Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-03-01
IE. WEDNESDAY MORNING. MARCH i. 1898.


trust company doing banking and loan
business IN this State should pay municipal
taxes on their capital stock, as is nov re-
quiresi by the special charters OF most OF
them, ia the same manner as national
banks; and we felt that they should also
pay their part of the burdens of Ia alton
upon their deposits, which, are growing 10 !.
very large amount Ii they are dong \
savings bank business we felt that SO far as
they are savings banks they should pay in
the same manner as savings banks. We
do not wish to tax the men tho invest in
the capital stock of these corporations ans
more, but the hurden of the tax on the de-
posts would fall upon the deposi'ors.
These deposits are not now within the reach
OF taxation by any process now known TO
the law.
In order that the Senate may know how
this business is growing will state that in
1883 only one of these trust companies was
organized, twelve were organized in 1857,
seventeen in lss9. twenty-five in 1891. and
this session am not able to saw how many
have been OF are in process of being organ
lied.
So much for the bill which the committee
has reported. We feel as committee
that this bill would leave the trust CON-
panies substantially as they were in regard
To their capital stock, imposing upon their
deposits merely this additional tax of 3-4 of
one per cent. Now, in q certain sense this
is relief from the burden of taxation
which they now should bear if the law us it
stands at present were strictly enforced.
According to the letter and spirit of the
statute law every dollar of il Should pay
municipal taxes, including both capital
stock and deposits.
An amendment has been offered to this
bill, which is in fact and in its terms new
bill. This amendment reads entirely in
the interests of the trust companies, AMI it
Is very plausible one at first sight Ii is
introduced by the senator from Franklin
II all the trust companies in the State were
doing business on the same basis as the
senator's trnst company should not Sc
riously oppose the passage of the amend
ment. find that the Peoples Trust
Company of Pennington has cap
ital of 100000; there are time
deposits of S512,2l4, SO that the balance
between the capital stock and interest pay
ing deposits is largely in favor of the latter
But this is bill intended to cover all the
trust companies in the State, and we must
consider its relation to them all.
Now, the proposition of the amendment
is this that the capital stock and deposits
paying interest be taken as a whole. and
that the trust companies should pay tax
on this amoun, equal to that paid by saw
ines banks, and they are not content to
leave it at a fixed rate of 3-4 of per cent.
but want to be given the benefit of anv fu-
ture legislation in favor of savings banks.
Is this fair proposition, to reduce their
municipal rate of taxation to 3-4 of ! per
cent? Are we going to offer bounty for
men to go into the banking and trust busi-
ness, do not believe that any senator is
here for that purpose.
Mr.. Herrick then gave some illustrations
of how the proposed amendment would
work if applied to one or two particular
companies and their business, and continu-
ing said
The charters of these companies allow
them very great powers, and yet with all
the array of powers and rights granted
them by their charters they come here and
ask that these men who put their money
into these companies shall be relieved from
the municipal taxation that the rest of us
have to pay. Why don't water, gas or
electric companies come here and ask to be
relievedt What is there about trust com
pany that it should be exempted anil
water company not: see no distinction
DO you suppose that these men are run
ming these trust companies> for charitable
purposes: They are running them for pro-
hit, and they can afford to pay interest on
these deposits, and if they find the business
is not profitable they are not obliged to con-
tinue it.
desire to call attention to some of the
statements of the gentleman from Franbli lin.
He said that the Peoples Trust Go. paid
slgs1 more for taxes than they paid 10 their
stockholders. may say in passing tha,
night here is "A trust company which has
existed tor seven wears under the very laws
which we propose to make general Law by
this bill, and 1t has fonrished. This com
pauy has capit'l of 100000, and time
deposits of ;s572,2lI, and you can easily
sec that it is not fair proposition to con-
trast the amount paid in taxes
with the amount paid the stockholders
The stockholders have had in their possess
sion S512 900 of money that belonged to
somebody, and it he longed to som, body to
pay taxes on that money. They have only
invested 500 900 There being such u
large amount of deposits in This bank, upon
which somebody SHOULD pay the taxes, the
fact that they have psii no such taxes, is
due to the fact ,ha: they have had in their
Possetsion so much money of other people
upon which they alone have paid the tux.
The result of their business career notwith
standing this grevious burden that they
complain of, is that they have surplus of
5000; there is an item of profits of Si2,-
1.Gl; and they have paid their stockhol-
ders G per cent. on the 800, 900 invested.
So say that If company can do such a
business as that under this law it ought to
become general law.
Tho senator from Franklin claims that
this bill is in the nature of discrimina-
ton, but think have already shown thnt
it is in the line of eqnalizing the matter of
taxation, and is not a discrimination against
trust companies.
There Is but one suggestion more that |
wish to offer, and that is that as you will
see these institutions are increasing, and the
reason is obvious--the business is profit
able one. Tht Sc companies are coming
into competition with our saviHgs banks;
and you cannot expect that tie trustees of
these savings banks are going TO continue in
the work that they have done without com
l'ensstion when across the street there may
he another institution doing the same busi-
less for the purpose Of profit, and whose
men are receiving compensation are making
it profitable to shemselvs. | think that
it is the policy of this State to protect our
savings banks system, and we have no
right to make ii more favorable for men to
run trust company TO earn profits than to
ran savings bank. hope that the hill as
reported will he passed.
Mr. Hcrsey of Oxfori: think that VIC
ii A.
iearrs; that il is not our aim to legslate
or discriminate in favor of the rich men.
think rather il should be our aim to iegis-
late if possible for the under dog, for the
poor men. believe thoroughly in the
amendment which has been offered. 7
think it treats all parties alike, and it seems
to me that every member of the Senate
must see II in that light. do not for one
moment think that the Senator from Oxforsl
who has preceded me would only show the
anirnus which has controlled him iB this
matter in the last two or three worls of his
speech. He has shown it in claiming that
the savings banks wouA he driven out Of
existence by trns. companies if they were
put on tile same basis as savings banks.
No ore wishes 10 detract from the savings
banks. bot it seems to me that the senator
lrDtl VAfSfI D2s a tJiDHsissiVU 70 hee ttsa'
nothing shall come into competition with
the savings banks Of the State of Maine.
If that is not legislasing in favor
of individuals or corporations
should Ike TO know what il.
The savings banks we're first created "a be
safe depository for the thrifty poor. but
they have now ou'grown their first intsn-
tian: they have become the place where a
large number of the rich pot their money.
The rich men have now Il majority of the