The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1897-10-29
KEEN MEN OF
FINANCIAL TURN CONFER
Continued from Fifth Page.)

LILO u3u0n2l banks nave Dee0 IN the same
ratio, the gross deposits in the 49S banks
throughout the state, today, are about
$4,000, which is certainly most fitting
subject for congratulation.
1T is true that we have had a number
OF bank failures throughout the state
during the liquidation process through
which We have heen passing since our
unfortunate boom period of 1867,
though Kansas Jared no worse in this
respect than many other portions of the
country, and today her banks and other
business institutions, generally speaking.
are in condition as sound and healthy
as are those Of any other state in the
Union.
Upon the whole, the United States
has Jared about as well with regard 10
lis bank failures as has any other coun-
try. Hon. E. S. Lacy said, while comp
tro!ler OF the currency a few years ago,
mat the national banks Of the country
which had failed since the organization
or the system had paid to creditors, after
paying all expenses Of administrat ton
an average Of "A per cent Of their claims
end that greater losses had been sustain
in Europe than had been sustained by
all the creditors Of all the national banks
In this country combined. l know com
Parsons are odious,' though we may
without disnespect to the thousands of
ably managed financial institutions in
foreign lands, make a fair comparison
between our record and some Of theirs.
Less than one year ago a commission
was appointed to inquire into the history
and position OF the Queensland National
bank in Australia. It's report showed its
total losses 70 have been about Sic, 900, 900
and the liabilities exceeded the assets by
sl2,275,oo0. The capital, the profit and
loss account and the contingency fund
had all vanished. The New Zealand
house Of representatives also appointed
commission to inquire into the affairs
oSfhe Bank Of New Zealand. The result
o. that investigation showed that the
bank had sustained actual and estimated
losses since 1888 Of $40, 0O0, 900, and Of this
loss 100000 was from direct advances 10
some Of the directors Of the bank; vet.
during the period that these losses we're
taking place nearly $500, 900 were paid
cut in dividends. The committee held
that the crisis was directly owing to er-
fors OF judgment and gross mismanage-
ment in the conduct of the bank, and
that criminal proceedings ought to
have been Instituted against the man
agenent at the time. and finally recon-
mended that the services OF the officers
responsible for the losses should be dis
pensed with.
L think that commjttee must have
gotten hold Of Mr.. Breidenthars Kansas
Banking Law, for after recommending
such extreme % punishment for the
guilty parties. they went further and rec
commended that IN the future administra-
ton Of the bank that no overdrafts 10
any director or officer Of the bank. or 10
any company Of which any director Of
the bank wac also a director, should be
allowed. They even went so far as TO
say that the bank should have eight di-
rectors, and at least three of them should
represent the shareholders. L is grail
flying to know that 1t was not 10 be LEFT
altogether to the receiver TO look after
the shareholders interests, as he some
lines does in this country, especially
when the shares become liability of
the owner instead of an asset.
The matter Of taxation Of personal
property should be carefully considered
by this convention. / think every bank
er knows that banks are paying more
than their just proportion of taxes.
Returns for the year 1896, as shown
by the abstracts OF the county clerks
throughout the state, show that the sg-
gregae value Of all personal property to
be $36,157, pa The aggregate capital
surplus and profits Of the national, state
and private banks Of the state is about
s24. 900. 900, or s12157, pa less than the
whole amount as shown by the returns.
Calculating the banking capital at one
tnird ITS book value, which Is the general
rule, the banks are paying on SIS. 0O0, OOO.
or % per cent Of the entire personal taxes
OF the state. All know who stop to think
that this is entirely out of proportion.
unreasonable and unfair. History shows,
however, that the banking Industries OF
this country have always borne more
than their just proportion of personal
property taxation.
Comptroller Roberts of the state of
New York. had an article in the Nav
Inheritance taxes, which was embodied
into a bill by the legislature Of that state
The extent 10 which personal property
has escaped taxation in the stae of New
York, as shown by Mr.. ROBBERS state
nlent, is simply enormous. He says:
/" The amount Of equalIzed personally
paying taxes to the state Of New York
in 1895 was s459, S59, 52s, and by the re-
port Of the superintendent OF the bank
ing department, it appears that the cap
ftaL surplus and undivided profits Of the
banks, trust companies and safe deposit
companies of the state was S3l1, SS6,S72
Under the law these institutions could
not escape taxation. They are required
10 pay on the value OF their capital
stock, and that includes the surplus and
undivided profits. There was then only
Sl45,41S,l54 Of personal properly over
and above the banking and trust COM
pany capital which paid taxes in 1896
In 1897 Sanford z. Church, then comp
troller, directed the attention OF the leg
islature TO the way in which personal
Hoperty was escaping taxation. He re-
ported the amount OF personality then
paying taxes 10 the state 10 be SSIa, Se7.-
l55, Of which sl1Oo0OOOO was banking
capital. leaving sos, Ss7.155 of other peg
sonal property then paying taxes. That
is 10 say, there was Sol. 10000 more OF
such personal property paying taxes in
1897 than in 1886. yet everybody knows
that personal property in the state OF
New York mas increased enormously IN
the las; forty years
Mr.. Roberts goes further and shows
that by an examination OF 101 estates Sc