The Coral Gables Times

18 THE CORAL GABLES TIMES Thursday, July 13, 1961

Hospital Decision's Ins And Outs Are Sifted In Background Story

By MAURICE LABELLE Times Reporter For three consecutive years City Tax Assessor T. C. Blount has ruled that Doctor's Hospital is not entitled to real estate and personal property tax exemption. Each year the City Commission, sitting as a Board of Equalization, has gone over his head and granted the exemption. This year, three new men sitting on the Commission crossed the same road as their predecessors. For the first time a doctor, Dr. Franklin Evans, deliberated on the controversy. The others were George Wilson and C. L. Dressel. Mayor Robert L. Searle is a veteran of this controversy, having sat on all meetings. Commissioner Joe Murphy tasted his first blood last year. And City Attorney Ted Semple's opinion was still the city's cornerstone in handing down the exemption. Semple has ruled consistently that Doctors' is entitled. Is Doctors Hospital entitled to a $10,000 to $15,000 a year exemption? A recent City Commission candidate and attorney Bernard B. Weksler, supported Blount's opinion. Weksler, like Blount, maintained that the hospital does not qualify as a tax-exempt institution under the laws of the State of Florida. BOOKS AUDITED But an audit of the hospital's books made last year by City Auditor Paul Gleman tended to be favorable to the institution. The main matter of contention centered around the sale of the hospital in 1957 to the Dr. John T. Macdonald Foundation, Inc., by the investors who founded the hospital in 1946 as a private hospital. Doctors' opened as a private financial venture of 70 doctors and four laymen in 1949. Under the Macdonald Foundation It was to be a non-profit, charitable institution. CREATED IN 1952 The foundation itself had been created in 1952 to perform charitable services in connection with the operation of the hospital. The foundation, according to Gleman, paid $1,657,895 for the hospital, the bulk of which was secured by six per cent debenture bonds on $300,000 and $1,029,410 in non-interest bearing bonds. Also included was a $300,000 mortgage. At the time of acquisition there was outstanding common stock of Doctors' Hospital, Inc. 2,488 shares having a value of $248,800. These were exchanged for the debenture bonds carrying no interest but having a redemption value of $413.75 for each $100 of stock. This apparent 314.75 per cent profit, which Gleman said represents six per cent compounded interest over the life of the bonds, was the main source of ammunition for the tax fighters. PROFIT EXPLAINED The "profit" resulted from the assessed value placed on the hospital at the time of purchase as compared to its original worth. Another point of contention was the degree of charitable work being performed by Doctors'. Blount and Weksler maintain that the list of charitable work performed by the hospital did not qualify it for tax exemption. Hospital Director Mrs. Mary J. Reeder, Semple and Gleman, in his report, supported other side. Doctors', a $3 million, 209-bed facility located on a piece of land sold to it by the University of Miami for $10,000 but not yet paid for, paid $7,000 taxes to the city and $14,000 to the county before it was placed under the Macdonald Foundation. In addition, the hospital paid federal corporate taxes, state sales tax, social security, unemployment and payroll taxes. Today, the hospital pays only the three per cent social security or Federal Insurance Contribution Act tax, and the unemployment tax assessed against employejs. Tuesday, after hearing a group of Doctors' and Macdonald Foundation representatives testify about the present finances and operating policies of the hospital, Blount reversed his recommendation except for year 1958. ONE YEAR YET The hospital now meets with legal criteria, Blount said, but he couldn't allow that 14 days' operation as a non-profit organization in 1958 could qualify then. He wa overruled by the Board o Equalization. And there the matter stands.

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DON'T BURY IT IN THE SAND

ADV. Keep your head in the air and keep abreast of all the things that are happening here in the Gables by reading your NEW Times. You'll be keeping up with the Jones folks (and all the other names in our town) when you read your NEW Times every week. It's fun; it's profitable and, by the way, it's darned interesting, too! If yours is a newsstand copy call us and ask to have home delivery every week . . . you'll be glad you did. Coral Gables TIMES 304 Sevilla Ave.—HI 3-4661

Braille Records, Magazine Available at CG Library

If you know of anyone who would be interested in borrowing a copy of "The Braille Musician," tell him the magazine is available at the Coral Gables Public Library. "The Braille Musician" is a digest magazine in Braille, using material taken from music periodicals. The library subscription is the gift of the South Miami Music Club. A popular or semiciassical song, in sheet music form, comes with each issue, the words and music printed in Braille. A few of the songs are "The Indian Love Call," "Sometimes I'm Happy," "Ol' Man River," "Some Enchanted Evening" and "There Are Such Things."

Life Around the Gables

NEW RESIDENTS and working together in their back yard are Mr. and Mrs. William C. Parker, 300 Viscaya Ave. The Parkers, from Detroit, have lived here since May and already typify the pride Gableites have in their homes and lawns.

CITY NATIONAL BANK

BANKING * TRUSTS 2701 LeJeune Road, Coral Gables Member Federal Deposit Insurance Corporation

Paul's Lounge

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Allen's Beauty Salon

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