The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-02-04
Judge symonds's Aroostook Bonds.

Judge Symonds's Aroostook Bonds.
To the Editor of the Press:
In the recent discussion at Augusta
before the legislative committee on taxa
ton, Judge Symonds, an advocate OF the
Savings bank tax bill, is quoted in the
Portland Advertiser of Feb. I'd as say
ing
The half percent in favor of Maine invest
ments will Simply offset the higher rate they
(the banks) now get by sending the money OUT
of the State The fact that three 6ank exalnin-
ers have favored in their reports the policy IN
cluded in this bill ought to have some weight.
He referred to the fact that the Aroostook
county bonds in aid Of the Bangor ana Afoos-
took railroad were not taken by Maine Savings
banks but were sold in Boston at a premium OF
three per cent.
Probably Judge Symonds placed the
premium at which the bonds sold little
too high; that they were bought by
syndicate of Boston brokers is no doubt
true, but does Judge Symonds know
that any Maine savings bank had oppor-
tunity to buy the bonds or any fractional
part thereof
Does he not know that syndicate OF
Boston brokers by their agent sent to the
County Treasurer of AroostOok, nego-
tiated for the entire block of one million,
at say an advance of half of one per
cent?
The agent drove as smart trade as he
could on the one side and the Treasurer
was anxious to sell the bonds at the
highest possible rate as whatever pre-
MUM he obtained increased the county
assets by so much.
A few months later these Aroostook
bonds are advertised for sale in Maine
papers at rate that would yield the in
dividual purchaser 81 per cent interest,
"clear of taxesH' That is, If resident
of Houlton purchased $4,000 of these
bonds and forgot to add them to his in
ventory of taxable property for use of his
town assessors! the bonds escape, all
taxati N.
Suppose the Houlton Savings Bank had
bought the block of S., 900 and paid pre-
cisely the same price as the Houlton in
dividual paid. what follows:
A tax that cannot be escaped assessed
by the state of Z of one per cent: I'd A
reduction of of one per cent to be
credited to the banks reserved fund!
Here then is one per cent knocked OFT
clean from the savings banks income,
leaving net but p per cent and out OF
this p per cent proportional per cent
age must be placed to meet expense &C
count of local taxes, rents, postage,
st stionery, treasurers salary and no pro-
vision for paying anything whatever to
the trustees who are assumin the re-
sponsibiities of this, according to Judge
Symonds's views, valuable and greatly to
be preferred investment in Maine securi-
ties. Does Judge Symonds pretend to
believe that Maine savings banks can
live and thrive doing business in compe-
tition with syndicate of Boston brokers
not amenable to the laws of Maine in
matter of taxation; not in the strait laced
condition as to investments which the
state law now places them, much
less the additional burden which
Judge Symonds seeks as the legal coun-
sellor and advocate for the syndicate of
money lie ders, money borrowers, money
brokers, for whom he plead so eloquent
ly Wednesday evening, using every effort
within their grasp to weaken, starve out
and drive out of the field the savings
banks of his state, leaving tn more than
10000 de ositors to fall, many of
them inevitably would, into the tender
embraces of his tender hearted clients?
G. W. D..