Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1896-12-11

1t will be seen from the above thai
there has been falling off in the returns
for 1896 from the preceding year.
1t win also be noticed that the returns
for the six months Just ended are greater
than for the first six months of 1896.
In regard to this interesting question
Hon. F. f. Undertake. State bank eX-
aminer. was interviewed by Journal
reporter, Thursday.
How is this tax based, and what do
these differences really signify" was
asked
THE tax upon savings banks and saw
ings institutions is based upon the value
of their several franchises ascertained
under certain rules fixed by statute, and
not upon an assessment levied upon their
property as i'll municipal taxation" re-
piled Mr.. Tmberlake.
TO determine the value of the several
franchises. you take the average amount
of deposits. reserve and undivided profits
for the six months and make the fol
lowing deductions:
"First-The amount of United States
bonds at their market value. the shares
Of corporation stock such as are by law
stockholders. and the assessed value OF
real estate owned by the bank.
Second One-se of all other as
sets, loans and investments acquired
prior to the enac tment of this law, taken
at THEM market value.
Third Two-sevenths of all assets,
loans AMI investments made to persons
and corpora tons resident and located in
this State.
The effect of this rule is: First. to re-
lieVe banks from payment of tax an so
much of their deposits as are invested III
government bonds and stocks that are
not Liable. 10 municipal taxation and on
real estate upon which they pay mlln-
cipal tax, the same as individual owners.
"Sccond--To make no distinction in the
amount of tax as regards Investments
made prior to the passage of the law.
whether located within or without the
State.
Third deduct enough of the mar
kct value of Investments made within
the State since the passage of the law
to- reduce the tax thereon about one
fourth of / per cent. below that paid
upon Investments made outside Of the
State
Now" continued Mr. Undertake, the
savings banks have purchased large
blocks OF government bonds during the
past two years and have thus gradually
decreased the tax paid to the State.
LAS the deductions made are based
upon the market value of the securities
and government bonds held. the tax is in
creased by a depreciation in this market
j value. While the deposits In savings
| banks have increased somewhat during
the past SIX months, the increase in the
| tax Is largely due to this depreciation in
! the value of the securities. the assess
ment having been made Just prior to the
November election when the marke.
value was very low
| There is more or less talk about the
prospects of State fire marshal and the
matter will undoubtedly come up before
the Legislature. The statistics COM
piled by the insurance commissioner since
the law went into effect calling on city
clerks for reports of various kinds on
fires, causes, insurance on them, etc, has
brought out to surprising extent the
fact that there are practically no con-
victions of incendarism in Maine. Nc
one needs to be told that there are cases
enough for investigation. but there Is q
complaint that there Is no head or tail te
! the investigation. The local officials, 1t !.