The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1890-06-04
MR.. WERNER IN REPLY.
HE EXPLAINS HOW THE BANKS ARE
ASSESSED, AND WHO IS RESPONSIBLE.
Neither the COmptrOIIer-Genera Nor
the AtfOrney-GeneraI, Nor the
County Auditors are Responsible
for the inequalities Of the Assess.
mcnt Of Banks, and Railroads.
COLUMBIA, S. c., May 20th, 1890.

COLUMBIA, S. c., May 20th, 1890.
Editor Press and Bonner:
SIR notice an article In your paper of
May 2lst, by Mr.. \. w. Jones, in which he
claims to have been the person who first
raised tue question OF the manner Of taxing
banks ard crlticiSeS rather severely the At
torney General and myself and the County
Auditors for not enforcing the law, as given
in the opinion OF the Attorney General Oh the
subject Of Bank taxation.
Please allow Inc space to correct some of the
errors into which Mr.. Jones has fallen, in ref
crcnce to this matter.
l took charge of the Comptroller's office on
the 3lSt OF December. 1887. On the lst of Feb
ruury 1883, Mr.. ]. L. Phillips. Receiver of the
Bank Of Sumter, filed in the Comptroller's S
office, II petition asking that an execution,
which had been issued against the said Bank
Dy the. County Treasurer Of Sumter County,
be staid in the hands of the Sheriff, upon the
grounds that the returns of the Bank had not
been properly made and that for this reason
assets Of the Bank and that the lien OF the
dcpositorS and creditors thereof was superior
to that Of the State for its taxes.
This petition was referred to the Attorney
General for his opinion and advice, by letter
dated February Ind, 1SSS, Mr.. Earle, the At
tOrncy General, advised me that the return
Of the Bank was improperly made, that II
should have been made in the name OF each
shareholder, and not having been so made
that the State had no lien upon the property
of The Bank for its taxes then due.
Subsequent to this, and In consequence OF
the discussion OF this case with the Attorney
General OH the 22nd Of March, lSSS, asked In
In letter of that date, his opinion OF how
Banks should be taxed, whether on capital
alone or upon capital and surplus-although
the surplus might be invested in non-taXable
bonds
On the 30th of March, 1855, eight days after
had submitted the question to him, the At
torncv General gave Inc his written opinion,
that 10th surplus and capital OF Banks was
taxable notwithstanding the surplus might
br invested in non.taxnble bonds.
On the Nth Of March, 1855, Mr.. Jones sub
mittcd to me, by letter Of that date, the ques-
ton of the taxation Of the Abbcville Bank.
This case never submitted to the Attorney
General, because four days before this letter
was written to me, had submitted the same
question upon my own suggestion after con-
sidcraton Of the Sumter case.
Upon the receipt of the Attorney Generals
opinion of date 3Oth March, lssS, | embodied
IL in Il circular and sent IL 10 the County Au-
,lilCrs. This Was followed by q second circu-
lar giving instruction as to how the returns
should be made.
my Instructions upon the same, the Auditors
have cndcavorcd to carry out faithfully, as
they report TO me.
The ioard of Equalization, however In each
County, upon whom rests the power and re-
Spunsibilty Of equalizlng the returns OF per-
sonal property, including the shares III
Banks, have in most of the Counties, reduced
the returns OF the Banks or sustained tn ir
/
the returns Of other personal property in
/ their several Counties.
. This action of these Boards has had two Of
fccts, first, to keep down the returns of Banks
, in most Of the Counties, und second, to create
gross inequality in the returns OF different
J Counties.
| Having discovered this, in the Fall of 1888,
! | drew Il Bill to create State Board OF Eqal-
iztiion upon Banks, and gave it to member
of the House OF Representatives. This Bill
passed the House, ana after q vigorous con-
! test in the Senate was continued to the Scs-
sion Of 1889.
! During the Session Of 1889, I went before tho
chargr, and addressed the Committee In favor
of the Bil, showing the gross inequality
VIII cli existed in the different Counties in the
returns Of Banks.
Before the Senate Committee, / used the
statistics compiled on this subjuect by Mr.
Jones, and especially the papers on file in the
Comptroller Generals office in the appeal o.
the National Bank Of Greenvllle from the &C