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

COLUMBIA, Feb. 13.-Fron some
correspondence in the Office of Comp
trolicr General Ellerbe there is differ
erce Of opinion on the subject Of how
banks shall make their returns. The
following letter has been prepared by
Chief Clerk Norton and was mailed to-
night to President W. N. Connor, of
the American Saving Bank, Charleston:
"Neplying to yours Of tbs 18th, i'll
reference to returns of banks for taxa
ton, beg to state that a careful e1-
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 he worth on
the markets in Charleston $500 per
share, the par value being 500, your re-
turn then would be 80 shares at $500,
or $50, 900. From which deduct iauditor
must the amount OF real estate as as
sessed (suppose) 5000, your bank
would pay taxes on 5000. The reason
for not retaxing the surplus personal
propcrtv and real estate, aS in other
cases. is that they are already taxed III
the premium on the shares. This is our
construction of the law, and auditors
Will be instructed to so execute it.
1T is the duty of the auditors to
ascertain the real money value of all
bank stock and where not correctly re-
turned on the tax books at the real
market value. While l have not at
tempted a statement in detail Of my
understanding of the law as it stands,
l hope am sufficiently explicit"
This letter is authorized by Comp
troller General ElleTbe and may be of
special interest TO a great number OF
capitalists in Charleston and else
whore.
WHAT WILL THE BANKS DO:
Especial to Grecnville News.
CHARLESTON, February 1.-THE let
ter from the Comptroler-G pub
lished this morning instructing county
auditors to assess the capital stock OF
ba,ks 1t the market value of the capi-
tai STOCK has created a sensation here.
There are dozen or more savings banks
doing business here, the stock 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-
forcemcnt Of such 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 10 icy outlined by the Comp
troller's clerk it will be strenuously re-
sisted by banks, which will combine
for the purpose.
TuELAW TO BE CARRIED OUT.
COLUMBIA, Feb. 15.-Comptroller
General Ellerbe was asked to-day if be
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 ofseVeral OF
the bankers as published this morning.
1t was my understanding OF Mr.. Con-
nor's letter that he desired to be ln-
ormed of the manner in which bank.
stock should be returned for taxation.
His letter was referred to the attorney
general, and the answer in my offlce Is
in accord with the law on the subject,
aud it will be conceded that there is
only one proper way to make returns
and that is in accordance with the law.
its my duty to see that the Law govern
ing myself and my, department be be
carried out fairly and according TO its
spirit. AS take it, it's not now a
question whether the law or lndlVldual
oninion shall be the rule Of action. In
a few davs propose to issue circular
letter to the auditors instructing them
to secure the returns under instructions
substantially the same as those whlch
have been published in the letter from
the comptroller generals office"