Los Angeles herald., 1905-07-15
CITY GAINS 81, 100000 BY
TAXING BANK FRANCHISES
COUNCIL UPHoLDS ASSESSOR EVAN LEWIS
Strong Corporations Defeated in Contest Before Board
Equalization to Secure Sweeping Reduction in
Amount Of Assessment

Banks and public utility corporations
i'll Los Angeles will be taxed for their
franchises. The city council yesterday
afternoon sitting as board of equali-
zation, unanimously upheld City AS
SCISSOR Evan Lewis in his efforts to
force the large banking corporations to
stand what is declared to be their
just share of the city's taxes.
Practically the entire day was con-
sumed in discussing the cases of the
savings banks and trust companies,
which objected to being taxed on ac-
count of their franchises.
City Assessor Lewis said: "This is
the first time the banks have been
taxed on their franchises in the city
and they do not like it. When one
considers the large amount of business
they do and the small tax list they turn
in the injustice to the people is shown.
Of course, we cannot tax the national
banks; they are independent; but the
others should pay.
Altogether the assessment on the
bank franchises amounts to nearly d
million dollars, but that is a mere bag
etelle when the vast amount of prop
erty owned by the banks is considered.
And yet they object because we want
them to pay this. When we asked for
a statement they gave us one, but it
showed hardly any money-just few
thousand dollars.
One Bank Has Cash
1.-THE only bank in the city, I be-
lieve, which turned in all Of the money
in the vaults was the Cooperative Saw
ings bank, of which ex7Mayor M. p.
Snyder is the president. Their state
ment showed $150,OOO, while the others
were nearer $4,000 or $4,000.
IT found these big corporations want
ed to dodge, so looked up the law on
the subject under the direction of the
city attorney and found that L could
assess them for their franchises and
l did, using my judgment as to what
which was passed upon by the supreme
court of subtracting the real property
from the value of the stock and thus
getting at the value of the franchise,
but they know this and dodge it, Other
methods have also been passed upon,
including the one used"
Attorney H. w. O'Melveny appeared
for the Los Angeles Trust company,
Metropolitan Bank and Trust COM
pany, State Bank and Trust company,
Mercantile Trust company, American
Savings bank, Security Savings bank,
Equitable Savings bank, Southern Cali
fornia Savings bank, International Saw
ings bank, Union Bank of Savings, and
the German-American Savings bank.
All of the petitions were identical and
single case, the petition of the Los
Angeles Trust company being used.
Argues Case
Attorney O'Melveny declared that the
only method for taxing bank fran
chises ever passed upon by the supreme
court Of the state provided that the
PIOPCLlJ OL liAS AilDllIublOAA oAAChAO
be subtracted from the capital stock.
II was shown that the Los Angeles
Trust company owned $2S2,000 worth of
real estate and $65OOOO worth of nom
assessable bonds, and that it's capital
stock was $6S0,0O0. Therefore the real
property exceeded the capital stock
and the franchise was worth nothing.
OF at least should not be considered
worth anything on the tax roll.
The bank attorney also declared that
but fifty-nine corporations were being
assessed for their franchises while
nearly three thousand went free. He
also stated that the tax committee of
the legislature was at the present en-
gagged In revising the state law regard
ing the taxing of corporations and that
next year 1t was hoped more equit-
able system would be in effect.
Deputy Assessor Answers
Deputy City Assessor A. b. Conrad
answered Mr., O'Melyeny and reminded
him of the decision of the supreme
court in regard to the Spring Valley
bank case in which the system adopt