The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1888-04-11
Evidence That the City Which Has TWO
State Senators Doesn't Want to Pay
Her Full Share of the Taxes.
Bankers Determined 10 Eradc the
Law-rhe Proposed Methods by
which the BANKS May Escape
Taxation.
Nc,cs ana Courier.

Nc,rs and Courier.
The opini ion of Attorney General Earle that
shares Of bank stock must he assessed Tor
Ia yation against the owner at their market
whether invested in United States brnds or
not, must also be taxed, has naturally created
q great deal OF discussion in financial circles
1t is taken for granted that the banks VIII
not return their surplus for taxation, and the
determination OF the question viii douDtieSS
have to be submitted to the Courts. inc
bankers in Charleston were asked yesterday
to give their views on the attorney general
construction OF the law. Some of them did
not care to give the reasons on which they
based their statements.
Dr.Andrcw Simonds Thinks Attorney
General Wants to Increase the
Revenues Of the State-He Thinks
the Ruling May be Dodgetl-His
Explanation that Bank Stock and
sSurplus'' is Worth Only so Per
Cent, Won't Hold Water.
"What do think Of the attorney generals
opinion as to how banks should be taxed?"
said DIR Andrew SimondS, president OF the
First National Bank. "Well, I think Gen.
Earle is a very able lawyer, and l suppose
that he wishes to increase the revenues or the
State but doubt II his decision will make
any material change.
"The State processes to impose tax upon
the actual value in money of all property:
for at Sheriff's sale for cash. Statistics show
this 10 be about so to So per cent OF the nom-
inal value. Personal property can be legally
assessed only at values Put on real nj estate. ;,h.
en- those who have returned personal proper
ty too high. Bank shares taxed at SO per cent
OF their nominal value, including surplus,
throughout the State will not pay as much
into the State treasury as Is now paid by the
banks.
forced to change its location. Excessive taxa
ton will Drive it from the State, or put 1t In
forms to escape taxation. But 1 see nothing
In the opinion to cause uneasnesS, II share
holders pay taxes direct, dividends will be In
creased
Mr.. williams Doesn't Touch the Su b.
iect-Nor Does He Explain Why
the ''SurpIus' Is not as Profitable
as any other Money.
Mr. George w. Williams, president OF the
Carolina Savings Bank, said: ~ have motto
ed Attorney General Earles decision In refer
ence to taxing the surplus OF banks. This is,
indeed, very serious question, involving as II
does the Solvency OF every bank IN Soutn
Carolina. 1t is Of the first Importance that
we have strong, well-managed banks, with
sufficient surplus to meet the losses that they
are daily subject to. The National Bank Act
very wisely requires every national ballf
established to put up 70 per cent OF its net ln-
come before paying q dlVldened. Wen con
A bank having assets amounting TO million
of dollars should have aS q reserve or margin,
to meet losses in shrinkages of securities and
bad debts, at least 10 per cent of that amount.
Twenty per ceut would be safer and better.
The best bankars make bad debts. II they
did not there would not be much profit IN
banking, not that a profit is made by dis
counting worthless paper, out When we ge,
caught with bad paper that we considered
good higher rate Of interest is charged on
all business as an insurance fund to cover
losses.
lima Saving Bank, it has been its custom after
paying interest To depositors and expenses, 10
allow the surplus from year to year TO ac-
cumulate. II that surplus is to be taxed, IL
ed in the State of South Carolina bonds,
which are exempt from taxation. "A bank
that has Il surplus Of 100000 would, under
the ruling Of Attorney General Earlee' = re pay 10
vested In AZ State bonds you would receive
s., 500 by the transaction.
"But how are you TO arrive at the true value
in money Of bank? doubt If you were TO
put up to-day Sl0O 900 Of the stock of bank
with a surplus Of like amount. thatiit could be
sold much above par. From present. indica,
tions the bankers in this State willrcquire all
their surplus to keep their assets IN sounu
healthy condition,
,Er. wifte Thinks Bankers Who are
Taxed will go Away-Ite doesn't
State, However, Where They Will
80.
MrC O. Witte president of the Peoples
National Bank. said that the attorney gener-
ais opinion would have the effect Of driving
away capital from the banks.
Hon. Rudolph SeisIinS Secs Ruin If
Bankers Have to Pay Taxes.
The Hon Rudolph Siegling, president of the
Bank Of Charleston said that he could see ut
preent two disastrous effects; one that
capital would not seek the banks, and the
other that the rate Of money would be high
er.
An Imputation Against an Honest
Banker Who Thinks the Law Is
Right.
Another banker, whose in stltution has no
surplus, gave rs his opinion that the decision
of the attorney general was emincntly just.
He could not see, he said, the Justice in taxing
his bank on all 1t had. as it had no surp Gus,
and relieving another bank OF taxation on
that par, Of its property which was represent
ed by its surplus.
NJ. Bernard O'Neil Suggests Plan
by Which Bankers May Avoid
Paying Taxes Under the Attorney
Generals Ruling.
Mr. Bernard O'Ncal, president Of the 11iber
MIA Savings institution, regarded the opinion !
OF the attorney general rs one that would
operate seriously against the banking interest |
OF the State. In the first place, lie said, III
The opinion became the law then IL would |
have the effect Of diminished surplus as |