The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1895-07-13
SECRETARIES STILL OBDuRATE.
Review Board Insisted, However, ON
Lifting Yaid-Uu Stock md ALI.

~ ~
n Board Of Review yesterday exam
med the officers Of a number Of building
and loan associations which had refused to
report the names of their paid and prepaid
stockholders. The secretaries refused in a
number of cases to make the disclosures
asked for, being advised by their attorneys
in the presence Of the board that they
should not answer the questions. The board
thereupon ordered the full amount Of their
capital stock to be placed on the tax dupli-
cate. less the amount loaned. The associa-
tons which were treated thus were as fol-
lows: Union Mutual Building and Loan.
World Building, Loan and Investment As
ISOLATION. State Building and Loan Associa-
ton of Indiana, Government Building and
Loan Association Of indianapolis.
The Royal Savings and Loan Association
decided TO answer the boards questions.
and reported such stock to the amount of
1920. The time OF the board was taken
up the entire day with the argument of at
torneys for the company against the course
OF the board. and at times there was a
the board was steadfast i'm its determine
ton to list the entire capital stock.
me chief spokesman was Judge Ayres,
who said that personally he was not dis
posed TO contest the right of the board to
require the production of the books. al
though there was a great diversity Of opin-
WI Ch nat RtOpOSltlOn among the attOr-
neys. Neither was ne disposed to contest
the action of the board in securing the list
Ing Tor taxation OF paid-up and prepaid
STOCK. but rather he was disposed to COM
mend 1t for that action, and believed that
It were rightly interpreting its duties as
public officers In seeking to secure for the
purpose OF taxation this class of stock. He
felt that these sentiments were shared by
a large number of representatives of build
ing and loan associations, and there was no
protest coming from the associations as TO
taxation OF this stock. but the action of tho
Board OF Review In listing for taxation the
full authorized capital stock of the associa-
and illegal proceeding. Mr.. Ayres referred
TO the statutes defining the power of the
board. and considered that its duty was. to
provide for the taxation OF property at its
true cash value. In fact, he said, that the
offlcers or the board had taken an oath
that all property would be assessed at not
provided by statute. Then he proceeded to
show that taxation had been made against
the associations In some instances ton times
the amount of the value OF their stock. as
shown by the evidence before the board. be.
cause the secretary of the association re.
fused to divulge the name OF the share
nolder holding paid-up or prepaid stock
Then he said the association is fined on
given a penalty, and a large number OF
shareholders made to suffer because the
secretary refuses to answer a question that
he believes he has no right TO answer. Con.
ceding, for the sake OF argument, Mr.. Ayres
said. that the secretary wrongfully refused
~ Nv thC Q0CStiOHs uOtS SuCu IeIuSdI
justify the members of the Board OF Review
In violating their oaths TO assess property
at its true cash value. and also violating
the statute. which, in order TO prevent such
an action, fixes a penalty for 1t?
Judge Ayres's talk was very earnest and
pointed: The presentation of the matter BY
Judge Ayres seemed TO represent the senti
ments OF the other attorneys and officers
many or whom assured the board that the
question of taxation was not the PROPOSE
ton they were opposing. but the proceeding
adopted by the board. Mr.. Taggart askeC
what method OF taxation they had to pro
pose, and it was suggested that. in order tS
relieve the secretaries OF the association,
from seemingly informing upon their share
holders. a mandamus proceeding woull b,
the Circuit Court at an early time. and tha'
the associations would assist in forwardins
the case TO an early decision, and the as
surance was given that nearly all the as
testing the action of the board. and the,
would abide by the decision OF the court al
could not possibly lose anything by such
course, and the officers would be protected
against criticism by their stockholders
This suggestion, however. did not meet thu
approval of the board. who said they wer,
acting under the advice Of the Attorney
general. the city attorney and the count,
attorney, and IL the secretaries refused 4
answer questions as 10 paid-up and pre-
paid shareholders. then the entire capita
stock should go on the tax duplicate.
IL was apparent from the action OF tn
board that II was determined TO throw tn
burden OF this contest upon the State Board
and let IL be disposed OF there, or I'm tn,
courts. and IL seems that there is where /
Will go. The contest of the building ant
loan associations is that the taxation of TIT
authorized capital. when there was a show
ing that it Is only partly issued and partly
paid in, and no showing to the contrary, 4
Illegal. and further, that the secretary can
not be compelled 10 produce the books show
ing names OF shareholders. There has beer
no contest before the board as 70 the RICH
10 tax the stock, and whenever names o
shareholders have been inquired about b,
the board the amount of their holdings hal
generally been given by the secretaries
The contention or the state Is that II is re
| vising the report made by the association Il
the county auditor and. I'm order 10 do that
the board asks the production OF the books
The associations have offered to o-oduc,
the books showing that the report made b.
them Is correct. but the board has incorpor
ated In its request for the books the re
quirement that the books showing tn
names OF the shareholders be also fur