The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1888-04-18
The Greenville Banks.
Groo0VjITo Ne,Ds

The recent decision of Attorney General
Earle that the surplus OF banks IS suoJect to
taxation and must be returned together will!
the capital stock at its full value, has created
no less interest here than at every other point
In the State where there are banks. The
question Is not q new one here, having Deen
brought up before the township board ol
of the Greenville National Bank were being
overlooked. The board then decided that the
bank was returning fully s.much In proper
ton as the average private returns anu tne
assessment was raised.
The same question was revived at the last
session of the board month ago, and q SIM
liar decision was reached. In view :of these
study and in nvestigatIon Of the matter, it may
be supposed that the failure of the banks 10
return their surplus for taxation Is not With
out some good reason.
ident Hamlin Beatte. OF The National Bank,
about the matter. Mr.. Beattie said that the
popular inference from the Attorney Cen
thought in an unfair fight. They were being
held up for censure for not returning the
whole value OF their poperty and pictured as
indirectly robbing the people BY escaping
taxation, when the truth was that nobody,
returned property at anything like Its full
HIt is q we'll known fact" Mr.. Beattie said,
1.-The average OF the returns OF property IN sni5 nd
than two-thirds its value" at Is not a ques.
tion OF the absolute but of the relative val
ues that are returned and If everybody
assessment should be raised thetax rate would
be reduced and no hardship would fail on any
one. If other property should be assessed
for its full value the banks could not nor
would they object to tner sapps IS
assessed at so or IS percent. Of its value, It Is
unjust to require banks to give In theirs al
Its full value"
peated, equali zstion. If all property holders
paid tax on the full value Of their holdings,
the banks would willingly do the same. But
that was not the case, and 1t would be man.
ifestly unfair to discriminate against banks
by taxing every dollar OF their capital STOCK
Mr. Beattie said he doubted If the whole
property of bank, including capital surplus
and accounts II put up at auction would IL, sell II
was proposed: to tax: 1T for every cent Of Its
face. The Greenvijle National Bank, Mr..
Beatle said, has paid taxes on Its whole cap.
tai stock of 100000 ever sinceit has been
started and there were many years when the
stock would not have sold at par.
An instance was cited Of the bank at Lau.
rens, started year or Two ago. PreSldent
Barksdale returned the full stock, S63, ,0OO for
taxation, but when the board Of assessors
came to it, they reduced the assessment Is
per cent. on the ground that that was In fair
proportion with the average assessment rate
In the county.
President Beattie said there were two rem
edies to which the banks could resort. They
could either appeal for relief to the, Legisla.
ture or they could pay the surplus out to
stockholders. He did not believe the banks
In the State would consent to pay the tax on
their surplus, without fight.
AZ to the legality of the decision, President
Beartie said he thought thre was no donbt,
technically speaking. The General statute
required all property:to be returned at Its full
value. If q case Of private property being re-
turned below value were brought before the
Attorney General, he would be compelled te
give the same decision.
A similar question had arisen In Ohio, Mr.
Beattie concluded. where 1t appeared that
throughout the State, a settled rule with the
equallzng officers was to value real estate
and ordinary personal property at one-thiro
Of their worth, while moneyed capital Wal
fixed at three-f1fths and the State board OF
equalization without changing the valuation
thus made of real estate and ordinary person
ality, assessed National Banks at par; the
Supreme Court held that such unequal val.
uation was in violation OF the constitutional
rights of shareholders, and on payment OF
the tax justly due equity could epjoin col
lection of the residue. This decision was
made in the case Of Cummings VS.. Mer
chants National bank Of Toledo" l01 U. S. p
I52