Los Angeles herald., 1906-07-17
ASSESSOR BLAMES
BANKS FOR TRICK
TEACH DEPoSIT0RS TO EvADE
TAXES, HE SAYS
Transfer Moneys to Savings Accounts,
Thus Avoiding Assessments.
How Corporation Totals
Are Reached

THE banks of Los Angeles breed
more liars to the square inch than all
the dens of hell"
City Assessor Lewis is becoming
famous for the epigrams he daily de-
livers before the city board of euual-
zation. The above was his best effort
yesterday when the Metropolitan Bank
and Trust company appeared before the
board to ask reduction in it's assess
ment.
Not only do the banks themselves
do all they possibly can to defraud the
city of their Just share of the burden
of taxation, but they teach their Gus
toners how to avoid being taxed on
the money on deposit.
"On the first day of March each year
the depusitors place their money In g
savings account and tell the assessor
that a savings account is all they
have, but the next day after this
money is withdrawn and used for some
other purpose. A savings account is
not assessable.
IF that isn't breeding liars 1 don't
know what to call it," continued Mr..
Lewis.
Objects to Lawyers
To Mr. Lewis a corporation asking
for reduction in it's assessment has
has on a bull, and he can hardly be
polite to the officers of a corporation.
Corporation lawyers are especially dis
tasteful to him.
They have no business here, as law
yers," said Mr. Lewis yesterday
"They can come as private citizens and
protest against their own assessments,
but L object to lawyers. on princi-
ple.''
For the first time yesterday morning
Lewis consented to tell how he arrived
at the assessed value of a franchise.
AS he has simply followed the method
laid down by the supreme court, it is
difficult to understand why he has so
far made a mystery of his method,
but heretofore he has steadfastly re-
fused to tell and has been supported
in his refusal by the city attorney.
ut is a pretty decent set of fellows
here this morning. said Mr.. Lewis,
land I don't mind telling how I
do it. just to show have some system
about It,
How Lewis Assesses
"I take the market value of stock
in some instances and sometimes COM
promise between the market value and
the book value and deduct from that
amount the assessed value of the other
property of the company.
THE difference gives me the value
of the franchise and 1 assess it ac-
cordingly."
In the case of the Metropolitan Bank
and Trust company, which asked re-
duction on its franchise from S44,54o
to $4,000, Mr. Lewis declared he had
taken the market value of the stock,
which on March 1 was quoted at 1885,
and from that had deducted the as
Sessed value of the company'5 real
property. The difference he had as
sessed at 25 per cent of the figures
shown.
The officers of this company claimed
that Mr.. Lewis should have deducted
the full value of the property from
the market value of the stock instead
of the assessed value. The assessed
value is about 80 per cent of the actual
value and the claim was advanced that
by simply subtracting the so per cent
the company was compelled to pay
taxes on the full value of it's assets.
80, these bankers are fine fgurers
and fine jugglers of figures" was
Lewis disgusted reply.
Under Amusement
The board took the case under ad-
visement.
The German-American Savings bank
was another protestant yesterday
morning.
This bank objected to the assessment
on it's franchise and attempted to show
that as Mr.. Lewis had failed to deduct
it's United States bonds, which are not
taxable, from the market value of the
stock, which on March 1 was quoted at
325 but which Mr.. Lewis compromised
at 200, the effect had been to tax these
bonds which is a direct violation of
law and of the constitution.
This case was also taken under adj
visement by the board of equaliza-
ton.