The San Francisco call. [volume] (San Francisco [Calif.]) 1895-1913, 1906-12-02
Calhoun Dirt
Cars Escape
City Taxation
Nichols Must Explain
Reasons to the
Grand Jury

The first of the big guns in the graft
investigation will boom this week,
when the Grand Jury turns its atten-
ton to the United Railroads. Consid-
Grafton at the outset will be given to
the method by which the corporation
escapes taxation on it's dirt cars Tax
Collector Nichols will be asked to aid
in solving the conundrum. BY a recent
ruling no taxes have been collected on
dirt cars owned in the city. Although
a dozen companies derive financial adj
vantage from this arrangement, the
star beneficiary is the United Railroads.
In determining the case City Attor-
ney Burke may be asked to aid. Nichols
claims that he has granted immunity
to the United Railroads cars as the re-
suit of a decision rendered by the City
Attorney. His attention will be called
to the fact that the passenger cars of
the United Railroads are taxed. If the
passenger cars, why not the dirt cars?
will be asked.
1t is asserted in the Tax Collector
Office that to tax the dirt cars would
mean a double assessment on this prop
erty. The approved procedure in such
cases, where an element of doubt ex-
lists is to allow the corporation to
DFlnR suit TO prevent the CORRECTION OF
the tax. However, the admins tration,
unwilling to put the corporation to
such expense and inconvenience. had
its own ordinance reversed when 1t
perceived whom 1t affected. The
amount lost to the city by the failure
to collect taxes on dirt cars is said to
amount to $40, 200.
All the facts bearing on this matter
are in the hands of the Grand Jury.
fully sifted, and the conclusion has
been reached that the case warrants an
investigation. This will be the first,
though not the last, appearance OF the
United Railroads as an Interested party
before the Grand Jury.
While the Grand Jury is delving into
the affairs of the Tax Collectors office
1t will seek to learn why salaries have
been paid to men on leave. 1t will also
inquire into the transaction by which
circus tickets were taken in payment
for a city license.
The license department of the Tax
Collectors Office will come in for spe-
ciaf study. The frequent arrest Of
teamsters and team owners, and the
immunity which a large firm is said to
have enjoyed, will also be made topics
of inquiry.
One of the most important matters
ling the money paid into the office.
There is law which requires the Tax
Collector to cash all checks which come
into his office and turn the coineover to
the City Treasurer within twenty-four
hours. . 1t is claimed that Nichols has
been remiss in this respect. Former
Tax Collector Smith got himself into
a most embarrassing predicament and
finally landed in San Quentin by Jug
Cling with the citys money.
The Grand Jury may also desire to
know why the Tax Collector deemed 1t
necessary for his deputies to wear
saucerlike silver badges, which cost
SIS apiece. The bill for these badges
totals 1915, and 1t is now before the
Supervisors. In trying to explain his
extravaganza Nichols attempted to
place the blame upon the Supervisors,
but their action in holding up the bill
would indicate that they had no hand
in the purchase.