The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-01-06
BANK SURPRISES.

The following is the summary Of the report OF the
Tax Commissioners the Mayor yesterday IN ref
erence to the assessment Of bank shares
In the report Of this department tor the quarter end
ing September 80 reference made to the necessity
imposed by recent judicial construction Of the law OF
adopting different method from that heretofore used
assessing the stockholders OF banks. Thisannounce-
men has given rise to good deal OF discussion based
In part upon misapprehensons All other
porations are assessed specifically upon their
surplus earnings and an impression has OBJ
assessed in like manner IL IS not proposed TO
assess the surplus earnings Of banks, but to
the shares OF stock at ther value, the surplus being
simply the measure by which the value may be de-
termined.
In council and have expressed their sentiments and
purposes in resolutions. The utterances Of large
and influential body Of capitalists are entitled to
consideration The declaration that the liability OF
the banks and their stockholders indefinite Taxa
ton BY the general and state governments renders
appeal to both governments necessity is
with which no fault need be found Section g. chap
ter 76l, Of the Laws OF 1865 provides
the purpose Of collecting such taxes and in addition 70
tuition oil the United states relative to the imposition OF
shall be the duty Of such bank banking
tain any dividend dividends belonging such
0eshoaer shS Dc necessary 70 P1y any taxes assessed
such officers that such taxes have been paid
Thus will be that after the confirmation OF the
taxes the banks Will be liberty 10 pay very few, II
any, OF their q, 600 stockholders dividend until the
stookhoder shall present TO the bank officer receipt
probably be The gamer rather than the loser by this pro
cess.
Heretofore the banks have paid the tax in bulk gen.
orally soon amer the books were opened TO receive
taxes, obtaining thereby rebate discount a
Often in Of the rate which the city paying
Tor temporary loans
BY the method proposed the amount Of this rebate
will be largely reduced and probably equaled by the
penalty, at the rate OF per cent per month which
many stockholders will incur by neglectng to make
early payment IL Is certainly unfortunate for the
banking interest that litigation between the two banks
should have evoked the dictum OF the Supreme Court
which has compelled the Commissioners to adopt the
present course az time unpropitious when taxes
at their highest and proais capital al their low
est mark.
probable that the representatives OF the bank
ing capital OF this city will subject the law under
which the to be levied to the severest possible
test in the highest courts. The Commissioners have
that interest with courtesy and nrmness and
their purpose discharge their duties without
tue agency Of any annoyance Of deto which prop
erly be avoided, without conceding any point which
may ieopardze the rights OF the city. Although the
o. the Board has been criticised by the repre-
sentatves OF the associated banks with unnecessary
acrmOny the Commissioners do not intend that SIM
gle gram Of resentment shall TALL into the balance
which Il Is their duty pOisc.