The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1912-09-24
TAX APPEAL BOARD
UPHOLDS TERRITORY
In Three important Cases All
Decisions Are Against
Plantations.
Mail Special to Tho Advertl.cr.)

Mail Special to Tho Advertiscr.)
MILO, September 20.--It Ia improb.
able that the history OF taxation in
the Hawaiian Islands records n more
complete victory than that which Tax
Assessor Forrest won this week, when
the West Hawaii tax appeal board de.
cided in favor of the Territory in the
three appeals taken by the Hawai-
Mill and Plantation Company, the
Hind Plantation Company and the
Hind Estate. The board, which con.
sists of G.. p. Tulloch, p. p. Woods and
w. II. G. Armenian, decided in the
government favor in each of the
three cases, sustaining the assessments
in the two latter cases, and GU sting il
down comparatively little in the first
case. By this decision the government
will gain an increase of taxes on nearly
half a million dollars worth of prop.
erty, provided the supreme court sus.
tains the appeal court, Mr.. Hind hav-
ing noted an appeal.
Each one of the cases was decidedly
friendly in character, in marked con
trast, for instance, to the case of the
| Paauhau plantation. The officers of the
government speak in high terms of Mr..
| Hind, and the entire matter is based
simply on n difference of opinion.
| Tho Hawi Mill return was originally
100000. The assessment was made on
$1,300,000 valuation, whereupon an
appeal was taken from valuation Of
$780, 900.
In the brief submitted to the appeal
court through Attorney Wilder, the
Territory stated its position very clear
ly. Says the brief in part:
Some Profits Shown.
"The capital stock of Hawi is $780,,
600. Its net profits for the last seven
years have been $1,3s0,T42, or an aver
age of $l97,249 This amount, if CAPT
talized on a fifteen per cent basis,
would amount to n valuation of $l,Sl5,-
900, or $4,000 over the assessment. 1t
will also be noticed that the profits
have been steadily increasing. For
instance, in 1905 they were $s7,S09
and in 1911, $29s,190 This occurred,
too, in face of the testimony about in
crease in the cost of labor, loss of
lands and other matters which Mr..
Hind referred to-"
The Territory in its brief also called
attention to the difference presented by
the figures in the tax return and the fig
ures in the corporation exhibit, both
filed by the same concern
"The corporation exhibit for the
wear ending December 81, 1911, showed
assets at $1,750,000," says the brief,
"and yet the assessment is only ST.
100000. To be sure there are about
1925 900 of stocks and holdings in 9th.
err corporations, but when that is de.
Quoted there are still assets amounting
4 to 1925, 900, which is practically the
assessment.
e Assessment Held Reasonable.
In the matter of the Hind Plantation
: Company Ltd, the return was made at
ST. 600, while the assessment was for
1 $4,000. The latter figure was sustain
: ed by the tax appeal board The gov
eminent IS stand was, in Wilder's brief
/ summarized as follows:
}: ''This concern owns 965.S2 acres OF
u land, of which about $50 acres are in
cane and the balance pasture. This as
: sessment was clearly justified. The cane
I land is undoubtedly worth $50 an acre
I which would make $42, 500, practically
l. the assessment, and leaves out alto
= gether the lis acres of pasture land
Q which must be worth something"
; In the case Of the Hind Estate thu
;, government was again sustained. The
IL Territory's points are summarized il
@ the brief, as follows:
It "This property consists of 234.2i
s. acres of land, returned at $1,000 and as
o sessed at 1875 1t was assessed at al
n agreed valuation for 1911 of $3.50
a There are about sixty acres of cam
y land, which, figured at $50 an acre
5. would make $4,000, and certainly tn,
ia acres of pasture land are WORT
1915. This assessment was undoubted
ly justified. But in any event, the bur
den is on the taxpayer to show that hi
? return is correct.
! "When we refer to cane land as be
l ing worth $50 an acre, we do not meal
that that is all that it is worth, be
cause it is much more than that. w,
" simply mean to say that If it is put il
u at the low figure of $50 an acre, ever
then the assessments are justified"
--S-A.S--