The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1893-03-13
Especial to the Press.l

Especial to the Press.l
AUGUSTA, March 11.-At last the saw
ings bank bill is fairly before the legisla-
lature, or rather there are two bills.
That signed by the majority of the com
mittee is the bill printed in the PRESS
last Wednesday morning, some changes
having been made in the rate. This bill
contains the feature dear to the hearts of
the big lobby which has been here for SO
long, and provides for discrimination in
favor of Maine investments acquired af-
ter January L, 1893. The method of as
certaining taxables under it and the
rates are shown in the following extract:
'sFrom the average amount of deposits
reserve fund and undivided profits there
shall be deducted an amount equal to
the amount of United States bonds, the
shares of corporation stocks, such as are
by law of this state free from taxation to
the stockholders and the assessed value
os real estate owned by the bank, insti-
tuition OF association, and also an amount
equal to one-seventh of such otter assets
loans and investments as appear to have
and also an amount equal to two-sevenths
of such other assets, loans and invest
ments as appear to be loans to persons
resident or corporations located in and
doing business in this state, public or
private, bonds issued or guaranteed by
corporations located and doing business
in this state, severally made, purchased
or acquired since said January l, and
also an amount equal to two-sevenths of
the cash on hand and cash deposited
within this state. Upon the value OF
said franchises SO ascertained, the state
assessors shall assess an annual tax OF
seven-eights of one per cent"
The majority report in favor OF this
bill is signed by Senator Deering and
Representatives Weeks, Eothrop, Scott,
Brackett and Roberts.
The bill reported by the minority of
the committee, Senators Herrick and
Swanton and Representatives Lane and
Bradbury, is as follows:
Sect 1.-Section GA, chapter6, r. S.,
as amended by chapter "a, public laws
of 1887 is hereby amended by inserting
after the word institution in the 9th
line of said section as amended the words
siand adding thereto SO much of the re-
serve fund of said bank and of the aver
age of its individual profits for said
six months, as, taken together, shall be
in excess of two per cent of the de-
posits,' and by inserting after the word
s'deposits" in the line next to the last
in said section the words "ascertained by
deductions and additions as aforesaid
so that said section shall read as follows:
Sect. 64.-Every savings bank and in
stitution for savings, Incorporated under
1axrc of Tho Statn choft D1i-9nnnGIlU
on the last Saturdays of April and Octo-
ber, make return signed and sworn to
by it's treasurer of the average amount of
its deposits for the six months preceding
each of said days, deducting an amount
equal to the amount of United States
bonds and shares of corporation stocks
such as are by law of this state, free
from taxation to the stockholders and
the value of real estate, owned by said
bank or institution; and adding thereto
so much of the reserve fund of such bank
and of the average of its undivided profits
for said six months as taken together
shall be in excess of two per cent of
it's deposits. Said returns shall
be made to the treasurer of the state on
or before the second Mondays of May
and November, and for wilfully making
false return, the corporation treasurer
forfeits not less than $500 nor more than
$4,000. Such treasurer shall pay to the
treasurer of state tax on amount of its
deposits of three-fourths of one per
cent year on the amount of its depos-
its ascertained by deductions and addi-
tions as aforesaid as in said returns.
Section 2-This act shall take effect
when approved.
The second bill contains no discrimi-
mating clause, and thus represents the
views of the savings bank men, who
have from the first objected to that pro-
vision as an example of bad banking
methods.
1t will be also seen that this bill pro-
vides for the taxation of the reserve
fund and undivided profits when they
exceed 2 per cent of the deposits, or,
approximately one dividend. It was
thought that each bank was entitled to
carry untaxed this amount sufficient to
paw one dividend. AS matter of fact
the small banks seldom have much more
in their accommodations. So that the
extra taxation provided for by the bill
would come on the banks with larger
reserve fund and undivided profits, or,
in other words, upon the institutions
best calculated to stand it.
The second bill would yield an addi-
tional revenue to the state in the next
year of $4,000 as figured by members OF
the committee. A savings bank man OF
long experience, estimates the increase
at a somewhat larger figure. $16, 800, and
this estimate was made by taxing an
average Of the undivided profits of his
bank at the end of each week for pc
riod of six months.
1t should be borne in mind that the in
crease in the tax made by the bill does
not represent the whole increase to the
state. The present law taxes the banks
three-fourths of one per cent on the de.
posits. AS the deposits increase, Of
course there is proporton,aatne5 growth in
the tax. For instance, in 1891, the tax
as shown by the state treasurer's report
was S347, SIS. Al; but in 1892, the depos-
$685. Or s2l, .ha more one,;t than in
IL is fair To presume there will be a still
fnrther Growth in deposits and corres-