The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1893-01-25
The Tax commissioners Report


dicious. They may be summarized as fol-
lows:
1. That the legislature memorable con-
Hress. asking that greenbacks be made
taxable as other money.
2. That appeals may be taken, and re-
vision ordered in any case in which there
Is unjust local assessment, and that the
decision of the board be made binding on
local officials.
8. That no appeal be allowed from the
board to the courts.
4. That the date of assessment be fixed
on March instead of April !. and all pre-
liminary work of taxation be advanced
accordingly.
3. That money on deposit be removed
from the items from which Indebtedness
may be deducted. and that indebtedness"
be more strictly defined.
6. That paid-up stock in building asso-
Citations be made taxable. and that build
ing associations be put under state super
vision for the protection of shareholder
z. That the office of county assessor be
continued, and that the state board be
authorized to call the county assessors to-
gethsr to discuss, and, 90 far as possible,
agree upon uniform valuations and uni
form administration of the law in ali
respects.
s. That the situs for taxation. of prop
erty in hands of guardians, be made uni
form.
The board. also, though il makes no
Tecomm endation, calls attention TO the
lack Of uniformity In reporting taxes by
county auditors in the statement. that
1.-THE greater portion of municipal taxes
are collected by city treasurers aud there
is no provision OF law requiring them to
report these collections. and for this
reason it has been impossible to show the
amount of such collections" 1t is evident
that there should be provision of law re-
curing such reports. for it il impossible
to obtain the actual totals of taxes unless
this be done. The egi stature will probably
provide for this and also for the changes
suggested by the board.
The most important OF all the suV9es-
tions is the sixth, concerning building as
sociAtiOns. and the board gives very
sound reasons for it's adoption. 1t says:
As now conducted, paid-up stock in
these associations represents money
loaned to them or invested in them for the
purpose OF escaping taxation. 1t is the
property OF capitalists. and not the saw
ings of small shareholders. We believe.
therefore. that paid-up stock should be
taxed, and indeed we have ordered it
taxed In such cases as have come before
us on appeal, when its character was es-
tap ished by evidence. But such cases
will, OF necessity. be rare. and unless some
provision is made by which all such stock
can be discovered and brought upon the
tax duplicate. taxing any of it is really
discrimination. We believe, moreover,
that the extensive borrowing of money by
building associations for the extension OF
their business, such as the sale of paid-up
stock. is dangerous procedure and shou d
not be encouraged by the state.
These facts are we'll known to every per-
son who has paid any attention to the
business transacted by these associations,
and the conclusions drawn from them are
sound. The recent failure of the Lib
orator and other British associations that
ventured out of the legitimate scope of
y
lea that closer supervision of their work
is necessary. As to this the board saws:
These associations are in effect the saw
ings banks OF the people, and it is evident
that they are having q most beneficial
effect Ia forming habits of economy and
thrift. For this reason it 10 important that
the welfare of the stockholders, for whose
benefit the exemption from taxation is
given, should be jealousy guarded by the
state. Considering the number of these
associations the vast sums of money in
volved and the number OF people invest
ing in them, it would be difficult to i'm
agine greater calamity that could be-
fall the citizens who are strugg ing
to secure homes than Anv extern
sivs failure of them. At present there is
no supervision OF the conduct OF their bus
mess. IL required in case of banks aud
insurance companies, and yet the public
interest in them is quite as great. We
would, therefore. recommend the crea-
ton OF q bureau for their supervision, as
has been done in a number of other states.
Each company should be required to
make . sworn report twice q year TO the
auditor OF state. and that official charged
with the supervision should have a dis
cTetionarY power OF examination at any
hAmus Gnu nnoulu W EOQQlIoO W
the affairs of any association at once, on
demand of q limited number of share
holders The semi-annual reports should
show what amount OF stock is paid up,
and to whom such paid-up stock belongs,
and should contain such other matters "a
may be prescribed by the legislature or
the supervising official.
The wisdom of this suggestion is appar-
emit and attention has been called 10 the
matter heretofore by THE SENTINEL and
some other papers ANY extensive failure
of building associations would be calam-
ity not only to ''ths citizens who are strug-
Cling to secure homes" but also to the
entire community. 1t would beget lack
of confidence in any kind Of investment
that would certainly result in unbounded
extravaganza and waste by thousands Of
persons who are now saving their money.
The duty OF the legislature in this matter
il plain. These associations at present
are OF more importance to the people than
banks or insurance companies. and there
should be provision made for the closest
scrutiny OF their business in the interest
of the shareholders IL lie one of those
cases In which an ounce Of prevention
may prohibit what tons Of cure could not
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