Los Angeles herald., 1910-04-12
USED TO
WIN REFERENDUM
Misrepresentation Charged to
Enemies of New License
Ordinance
JUGGLE MEANING OF LAW
Tax Collector DiSproVeS Err0ne-
GUS Statements by Explain
ing Measure
JUGGLE MEANING OF LAW

ing used by the public utility COM
panies who are backing the movement
to secure a referendum of the new
license ordinance, according to evidence
that has been brought to the attention
of c. M. Taggart, city tax and license
collector.
"One instance that was noticed by
Policeman H. L. Varey this morning
will serve to illustrate the methods that
are being used by the solicitors" said
Mr. Taggart yesterday. while Police
man Varey, who works in plain clothes
and whose business 1t is to enforce the
license ordinance, was talking to an
expressman a solicitor with the referen-
dun petition approached the express
man and asked him If he was not tired
of paying a license fee. The express
man did not answer, and the solicitor
asked him to sign the referendum and
then he would not have to pay licenses
any more. This was absolute fraud, as
the expressman would have to pay
just the same license If the referen-
dun movement is put through as he
would under the new ordinance. No
change of any kind has been made in
the license fees of exDressmen. They are
the same In the new ordinance as they
are in the old and If the referendum
carries against the new ordinance the
old one still is in operation.
CORPORATION OPPOSITION
practically the only concerns af-
fected at all are four out of the twenty
eight banks in the city that have to
pay license fees and the public utility
corporations. Twenty-four banks pay
less than they did under the old or
dinance and four of them will have TO
pay more. The licenses of the gas and
electric light companies are advanced
from $1,000 a year for all of them to-
gether to about $4,000 year, and 1t is
this feature that is causing the move
ment for the referendum
zone of the principal reasons Why
the new ordinance should not be held
up by the referendum is that to con-
tinue the old ordinance in effect will de-
priVe some sections of the city of their
water supply. Small water companies
that furnish water to tracts OF land
about the edges of the city have to
pay a license fee of $25 month. In
many instances that is all these water
companies take in, and they declare
that if they are forced to pay this
license fee any longer they will shut
up their plants. The city is in no posi-
ton to supply them with water just
now. and ii will mean a real hardship
on owners of small homes in the outly-
ing districts. Under the new ordinance
they would have to pay only one-third
of 1 per cent of their gross income,
which would amount to only rev DOL
lars q month.
'The same thing applies to gas and
electric companies. There are several
sections of the city where the property
owners want to put in small gas or
electric ompanies. They cannot get
service from the established companies
without paying a large bonus. Under
ngf hon
500 q month, and they cannot afford
to pay the fee. Under the new or
dinance they would have to pay only
one-third of l per cent of their gross
income or a few dollars month.
MISREPRESENTATION USED
Through Misrepresentation team
sters. restaurant men, eXpressmen,
lodging house keepers and others are
being persuaded to sign the petition.
The only effect the new ordinance has
on restaurant keepers is that the mini
mum clause is stricken out The old
ordinance provided that anyone doing
a business of less than $500 a month
did not have to pay license fee at all.
This was inserted in the ordinance so
that a few widows who were conduct
ing little lunch counters should not be
assessed a license fee.
For the quarter just ending, there
were nearly 100 restaurants in the
city of Los Angeles that avoided pay
ing a license, claiming exemption on
the $500 clause. Now, there are but
very few restaurants in the city of
Los Angeles whose expenses do not
exceed 5000 per month, so that 1T would
be absolutely impossible for them to
do less than $500 a month and con-
tinue in business. Nevertheless, 1t was
impossible to prove that these people
were doing more than $500 worth OF
business. for the reason that the doing
of a business without a license is a
misdemeanor and requires prosecution
upon a criminal charge, but you can
not compel a person to bring their
books into court on q criminal charge
for the season that it would incriminate
them-therefore we could not success
fully contradict the assertion that
they were exempt. Now, these restu-
rants require as much or more health
inspection than the better grade of
estaurants-therefore should pay their
license to reimburse the city for the
cost of such inspection.
RESTAURANTS NOT RAISED
'If there are widows who are doing
a small business and cannot afford
to pay a license, the city can we'll
afford to pay the license for them
LHdn utO CASlilpL 1uO ASoh1ul elllS
keepers who are willing to perjure
themselves in order to avoid paying the
license of SO a quarter. Consequently,
it was deemed wise to cut out the $500
clause and the license now reads that
any restaurant doing business whose
gross receipts are less than $400 per
month must pay SO a quarter; those
whose gross receipts exceed $400, and
do not exceed $500, must pay 81 a quar-
ter; those whose receipts are over
$500 per month, $40 a quarter. Now,
these rates are just the same as they
were in the old ordinance, excepting
in the old ordinance the first rate was
from 500 to $400, while the new ordi-
nance is that all persons in the res
taurant business doing less than $400
have to pay the minimum license of
SO per quarter
"As to the teamsters-under the old
ordinance anyone running vehicle
for the delivery of freight or goods for
hire paid SO per quarter, but there
was a Joker in the section inaSmuch as