The San Francisco call., 1897-07-25
A Supervisor Would In
crease Taxes Without
Evidence.
He Cannot Get the Data Neces-
sary to Increase Bank
ers' Tithes.
Many Institutions Show Bond Invest
ments and Other Excuses for
Low Valua ations.

The Board of Equalization had an in.
ming with the bankers of the City yester-
day.
DR.. Clinton had been designated to
gather facts as q committee on ASSESS
| ments.
The case of all the banks was substan-
TALLY the same. DR.. Clinton called atten-
tion to the fact that the statements of the
banks tojthe Bank Commissioners differed
from the statements made by them to the
Board OF Supervisors.
The principal banks of the City were
before the board during the examinations,
among them the following: Bank of
British Columb bia, Bank OF British North
America, American Bank and Trust Com
pany, Bank of California. California Safe
Deposit Company. Donohoe-Kelly Bank.
ing Company. the London, Paris and
American, the London and San Francisco,
the Nevada, Sather Banking Com pany,
Anglo Californian Bank, the Union Trust
Com pany, Crocker- W WooIworth, Bank of
Commerce and Wells Fargo.
The story of all the banks was about
the same in substance. They showed that
the discrepancies between the reports
given 20 the Commissioners and board
were due 10 the fact that the reports to
the Commissioners included matters that
went through The Clearing house. Nearly
all showed that business has been. less this
fiscal year than the last. and that the ap-
paren discrepancies are because OF n fail
ure of the board 10 take banking methods
of bookkeeping into account. The COM
mittee hnally decided 10 report on the
bank assessments on Tuesday,
One instance OF the way apparent dis
crepancies were accounted for may be
seen in the report of the Nevada Bank.
When asked why it has less solvent taxa
BILE credits this year than last it replied
that it was about to become a National
bank and that it has for that reason
bought $1,000 600 of Government bonds.
The Bank OF British Columbia accounted
for discrepancy between $244, 1868 and
$114 600 by showing that the larger sum,
which was reported to the Clearing house,
was for matters that should In no sense OF
the word be reported to the board as as
sets. 1t this way the story went on all
forenoon.
a. NJ J. McMichae, manager of the
Bank of British North America, was next
sworn, and was asked by Mayor Phelan to
explain his statement to the Assessor that
on the first Monday in March his bank
had on hand in cash $143. 000 and to recon-
cile that figure with the statement to the
Bank Commissioners that cash amounted
to $193 600
Mr.. McMichael replied that the discrep-
ancy Of $53 600 represented Clearing house
checks that were taxed under the head OF
the banks solvent credits, and the decis-
ion of the board was reserved.
Manager Walter Powell of the Bank of
Br tish Columbia was closely questioned
on the shrinkage of business for the wear.
Ho la npd hQ brip LyaD in
from last years s., 135. $50 to $145, coo, in
round numbers. tor this year by saying
that the business of the bank had suffered
a considera BILE dimiaution.
The attorney for the bank TOOK the posi-
tion that the board was not only limited
in its investigation to the sworn state
ment of the bank officials, but it had no
power to raise the assessment unless there
should be positive evidence to warrant
such course. In view of that construc-
tion of the law Supervisor Clinton seemed
to anticipate that the board would find
action difficult.
Cashier Thompson of the Donohoe-
Kelly Banking Company admitted that
his bank had bought S24 600 of non
assessabe government bonds during the
past year. The attorney of this bank dis
puted the right OF the board to make any
investigation without positive evidence of
fraud. Dr. Clinton insisted that the
bonds must have been bought for the pur-
pose OF evading taxation. The bankers
contended that there was no such pur-
pose and that the investment was ma ade in
due course of business.
At the beginning of the Investigations
DR.. Clinton insisted that the proceedings
be of a star cham ber order, but the oppo-
sition to this was So vigorous that he was
compelled to Withdraw his order TO that
effect.