The Providence news. (Providence [R.I.]) 1891-1906, 1896-08-10

action since 1900 from the assessors point
of view. But now whatever their motive
may be, they propose to test their right
in spite OF this sentiment.
There are 26 National banks In the city
OF Providence. The assessors have been
to eight OF them and requested the priv
ilege OF seeing the list OF stockholders.
In one hank their request was complied
with. This other seven ''demurred, as
General Rhoces says he prefers to call it.
At one place the cashier said: "ThIs is
something new aud before consenting the
directors must be consulted Various
other excuses were given and in one in
stance at least the bank doors were, fig
uratively speaking, shut in the faces of
the board from city hall.
The law which the taA assessors cite as
their authority and upon the strength OF
which they will carry the case to court,
as advised by the city law department
and Mayor McGuinness is in the act of
Congress creating national banks, passed
February 25, 1868, and in an amendment
thereto adopted June, 1854. This amend
ment is section 52l0, chapter 3, title 81
of the United States revised statutes and
reads as follows;
"The president and cashier of every
national banking association shall cause
TO be kept at all times full and correct
list OF the names and residences of all the
n
mum ber of shares held ty each, In the
OH ce where its business Is transacted.
Such list shall be subject to the inspec-
iion OF all the shareholders and creditors
of the association, and the officers au-
thoriZed TO assess taxes under State au-
thorIty, during business hours of each
day In which business may be legally
tranacted. A copy OF such list, on the
first Monday of July OF each year, verified
by the oath OF such president or cahier,
shall be transmitted to the comptroller
of the currency
The cashier OF the Manufacturers
National Bank was asked II he thought
the above section gave the assessors suffi-
cient authority to make their request
for the lists. He answered that the Ian
guage "shall be subject to the inspection
of, etc." is certainly plain enough, but
he did not think the giving OF the infor-
nation demanded by the assessors a wise
or just thing u do, and by no means
courteous TO those who have invested
money In bank shares.
The cashier of the Commercial National
Bank read the section and said: "If the
assessors should take tn matter into
court they could undoubtedly compel us
to show them our complete lis ts."
Mr.. George Il. Martin, cashier OF the
Phenix National Bank thinks differently,
however. He said: "The assessors have
discovere1 only part of the law. They
read section 52l0, stopped there and
jumped at conclusions. There is one
other section little farther down VIII ich
Will be brought to the attention OF the
assessors when they go to court. didn't
tell them of it, for am not their coun-
sellor.'
This section referred w. by Mr.. Martin
was another amendment 10 the national
bank act OF 1863, and was adopted Fehru-
ary 10, 1868. 1t is section 52ls OF chapter
3, title 50 OF the United States o,ised
statutes and reads as follows;
"Nothing herein shall prevent all the
shares in any association from being in
cluded in the valuation OF the personal
property OF the owner or nolder OF such
Shares, in assessing taxes imposed by the
authority of the State within which the
association is located; but the legislature
OF each Stste may determine ana direct
the manner and place or taxing all the
shares of national banking associations
located within the State, subject only to
the two restrictions, that the taxation
shall not be at greater rate than is as
sessed upon other moneyed capital in the
hands OF individual citizens of such State.
and that the shares OF any national
banking association owned by non-resi-
dents Of any State shall he taxed in the
city or town where the bank is located
and not elsewhere. Nothing herein shall
be construed To exempt the real property
OF associations from either State. county
or municipal taxes, to The same extent,
according 10 Its valae. as other real
property is taxed.
On this section 1919 and law enacted
by the General Assem- bly, OF Rhode Island
few weeks later Mr.. Martin bases his
claim that the officers of national banks
are not compelled to disclose their lists
OF shareholders to the assessors. . He cay,
that the provision "but the legislature
of each state may determine and direct
the manner and place of taxing ali the
shares OF national banking associations
located within the State" completely
qualities section 59in.
The Legislature of this State did not
lose any lime in svsiling itself o, the
privilege Afforded by the action OF Con-
gress and Mr.. Martin tells an interesting
story as to the causes.
Soon after the national bank act bad
become Law the State banks In Rhode Is
land, incorporated under state laws, began
to surrender their State charters, and to
reorganize under charters from the
federal government, The movement In