The San Francisco call., 1898-12-23


 termed a hold-up.
 Any advantage which counties may gain over the State is bound to be brief and fleeting. The Legislature is the law-making power and the State has rights as well as individuals and coun- ties. Admit, for example, that the di- lenma will force the State to settle on the terms prescribed by the County Treasurers. Such settlement would turn over to the counties the sum of one million five hundred thousand dol lars. The lawyers will get of this amount say seven hundred thousand dollars. The State cannot lose the mon- ey and taxes must be levied. and surely will be levied, to restore the balance. The counties receiving the back com missions will pay an equal amount to the State in taxes and in the end they will lose exactly what they pay out for attorney fees. The contracts to pay the lawyers exist between the counties and the attorneys.
 The contracts were quietly negotiat- ed. The Supervisors listened to the fairy tales and bound the taxpayers to pay an enormous percentage with --@e hope that the county would get something to the good from the State. The stupid Supervisors never consid- cred that the State would levy ad- ditional taxes to make good the amount wrested from the State treasury.
 San Francisco is among the forty three contracting counties and it is doubtful if a hundred citizens of the metropolis know anything concerning the transaction. The Mayor himself says it was difficult to get any legal ad- vice on the proposition. In an inter- view last night he said:
 Yes, the Mayor approved the con- tract. Judge Slack and MT. Devlin presented the question. San Francisco agreed to pay 50 per cent on the first $1O,OOO collected from the State I think at the suggestion of Dr. Clinton the amount was reduced to 25 per cent on all collections in excess of $1O,00O. The contract was made about six months ago."
 The Legislature may nass a retro active measure to remedy defects in the repeating statute. As an extreme measure money could be borrowed on the credit of the State to conduct the affairs of government until the taxes of the ensuing year could be collected. No difference what method is adopted the counties now refusing to settle will be obliged to foot the bills.
 It is known that Governor Budd and Controller Colgan fully realize the serious character of the situation The Legislature will convene in a few days and money will be required to keep the wheels of government in motion. It is known that the Attorney General has been consulted, but the county officers prefer to be guided by the advice of the lawyers with whom they have entered into compact to force the State to pay commissions for the collection of State taxes.
 When the people of the State begin to realize the true situation and compre- bend that they will be obliged to pay over in taxes the $70O,0O to line the pockets of sharp lawyers of San Fran csco and Sacramento there will be such an awakening of public remonstrance as the good people of California have never witnessed.
 The frame of mind in which the Legislature will meet can better be imagined than described. An empty treasury is the last thing that a law maker desires to contemplate and to fancy that the treasury is depleted when it should be plethoric will cause the enactment of legislation which will place it beyond the power of a County Treasurer to further defy the State Controller.
 The only penalty at present for the refusal of Treasurer to settle with the State is paltry fine of $1O0O The law in this regard will surely be amended before the session of the next Legislature is many days advanced
 The Governor, Controller and Attor- ney General will probably confer again to-day to see what can be done to avert the mischief threatened by the contin- ued refusal of the County Treasurers to settle.
 In fixing the tax levy to provide reve- nue for maintaining the State govern ment the Legislature. on the advice of the Controller, estimates the amount required for each of the various funds. The rate of taxation is fixed to raise the amount of money so required. Should the amount raised be not am pie to maintain the institutions of gov ernment the money must be raised in the next tax levy to meet the deficiency.
 It is a proposition as plain as day light that if the State is deprived of $1, 800, 900 which was raised by taxes to support the various institutions and to meet the several obligations of the State, an equal amount must be raised in the next tax levy to make good the diversion or loss.
 Therefore if the counties succeed in a reimbursement on commits sion account of $1,5OO,O 900 the funds for the support of the State will be depict ed to that extent, and to make good the depletion an extra tax to raise $1, 900 will be placed on the coun- ties. The counties will pay back to the State treasury all they get from the State, and in addition they will be com pelled to pay to attorneys $700,0O0 It is easy to see where the swag will go in a transaction of this character.
 The universally popular cult of the cycle has received a check in one part of the world. The Emperor of Morocco. who only short time ago purchased a luxuri-