Los Angeles herald. [microfilm reel] (Los Angeles [Calif.]) 1900-1911, 1908-07-30
CITY ASSESSOR
SAYS BANKS LIE.
ATTRIBUTES GROWTH OF So
ClALISM TO TAX DODGING
WANTS STATE COMMISSIONERS
TO GIVE TESTIMONY
Says Much Property That Escapes
Taxation Would Be Brought
to Light in Financial
Institutions

Banks are liars, and their juggling
of accounts and escapement of taxes
| is one of the causes of the growth of
Socialism," City Assessor Mallard told
the city board of equalization yester-
day afternoon. He added, by trans
ferring their accounts from one column
to another they escape millions of dol
lars of taxes. We receive less taxes
from banks in comparison to what we
should than from any other class of
capital.
Il wish this board would get an opin-
ion from the city attorney as to it's
ability to form a commission and sub
poena witnesses, chiefly the state bank
commissioners, and look into the real
condition of banks in this city. 1 am
convinced a great deal of property that
escapes taxation now would be brought
to light"
Yesterday afternoon was the first
time during the session of the board
that the genial assessor has lost his
temper. But he has had much diff
Guilty with the banks, and a bank ask
ing for reduction in the amount of
its assessment has an effect on him
similar to the red rag on a bull.
The case that brought the denounce-
ment from the assessor was that of the
German-American Savings bank, all
though Mr.. Mallard later stated he did
not have this particular bank in mind
when he designated these financial in
situations as liars. He admitted the
German-American as a general rule
did all the assessor required in submit
ting statements of taxable property.
But ne brought a more or less heated
response from DR.. A. M. Avery of the
GErman-American, who declared he
did not intend to sit in the witness
chair and hear himself called a thief
and a liar.
Wants Franchise Reduced
The German-American wanted the
assessment on it's franchise reduced
from 1921 200 to $144,OOO, on the ground
that the assessment was inequable.
DR.. Avery told the board that out of
total franchise assessment paid by the
twelve savings banks of Los Angeles
last year his institution had paid about
two-thirds. He stated the financial
depression of last winter had had a
great effect in depreciating the value of
franchise, and that the board should
take this fact into consideration.
other banks also asked for a reduce
ton on their franchises on much the
same ground.
During the morning session of the
board the Los Angeles-Pacific railway,
the last of the big utility corporations,
appealed to the board for a reduction
in the amount of the franchise assess
ment. The franchise for this company
is assessed at $1,232, 100, and a reduction
was asked to $12S,000 on the ground
that it had less than eighteen miles of
trackage in the city to which it was
indebted in any measure for a right to
operate ON the public streets.
The rest of the mileage occupied by
this company is over a private right of
way, both on Sixteenth street and Sum
set boulevard,
Assessor Mallard said he had placed
such a high value on the franchise be-
cause without the right to enter the
city the stock of the Los Angeles-Pa-
cific would not be worth cents on the
dollar. This company has a stock issue
of SCI 900, 900 and bonded indebtedness
of more than $10,000,000. Mr.. Mallard
used these figures in forming his as
sessment on the franchise.
Wants Competitor Assessed
it was assessed so high on its franchise
the Los Angeles Redondo railway, its
only competitor, escaped franchise as
sessment altogether. Mr.. Mallard ex-
planned he did not consider the fran
chise of the Los Angeles Redondo rail-
way OF any value. The stock issue of
the L. A. Redondo is but $250,000 and
the bonded indebtedness the same
amount, the total of which is less than
the tangible property of this railway,
leaving nothing from which to deduct
to determine the value OF the fran
chise.
That the policy of taxing corporations
on their corporate FRANCHISE would