The San Francisco call., 1905-05-19
Annual Convention Is Well
Attended and Live Topics
Are Freely Discussed
PLEHN on TAX REFORM
University Professor Favors
Modification of States
Plan Of Raising Revenue

ance in the history Of the organization,
was called to order this morning at the
Chirps Hall of the Athenian Club by A.
H R Schmidt president Of the aSsocia-
ton. who faced one Of the most repre-
sentative bodies ever assembled in the
State Welcome 10 the visiting several
hundred bankers and their ladies was ex-
tended by Mayor Frank K. Mott The
members OF the local committee on ar
rangements were active IN receiving the
guests, who came from all sections Of the
State.
Business OF the convention. naming of
committees and the delivery of important
addresses were interspersed by social
functions on an ella borate scale. The
place of meeting was a bower Of floral
wealth. mural decorations being height
ened IN color by many beautifully draped
American flags
After the convention had been formally
opened President Schmidt introduced
Mayor Mott, who gave welcome to the as
socfanon-
Il S Fletcher of the Bank of Watson
VILE made response on behalf Of the as
goclz1on-
PRESIDENT SPEAKS.
President Schmidt, who is OF the German
Savings and Loan Society Of San Fran
cisco, in his annual address emphasized
the benefits 70 be derived from the ses-
sions Of the convention congratulated the
association on the elimination of free sill
yer as q political issue, referred to State
legislation favcrs BILE TO stability in bank
ing operations, and gave the following
figures touching banking in California:
January. lsO4-Nurber banks. $50: depos-
its SO. SOS, 72S 96: assets, $5SS. .749, ,SS6 O..
January. 1905-Number banks AS: deposits.
SOL SIS 256 96; assets, s634. 4O2, 5S7 O9. In
crease-Number banks. es; deposits $50 039.
- ~
since then twenty-eight new banks have
been licensed for business. Surely indica-
tion Of general prosperity and cause for re
3oicinE.
He declared there must be harmony
among all sections OF the State 70 en-
courage enterprise, and insisted that II
benefits were TO accrue there must be
union Of interests north and south
Secretary P w. Welch reported 26s
banks as members of the association, a
net gain of sixteen for the year.
Irving Z. Moulton, chairman of the ex-
ecuuve council made an exhaustive re-.
port mainly upon measures adopted for
protection OF bankers against operations
by criminals He urged a larger revenue
70 be used IN protective work.
President Schmidt named the following
committees:
Nonins tions-c. ". Bush. Woodland: D.
Edward Collins Oakland: h P Goodman.
cisco; J. E Baker. Alameda; George s.
Meredith Oakland. Auditing-F. B. Kings,
J. Knight, vallejo.
REPORT Is READ.
J. D Radford Of the First National
Bank of San Jose read a report OF the
delegates to the American Bankers AS
sociation.
George W. Peltier Of the California
State Bank Of Sacramento delivered an
address on Stability in Ban--ing" d.
Edward Collins Of Oakland read a paper
on Banking"
At the close of the morning session
luncheon was served TO the delegates,
adjournment being taken until o'clock
IN the afternoon, when the most important
paper Of the session was read by Pro-
fessor Carl c. Plehn of the University of
California on The Plan for Tax Reform
in California" Professor Plehn is
member Of the State Tax Reform Com
mission, appointed by Governor Pardee.
He opened his address by saying that the
people of this State have desired to re-
wise their revenue laws by separating
State from local taxation. in the line of
reform movements elsewhere. He said in
part:
The burden Of the support of the Gov
ernment falls most unequally upon those
who should bear it. II falls with special
severity upon the poor and with the
greatest severity upon the honest. The
present system is highly conducive to po-
litical immortality and is a veritable school
Tor perjury. 1t fails altogether to reach
the new forms of property which have
developed during the past fifty years or
10 reach the new kinds of ability that
should contribute to the public needs.
Personal property notoriously escapes
taxation. and about s. per cent Of the en-
tire bIrden Of maintaining government is
borne by the owners of real estate alone
SOME DEDUCTIONS.
In concluding his long address the pro-
fesscr said: The lessons to be learned
from the experience of our sister States
are; That the first step in the direction
OF tax reform lies in the separation of
State from local taxation. This clears
the way for the second step, which is the
adaptation OF our taxes TO the peculiar
characteristics which each subject of
taxation has. Then we may aim to Sc
cure a gre ater diversity of taxes so that
taxation shall be more universal and the
burden lighter because carried upon more
shoulders
William Mead of the Central Bank of
Los Angeles urged. in paper, the legal
izing Of clearing house certificates on a
par with national bank notes to meet
panics or temporary stringencies in the
money market Gordon Jones secretary
Of the Colorado Bankers Association,
read a paper on protective methods
against criminals
This evening an elaborate reception to
the visitors was given at the Home Club
by the Associated Banks OF Oakland
the committee Of which is as follows:
Edison r. Adams, chairman Farmers
and Merchants Savings Bank; w. G. Pal
nanteer, Central Bank; w. w. Garth
waite. Oakland Bank of Savings; L. G.
Burpee, First National Bank; d. Edward
Collins. California Bank; H. c. Capwell
Security Bank and Trust Company;
Charles T. Rodolph. Union Savings Bank;
George S. Meredith. secretary.
The convention will hold business ses-
sion tomorrow morning. Luncheon will
be served at the Claremont Country Club
and trips about the city will occupy the
afternoon Saturday a bay excursion will
be held. The association officers are:
A. II. r. schmidt, president OF German
Savings and Loan Society, San Francisco;
Frank Miller, vice president Colusa
County bank; G. w. Kline, treasurer
Crocker- Noolworth National Bank, San
Francisco; r. NJ. WEIGH, secretary San
Francisco Savings Union; executive coun-
cil-I +. Moulton, chairman Bank of