Los Angeles herald., 1890-08-13
Financial Institutions Appar-
emily Assessed Too Low.
City Attorney Mcfarland
PrOds them Up.
They Will Probably Give Legal Ex-
plantations.
The Council Sits AS Board of Equaliza-
tion-Several Matters Acted Upon.

zation of the city council, at the sugges-
ton of city attorney Mcfarland, de-
termined to test the question as to
whether or not the banks Of this city
could not be compelled to bear their
Just proportion of the burden of taxation,
In equal ratio with the other business
enterprises of the city. With this end
in view, notices were sent to the various
banks, citing their representatives to
appear before the board to show cause
why they should not be assessed upon
their credits, in accordance with the
view taken by the city attorney, of the
question.
Accordingly at 10 O'Clock yesterday
morning the council chamber was
thronged with bankers, attorneys, and
others interested in the various banks
of the city, all of whom were unani-
nous in their opposition to the pro-
jected reform. Punctually at the ap-
pointed hour, the board was called to
order by Chairman Van Dusen, when
the following members answered to roll
call: Messrs. Brown, Frankenfield.
Hamilton, Shafer, and Summerland.
Before taking up the bank question,
petition was read from q. H. Pinney
asking that his taxes be reduced from
$16,SO0 to SIS, 800, and after some discus
sion the same was granted. Another
was received from Andrew Mullen, as
follows:
To the Board os Equalization of the City
COuucil.
GENTLEMEN
Permit me to direct your attention to
the assessment of block r, Colina Park,
for 1890 at $4,000. This same property
was assessed by the city in 1887 at $2,-
625; in 1888 at $1,000, and last year,
1889, at $6,960.
The county assessed it this year at
4,500 reducing ii each year since the
boom, while the city has kept advancing
1t.
wish to assure your honorable body
that have no desire to shirk my right
full share of the public burdens, but
respectfully submit that as the city has
stood in the way of my improving the
property, or getting any income from it,
there is peculiar hardship and injus-
tice in thus advancing the assessment.
Nearly three years ago l had it sur
veyed at an expense OF 5000, intending
then to open up the tract, and COM
mence building and continue building
and improving, but found I could do
nothing until the line and grade of Ward
street was officially established. This IS
not done get, and it is not in my power to
do anything until it is. In the meantime
have been obliged to pay about seven
hundred and fifty dollars recently for the
grading etc., of Iona Drive, which is OF
no advantage, until the Ward street
matter is settled. Under such circum-
stances 1 would ask your honorable
body to make the assessment the same
rs the county, VIZ: $4,000.
On motion of Mr.. Shafer the assess
500, and on motion of Mr.. Brown num-
Der of less imposing petitions were laid
over until 2 O'Clock p. m, in order to
make way for the hearing of the bank
magnates.
vice-President w. F. Bosbyshell Of the
Southern California National Bank asked
the board to grant him a continuance
untilThursday morning next, owing to the
having been granted, city attorney
Mcfarland at once took up the case Of
the University Bank. President R. M.
Widney appeared in person, and upon
being sworn, stated that the return made
by his Bank, as to the amount of its
assessable property to the Assessor, was
correct. His bank made no commercial
loans, but loaned only on real estate
security and that many of these mortga-
ges had not been listed or recorded and
could not be reached by the Assessor.
This would account for the apparent dis
crepancy in the assessment of the bank
He said that if these nonlisted securities
were included it would be double tax
alton and would force banks to increase
their rate ofinterest or close up business
Mr.. Mcfarland wanted to know how
it was that owners of bank stock could
escape taxation when everybody else
owning property of whatever kind were
compelled to pay taxes on their hold
ings. The judge explained that banks
were largely agents for others. Mr.
Munday here appeared for the national
banks of the city and asked that time
be named wherein the issues of these
banks might be considered, and o'clock
p. m. was designated as the hour for
hearing the attorneys for those institu-
tions, and the discussion went on in
relation to the University Bank. Judge