Los Angeles herald., 1907-07-21
tions, in some cases ALL in some cases
half, some cases one-third.
Owns In New York and Panama


also l had to make a compromise with
them on the value of their steamers sail
ing out of New York, and their pipe lines
across the isthmus of Panama. L con-
ceded to them everything which they
asked for, even allowing them much more
than perhaps they ought to have had on
their steamers and their pipe line. and the
only request that 1 did not grant them was
their demand that l also deduct the bonds
of every corporation which they had guar
anteed
when I had finished with them every
thing apparently was satisfactory, and
they did not dispute the amount of their
assessment.
Now they come before the board of
equalization and ask for a reduction on
the value which / have placed upon their
stock. This stock was valued at $215 per
share, which was the bid price on the first
Monday in March. I think 1t is unfair
after having conceded so much to them
and having agreed on this $215, that they
now dispute the value of their stock.
Gas Company Claims
"In the case of the Los Angeles Gas and
Electric company before the board of
equalization the company has asked for a
cancellation or reduction of everything
that has been assessed. The reductions
that the representatives ask on the valu-
ations of their tangible property are re-
markable In view of the fact that they
were assessed for 80 per cent of their own
sworn value in the statement which they
filed with the city clerk January 81 this
year.
"In that statement they place two
values their property, the first the
actual cost and next the present value.
have taken so per cent of the present
value as listed in this statement. They
have produced evidence to show that their
stock Is worth no more than par,
This looks very peculiar to me in view
of the fact that they paid S24O,OO0 in divi-
dends. which is 6 per cent on their stock,
and also have expended $764,000 in better
ments, which added to their $24O,OOo makes
over million dollars profits on their $4,-
900, 900 worth of stock, or 25 per cent.
I'm assessing this company 1 placed the
value of their stock at $3.50, which / con-
sidered very low when took into consid-
GRAFTON that their company was making %
per cent on their investment They ask to
have their stock reduced 1000, 900, which
would entirely cut out their total fran
chise assessment and make 1t S15O,OO
worse than nothing.
Pacific Electric
I'm the case of the Pacific Electric rail-
way Mr.. Dunn called on me and opened
up his conversation on the subject of
the value of the stock of the Pacific
Electric, claiming that the only time that
any value had ever been placed on this
stock was at some time in the past, when
it had been figured at value of $1.32 per
share. But, of course, Mr.. Huntington at
the present time would not accept that
sum for it..
"Afterward, in correspondence with
me, he declared that the Pacific Electric
stock positively had no value and that
the time that they had fixed value of
$1.32 that 1t was purely arbitrary; that 1t
was worthless at that time and at all
times had been without any value.
placed value of $25 per share on the
same, which sum 1 heard Mr.. Trask ac-
knowledge as being not unreasonable.
II want to say now that at the time
Mr.. Dunn was in my office he did not
refer to the stock of the Los Angeles
Railway company. but in a few days a
gentleman arrived who by his card
found to be a Mr.. Pioda, the secretary
and treasurer of the Electric Railway
association of California and tax agent
of the United Railways of San Fran
cisco and he told me that he had come
| to argue the value of the stock of the
Los Angeles Railway company and that
as he had to make the same argument
with Mr.. Ward he would like to make an
engagement to meet us both at the same
time. We agreed to, meet the next day
in my office at o'clock, which we did.
Argues with San franciscan
'Mr. Pioda put in three hours in an
argument to prove that the Los Angeles
railway stock had no value that the
stock belonged individually to Mr.. Hunt
ington and Mr.. Hartman; that the cost
Of mai
and fixed charges consumed the entire
gross earnings of the company and there
fore this stock could have no value and
pressed me for an answer Immediately as
to whether l would take his view of it.
l knew his argument was not true for
various reasons.
''The year before 1 had written the
stock at S., 100000 and they had made no
complaint. Every one knows that If the
Los Angeles railway was assessed for
Sc, 900, 900 on property that had no value
they would not. let it pass without
protest.
"I also knew that Mr.. Hartman indi-
vidually did not own the stock of this
company, because l had been given the
information that the sale of the stock
had appeared in evidence before the in
terstate commerce commission.
Wires to Chairman Lane
"Not having any allowance of tele-
graphic expense, / appealed to the city
attorney who kindly used his credit at
the Western Union telegraph office to
wire Franklin X. Lane, the chairman of
the interstate commerce commission, for
the information 1 desired.
At have here the telegram which shows
that the Southern Pacific railroad pur-
chased As per cent of the stock of the
Los Angeles Railway company for $4,-
75O 900.
II also have a certified copy of the evil
dence given before the interstate COM
merce commission in their investigation
in the city of New York, which proves
conclusvely that that amount of money
yas paid,
ION the evidence which L had L placed
the value of the stock at ten and half
million dollars l heard Mr.. Trask be-
fore the county board of equalization
acknowledge the sale.
Shifting Bank Funds
1.-The other day picked up newspaper
which contained two large advertisements
OF banks One advertisement stated that
they had more than two millions of dol
lars on hand, the other one nearly as
much. That Immediately reminded me
that on the first Monday in March these
same, two banks had filed a statement