The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1908-02-08
LAW Of INCOME
TAXES DEFINED
Formidable Array of Points in
L0Wrie S Suit-The Sewer
Rates.


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 if the old article is practically
but not totally abandoned.
The expenditure for a steel and con-
crete bridge to replace a wooden one
is deductible as a replacement only
up to the cost of new bridge like
the old one.
Additional machinery installed in a
sugar mill is a betterment notwith-
standing the fact that it is necessary
to keep the plantation up to its former
efficiency.
Necessary expenses of a 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 it's 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, $685.
441.69; Union Mill Co., $50, 1884.
SEWER RATES TEST :
4oe
prior to June 30, 1904, has been taken
to the Supreme Court direct from Dis
trict Magistrate Andrade's judgment
sustaining the, demurrer. It is claim
Of the Territory of Hawaii, by the
superintendent of Public Works,
against Cecil Brown, executor, and
Abigail Campbell Parker, executrix, of
the estate of James Campbell, for
1888 so as sewer rates in connection
with the Campbell block, Fort and
Merchant streets, and interest thereon
from June 80, 1904. The Territory APP
peals on these points of law:
Il Whether plaintiff had, from Dec
ember 81, 1902, to June 3d. 1904, author
ty through its superintendent of Pub
lie Works to make changes and rates
FOR the use by private individuals of
he public sewer in Honolulu.
50 Whether plaintiff has legal capa-
,itv to sue for said rates charged from
December 81, 1902, TO June 80. 1904.
IS. Whether suit will be for collec
ion of rates actually charged where
defendant in his application agreed to
1ay such rates for the use of the sewer
Is might be fixed.
e Whether the District Court has
of the subject matter of
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 a pa
,er fled yesterday in the higher court |
n the action for $500 900 damages of |
William ]. I.owrie against Henry P.
Baldwin. James B. Castle, William X. |
,astle. George P. Castle, S. n. Castle |
estate. Joseph p, Cooke and Wallace
Il. 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 W11UGI Is dutiiO1 VI q
nous opinion of the Supreme Court,
hitch reverses a Judgment Of the Ha-
lakua District Magistrate discharg-
lg Paauhau Sugar Co. as garnishee
! a suit brought by Lucio Ferreira
gainst Kamo. A. G. Korea appeared
Or plaintiff, and H. E. Cooper for
arnishee.
"A general appearance by garni-
nee is a waiver of any defective SER
ice" the syllabus runs. It is found
V the appellate court that, although
ervice was improperly made on the
arnishee's hookkeeper, there was a
aneral appearance by the garnishee
trough Attorney Makekau. The mag
trate is instructed to give judgment
yainst 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-
nous opinion of the Supreme Court
irtly in favor of Mrs. Maria K. Ena
! the submission of facts between the
,ecutors of her late husband, John
mas. estate and herself B. L. Marx
,peared for the executors, and A. G.
bus reads thus: 4
Debts of a solvent estate should be
lid from cash, but if that is INSULT
ant the personally in which the
dow has no dover interest should be
Id first.
''Decedent's note secured by mort
ge on real estate should, if properly
esented, be paid in the same man
+ as other debts, without contfibu
IN from the widow, and she will be I
titled to dover in the estate re- s
emed, notwithstanding her release
the original mortgage"
It is held. in the body of the opinion.
at the widow, can not legally require
e executors to sell leasehoIds having
rms of less than twenty-five years
expired for the payment of deb
fore using the cash on hand and
ler personally for the purpose. AL
that the widow can not legally re-
ire the executors to sell the mort
ged real estate to pay the mortgage
other debts before using the cash
other personally for the purpose
Several other questions are consid-
I'd, the answers TO which are prac-
ally covered in the syllabus as
owe.
A-TuEDT kT@r,S c,nT-rrT 17r--ErrNIy