Los Angeles herald., 1890-08-15
THE BANKS EXPLAIN.
The Council Considers a
Question of Credits.
Presidents and Cashiers Argue
the. Points of the Case.
The Matter to be Concluded This
Morning.
Some Interesting Points of Law-City At
torney Mcfarland Makes a Good
Fight-The Proceedings.


torney Mcfarland Makes Good
Fight-The Proceedings.
At ten O'Clock yesterday morning the
board of equalization of the city council,
consisting of Messrs. Brown, Franken-
field, Hamilton, Shafer, Summerland,
man being in the chair, met in the coun-
Gil chamber to take up the matter of
hearing the representatives ofthe various
banks of the city further, as to their
claims OF exemption from taxation.
In the matter of the statement of the
ney submitted an account of the mOrtga-
ges held by that institution, W hich was
pronounced satisfactory by the city attor-
ney; and similar showing was made
by the representative of the State Loan
and Trust Company.
John S. Park, cashier of the City
Bank was however unable to successi-
fully dispose of all the credits of his
bank, and after he had acknowledged to
the sum of $50, 900 the city attorney re-
commended that it be taxed upon that
amount.
All the savings banks were passed
over until the afternoon session, and the
matter of the national banks was taken
up. The city attorney went over their
sworn statements giving list of their
securities and liabilities, and he found
"credits" to the amount of about $780,
900, which he thought should be as
sessed to these several banks in Los
Angeles.
Mr.. Munday, appearing for the Ma
tional Bank of California made a state
ment to the board as to the law of
national bank assessments, saying that
real estate only could be taxed in case of
these banks, and he read from the
United States statutes in support of his
allegation, following the reading with a
speech, saying that the capital stock of
every national bank is exempt by the
government of the United States from
taxation, in whatever shape that capital
be in. These banks could not be subject
tot axation except on their real estate
This was United States law, and could
not be avoided or overlooked. He said
these banks paid heavy tax already to
the government.
Mr.. Elliott, cashier of the Fir st
National Bank made statement as to
the mortgage in the name of him self
course, be listed to the bank, although
actually part of the bank assets, and
so recognized by the bank examiner of
the state. The matter was continued
for further consideration.
W. F. Bosbyshell, of the Southern
California National Bank now appeared
and made statement as to the fact OF
that bank being national Bank, and
the attorney, Mr.. Smith, claimed that
its realty only was taxable, but out of
courtesy he would make full showing
Of all matters relating to the matter.
Mr.. Mcfarland then stated that he
was in doubt as to the legality OF taxing
national banks for municipal purposes,
but thought the matter was open TO dis
cussion. He thought every individual
should be duly taxed according to his
holding should bear his or her due
proportion of the burdens of govern
ment, and insisted that the personal
property of banks should be taxed He
concluded that the statues referred to
by Mr., Munday referred to manner
rather than the exemption. Shares of
pank stock should be taxed to the
individual owners. The state law, he
said upheld national bank taxation, and
it was therefore the duty OF the board to
test this matter.
Judge Smith, representing the South
ern California National Bank, replied to
Mr.. Mcfarland, insisting that that gen
tleman was wrong in his conclusions,
and read section of the statutes on the
question at issue; also decision of the
supreme court Of Ohio looking to the
exemption of the taxation of the per-
81 Of vol 1yc
Mr.. Shanklin, in behalf OF the First
National Bank, said that he was ready
to rest the issues on the judgment of the
city attorney, who was fair and reason
able lawyer.
Mr.. Hughes. cashier of the National
Bank of California, made statement as
to moneys outside of the state, and said
there was surplus when their state
ment was made up.
Mr.. Mcfarland insisted that the law
was not clear on the subject, and he ad-
vised the board to test the matter
and see whether or not these banks
ton of taxes. ~
At this juncture the the natter was
continued on motion of Mr.. Franken-
field for final decision until this morning
at 10 O'Clock, when the whole question
will be brought to conclusion.
At the afternoon session the matter OF
the savings banks was taken up, and after
examining representatives from all but
the Main Street Savings Bank, the city
attorney recommended that the Security
Savings Bank be taxed upon "a, 85O, Los
Angeles Savings Bank, $4,000, and the
Main Street Savings Bank $4,000.
At this juncture Mr.. Frankenfield an
nounced that this was the hour set for
final action upon the matter of the Far
mers' and Merchants Bank, but a de-
murrer was interposed by Mr.. Hamilton
on the ground that all the rest were to
be decided this morning, and this ought
to be passed over until that time also.
After some discussion, Mr.. Shankland,
whe appeared for the bank, stated that
he had little or nothing to add to what
he had already said. The banks theory
of the law of taxation was that after
ascertaining the amount OF it's credits, il
was entitled to deduct therefrom its
debts. 1t had shown conclusively that