The Hawaiian gazette., 1908-02-11
LAW Of INCOME
TAXES DEFINED
CFrom saturdays AdvertIser.)

CFrom saturdays Advertiser.)
Under the income tax law of Ha-
wall the cost Of new buildings cannot
be deducted from gross income.
The cost OF a replacement may be
allowed II the old article is practically
but not totally abandoned. q.
THE expenditure for steel and con-
crete bridge to replace a wooden one
is deductible as replacement only
up TO the cost of a new bridge like
the old one.
Additional machinery installed in a
sugar mill is a betterment notwith-
standing the fact that 1t is necessary
to keep the plantation up TO its former
efficiency.
Necessary expenses 'of business
are deductible during the year in
which they are incurred; amounts ex-
pended in the production of movable
property are chargeable against the
sales of that property irrespective OF
the year in which the amount was ex-
pended"
The foregoing are the findings of law
made by the Supreme Court in its de-
tailed opinion on certain income tax
cases in which it heard evidence re-
jected by the Tax Appeal Court.
The assessments made by the court
have already been published excepting
in the two following cases that were
taken under advisement and are now
decided: Laupahoehoe Sugar Co. $SS,
i41.69; Union Mill Co. s59.499.S4.
SEWER RATES TEST.
A test case on delinquent sewer rates
prior to June S0 1904. has been taken
10 the Supreme Court direct from Dis
.rict Magistrate Andrade's judgment
the demurrer. II is a claim
VI the Territory of Hawaii. by the
of Public Works.
against Cecil Brown. executor. and
Abigail Campbell Parker. eNecutrix. OF
he estate of James Campbell. for
1880 as sewer rates in connection
With the Campbell block. Fort ana
Merchant streets. and interest thereon
rom June so. 1904. The Territory ap-
,eals on these points of law:
IL Whether plaintiff had. from Dec
rnber 81. 1902. to June 80. 1904. author
ty through its superintendent OF Pub
ic Works to make changes and rates
or the use by private individuals OF
he public sewer in Honolulu.
80. Whether plaintiff has legal capa-
ity to sue for said rates charged from
December 81. 1902, TO June so. 1904.
80 Whether suit viii be for collec-
ion of rates actually charged whers
defendant in his application agreed to
,ay such rates for the use of the sewer
IS might be fixed.
~ Whether the District Court has
Jurisdiction of the subject matter or
his action
THIRTY SEVEN POINTS.
Judge de Bolts reservation Of ques-
ions OF law to the Supreme Court and
eport of case" are combined in pa
er fled yesterday in the higher court
n the action for s400 900 damages OF
William ]. LOwrie against Henry p
baldwin. James B. Castle. William r
'astle, George p. Castle. s. N Castls
state. Joseph P. Cooke and Wallace
I. Alexander.
There are no less than thirty-seven
uestions put to the appellate court
esides three typewriter pages Of re
ort and reference
SERVICE ON GARNIsHEE.
Justice Wilder is author OF a unan-
nous opinion of the Supreme Court
hich reverses a judgment Of the Ha-
Iakua District Magistrate discharg-
Ig Paauhau Sugar CO. as garnishee
a suit brought by Lucio Ferreira
zainst Kamo. \. G. Korea appeared
IT plaintiff, and H. E. Cooper for
arnishee.
"A general appearance by a garni-
lee is a waiver Of any defective ser
&C." the syllabus runs. II Is found
? the appellate court that. although
rvice was improperly made on the
irnishee's bookkeeper, there was
neral appearance by the garnishes
rough Attorney Makekau. The mag
-rate Is instructed 10 give judgment
-ainst the garnishee for whatever
as due by it to defendant at the time
the service of summons.
RIGHTS OF WIDOW.
Justice Ballou Is author Of unan-
lous opinion OF the Supreme Court
rtly in favor Of Mrs. Maria K Ena
the submission OF facts between the
ecutOrs OF her late husband. John
la's. estate and herself p. l.. Marx
peared for the executors. and A. c.
Robertson for Mrs. Ena. The syi-
BUS reads thus:
Debts Of a solvent estate should be
i'd from cash. but If that Is Insult
mt the personality in which the
dow has no dover interest should BE-
ID first.
'Decedent's note secured by mort
ge on real estate should. II properly
ssented. be paid in the same man
r as other debts. without contribu-
n from the widow. and she viii b
titled to dover in the estate re-
smed, Notwithstanding her release
the original mortgage"
/ Is held in the body Of the opirlon-
At the widow can not legally require
: executors 70 sell ieasehOids having
ms Of less than twenty-five years
expired for the payment Of DEBTS
fore using the cash on hand ana
Ter personally for the purpose Al
that the widow can not legally re-
ire the executors 70 sell the mort
ged real estate 70 pay the mortgage
other debts before using the cas1