The San Francisco call., 1899-07-18

what he was talking about. We'll,
said Mr.. Lynch, Il don't know that l
have much to say. only these assess
ments are too high" Asked why he
thought so, Mr.. Lynch made an attempt
to explain and continued to make no
progress until Mayor Phelan suggested
the line of argument that should be
pursued.
What was the market value of the
stocks and bonds of your system in
March last?" he asked.
There were between 81 900 and 3d.,
600 shares out" was the irrelevant an
swer. But what was their value?'
persisted the Mayor. And the troubles
that hereafter multiplied for Lynch be-
gan. He took his first step in the maze
by attempting an answer in generali-
ties. Black Ryan, who can always ex-
plain. looked on compassionately. Mr..
Foulds, pressed to the issue, offered Mr..
Lynch a tabulated statement with
which to refresh his tagged memory.
There were stocks and bonds to the
amount of SIG, 1896, ,000," said Mr.. Lynch.
There were $4,000 shares on the market
at 63-s5, ,229 900 in all. l think 1S6,170
shares have been issued in all at a par
value of $11, ,72S, no"
Mayor Phelan asked why ME-. Lynch
gave the par value rather than the
market value of the company's bonds.
He said it was upon the market value
that the assessment of the corporations
intangible assets had been computed.
Lynch replied that the market value
of the bonds should not be considered,
as interest was paid only on the par
value and the earning capacity of the
bonds, consequently not Influenced by
the premium that might exist upon the
paper in the market.
Besides, market values on stocks
and bonds are so often fictitious mod
estly submitted Mr.. Foulds.
These bonds are not in the market,
they are in our treasury" suggested
the purpling Mr.. Ryan to the involved
Mr.. Lynch sotto voce. Yes they are
not in the market echoed Mr.. Lynch,
and he looked entreatingly around for
another tip Mr.. Foulds thought it
best to take up the tangled thread him
SELF and ignoring the formality of be-
ing sworn said he could not understand
why the Assessor had taken the market
rather than the par value of the COM
pany's bonds as a basis of assessment
of the company's intangible property,
or in simple words, the company's
franchise.
Dodge broke in with the statement
that he had taken the market value of
the stock and of the bonds as we'll as
the best criterion of the value of the
property intangible and tangible that
was behind them, the value of which
warranted the buying public in offer
ing 10 per cent premium on the bonds
and 500 per share for the stock. Dodge
did not say that he had assessed the
bonds directly. For the sake of we'll
simulated argument, however. Foulds
assumed that such was the Assessors
mistake.
There seems to be a great deal of
confusion" said he. Il shall attempt
to explain The Assessor and his
Honor seem to think that the bonds
themselves have been assessed. This
IS not so; it is the property which these
bonds represent, our right to do busi-
ness, which he has attempted to put
valuation upon. The only proper way
to arrive at such a result is to take the
par value of our bonds (S100) as the
bonds at par represent the actual
value; the market rate has nothing
whatever to do with it,
why not?" pertinently inquired
Supervisor Collins.
"Why not was precisely what the
prolix Mr. Foulds was not seeking op-
portunity to tell, nor did he. He simply
reiterated that the earning capacity of
the bonds was governed by the mort
gage which they secured and in no wise
by the market value at which they
might obtain.
Mayor Phelan asked Mr.. Foulds what
he had to urge as reason he had not
made a statement of the par value of
the bonds in preparing for assessment.
"The Market-street Company has not
paid its just share of taxes for ten
years said he, nicely.
The entire value of your stocks and
bonds on which you have paid interest
and builded up a surplus ofks5O0. 900 is
s26 900 600, and you quibble at paying
taxes on $15,0O0.O00," continued his
Honor.
Il want to say" said DR.. Dodge at
this point, that l have been more than
fair with the corporations, and they
can see it if they will look into 1t.
Whenever l could l have given them
the benefit of the doubt and have as
sessed them at a lower rate than indi-
vidual holders when / have been able
to do so. l did not want to hear the
cry that l was cinching the corpora
tions."
And then out came the meat of the
whole harangue-why a morning had
been given over by Assessor Dodge and