The Banks That Wouldn't Pay Their Taxes

To the editor: I notice in this morning's issue of the Post-Intelligencer that the 'Municipal league' objects to the employment by King county of a special counsel to attend to the national bank cases, and I therefore deem it my duty to make this public statement in reference to the matter.

Seven national banks in the city of Seattle refused to pay their personal property taxes for the year 1894, and when seizure of property was attempted in order to enforce collection of the same, five of them commenced suit in the circuit court of the United States and two in the state courts to restrain the county and the treasurer from collecting said tax, which, with accrued interest and penalty, amounts now to many thousands of dollars. The banks claimed that the assessment was void, in that the revenue law of the state and the assessment made on the shares of stock of said banks was contrary to the Revised Statutes of the United States. Two of these cases have been decided in favor of the county in the supreme court of the state, but are being appealed by the banks to the supreme court of the United States. Five cases are now pending in the United States circuit court.

This will necessitate, in all probability, work extending over a period of several years by Mr. Piles on behalf of the county, as the dilatory tactics of corporations are well known, especially where the collection of a tax is involved. The commissioners were of the opinion that, in view of the fact that Mr. Piles was thoroughly familiar with these cases, it would be to the public interest to have him defend them, and because the board knows by actual experience that the prosecuting attorney himself has not the time, owing to the large amount of criminal business in this county, to give the care and attention these cases demand.

I notice that many members of the Municipal league who are censuring me are stockholders or officers in some of the banks that are endeavoring to defeat the county in its attempt to collect from them a legitimate and just tax amounting to many thousands of dollars, which they honestly owe the people of this county. The public is therefore invited to look into the motive of these officers and stockholders of banks who are condemning me for looking after the public interests.

As to the compensation to be paid: an examination of the contract will show that no annual salary of $1,500 is to be paid, but that that sum is to be paid to 'conduct and attend to the defense of said cases to final judgment in all the courts to which they may be taken.' It is a well-known fact that it takes several years to get a case through the supreme court of the United States, where these cases will unquestionably go, and the compensation covers several years' labor.

I do not, therefore, believe that we could have done better than to have engaged counsel so thoroughly familiar with these cases to defend them from the beginning to the end. I leave it to the people who pay their taxes without contest and the members of the Municipal league who do likewise. Respectfully yours, FRED GASCH.