The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-12-01
THE BANKERS MAY OPPOSE 1T.
THE BILL TO TAX STOCKHOLDERS
WOULD DO THEM No GOOD.

They Would Have to Pay a Tax on
Their Real Estate Which Has
Heretofore Been Included in the
Value of Their Capital StOck-This
Is Looked Upon as the "Nigger in
the WOOdpiIe"-The state WouIG
Incur More Trouble and Expense
With Smaller Results.
Ii is not improbable that the banking in
terests of Georgia will take steps to OPP
pose the bill introduced in the legislature
by Representative Blalock providing for
taxing bank stocks in the hands of the
holders, instead of putting a tax on the
capital stock Of the bank itself.
Some of the bankers here are of the opin-
ion that they have scented the ''nigger in
the wood pile" in the shape of sort of
double tax For instance, it is proposed
that the holders of bank stocks shall be
taxed on the value of the shares they hold.
but the bill further provides that this
snail not exempt the banks from taxa
ton upon any real estate they may hold.
AS the law now stands the banks pay
taxes on the amount of their capital stock
includes the value of their real estate used
for banking purposes, and they pay a tax
upon it when they pay their tax upon the
capital stock. 1t now appears that there
is desire to change the law so as to col
lect tax on bank stocks from all the
holders and an additional tax on the real
estate which is used by the banks in their
business.
There was considerable discussion among
the banking men yesterday on the subject
of the proposed law, but no steps to oppose
II nave as yet been taken. There is a diff
ference of opinion among some Of the
bankers as to whether the state could col
Iect taxes on stock In Georgia banks held
outside the state. One banker said he
thought the state could collect tax on all
the bank shares in the hands of the stock
holders, though 1t would give the state a
great deal more trouble than under the
present system, even though the banks
should be required to furnish the tax col
lectors list of their stockholders. For
instance, when the time for making re-
turns came, and after the list had been
furnished, a party might transfer his
STOCK, ana the authorities would have
great dlflculty in tracing it. In the course
considerable of the money it now gets
where the taxes on banking capital are all
pald by the banks themselves
another banker was of the opinion that
N many instances it would be impossible
Ior the state to attach or levy on stock
heId OUTSIDE the state, for taxes For in
stance take the case of a New York man
VINO had hypothecated his stock in q. Geor.
ga pank FOR a loan. An attempt to levy
on such stock for taxes would result di
rectly in suit in the United States court
with the chances decidedly in favor of The
holder OF the stock winning the suit under
such circumstances.
Leaving the real estate feature o,,+ of
the question entirely another banker said
II would be nothing more than a roun-
ABOUT method of reaching the same end
as is now attained with the greatest ease
and facility The state and county now
know just what they have to raiv or
The banks make their returns regularly
on the market value of their total stock
and the tax is paid without any question.
But under the proposed change the
state would be put to a greater expense
in hunting up bank stocks, would prob
ably lose a large proportion of it, and
would no doubt in the end be involved in
a number of suits in the United States
courts.
The new law might enable the banks TO
pay larger dividend, but the increase in
that direction would go right from the
pockets of the stock holders for taxes.
The bankers do not see that the measure
would afford them any relief whatever
but think in the real estate feature it
would put a still greater tax upon them,
since the value of their real estate used
for banking purposes is always included
in the value of the capital stoa1. 1t is
highly probable that they will take some
steps toward opposing the measure.