Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1893-03-04
ORDERS OF THE Day.


I'm motion OF Mr. w hItc OF kockiand
Senate document 50, being Senate amend
ment "a" TO Senate document ~, relating
to the the taxation of loan. trust and bank
ing corporations. was taken from the table,
anil on further motion the House concurred
with the Senate in the adoption of Senate
amendment A.
Mr.. White of Rockland offer the fol-
wing amendment add to section the
following land the average amount of its
interest bearing deposits for the year pre-
ceding said day, and such other details as
are now or may be hereafter required in
like returns by treasurers of savings banks
The treasurer of such corporation shall
pay said tax, determined as aforesaid. to
the State treasurer" Also insert after the
word April" in the third line of sec. 3, the
words, land would have been taxable
therein"
A trust company is an institution that is
organized for the purpose of doing bank
ing business by special act of the Legisla-
ture- IL has all the rights of national banks
with the additional right of ioaning money
on real estate securities. 1t has no right to
any circulation Of bank bills. Otherwise IA
trust company does not differ materially
from national bank. Up to this time
trust companies have paid municipal tax
on their capital stock. These institutions
have capital stock pail in like a national
bank. TIP 10 this time they have been taxed
On their capital stock. The trust companies
have not asked for any change from that
method OF taxation. They were satisfied
to stand on the same footing as
the national banks. The rational
ka tr,tst tL.,
only institutions that furnish money for the
active business of the community The
savings banks don't do it. They have
found il was not wise to loan money on real
estate because it is not quickly convertible
into cash The trust companies do not ask
for any discrimination in their fsvor But
as compromise measure to put them per-
haps in the way of paying in the State more
tax. Senator Holman offered the amend
ment known as Senate document 50, which
puts them On precisely the same basis, So
tar as tax goes, as the savings banks. 1t
NAV be argued that they should pay IA tax
not only on their interest-bearing de
posits, but also pay munich
pal tax on their capital. But the
capital stock of trust company paid
III is no different from the deposits
IN a savings bank. Every depositor in a
savings bank is stakeholder in thai insti-
tuition and he participates in the profits and
losses. 1t is said that trust companies are
running for profit. | think they are entitled
to some profit. They put their money in
rs a capital stock, they agree to stand be-
hind all the losses of the institution. and
they pay an arbitrary fixed rate for the de-
posits and for the risk that they take in the
protection of the money of their ,lepostors
hold that they are entitled to something
more for the use of their money than they
would be il they were mere depositors iu a
savings bank. These institutions are not in
any way antagvnistic to savings banks
They simply want to take money
which may be deposited and use it for live
active business, and that money is VIII ut
builds up communities. We simply ask to
be left in the same position TO do busine S.
rs national or savings banks. The Port
land Trust Complny has total amount of
money to hanlle of Si5o. 600. OF that
500 600 is loaned on time and demand
loans. The Maine Savings bank in Port
land has S5,1%2 900 of money. More than
90 per cent. of all this money in that bank
is in securities in Western states. OF about
$500 900. This amendment is aecepta-
bic to the friends and stockholders of the
trust companies. They don't want il but
are willing to take it. 1t will pay to the
State treasury an increased amount of tax
But they do net want to be burdene,l, as
they woul be by the original bill, by the
burdens of both institutions on one.
Mr.. Roberts of Norway In the case of
nearly all the 10 charters of trust compan-
les which have been granted by the Legis-
lature, there was provision that stock
should be taxed the same as the stock in the
national banks. And why SHOULD it
not he so taxed? The trust companies are
for profit and for nothing else. This
amendment provides that the towns in which
this stock is held shall not have the right to
tax that stoi k for municipal purposes but
that the State shall have that right. In the
towns in whisli this stock is held it is taxed
from one and one-half to two per cent.
anil even two AMI one-half per cent. for
municipal purposes. and this amendmen,
provides that ii shall be taxed the same as
deposits in savings bank. Three-fourths
of one per cent. as the law is now and one
half of one per cent. if they can pass this
bill. The amendment provides that the
money pail il to the State treasury shall
w Itluntltt ~ III EXTENT nUt Two
per cent, so that the city of Rockland. for
instance, is not injured in the end. They
get the tax--and where does it come from:
From the State treasury. In the ease of
the Pennington Trust Company, with a
large deposit account. their taxes wouli be
qui.e reasonable un,.er this rule. But
after the State has collected this money
from the Pennington Company they carry
it to R"ckl.u.l and pay that company.
That is The result of this bill. There are
IN operation today II trust companies.
Their capital stock is 81 .o59. SOC They
haze in fi.rDsiis bearing interest. Sl,126,-
ssp, and the two comhinNd make S3.1g6.-
lo1; au'l ti'e TAX ot 81 Of | per cent viii
be S2D,9i;', according to the terms of this
anieialn't nj. which the State will receive.
Fur untler this bill some of L must be taken
out. Tsc per csut which is to he refunded
10 tho towns gives tax of sal -;;'ai which
m,t>i e returned 10 the tawns. So You see
tina, you have to refund to the town out OF
the treasury usure money than the treasury
receives If this amendment is passed the
ii.ls should b. changed 50 that it should
read san act for the purpose of reducing
she rereuHe of :his State 1t IL sail that
these trrs' companies are simply savings
banks These savings banks are beneyo-
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