The San Francisco call., 1898-12-23
TREASURY IS ALMOST
 DEPLETED.
Sharp Lawyers of San Francisco and Sacramento Advise County Treasurers Not to Settle With the State Con=
 trOller.

equalization. auditing and collection of all valorem taxes. Approved February g, 1893.
 The people of the State of California, represented in Senate and Assembly, do enact as follows:
 Section 1-An commissions or fees paid by the State to the officers of any county, or city and county for services rendered in the assessment, equalization, auditing and collecting of ad valorem taxes are hereby abolished; provided, that this shall not affect the commissions paid to the Assessors of the several counties for services rendered in the collection of per sonal property taxes, as provided by chapter eight of the Political Code, or the mileage allowed to the Treasurers of the several counties, or cities and coun- ties, in making settlements with the State as provided by section three thousand eight hundred and seventy-six of the Po- litical Code.
 Sec. 2-All acts or parts of acts in con- fict with this act are hereby repealed. Sec. 3-This act shall take effect from and after the first Monday in May, 1893.
 Under the provisions of this act abol- ishing commissions the County Treas urers made their settlements with the State. There was no outcry or public remonstrance against the law nor any of its provisions. It was as fair to one county as another and just to the whole State at large. It was whispered, how ever, around the State Capitol that there was some technical error or in- forrnality in the Senate proceedings on the final enactment of the law and soon attorneys were at work to discover the l flaw or technicality by which the va l lidity of the statute could be assailed. It is said that the law firm of Deviin | & Devlin of Sacramento gained posses sion of the Knowledge that only twenty | Senators voted for the final passage of the bill. whereas the constitution re- quires twenty-one votes or a majority of all the Senators elected.
 The Call at this particular time does not propose to go into details concern | ing the entries on the official record of 1 the Senate. The bill was passed ac- cording to the declaration of the pre- siding officer, and it went to the Chief Executive of the State properly certi- fled and received the approval of the Governor The flaw which the lawyers found was used to excite the greed of counties and lead local officers to be- lieve that a considerable sum of money could be recovered from the State-an amount as large as the several counties would have received in five years under the provisions of the old law. The amount aggregates $150O,000.
 In the enterprise to compel the State to reimburse counties Devlin & Devlin of Sacramento were Joined by Rodgers, Paterson & Slack of San Francisco. It transpires that contracts were made through Boards of Supervisors with forty-three counties of California. Un- der these contracts the lawyers are to receive on an average 40 per cent of the money collected from the State or withheld from the State in settlement with the State Treasurer. The figures obtained by The Call show that the commissions, calculated on the per- centage of the old law, now aggregate $1 800 900, and the attorneys who dis covered the flaw and secured the con- tracts are to receive in the aggregate for their enterprise and sagacity nearly $7OO,00O
 That the situation Is now critical and serious for the State there can be no question. Acting on the advice of the lawyers mentioned the several County Treasurers have refused flatly to make settlement with the State on any other basis than the retention of commits sions for the collection of the State taxes Yesterday the Supreme Court denied an original writ of mandate to compel the Controller to settle with the Treasurer of Sutter County.
 The proceeding in the court was in- stituted to compel the Controller to set tie on the basis of allowing the Treas urer of Sutter County to retain the commission for the collection of State taxes. After the court denied the writ compelling settlement on that basis the County Treasurers were advised by the percentage lawyers to make no settle ment whatever and to refuse to pay money into the State treasury. There fore no money Is going into the State funds. In former years between the 18th and 30th of December about three million dollars was paid into the State treasury and money was available to meet the expenses of the State admin istration and provide for the support of public institutions.
 So much for the history Of the events leading up to the present complication. Now for the results which are clearly outlined The sum of money in the State treasury at the present time does not exceed $500, 900. When the Board of Examiners meets in a few days and settles the December claims the amount remaining will not exceed $200,000. That sum will not pay the usual expenses for the conduct of the State government for one month. The State government is, therefore, face to face with serious difficulty If reputable attorneys and respectable county officials were not concerned in the enterprise to collect money from the State in this fashion