The Hawaiian gazette. [volume] (Honolulu [Oahu, Hawaii]) 1865-1918, 1915-11-23
Hawi Mill and Plantation Com
pany and Union Min Company
Lose Tax Appeals !.
SUGAR TARIFF AND WAR 49,.
IN EUROPE TOUCHED ON
Decisions Net Government Rev
enue On $450,000 Involved
In Disputed Assessments Al

.. .
IIawi Min and Plantation Company
loses out in its appeal from the decision
Of the West Hawaii tax appeal court tC
the supreme court Of the Territory, ne
cording to a decision handed down BY
the supreme court yesterday in thC
Ease. The opinion was written by Chief
Justice Robertson and is eohcurred in
by Associate Justice Watson and Quar-
les. sa g. -. r IT. . E.. -aF'.
The company returned the aggregate
value Of its combined property, which
is situated in the district of North Ko
hala; Island Of Hawaii, at $550,000. The
property was assessed by Tax Assessor
Ollie T. shipman at 81 1000, 900, but the
company took the matter to the tax
appeal court Of the third judicial cir
cult, which court fixed the value of tho
property at 100000. From this deci
sion the company appealed to the su'
preme court, wirh the result shown here
Not First Appeal s...I,. ..
1.-THE matter Of the assessment Of this
company Is plantation was before this
court upon its 1912 assessment says
the supreme court decision, "and a
valuation Of $1,000, 900 was then given
it. The company holds its lands
partly in fee simple and partly under
lease. About ohe-half Of its cane area
is artiieially irrigated"
After going into the merits of the
contentious, held by the company tho
supreme court says:
"The evidence shows that the profits
OF this plantation for the seven years
last past (190S 1910 have averaged
$500, 900, on the basis of the capitalize
ton of profits. is at the rate of littlr
less than tifteen-a more normal rate
than that allowed in the prior appeal,
"In ascertaining the sum available
for the payment Of dividends amounts
laid out in necessary improvements as
wen as the bare running expenses must
be deducted, but in showing the actual
profits 4 further sum for estimated de,
probation of plant is not deductible un
der section l241 Of the Revised Laws.
War Raised Prices
The further argument Of counsel for
the appellant refers to the fact that
since the last appeal was decided legis
lation has reduced the duty on raw su,
gar and provided for its abolition on
May |, 1915.
"This is a matter which affects the
sugar properties throughout the Terri
tory, but just what result the admis
sion of sugar duty free will have upon
the taxable value Of sugar plantations
can better be determined after the hap
pening Of the event. -. . In the mean
time the rise in the market price of
sugar following tho outbreak Of the
war in Europe returns large profits to
these companies The market quota
lions of raw sugar on January |, 1915,
vas d trife over four cents per pound
with favorable prospects for the con.
tiIuance Of profitable prices for some
time 10 come.
HWe hold that the assessment as FIX
ed by the tax appeal court should not
be disturbed. II Is affirmed''
Union NIL Also Loses
The supreme court also sustained the
decision of the same tax appeal court
in the matter of the appeal Of the
Unioh Mill Company, another North Ko
ed its property at a valuation of $780,,
900. The assessor raised it to $4,000 J.
the assessment being sustained by the
tax appeal court.
"This plantation adioihs that of the
Hawi Mill and Plantation Company
.......:. and is subject to the same
climatic conditions" says the decision
"Like the other plantation it is partly
irrigated, and obtains its water supply
from the same source. Its cane lands
comprise an area of about 1883 acres
owned in fee simple, and 874 acres held
under lease. Its output for the past six
years has averaged 2S53 tons of sugar
The estimate for the present year Is
5000 tons. Its profits for the past sew
en- years (l9OS 1910 have averaged
$35,343, though it sustained loss In
1913 and has paid no dividend since
Company Governments Best witness
"The valuation is sustained by the
evidence adduced by the evidence Of
the appellant. The value Of the whole
would not be less than the sum of it,
parts, unless, what is not shown here
the value of the parts was deprecated
by reason Of their combination.
"We are of the opinion that the de
tision appealed from should be affirmed
| and ID Is so ordered.''
This decision also was written by
Chief Justice Robertson and Is concur
red in by both associate Justices.