the inheritance tax a
parts of its system, while in other ju
risdictions the effort is still beinI
made to incorporate these in their ia,
systems. Our present laws relating t
taxation have been the result of grad
ual growth during a considerable per
iod of years. Amendments in matter
of procedure, as also with relation t
sources and methods Of taxation hav
been made from time to time as sue
gested by our own needs and expert
ence and by those of other jurisdic
tions.
Not as many problems arise or cal
arise under existing circumstances il
this Territory as have confronted Ia,
Commissions elsewhere. AS example
may be stated the questions of tn
equitable taxation of the property o
railroad companies whose lines pas