The morning call. [volume] (San Francisco [Calif.]) 1878-1895, 1894-11-24
REFUSED TO PAY.
The Railroad Company Is
Defiant.
LEGAL TAX FIGHT PROBABLE
Morris Bernheim's Desperate Life
Struggle.
WANT OFFICE TWO YEARS noRE
The President of the Third Ward
Republican Club Ousted
While Absent.
WANT OFFICE TWO YEARS noRE


nlze the action taken 10y the City Council
on the evening OF August % last, when
sitting as a board of equalization they
raised the value of the railroad holdings
in this city from $6O7, 600 to about 81. $685.
400. This increase was made on motion of
Councilman Henry P. Dalton, recently
elected Assessor. On the old valuation
the railroad was required to pay taxes
amounting to the meager sum of $780,
But with the new valuation as basis it
now owes the city SO. 337. This repre-
SCENTS an increase which the corporation
that controls the transportation facilities
OF California apparently deems too radical,
or else it is resenful toward the city for
adopting the grinding policy with which
the name of the Southern Pacific Company
is synonYmous-chargin all the traffic
will bear.
Several weeks ago Tax Collector GiIpin
forwarded TO the proper officials of the
railroad bills for the amount Of taxes due
on each piece of property according to the
new valuation. Last Wednesday the rail-
road, through Agent Chubbock of Wells,
Fargo q Co.. offered to pay Mr.. Gilpin the
money due on certain bills. One of them
had been altered so as to set forth the tax
due on the original assessment, and as was
told in last Thursday issue of THE CALL,
the Tax Collector refused to receipt Tor II.
Agent Chubbock then departed. 1t was
predicted that the railroad people would
make some other move. and so they did
yesterday morning.
Railroad attorneys j. c. Martin and E.
Black Ryan, VINO have especial charge OF
the cOmpany's tax assessments, accom-
panied by Agent ChubbOck anG several
big sacks of coin, entered the Tax Col
lector's office and made formal tender TO
Mr.. Glpin of S4S50, which represented
the taxes which the company would have
to pay according to the original valuation.
The attorneys made a tender OF the taxes
due on each of the raised bills. and as
regularly as they offered bill on these
terms MIR. Gilpin just as regularly refused
10 accept the tender.
They were willing to pay the tax on the
valuation (S50,000) of certain real estate
and improvements on the property at the
foot of Broadway, but they entered an
emphatic objection to the Increase on the
assessed value of the personal property
from $6S, $50 TO $3.50, 600. In reply Mr.. Gil
pin SAID that he could not accept any sum
less than the assessment as fixed upon by
the City Council.
The railroad people well knew that the
Tax Collector could not do anything Uther
than that which the action OF the Council
dictated and Mr.. Gilpin also knew that
they did not expect MIN to do so. but had
only taken this method 10 put themselves
on record and at the same time iDtrench
themselves for legal battle. When they
had done this the railroad eohOrts made
decorous retreat from the office.
In the litigation which will certainly
be on before many moons have waned one
Of the principal questions will be as to
the jurisdiction of the Council as Board
of EQuai,ZatiOn on August %, 1894 and if
the nligai ion accnmplishes nothing else it
will correct a glarlng discrepancy in the
copies of the city charter now extant
Some copies read that the assessment
rolls shall be completed on .he first
Monday in July. Others provide that this
shall nave been accomplished on the ''Iast'
Monday in July. According to law the
Board of Equalization has legal existence
for thirty days after the com pletion of the
rolls. The question is which is right. If
frs Monday" is correct then the in
crease was made ffty-two days after the
completion of the rolls, and, because of its
illegalttv. il wOud be void. On the other
hand if it can be proved that the original
charter read last Monday" the Council
had jurisdiction, for Il took action twenty
four days after the rolls were completed,
or within the time permitted by law.
City Attorney johnson maintained that
the charter read FIRST Monday" and he
doggedly advised the Council not to at
tempt TO sit as a Board of Equalization
The special waterfront attorneys for the
city also held that opinion until Council
man Dalton brought them indisputable
proof that the charter for which the peo-
pie voted read last Monday" He went
20 Sacramento and Gelved among the
archives of the State in the Capitol. This
investigation disclosed the fact that the
cory of the charter engrossed in the rec
ords Of the Legislature of 1889, was at
variance with the original in that it read
first Monday" but Mr.. Dalton discovered
that the word first" had been substituted
in different ink from that nsed in the rest
of the copy, and in a different cbrio-
graphy, for some word that had been
bunglingly scratched out with a sharp in
strument.
Immediately the special attorneys gave
II as their opinion thai the Council had the
legal ght TO convert itself into Board
of Equalization any time within thirty
days after the 30tn Of July, 1894. Thew
based their opinion on the secLlOu of the
State constitution which provides that the
Legislature may not amend in any pzrtIcu
lar any charter submitted to it, but
must either accept or reject it as a weole
Therefore if the charter was changed
while it was in the hands of the Legisla-
ture the change is Illegal, and the special
attorneys feel certain that they can prove
that the charter as originally submitted
read '1ast Monday"
1t was feared in some quarters that the
failure of the railroad to pay the taxes
would create deficiency in the treasury.
which wunld seriously cripple the NUM-
cip4l government. City Auditor Snow.
however, thinks differently. He said
Yesterday: II made the estimate Of the
income and expenses of the city on which
the tax levy was based several weeks be-
fore the Council increased the valuation
of the railroad property, consequently in
making that estimate | figured that the
railroad would pay only $3.50 There
fore, if they do not pay this amount there
will be deficit 10 the treasury OF only
S4S50. If they pay any greater amount all
In excess of the sum / estimated upon will
be a surplus.
81 forasaw that something like this
would happen, and l so stated to the
Council before any action was taken In the
matter. The city officials to-day deemed
it exp-dient TO insist upon the larger sum.
because only the Council, the Legislative
body of the city, has the authority to effect
compromise. 1t is thought that they
will DO so. however, because the city ap-
pears to have a very weak case"
City Attorney johnson is not at all sur
prised at the outcome. "When the Coun-
Gil asked my opinion of the legality OF
what they intended to do" said he. Il
told them that they had no legal right to