Daily globe., 1883-08-14
nected with the work of their several
committees, and adjourned.
EOUALIZING THINGS.
Mr.. Mcclung Wins and the Building S


peared before the board of equalization to
advocate the reduction Of the assessment
imposed upon building societies, and in so
doing submitted the following commu MICA
ton:
To the Honorable Board of Equalization
of the County of Ramsey:
GENTLEMEN: The building associations
of ST. Paul ask to be relieved of the pres
ent onerous system of assessing and tag
ing their stock. for the following reasons:
1st-Their stock means simply the
deposits made from month to month by
their members to enable item to aid each
other by building homes of their own, and
to provide fund to prepare for days of
sickness or disability. These deposits are
liable to be withdrawn on thirty or sixty
days notice at any time, precisely as the
deposits of banks are liable to be with
drawn. They are therefore debts of the
associations, end as the law allows banks
to deduct them as debts, these associations
should also be allowed the same privile re.
Over eleven millions of dollars are on de-
posit in the banks, and no assessor or
board OF equalization ever thinks of ask
ing the banks to furnish list of these
depositors to be taxed, while the small
savings of the poor laid aside in these
associations are pursued with merciIess
zeal and taxed to the last cent.
2d-If the intention is to tax the
mortgages the same objections apply
The mortgages are all that gives value to
the stock, and are virtually the stock.
The mortgages moreover are only taxa
bic for the balance due on them after de-
ducting payments, and other Indebtedness,
and this is only nominal sum over what
they owe their depositors.
Third-These associations number 900
in the state of Pennsylvania, and the leg
islatUre Of that state exempted them en-
tirely from taxes last winter. The pream-
BILE to the law states the grounds on which
they are exempted.
Gan Act to exempt mutual savings fund,
loan and building associations from tax
alton for state purposes.
WHEREAS, Mutual savings fund, loan
and building associations have been de-
clared by law to be "meritorious and de-
serving the care of the state,' because of
the inducements they offer to the people to
form habits of economy and to become
real estate owners, thereby enTiching and
strengthening the commonwealth" and
whereas, being partnerships on the mu-
tual beneficial plan, their profits are made
from amongst their own members, and
not from the outside public, and whereas,
such associations are not therefore proper
subjects for taxa tion; therefore
"Section BE it enacted by the senate
and house of representatives of the COM
monwealth of Pennsylvania, in general as
sembly met and it is hereby enacted by the
authority of the same.
"That Mutual Savings, Fund, Loan and
Building associations shall be exempt
from the provisions of each and every law
imposing taxes for state purposes. They
shall also be exempt from the provisions
of all future laws imposing such taxes,
unless specially mentioned therein as be-
ing subject to such taxation.
OThey are like the Good
e1otive benevolent associations in
in Minnesota-the Masonic Relief, Odd
Flows Relief, United Workmen, Druids-
all of which have dues paid in like the Mu-
tual Building association, and disburse
thousands and tens of thousands of dollars
but as they do not deal with any but their
own members, and are for mutual
aid and therefore quasi benevolent
and charitable institutions, no one thinks
of dragging them into court to rob them
of their small savings by taxation.
The building associations are precisely
of this character, deal only with their own
members, are only mutual aid societies and
should therefore come under the same rules
in the matter of taxation.
4th. Such is the practice also in Min
neapolis. City Attorney Benton has decld-
ed that their stock is simply a debt and
! therefore deductible from their assets,
leaving only a nominal sum for taxation
Instead, therefore, of assessing their $780,
600, as our associations are assessed, the
merely nominal sum of $4,000 IS assessed
to an association as old and as strong as
ours.
Their policy is to foster and not to crush
out institutions so useful in building up
their city and making its citizens perma-
nent freeholders.
5th. 1t is double taxation. The Phila-
delphia Ledger of January 20, 1883, advo-
eating the law which was passed, said:
''The capital stock of the Pennsylvania
associations amounts to $3O,OOO,OOO. Fully
| 80 per cent. of this $3O,OOO,OOO has been
lent to members and is represented by real
| estate (Which is texed.) The revenue last
| year amounted to less than $1O0OOO
| a small matter to the state, but very
| big hne IN the form of double taxation
to De imposed upon thrifty people for try
ing to get homes for themselves
9th. The constitution and the law allows
each tax payer 500 exempt from taxation.
The largest associations here have 800 to
400 members. Hundreds of them have
no other property assessed, and therefore
do not get the 800 exemption.
There are probably 5000 members of
these associations in st. Paul, and it is
probably not out of the way to estimate
that 5000 of them have no other property
assessed. If this is so, here are 5000 OF
the poorest people OF the city taxed Oh
the only Sl00 they have, which is exempt
and not liable to pay one dollar.
1t is simply wicked, it is criminal to
thus discriminate against poverty and tax
it contrary to law. without giving it the
same exemptions allowed to tax payers of
every other class.
These men could withdraw this 800,
deposit il in bank, and never be called on
to pay cent of taxes on it. Why made to
pay when deposited in the building asso-
Citations? They could withdraw 1t and in
vest in any other personal property and it
would be exempt. Why not exempt in the
building associations? This tax is calcu-