Los Angeles herald., 1908-07-25
CITY ASSESSOR GIVES DUNN
DESIRED PROOF
CORPORATIONS ASK BIG CUT IN
TAXES
Trolley Companies Argue Their Franz
chses Are Not Worth as Much
This Year-Mallard Refutes
Their Assertions


Last year 1t was bruited abroad that
the Hartman interests had purchased
a large part of the street railway stock,
but Mr.. Huntington and his employees
either smilingly denied or were blandly
non-committal when they were pressed
for information on this point.
Wagers on the subject, however, now
can be decided by reference to the
books in the office of the city assessor,
in which is contained transcript of
the evidence taken before the city
board of equalization yesterday morn
ing.
Assessor Mallard performed a clever
little stunt in getting his evidence
on this point officially recorded by the
stenographer who, is taking all the
corporation cases before the board Of
equalization. That the fact was
brought out and became a part of the
records was due entirely to the per-
sistence of w. e. Dunn, attorney for
the Huntington interests, who insisted
on Mr.. Mallard telling certain things
he knew.
Mr.. Dunn was anxious to know how
Mr.. Mallard had arrived at the assess
ment he placed on the franchise of the
Los Angeles Railway company. Mr..
Mallard was reluctant to give this in
| formation, preferring to hold 1t for the
information of the board of equaliza-
ton when it takes final action on the
requests for reduction. Mr.. Mallard has
this right under the law.
Gets Commissions Figures
He permitted Attorney Dunn to press
him on the point, however, and then
| in answer to the question told the
board that a man representing himself
as having been sent by Mr.. Dunn Wis
tied his office recently and in a con-
! ference lasting three hours had tried
to convince him the stock of the Los
Angeles Railway company had no mar
ket value; that it was held by Mr..
Huntington and several others, and
was not quoted in the stock exchanges.
This piqued Mr.. Mallard's curiosity
and he wrote the interstate commerce
commission for such information as 1t
had in connection with the Los Angeles
railway Back came a transcript of ev-
| idence taken before the commission, in
/ which 1t was shown the Hartman in
terests had purchased As per cent of
the stock of the Los Angeles railway
for $4,375, 900. With this figure as a
basis for computing the value of the
entire stock Mr. Mallard made his
figures on the franchise.
When Dunn received this information
he merely remarked that the press dis
patches had carried the same news q
year ago and Mr.. Mallard could have
taken his figures from them as wei
as getting them from the interstate
commerce commission. Mr.. Mallard
mildly replied he did not keep his books
on newspaper reports.
Dunn's Curiosity Satisfied
But this statement quieted Mr.. Dunn
He had no further curiosity as to how
Mr.. Mallard had reached his figures.
The Los Angeles railway asked that
the franchise assessment which now
stands at $4,742. 455 be reduced to $2,S51,
800, the figure at which it was placed
by the board of equalization last year
In making his demands for the reduc-
ton Attorney Dunn declared the rail-
ways earnings for the first six months
of this year were $46,O 900 less than they
were for the corresponding period last
year. AS the earnings were reduced, he
declared, the value of the franchise
whereby such earnings were made
| could not possibly be higher.
Assessor Mallard told the board thai
he had not raised the figures on the
franchise this year because he consid-
cred it worth more than last year, but
because the assessments of previous
years were much too low. The fran
chise, as he has assessed 1t, is still
| within the so per cent of the tangible
assets, as prescribed by law.
He declared the Los Angeles railway
should be compelled to pay high
franchise assessment, as it completely
bottles up the city and no other com,
pany could ever gain footing in Los
Angeles and pay assessments or fran
| chises. On that account all the taxes
on street railway franchises must be
paid by the Los Angeles railway Is one
of his contentious.
Taxes Still the Same
Ale also showed by his books that
while the assessment on the franchise
was higher, that on the tangible as
sets was lower, and the taxes to be
paid by the railway were in total the
same as last year.
Attorney Dunn made short argu-
ments on behalf of the Pacific Electric
and the Los Angeles Interurban lines
asking reductions of franchises IN the
first case from $1.934,9S0 to $1,17O,l2
and in the second from $l,SsSOOO 70
| S449. 0OO the lowest figures in botf
i cases being the assessments on which
these railways paid taxes last year:
All cases were taken under advise
ment, but the prediction is that but
little reduction will be made in either
| case.
Home Telephone Asks Cut
The Home Telephone company asked
the city equalizers to reduce the as
sessment on it's franchise from $57S,S95
| to 100000. A. B. Cass, president OF
the Home Telephone company, told the
board the assessment on the franchise
should be Cancelled entirely, as the rate
fixed by the council for telephones had
taken away the profits, but declared
his firm was willing to pay taxes on
| 100000. He gave as further reasons
for the reduction the fact that the
Pacific Telephone and Telegraph COM
pany was assessed on its franchise
$150,O00 less than the assessment placed
againt the Home concern and tnal
the Home annually paid into the city
treasury 2 per cent of its gross earn
ings, as required by its franchise. This
2 per cent last year amounted to $l4,666
The rates his company may charge
| which were fixed by the council as less
! than those the Pacific company may
exact. and the Home has about 4O0(
fewer phones, was another argument
Assessor Mallard showed that while
the Home company was assessed
higher on it's franchise, the total diff
ference in the assessments OF the two
telephone companies was about $1,000
900, and the Pacific company will have
to pay taxes on that much higher as
4 sessment.
The Edison Electric company consid-
cred its assessment for the right to use