The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1891-02-19
STIRRING Up THE BANKS.
The Comptroller General Causes Sensa-
tion in Banking Circles.

COLUMBIA, Feb. 13.-Fronl some
correspondence in the office OF Comp
trollcr General Ellerbe there is differ
euce Of opinion on the subject Of how
banks shall make their returns. The
following letter has been prepared 6y
Chief Clerk Norton and Was mailed to-
night to President w. NJ. COnnor, OF
the American Saving Bank, Charleston:
"Replying to yours of the 18th, in
reference to returns of banks for taxa
ton, beg to state that a careful e8-
animation of the law will show that
your idea of your duty as to the making
of that return is not exactly in accord
with the law. The law, Section l9S ct
seq, requires all shares to be listed at
their true value in money. Suppose
the shares of your bank to be worth on
the markets in Charleston 5000 per
share, the par value being 500, your re-
turn then would be $50 shares ut $500,
or $50, coo. From which deduct (auditor
must the amount Of real estate as as
sessed (suppose) 5000, your bank
would pay taxes on 5000. The reason
for rot retaxing the surplus personal
proD2rty and real estate, as in other
eases, is that they are already taxed in
the premium Oh the shares. This is our
construction Of the law, and auditors
will Ge instructed to so execute 1t.
"It is the duty of the auditors to
ascertain the real money value of all
bank stock and where not correctly re-
turned OIL the tax hooks at the real
market val3e. While l have not at
tempted statement in detail Of my
understanding Of the law as it stands,
l hope I am sufficiently explicit"
This letter is authorized by Comp
troller General Ellerbe and may be of
special interest TO 4 great number of
capitalists in Charleston and else
where.
WHAT WILL TIE BANKS DO:
Especial to Grecnville News.
CHARLESTON, February l4.-The let
ter from .he Comptroller-General pub
lished this morning instructiug county
auditors to assess the capital stock OF
banks 1T the market value Of the capl-
tal stock has created sensation here.
There are dozen or more savings banks
doing business here, the sto,K Of which
is quoted all the way from par to 81 ,2OO
De: share. There have been no sales Of
The fancy stocks for years, and the
figures are merely quotations. The en-
f0rcemcnt Of such i regulation would
eat up all the profits Of the lesser
banks and play havoc with about a
million dollars of capital invested in
this business, largely by small share
holders. If the attempt is made to en-
force the 30 icy outlined by the Comp
tro}ler's clerk it will be strenuously re-
sisted by banks, which will combine
for the purpose.
TuELAW TO BE CARRIED OUT.
COLUMBIA, Feb. 15.-Comptro'!er
General Ellerje was asked to-day If he
had anything to say in reply to the
comments of some of the bank officials
in Charleston on the letter authorized
by him by his chief clerk, Mr.. Norton,
on the subject of bank returns, which
letter was published in the News and
Courier, Saturday, the interesting COM
ments being found this morning IN the
Sunday News. Mr.. Ellerbe said:
81 have read the opinion ,fseveral of
the bankers as published this morning.
1t was my understanding of Mr.. Con-
nor's letter that he desired to be in
ormed of the manner in which bank.
stock should be returned for taxation.
His letter was referred to the attorney
general, and the answerir my office is
in accord with the law on the subject,
and it will be conceded that there Is
onlv one proper way to make returns,
and that is in accordance with tie law.
It is my duty to see that the law govern
ing myself and my. department. be
carried out fairly and according 10 its
spirit. ASH take it, it is not now
question whether the law or individual
opinion shall be the rule OF action. In
a few days propose to issue circular
letter to the auditors instructing them
to secure the returns under instructions
substantially the same as those which
have been published in the letter from
the comptroller generals otfice.'