The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1899-03-03
SENATE SAYS NO
TAXES FOR STANFORD
UNIVERSITY

CALL HEADQUARTERS, sACRA-
MENTO, March 2.-The constitutional
amendment allowing the Legislature to
exempt property of Stanford University
from taxation passed the Senate to-day,
but not without opposition or criticism.
The amendment originated in the AS
sembly, and when it came to the Senate
Morehouse and Shortridge, the two Sena-
tors from Santa Clara County, stood
ready to support it. The recommendation
of the Committee on Judiciary, to which
it was referred, was that the amendment
do not pass" but that did not prevent
Senator Shortridge from rising when the
measure was reached on the file and ask
ing that it pass the Senate.
Shortridge, Morehouse and Simpson
were ali in favor of the amendment, and
they said so to the extent of half an hour.
1t was a public school, practically, was
the burden of their argument, an institu-
ton formed for the public welfare and not
for profit, and there was danger that I'M
less aid were granted it in the way of re-
lease from taxation the welfare of the
institution would be seriously endangered
for lack of funds. 1t has now an income
Of $3.50 900 a year, and one-fourth of this
is needed for taxes. The faculty costs
Sl65 0O0 and it was remarked that be-
tween the faculty and the tax there was
a deficit for EACH year, without including
general expenses.
ment, both because of the provision al
lowing the exemption of property and be-
cause of that clause which allows the
Legislature to confer, by special act, cor
porate powers upon the trustees of the
institution. This privilege, he said, was
one which is allowed no other institution
in the State, and is directly opposed to
the principle asserted in the constitution
that no special acts shall be passed by the
Legislature.
Gillette placed the hottest shot that
struck the amendment. He said ne mad
heard that at one time there was $l2,0OO,-
900 in taxable securities belonging to: the
Stanford estate in New York, and that 1t
had been moved from there and is now
somewhere in the country producing no
revenue and taxable in this state II the
securities could only be located. He sug-
sested that two or three millions of
these securities be made to produce
some revenue and help the university Ill
Continuing, Senator Gillette said there
were over 81, 900 acres of land in Calitor-
MIA belonging to the university that could
not be settled upon nor sold, and was
practically closed to the people, and he
did not think it should be exempted from
Senator Smith did not believe in aiding
the Stanford University so long as the
State institution was so badly in aid OF
assistance.
Senator Rowell said the question was
the entering wedge for the exemption of
all property of benevolent or educational
dangerous experiment. He believed 1t was
bad policy to allow any institution TO In,
vest its funds in taxable property ana
then exempt the property from taxation.
Stratton, Curtin and Boyce spoke IN IA
vor of the amendment, if only to allow
the people of the State to vote upon II:
The roll was called, and the amendment
was adopted by vote of - to 4, RoweI'
Gillette Smith, La Rue, Jones Luchsin-
ger and Trout voting no.
Senator Gillette's words caused az
kinds of time among the supporters or
the measure, and there were a great
MANY who were in the lobby when the
Senator Senate from Humboldt made his sensa-
tional charge. There were explanations
made by every one, and none explained
more loudly. nor longer than the lucRles .
Crothers. who was credited with the or
He explained that what he had said to
Senator Rowell was not that Mrs stan
ford had hidden away all these securi-
ties, but that they belonged to another
estate, the name Of which he did not
the securities were not of the Stanford
President Jordan also took time just be-
fore the train left for the city to declare
that the statement that Mrs. Stanford
had any securities hidden away from the
Tax Collector, as made on the moor OF
the Senate, was an absolute falsehood
What CrotherS declared he did say to
Senator Rowell was this: He represented
that the Stanford estate was Invested in
poorly paying securities and in poorly
paying land, and that if her securities
were taxed there would be nothing left
as an income from them to do the uni
versity any good. Her securities were
held outside this State, he said, and she
could not bring them here because they
would then come under this tax that
would rob them of so much Of their pos
abilities revenue. To Illustrate his
point, he made use of the disastrous in
stance-that he knew. of one estate that tia
had securities amounting TO over $l20O0,-
600. but that they could not be brought
here and were now somewhere between
here and New York, and that they were
not being taxed
When, however. Crothers and Senator
Gillette had a conversation on the ex-
emption, Senator Gillette understanding
the conversation to, refer to the Stanford
estate, demanded what amount in securi-
ties had been lost on the. way from
New York and Crothers would not tell,
and when he was asked to deny the re-
port that they amounted to over $4,000,
600 he refused to do so. His method of
lobbying has cost the measure a. good
deal of dignity, and perhaps has caused
1t more trouble.