The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1888-04-11
TAKING THE BANKS.
AUDITOR A. W. JONES OF ABBEVILLE IS
SUSTAINED BY ATTORNEY GEN
ERAL EARLE.
The Bank Stock and Surplus Money
in Their Vaults Must Contribute
to the Support of the Government
...Strange Talk by the Charleston
RanLara

Elsewhere we publish circular letter to
the Auditors of this State by Comptroller
General Werner, which will be OF nterest 10
our people Our readers wiz TeneIHnep fp, 'tnr nnr
County Auditor, Mr.. A. w. Jones. In whicn
was set out the correspondence between MIN
and the officers of the National Bank OF Ao-
beville.
Mr.. Jones contended that 1t was the duty Of
the Bank officers to. make special return TO
the Auditor showing. the names ana resi-.
dences OF the stockholders, the number Oh
shares held by each, and the actual cash value val
Of such shares, as provided by Section 20l OF
the General Statutes Of South Carolina, and
that such shares were to be assessed Tor taxa.
tion at their true cash value withomt regaro ara
capital stock and surplus OF the BANK may DC
The capital stock Of the Abbeville National
by its last report q surplus OF about III QUO and
undivided profits amounting TO about 5000
1t has sl2.5O0 invested In United States
Bonds and redemption fund with the United
States Treasurer Of about $500.
The claim of the officers was that this sum
of $4,000 must be deducted from the capital
stock inasmuch as Government Bonds are
non-taxable, and they therefore returned for
of surplus or undivided profits.
The matter was referred by Mr. Jones to the
Comptroller General, as the law directs In
cases Of doubt, and BY him to the Attorney
ASASS
Auditors.
II will be seen by reference to that letter
that Mr.. Jones is fully sustained by those Of
The ATTORNEY General holds that all the
shares OF the shareholders In any Bank should
be listed against them individually at their
true value In money, and that such Valuatlon
should include all surplus or extra moneys,
capital, and every species OF personal proper.
ty. OF value, owned or In the possession Of
such Bank, without reference to the fact tn at
al ek<~ ~ ,rtN1,, To It,
vested in United States Bonds or other securi-
ties in themselves non-taxable and that the
bank officers must make the return as pro-
vided in General Statutes, Section POL.
II is said that heretofore the banks Of this
State have been returning for taxation their
capital stock at its face value after deducting
the value of United States Bonds and other
non-taxable securities held by them. If this
will make liable for taxation from three to six
millions Of dollars that have heretofore es-
capped.
mer who has little personal property must
pay, but capitalist who has money to invest
In bank stock has been escaping taxation, 1t
seems, when the capital is invested in non
taxable securities.
There e Is j no 2. consistency on in the position
Sappose a bank has capital Of 100000. 1t
may invest the whole Of It In United States
Bonds. II 1t does, 1t may issue $4,000 In cir.
tion it would not have to pay one dollar Of
taxes. II would collect in interest on bonds
$4,000 and in interest on the notes, If lent at 10
per cent, 50 ,0oO, making total OF $l3OU: 1t
cent, een OF 500. This Would leave net balance
OF sl9, 100. or more than twelve per cent on the
generally averaging about one per cent, 1t
would still make Sl1, 100, or more than II per
cent on the investment II It invests moth
Ing at all in United States Bonds " would col.
at 10 per cent, Sl0 900, or, taking of State tax
es Of say one per cent, only 5000, which
would be nine per cent. on Its Investment.
eral reached Mr. Jones after our last number
was published.
earthed direct and positive proof of vast
a@s mers Of the a eountrs, Would not his name and
his deed have been made famous for all time
to come? But as 1t is-a country, Auditor
catches colossal city tax dodgers and all cred.
faithful administration of the affairs of his
office. It is even limited that the banks and
the bankers Of Charleston will defantly refuse
to comply with the re9uirem ents OF the state
officers, and will SCI the law OF the State at
defiance. -
II we remember correctly no newspaper in
South Carolina has talked as much and as
persistently, and as eloquently about inc low low
tster. 1t really seems to US, too, that the Nelos
and Courier has had something to say on the
same line. And If our memory Is not again
at fault these respscted mp e cers svs
and the law makers Of the country to bring
to Justice the respected citizen whose bob.tail
OK has been dodging his just proportion OF the
burden Of the government, p d;soovorod tbo, the
banks, or bankers Of Charleston have been
escaping the payment OF an annual tax OF
SS7 .5U0 the NetDs and Courier holds up its
hands in holy horror at the Idea OF compelling
to pay their full share Of the State and county
taxes.
statements of the bankers of Charleston. The
spirit which pervades some Of their utter
ances must be damaging to public morals.
viii great newspaper and the chief bankers
of metropolitan city openly and dehantly
talk Of setting the law at dehance-that just
law which requires each and every citizen to
bear his proportionate share OF the expense
of the government? Having escaped taxa
tion for twenty years, does It not come Wlte
Door grace to grumble now?
: AS q matter Of fact, we think the Charleston
bankers, and the Ne,Ds and Courier, should re-
spect the law, and we think the bankers
and Courier should advocate its enforcement
until repealed. The Charleston bankers, like
citizens Of every. other walk In life. have
right to 60 into the Courts to have their
tition, and if they think the law bears too
heavily on them they should 60 to the law
making power, and then. as good and true
citizens, ask for the needed relief. But as
matter Of fact do not the bankers OF Char
lesion make figure before the country7 Few
Of them, so far as we have noticed, are willing
to uphold the majesty OF the law, but large
per cent OF them oy threats ot Icy evssan asn3 seem
tiance. Has 1t come to this that capital is In
open rebellion against the law and In avowed
contempt Of the Courts OF the country9 1t
is believed that capital sometimes hides out,
pressions Of an intention to evade the law,
which requires the citizen under oath, to re-
turn his property for taxation Do such
leaders T Of public sentiment, do anything 10
strengthen the morals Of the individual citi
zen or to inspire public respect for law? If
bankers and capitalists may dodge taxation.
why may not the mechanic. the farmer, or
the laborer, do the same thing?
One Of the Charleston Banks, the First Ma
tiopal, has O capital Of 500, 900 and @ surplus
Of s3l9452 II It has s1Oo,0O0 In United States
has been paying taxes to the Stale on 0O,0O0,
when It should have been paying on $5l3,452,
O clear loss to the State and county OF SIS, 1852
in taxes per annum at ten mills, the average
The capital stock OF the Peoples National
Bank is S250,000, and Its surplus $208, $685. II 1t
has half its capital invested In United States
been escaping taxation on S42368 that ought
to have been taxed. And SO on through the
entire list These two are mentioned because
they are two OF the largest banks In the State.
II is said that one OF the banks in Charleston
decreased Its capital stock several years ago
one-half or more by consolidation Of shares.
Is it not possible that 1t had taxation in view
when 1t did this as 1t is said that 1t did not di
vide any Of the surplus resulting thereirem?
Why Is this great howl raised? The ques-
ton has been before the Supreme Court OF the
United States several times, we are informed,
and 1t has invariably ruled In accordance
with the opinion Of the Attorney General.