The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1895-11-23
Taxes Are Higher All Over the
State for the Year
of 1895.
THE DECREASE IS ABOUT 4
Lowell White of the San Francisc,
Savings Union Explains the
Situation With Others.

with the increased rate of taxation,
the amount available for dividends will
necessarily be minished, and we will not
be able to pay the same dividends on de-
posts as In the past, said Lowell White,
cashier of the San Francisco Saving $
Union, yesterday.
The tax rate in 1894 was 81 493, but
this year it viii be$2 %. That is in San
Francisco, but it fuctuates in different
parts OF the State. 1t simply means that
the increase all over the State of California
viii be something like 25 per cent Under
these circumstances the savings banks
viii not be able to pay the same dividends
Just exactly what the cut will be l am I'M
able to say, but it will be lowered to some
extent. 1t is simple problem and the re-
suit will be lower dividends.
Ever since the Supervisors raised the tax
from 81 1913 to 81 % depositors in savings
banks have been specializing on the prob
able result so far as the dividends were
concerned, but banking men We're not pre-
pared to name the exact amount. Several
banks have most of their loans made in
San Francisco, while others hold country
mortgages. Farmers are not in the best
financial condition and cannot pay the in
terest on their mortgages. Since the new
y OuSIiIuNlOl vi Tue CNdJC Was dQOpt6u one
fifth and in some cases one-fourth of all
the money collected as interest has been
paid the Tax Collector as mortgage taxes
The cashier of the French Savings and
Loan Society says the difference in
dividends will be somewhere in the neigh
borhood OF from 4 to % of per cent. ''In
the CITY" said he I'VE have made most of
our loans and the decrease in dividends
will be proportionately greater, the tax
levy being higher here than in any other
part of the State. In the country the in
creased taxation Will not be as great pro-
poruonately. 1t will average up about
80 per cent, while in this City it is over 80
per cent as compared with the rate OF
1894. For instance we may take San Luis
Obispo County. In 1894 it was 81 50, now
it is 81 IS. In Santa Barbara it was 81 40,
now it is 81 90. In Alameda it was 81 30,
now 81 50. In Fresno County it was 81 so,
now 81 s., and so on all over the State.
The result can be nothing other than cut
in the dividend, as the fund for that pur-
pose will be greatly reduced by the pay
ment of taxes. l think the decrease will
be a small Ole and will be in force until
times look better and the tax rate is
lowered.
President Tobin of the Hibernia Savings
and Loan Society freely admitted that it
would be necessary to decrease the divi-
bends owing TO the present tax rate. "Jusc
what amount the cut will involve do not
know yet, but it will be in the neighbor-
hood of 40 of a cent. Financial condi-
tons are such that 1t Will nave to be done.
The tax levy holds good and must be paid.
This is the first time in some years tina
the savings societies have decreased their
dividends, but it is not thought that it will
prevail very long. Money all over the
country is little tight, and the farmers
particularly are unable to pay the interest
on their debts"