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

III Az - w os - wv - =
this State began in 1866. On March z OF
that year, an act was passed by the State
legislature providing for the election OF
three bank examiners to inquire into the
condition OF all State banks which pro-
posed to become national, and on June 10,
the same year, another law was passed
determining the manner In which the
change of ch arter might be made, SO in
the latter part of 1865 the national bank
ing system was well established In Rhode
Island.
In 1866 and 1867 the only provision
In the United States law relative TO tax
alton was in Sec 62lO, and the assessors of
Providence, with that as their authority,
asked for lists OF shareholders and their
petition was granted. Ii was inquisito-
rial, and naturally met with strong OBJ
jections from bank officials and share
holders. But the principal opposition
was from the country towns. Citizens OF
shares in the banks located In Provi-
dence, and under the system Of 1866 and
1867 they were taxed on those shares as
personal property, not In their own
towns, but where the personal property
was found, that is, within the city when
ever the cashier showed the list OF share
holders. Naturally enough the rural
stock kholders, after paying tax TO the
city did not think that even honesty
itself required them to mention their
bank shares in making their statement
of personal property to the assessors OF
their several towns. Hence it was claimed
tnat the law operated against all parts
of the State outside OF the city. The
country members knew how to fix that
as soon as the National government gave
them the opportunity by the adoption OF
Sec. 5219 on Feb. 10, 1868.
On March 27, 1868, he General Assembly
passed the folloiDg law:
"Sec. /. The shares in National
banks in this State shall be assessed at
the same rate with other monied capital
in the hands of any individual citizens OF
the State, against the proprietor OF SAID
shares at his or her residence, except the
shares of non-residents OF the State
which shall be assessed in the town or
city where the bank is located.
"Sec. 2. 1t shall be the duty OF the
cashiers of the several banks doing busi-
ness in this State to furnish upon de-
uand to the assessors OF any town or
city list of all rhe shareholders in such
bank resi1ing In the town or city for
which assessors were elected, with the
II "a 49,. n atD tDAlr-
holder, and TO furnish upon like demand
from the ASSESSORS of the town or city
where such bank is located, list of all
stock holders Of such bank not residing
within the State, and the amount OF
stock held by such non resident stock
holders in such bank"
This law practically cut of all privil-
eyes of the city assessors, because the
number OF banks i'm the State but out OF
the city was extremely insignificant. On
the other hand, ii was particularly bebe-
fetal to the towns, for under section two
the country assessors from everywhere In
the State could get from the banks in the
city the names of all shareholders in their
respective localities.
1t was rather significant that on the
same day, March u, 1868, law was
passed by the Assembly repeating sections
8, @, z, 8 and y, OF what was then chapter
264. The repealed section provided for
the returns of banks to the State auditor
being published in TWO newspapers, told
how the papers should be selected and
fixed a penalty for noncompliance.
This State law of 1868, carried In the
Assembly by the country members, was
afterward repealed ana was followed by
the law in force today which is in sec
tion 3, chapter 46, title OF the General
Laws of Rhode Island, 1896. 1t reads ss
follows:
Sec. 5. "The cashier OF every bank or
national banking association shall furnish
to the assessors OF the town where such
bank or banking association is located,
upon their written request therefore,
within 20 days after the demand by the
assessors OF the town in which such bank
Is located, a list OF all stockholders in
such bank or natiooal banking associa-
tion, not residing within the State, to-
geth with the amount of stock In such
bank or banking association, held by such
stock holders respectively"
This is the act which the bank people
now claim justities them in refusing the
request OF the assessors.
General Rhodes was asked about this
section of the State laws, and ho said
( hat II has no more to do with the case
han the laws relative to navigation have
to DO with putting tacks on the highway
for the purpose OF puncturing bicycle
tires.
or course the present State law and its
more partial predecessor of 1868 assumes
hat men are honest. A share IN
national bank is taxable as personal
and in making sworn state
ment to an assessor as to his belongings
the shareholder n supposed to state the
whole truth. And on this assumptio of
O pnpraI honpsty IL In mot pecpeaary for