The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1896-07-19
Want an Opinion on How to
Value and Assess Fran
chises.
STREET ROADS LOSE MONEY.
F. M. Smith, the Horse Magnate, Has
Paid Damage Judgments From
His Own Pocket.
OAKLAND OFFICE SAN FRANc1sco CALL,


but the only answer that could be given
was that Mr.. Shook was doing the Gray
Gables act in the mountains.
While the Board of Equalization is in
session the District Attorney is in great
demand. His opinion is wanted on many
points. Ali through this week the very
important question of the assessment OF
franchises has been before the board.
All kinds of political capital has been
made and is being made out OF the assess
ment of the corporate interests OF this
county, and Mr.. Shook has seriously i'm
peded the work of the Supervisors by his
fishing excursion.
az told the District Attorney he had no
business to leave his Office at this critical
time" said Supervisor Talcott to-day. ~
told him we should need his advice daily,
but he persisted in going and his absence
has caused many matters to be delayed
that we could have disposed of days ago.
Mr.. Church, his chief deputy, is willing
to give US an opinion on the matter of
these franchises, but we must have no
shelving of responsibility and Mr. Shook
must attend to this matter himself"
As the Supervisors will undoubtedly act
on the advice of the District Attorney,
and as they have been warned by their
enemies that their success at the next
election will depend on their actions
Monday, Mr.. Snooks absence from his
desk is being discussed in many lights and
shadows.
When the Board of Equalization ad-
journed tonight there were twenty-nine
cases under adYisement. All of these
cases will receive the attention OF the
District Attorney before the board will
act. Since the remarks of Mr.. Morehouse
yesterday the members have given up the
i'd ca of an extension of time and are bend
ing every nerve to complete their labors
by Monday night, when their iabors as a
board expires.
The Alameda Water Company, which
furnishes water for Berkeley, asked to have
the assessment upon their franchise
stricken from the roll on the ground that
their principal place OF business was in
San Francisco. The total, including $4,000
for the franchise, was $l96, 675. They asked
to have it reduced to $l29,636. The ear
ing OF the application was set for Monday
morning.
The question of the assessment upon the
Alameda, Oakland and Piedmont electric
line was next taken up. Mr.. Rank was
sworn and testified that at the valuation
fixed by the Assessor the company
was not making per cent profit. Ii it was
allowed to stand the company would either
have to go into the hands of a receiver OF
else cut their employees wages. He thought
that if the franchises had not been so
highly assessed he might not have filed an
application for a reduction at all. The
plant could stand its assessment. Mr..
Dalton took occasion to tell the board
how exceedingly kind Mr.. Rank had been
to him, and he was glad to know that the
assessments upon the improvements were
so nearly acceptable to Mr.. Rank. The
case was then taken under advisement
until the opinion of District Attorney
Shook should be received upon the ques-
ton of franchise assessments.
The Oakland Consolidated Electric petit
tion was taken up. They claimed that
the assessment upon the Claremont fran
chise should be Cancelled, as the franchise
had lapsed. They never held a franchise
from Forty-seYenth and Grove streets to
Adeline. The tracks were laid on their
own property. hence that assessment
should be stricken off the rolls. Mr.
Grim, the superintendent was placed
upon the stand and testified that the road
was the poorest in the county. 1t was
poorly built in the first place. The whole
road needed replacing with new material
1t had never paid dividends but the stock
holders had been compelled to put their
hands down In their pockets and pay the
interest on the bonded indebtedness. The
various judgments against the com pany
had been paid by Mr.. Smith and Mr..
Martin. The petition was taken under ad-
visement on the testimony taken last year
A. L. Stone presented the petition of the
Oakland, San Leandro and Haywards
} electric line. There were twenty-eight
separate reductions asked for. 1t was
assessed 81 1904, 600, and he desired TO have
it reduced to SAG, 600. Most of this was on
franchises. He cited the case of the fran
chise, only one block long, on Thirteenth
street, between Washington and CLAW.
1t was only used occasionally, and then
the proceeds did not pay the expenses of
running the car out of the power-house
He said their franchise on the CITY
wharf WAS assessed at $4,000, while
Mr.. Nandercook had a franchise which
was not assessed at all. ANY other line
could run over that line if they paid their
share OF The expenses. 1t was not an abso-
lute franchise. 1t would be cheaper to
take up the track and abandon the fran
chlse than to pay taxes on such an assess
ment. The franchise only cost $3.50 in
open competition, which he thought was
its full value.
Mr. Stone went further and said he
thought the whole franchise should be
greatly reduced, owing to the loss the roads
were meeting with. Several years ago it
was paying proposition. The road was
run at loss of $4,000. It was not fair to
assess franchise without knowledge OF
us income. He had offered to show Mr..
Dalton the books whenever he ca led but
the gentleman had never put in an appear
ance
Mr.. Dalton thought the value placed
upon the franchise by the company when
they placed their bonds would be a good
criterion, and asked Mr.. Stone to give that
ngure Mr.. Stone refused to submit such
hgures, and Supervisor Talcott upheld
MN. The latter gentleman thought that
the assessment should be made upon the
present worth of the franchise. What it
Was worm years ago cut no figure now.
re thought the board had all the figures
Iney mad any business to ask for. They
olo NOT SIT there to depreciate values OF
properly In this county. Mr.. Dalton
thought the figures placed upon the fran
bonds was good starting point. Thef
peGltion was then taken under advisement
Inc board will meet again tomorrow.