Los Angeles herald., 1909-05-26

| to move the principal place of business.
| Last year, he said, the stockholders
compromised by removing the prin-
cipal place of business to Santa Bar
bara.
sition from the viewpoint of the fiscal
agent in report to the council, which
was in part as follows:
GAS fiscal agent of the city of Los
| Angeles 1 feel it my duty to place be-
fore you certain facts relative to the
petition of the Los Angeles Railway
company for a cancellation of the sale
of some of their property for delin-
quent taxes.
"For the year 19O7-S the city asses
sor, having satisfied himself this COM
pany possessed property consisting OF
real estate, personal property and
franchises which were worth the sum
of SIS, 900, 900 assessed them at one-half
this amount, or $7,500,oCO
1.-THE attorneys for the railroad COM
pany appeared before the board of
equalization and urged a reduction on
the franchise to be- from $2,50O,0 900 to
$500, stating the value Of the franchise
to be- did not exceed the cost of draw
ing up the papers of incorporation,
which would be approximately $500.
1.-THE board Of equalization, however,
denied their plea, and the assessed
time for the company to pay it's taxes
it was permitted to allow the portion
of the taxes on the franchise to be-
amounting to about $31 ,000 to go de-
linuuent and was permitted to pay the
other portions of it's taxes.
Tax Is Coupled
1.-THE tax on the franchise to be-
was coupled with certain lots and the
taxes on the real estate only were
paid.
'The Los Angeles Railway company
now comes to ask your honorable body
| to cancel the sale of these lots for these
delinquent taxes amounting now, with
penalties, to about $4,000, on the ground
| that the franchise to be- is assessable
only where their principal place of bust
ness is located and that their principal
place of business was at that time To-
Gated at San Francisco. They made
| their plea before the board of equaliza-
| ton for a reduction of their franchise
to be- tax from $2,500,000 to $500, the
only reason given was that their iran
chise to be- was not worth more than
$500, and their principal place of bust
ness at San Francisco. They permitted
the city to sell a portion of their prop
erty for a portion of their taxes, and
now petition you to cancel that tax
sale on the plea the tax is Illegal as
their principal place of business was
not in Los Angeles
IT am informed that investigation has
failed to disclose their San Francisco
office, or any meeting held there. / am
further informed that last year, fearing
the San Francisco assessor might as
sess their franchise to be- they de-
clared Santa Barbara to be their prin-
cipal place of business and held their
meeting in that city. If this evasion
and trickery is permitted to stand it
means they will escape more than S31,-
900 of their taxes for the year 1903.
City Has Good Defense
"The city can successfully defend any
action the Los Angeles railroad may
bring to compel a cancellation of this
tax sale on the following grounds:
This levy being municipal affair
is subject to the charter and ordinances
of the city.
1.-THE time for the railroad to claim
reduction of taxation was during the
sessions of the board of equalization in
July and August, 1907, when the facts
on which it claimed such reduction
should be made.
That the sole and only reason given
by the railroad company for the reduc-
ton of taxes at such hearing was that
the value of the franchise to be was
not $2,5OO,OOO, but $500, which conten-
ton was denied by the board of equali-
cation.
"That the railroad company failed
| and neglected to give the board of
| equalization the reason now adduced-
viz, that the principal place of BUSH
ness was San Francisco. and not Los
Angeles.
"That the railroad company is not
damaged by the sale being allowed to
stand, for they justly owe the $35, 900
involved.
That court of competent jurisdic-
ton would require the railroad COM
pany to come before 1t with clean
hands and would not allow it to take
advantage of its deliberate ATTEMPT to