The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1874-11-18
Legislative Discussion.

Legislative Discussion.
81 cial Orler-H. 293, relating to taxa
ton of savings banks, was taken up, the
question being on the amendments propos-
ed by the committee on banks so as to in.
clude trust companies, and fixing the tax
alton at half of one per cent.
Mr.. Davis, OF st. Adams, thought we
better ascertain what is to be the effect of
this action on the Institutions named. He
said tina, Il savings bank take deposits and
loans them out on interest, and after de-
Quoting the cost of carrying on the business
divides up the income among the depositors.
A trust company has capital and pays a
fixed per centage to the depositors, and the
dcpositors have the capital stock as an adj
ditional guarantee for the safety of their
depositors. This is about the difference be-
tween the two kind of banks. He had also
found that trust companys now, have to
pay a tax to the United States Government
of one-half of one per cent. and the stock
holders have to pay tax on their capital
stock, and these two taxes are all that they
are able to pay and maintain their exist
ence. He was therefore opposed to the
amendment to include trust companies. He
was doubtful Of the propriety of taxing this
kind of institutions any more than they
now are; they should be encouraged rather
than oppressed. He proposed to amend
by striking out all after the enacting clause,
and inserting the following.
Sec. lit shall be the duty of the treas
urer of every trust company in this state,
on the first Monday of April, in each year,
to transmit to the town clerk for the benefit
of the listers of each town in this state the
name of every person in said town having
money to an amount exceeding $3.50 de-
posted in said trust company, with the
statement of the amount such person had
deposited therein on the first day of said
month Of April
The speaker decided that the amend
ment could not be presented at this stage
Of the proceedings, the amendments pro-
posed by the committee being under con-
sideration.
Mr.. Davis then hoped the amendments
would be rejected and he would then pro-
pose the above amendment.
Mr.. Cook, of Mendon, said he could see
in this bill another attempt to exempt prop.
erty from taxation. He thought the bill
ought to be dismissed.
Mr.. Gilman of Montpelier, favored the
rejection of the proposed amendments that
the bill may be protected as proposed by
the gentleman from st. Adams, and then
passed.
Mr.. Batchelder, of Arlington, opposed
the bill of changing the method Of taxation
of this class of property by removing il
from the local taxation and requiring the
tax to be paid directly into the treasury OF
the state.
Mr.. Bailey of Fairhaven, explained the
evidence as it appeared before the com.
mittee that in many instances deposits are
divided up in sums of $3.50 and distributed
around among various banks until, in some
way one individual would have 81, 900 il
the various banks. and all free of taxation
1t was believed by the committee that TIL
tax here proposed, would yield revenue
to the state of at least 10000 more than i
now received
Mr. Lynde, of Marlboro favored tn
amendment so as to include trust companie
and instanced the Montpelier trust com
pany all the profits of their investments
over and above a certain fixed per centage
went into the pockets of those who wer
able to own stock in the trust company
Savings banks pay all the profits of tn
business to depositors. This was the dit
ference between savings banks and trus
companies. He did not see why we shOul
tax depositors in savings banks and not Ia
have on deposit in the state of Vernon
in our various savings institutions. the sur
of S., 402,5l8 and if we would tax thi
sum as proposed in this bill, we shall deriv
revenue to the treasury of the state abor
$32, 900, while under the present system {
taxing them we shall not get $4,000. MI
Lynde gave a series of statistics to sui
stantiate the points he made, and said thu
New Hampshire, Massachusetts and Cor
necticut have tax of three-tourths of on
per cent. paid directly to the treasury. II
believed this bill was just to the people an
the best thing we can do under the circun
stances. He was opposed to the ament
ment proposed by the gentleman from S
Adams.
Mr.. Grout, of Barton, favored the bill
length, the main points of his argument b.
ing, that it is very difficult to reach ever
dollar of property and make it pay its shal
of taxes. This bill is more in that dire
ton, and merits favorable consideration
In the savings institution at Brattlebor
alone there is 81 800, 900 deposited 81, 00C
900 of that is from out the state, and pa
no taxes whateve. The bill will reach tina
OF the remaining one half million at Bra
tleboro only one-half pays any taxes, +
the reason that one-half of the deposits a
III euiiio 1858 tHau 'rSoO, anu uiluct tnS y
listing law is not returned to the sever
towns-and many of these small sums a
made so on purpose to escape taxation.
this bill becomes a law it will reach i ], 25(
900 in one savings institution, at Brattl
boro, and other large sums at other poin
in the state.
Mr.. Cook, of MendOn, again opposed I
exemption of property from taxation, b
thought we should give q consideration
these small depositors, and hoped the b
would not pass.
Mr.. Davis, of st. Adams, said that if !
are now draining deposits from other state
let us SO legslate as to continue those
posits, and not drive them out OF the sta
We have the benefit of the money. viii
is usually invested in our own midst, a
should not discourage capital from conf
here, 1t is also urged that deposits to t
amount of $3.50 are now exempt from ia
alton, and we should tax all depositio
alike, He thought it had policy to tax
small dispositions, and he did not belief
the people wanted any such measure to
passed. There may be some cheating u
der the $3.50 clause; but we can't legisls
to prevent all cheating, il men are SO d
posed. He thought this bill ought 10
dismissed and new one introduced to rea
the dispositions of trust conpanys when I
amount was over $3.50; but as that col
not be drawn now, he would reach the pc
by SO amending this bill as TO reach II
end.
Mr.. Lynde, ofMarltoro, said he well