Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1913-04-11
KENNEDY GIVES
Meeting real
SENSATION
Tells Merchants Association II
Tonnage Tax Is Imposed, the
Company Might Incor-
porate Elsewhere

/ After a generally calm discussion.
varied by a few breezy encounters,
the Merchants association, at its spe-
oial meeting yesterday afternoon, ell.
| dorsed the action of the directors In
opposing the proposed tax of five
cents a ton upon merchandise receir.
ed and shipped on territorial wharves.
Further action relative to house bill
$50, so far as it pertains to the pro-
posal in question. was left in the dis,
erection Of the board of directors.
| Two rather sensational. features
characterized the meeting. One was
an intilnation by President Kennedy
of the Inter-Island Steam Navigation
Company that, if the tax was imposed,
that corporation might disincorporate
under the laws of Hawaii and rein
corporate elsewhere, thus depriving
the territory of $4,000 of taxes. The
other sensation was caused by the
denunciation of the department of
public works as absolutely incompe-
tent" this expressed sentiment pro-
ducing no dissent although eliciting
an apology for the department on the
ground that its functions were spread
over too many divisions of work.
A matter outside of the subject of
the call Of meeting created still an
other diversion. This was a motion
TO instruct the directors to cable a
request to make no appointment of
governor until June 80, the end Of
the fiscal period, which was opposed
as injudicious and withdrawn, al.
though several members declared
they believed the governor should re-
main until the end of the fiscal year.
President Swain delayed calling the
meeting to order for some time, to
await the arrival of DIR. Hubby, chair
man of the house committee on pub
lie lands and internal improvements,
but at length had to open proceedings
with an expression of regret at that
gentlemai1's absence. After consider
ing the matter, the president said,
the directors deemed it would be wise
to have the bill taken up as q whole
by the association, and he asked Mr..
Wakefield of the harbor commission
to give synopsis. OF the measure.
Mr.. Wakefield thought the joint
committee of, the commercial bodies,
which he understood had decided to
report adversely on the bill, should
give their reasons for opposing 1t.
T.. M. Church, one of the association
members of the committee, demurred
to opening the debate, and Mr. Wake
field asked the president to read The
bill. President Swain complied. Be-
sides authorizing the tonnage tax in
question, the. bill confers various adj
ditional powers and responsibilities
on the harbor commission.
Points Out Objections.
Mr. Church said that the mean fea-
ture of objection to the bin was that
1t would involve the discontinuance
of the voluntary tax of ten cents a
ion, thus destroying the support Of
promotion work and the source of
emergency sanitary funds. Another
objection was that the compulsory
tax would have a tendency to drive
shippers to private wharves. More
over, 1t would be indirect taxation, of
which we have enough now"
Mr.. McStocker asked how it would
stop the collection of the voluntary
tax, and requested Mr.. Drew to state
whether the Matson Navigation Com
pany would put any obstacles In the
way of its collection. Mr.. Drew re-
plying in the negative, Mr.. Waldron
remarked: at would not be a mat
ter for the shipowners. The commits
sion can collect five cents on incom-
ing freight, five cents on outgoing
freight and another five cents on
what may be reshipped to the other
islands. making fifteen cents alto
gether in some cases. If only half
the charge was placed on reship-
ments it woul dbe twelve and a half
cents a ton to begin with. Then
there is the demurrage charge with
lien on our vessels for all these
charges. ..-..s-
"The Mauna Loa on her last trip
500 inward, making $500 In all. There
is only one wharf where We can store
freight. The idea of this tax is to
make the wharves selfsustaining
Gentlemen, it was never intended
that the wharves should be self-sus-
tanning We spend money on build
ing roads but we never get a cent
back from them. " ...:..~.=.:. +,
I'VE know that foreign steamships
come in here and do not contribute
one cent to the revenue except for
water, while the Inter-Island company
pays $4,000 year for its privileges
If this thing goes much farther, what
is going to be the result? The Inter-
Island company may have to disin-
corporate here and reincofporate
somewhere else to get the privileges
of foreign steamers, causing loss of
$4,000 year in taxes to the terri
tory" III. -. .......
Mr.. McStocker: as that a threat? ?"
Mr.. Kennedy ignored the question
and spoke of the difficulty of collect
ing the tax at the outside ports. When
the company proceeded to collect it
there would be an outcry about the
'grasping monopoly"
How do you collect the freight"
Mr.. Mccarthy asked.
ut is prepaid" was the reply.
"Why not add five cents To the