Los Angeles herald., 1890-08-04
THE STATEMENTS
Made by the Banks to the
Public and the Assessor.
Look on These Figures and
Then on Those.
The City Attorney Finds Place for
Reform.
His Report to the Council-Interesting
Statistics-His Recon-
mendations.

On Thursday last the city council,
while in session as board of equaliza-
ton, held long consultation with the
city attorney as to the question of COM
pelling the various banks of the city to
pay their just proportion of the taxes,
they having for many years past escaped
almost entirely the eagle-eye of the
assessor. The question having already
been tested with success in several of
the eastern cities, City Attorney McFar-
land suggested the advisability of bring
ing the matter to focus here, and it
was determined to notify the banks to
appear and show cause, if any there
was, why they should not be called upon
to pay fair valuation upon their sworn
statements of their financial condition.
1t will be remembered that City AS
SCISSOR Fischer on May Sd last wrote to
Mr.. Mcfarland for information in re-
gard to the assessment of bank fran
chises." The city attorney at that time
explained in detail what was subject to
taxation and what was not, and went
into the question of the law providing
for the taxation of bank shares at some
length. Among other things that pro-
vided food for reflection, Mr.. Mcfarland
suggested that the accounts of several
individuals would not bear investiga-
ton, because the sworn statements of
the banks showed the amount due to
depositors to be So, ,000 whereas only
$211, 1897 had been returned for assess
ment.
Nothing further was heard on the sub
ject and the work of the assessors Office
proceeded regularly. When the returns
were completed, however, it was found
that very little improvement had been
made. The following list represents the
taxable property of each of the banks,
as turned in by itself for assessment:
Farmers and Merchants Bank-Vault 81 ,50O
fixtures, $1,000; money, $3.50.
California Bank-Furniture, $3.50; money,
Southern California National Bank-Safe, ST.
600; fixtures, 5000 cash, $4,000.
Los Angeles Savings Bank-Furniture, $3.50;
money, $4,000,
State Loan and Trust COmpany-Furniture,
$500; fixtures, 81 400.
Savings Bank of Southern California-Noth
University Bank-Nothing.
Los Angeles National Bank-Fixtures, 49, 800
First National Bank-Furniture and fixtures
81 ,665; money, $19,325.
National Bank of California-Safe, 81. 600
Los Angeles County Bank-Fixtures, $500;
money, $2,O55.
Main street Savings Bank-Fixtures, $500.
City Bank-Fixtures, 81, 5000.
East Side Bank-FiXtures, $500.
Security Savings Bank-Furnture, $500.
City Attorney Mcfarland in accord
ance with the instructions of the coun-
Gil, prepared written report upon the
question, which was submitted to the
board of equalization on Friday after
noon, as follows:
The City Attorneys Report.
Los ANGELES, August Q; 1890.
To the Honorable Board of Equalization Of the
City of Los Angeles-GENTLEMEN: have exam
ined the statements of the different banks of
this city, those of the national banks having
been made on the 2Sth day of February, and
the others having been made about the LIST of
January of the present year, and these state
the first Monday of March. While the different
banks resources and liabilities may not have
been made up OF the same am items on the first
the property of the banks, especially in value,
was about the same, and 1 therefore use these
statements as the basis OF arriving at the
taxation. When money is deposited in the
bank its identity is lost by reason of its being
mixed with the money of other depositors and
money belonging to the bank, and for that rea-
son it is impossible to say whether the money
on hand in a bank is the specific money of the
depositors or the bank, but think it is fair for
Cne purposes OF taXat1On TO say tnaC Dank
which has deposits to the amount OF 100000,
and has actual cash on hand in money to the
amount of 100000, that said sum of 5000, 900
is the money of the depositors and l have so
considered it in making my calculations. In
order to arrive at the amount which these diff
ferent banks should be assessed, have taken
the liabilities, consisting OF the amounts due de-
positors, the amounts due on certified checks, the
amounts due other banks, and lin case of ma
tional banks the amount OF bank notes out
standing from which total sum have deducted
the money on hand The remainder represents
the amount due depositors, etc., which is in
vested, The remainder have taken from the
total amount of the assets represented by loans
and discounts, stocks, securities, etc, amounts
due from other banks and the other assets OF
the bank excepting real estate, United States
bonds, mortgages, and also leaving out the
items of furniture, fixtures, premium on United
States bonds. After taking this remainder due
the depositors, ETC., from this total amount, the
remainder which is then left is the property OF
the bank, and should be taxed under the head
of credits; but wishing to make allowance fol-
loss, shrinkage, etc., have taken 30.per cent:
from these amounts, and have then thrown of
the odd figures so as to make the amounts in
even tens of thousands, the odd thousand which
have thrown off in each case being about
equal to the amount returned by the different
banks for taxation, with the exception of one OF
two instances where the amounts returned fol-
taxation are larger, and in @ which n h% cases have ave
l find the following amounts which | think
should be assessed to the different banks as
Farmers and Merchatns. $ $4,000
California Bank. ............... 135, 200
Southern California National NAN. $4,000
Los Angeles Savings. ....... ........ $4,000
State Loan and Trust Company. 49,. 100000
Savings Bank of Southern California
(mortgages) ................. ..... OOOOO0
University Bank :.............. 10000
600 in government bonds d,e ..e....., 'o 100000
First National .............. ..... ... 100000
National Bank of California. ........ 115,O0C
Los Angeles County Bank. ......... $4,000
Main-Street Savings ngs.............. 5000
City Bank. Observation-Disclosures. 10000
East Side. e....................... $4,000
Security Savings Bank. ................ 1000
Total. l.......................... 81 1857, ,OOC
An examination of the statements will show
that those amounts are from As to SO per cent
of the par value of the capital of the banks, the
difference in the per cent. being caused by the
stock of some of them being invested more than
others in real estate and government bonds.
/ recommend that these different banks be
called on to show cause why the different
amounts above stated should not be taxed tc
them as credits. Respectfully submitted.
c. MCFARLAND,
City Attorney.
Finance Committees Report.
The finance committee will report to
the city council the following recon-
mendations today:
That the report of the auditor up te
July 26th be filed.
That the demands of VIM. Hunter fol
eco of MavhorO e. Co for AZ 26 Of thf