The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1891-12-28
NOT TAXED LEGALLY,
Bankers Combine to Fight the Assess
ment.

ment.
A meeting Of representatives of nearly
all the banks in the city was held AZ the
Clearinghouse on Saturday to take action
on the question Of the assessment Of the
banks IL was declared that the assess
ment was illegal and ipequitabge So far as
regards national banks, and ineQuitable
and probably illegal as regards state
banks. The county commissioners were
present and heard the grounds on which
the bankers consider the assessment I'M
just. After they had Withdrawn the bank
ers agreed on proposition TO TOE made at
a special meeting Of the commissioners
tomorrow. II the attempt u reach an
amicable settlement fails, the bankers
propose 10 carry the questions into court,
and express confidence Of favorable de-
clslon, At least as regards national banks.
Their position was thus defined by John
II. AcGraw, president Of the First Ma
tional bank, in an interview with q Posr-
lNrELLIeENcER reporter yesterday;
Though understand that some OF the banks
have psid their taxes, the act j. purely voinu.
tary, for nat onal banks cannot DC compelled .
pay. and Z is close question whether state
hanks can be compelled - pay under the urrr-
eBt assessment. The principal point on which
We rely is that under the national banking act
there IS bat one method Of assessing
nsaoasl banks. that is. - sssc,s
the shares % the owners Of them,
the tax being payable 81 the place where tie
bans does business, the bank being responsible
sna icok "a 10 the shareholders Coz c0npeusa.
t;on The assessor, however. has assessed the
stock to the hsus irse1 lie has also assessed X
at ts !uu market vsit. waiie -,sI estate il only
sssessea 80 80 10 81 per cent OF its aetasl seit,
value We claim shat tais makes the assessment
ineQustoele as u IS not sgGal on al clzsses 81
prefer,y.
The assessment o. national banks Is NOT made
according g. the revenue law, for while thstlayv
prov tcs that thc capital, sUr-las ard undivided
profits shah be assessed. TIE sssessrr has Sc -
aside lD assessing ouly tha captql stock But
deny that Rational hanks can legally De
taxed at ali undef the present state rsvsn,,s
law. though Z - entirely Within the province OF
tie legislature % pass law II coasouzncc win
tne national banking set
A. regards state banks, 7 am not in = position
o. tell ihe grounds ga wk!Ch they can DENY the
legality Of she assessment
Harold Preston, OF the law firm II Pres
ton. Carr & Preston. which conducted che
recent salt in regard to the assessment Of
national hank stock, explained ta.s las,
point as follows:
'rhe question in regard 70 the legality o. tie
assessment OF state hanks spul.es equally -
othcE iot.Ns OF property. rs revenue
1871. IS construed by The attorney general er.
euuta credits. such as uoses sad mcrtEaees
frOga taxation, bat great many lawyers 1ls.
agree with him Il he IS wrong. sud uats- tie
revenue law az 1871 such property should BE-
taxed the Tact hSt she assessor tssled 10 list u
would invalitste the whole assessment
o. all classes % property Accidental
omissions would not invAl5dste the assess.
misrt. but deliberate systematic scheme
3olsAve out certain classes on certain property
won l1va,iaass e, ss sAAt would make il IN
CuusL UndeF the }sw the accounting oeicers
al banks are required q give yac assessor
statement of The amount % palGap stock, sug-
plus and undivided prod.s. Tls Assessor then
Gdcs the three togother. de3acts tbs value OF
real estate owned by the hank and assesses the
balance ia bulk. Thus he includes their credits
wblle not assessing those Owned By private in