Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1912-11-15

the year 1917.
A valuation Of S1,500. 600 for tbs
year placed on the sugar plantation
Tor the Paauhau Sugar Plantation
Company BY the tax appeal court /,
Sustained and the appeal Of the Ter
|lFitory Is dismissed. (
Judge Robertson.s Opinion.
u In his dissenting opinion Justice
Robertson said:
agree that the valuation Of the
h Paanhau plantation should remain, a
fixed By the tax appeal court. at 81,
Il SOC. 900. but think that $1,000. 900 Il
itoc low valuation for Wal uku plan
tation, and 1t 10 altogether out Of
proportion to the Paauhau assess
tment.
i In deciding the cases reported In
| II Haw. 235 ct seq. this court went
Ivefy carefully into the consideration
Iof the matter Of assessing entefpri:
ses for profit particularly sugar plan
lfatiofIs. ana laid down certain rules
Ito be followed In yalhing sugar pro
Iperties which ! believe have ever since
been followed and which ought not
Ito be departed from now. Applying
those rules to the evidence IN this case
land giving the appellant the full bene.
FIT OF every legitimate allowance do
mot see how its property can be val
lued at less than $4,000, 00o.
In Inter-Island Steam Nav. Co. Y.
Shaw. 10 Haw ga, es4. Il was held
THAT while the earnings and the mar
ket value Of the stock Of Z corporation
Ishcu.d not be take as the sole test
I'm the valuation Of its property, yet
those are very important matters TO
he considered and they finish in
most cases the best datum to start
from. And in IL HaW IA, Il was said
THAT lust as the effects OF many fac
| tors that 60 to determine the value
Iof the property Is shown largely by
THE net profits. so the effect Of all
1.-THE factors is shown largely by the acs
|fual sales Of stock for this shows
what persons who actually Invest con-
slider the property TO be worth
The two sales Of stock referred 10,
zone at tI65 and another ct $17z.50.
were Of small blocks and It IS not to
|be supposed that the entire capital
stock OF the corporation could have
been sold at those rates. Three hum
dred thousand shares ct the first NAM
led rate would show q total valuation
|of s. ,95D. 900 and at the latter rate,
S.. 175 600 Assuming that the sec
|ond sale should not be taken into con
sidefatIQn, Ii would be fair and the
appellant should not complain, II from
the valuation Of s. $50 900 q discount
OF fifteen per cent should be allowed
That would show total net yal'la-'
ton Of $4,107 800: As g matter Of fact
actual sales Of stock need not be.
shown. he statute requires that
When the stoeiE 81 - cbTI,ot ton Is
quoted on the market the market
price thereof Is 70 Pc taken into con-
slneratlon IN assessing the company s
property. Fhe stock Of 3 COMPANY
may seldom be dealt IN but that fact
does not necessarily show that the
company Is not . prpspe porous one. Ere.
qnently It indicates the opposite. Eri.
'dence Of bona fide sales IS valuable
IS, showing ~ bat N yest0rs are ready
10 pay and have paid for the stock.
be Principle to Follow.
S. The net profits Of corporation
show Its earning power and consid
Grafton must always be given to the
amount Of dividends 4 any, which "a
past years have been paid to the
stockhOi ders. In the case Of q sugar
company the element Of goodwill
does not fleur6 and the amount Of It's,
profits have q direct relation to the
intrinsic value Of Its propeTty.s But.
where q plantation has been develop
ed, rehabll tated and put upon g new
footing is earning power az newly
est8pllshed - the important cQnslds
Grafton For this reason the profits
ct Wsiluku plantation prior 70 the
year 1903 should not be taken into
calculation. This phase q the sub
Ject was dealt with IN IL iiaW, zSS rs