The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-11-30
TO RELIEVE THE BANKS.
Representative BIaIOck's Bill to Tax
the SfocI<hOIders

Representative Blaiock has introduced a
bill in the legislature providing for re-
vision of the method Of taxing the stock
Of banks and banking associations.
The section of the code relating to bank
taxation is stricken out by the bill and
the following inserted in its place: That
no tax shall be assessed upon the capital
Of banks or banking institutions organized
under the authority of this state or of the
United States and located within this
state the shares of the stockholders of
such banks or banking associations,
whether resident or nonresident owners,
shall be taxed in the county where such
bank or banking associations are located,
and not elsewhere, at their true and full
market value at the same rate provided In
this act for taxation of moneyed capital in
the hands Of private individuals; pro-
vided that nothing in this section shall
be construed to relieve such banks or
banking associations from the tax on real
property owned by them, which shall be
taxed to the same extent, according to its
value, as other real estate is taxed"
Capt John r. Dillon, tax receiver for
Chatham county, sees many things about
the bill that he thinks should prevent its
becoming a law.
"On the face of it, he said, 1.-The bill is
an absurd one. Ii would relieve the banks
of the taxes they now pay, while the taxes
could not be collected from the holders of
the shares. By the present law the banks
have to pay the taxes on all their stock.
The stock of some of the banks in Savan-
nah is largely owned by people who are
non-residents of the state. 1t would be
impossible for the same returns now
to be secured under the proposed law.
The stock could be only partially reached.
The deficit that would at once be shown
in the tax returns, state. county and city.
would have to be made up by an increase
in the rate on realty, which is already
overburdened.
Capt. Dillon has found that owners Of
stock have adopted subterfuges by which
they avoid the payment of their taxes on
stocks. About Feb. l the holders of
stock transfer it out of The state.
They then swear to statements of
their property that do not include the
stock transferred. As soon as the state
ments have been sworn to by a power of
attorney, the stock is again transferred
and its real owner, who has temporarily
shifted the ownership, is put again in pos
session"
This is a common practice, Capt. Dillon
says. The AJAX receiver says he would
have no way under the present law of as
certainng who the owners of bank stock
are In event of the passage of the bill,
there would have to be a supplementary
act providing for the lists of stockholders
TO be furnished on application by the Off
Gals. At present a demand for these lists
would probably be ignored.
Capt. Dillon says the proposed law would
restore conditions as they were years ago
when the owners were taxed for the val
uadon of the stocks. The method was
found to have all the objections he men
toned he said, and was thee abandoned
He believes the present plan of having the
banks pay the taxes on their capital is far
more equitable and just.