Evening star., 1898-08-17
THE NATIO NAL BAN KS
Attempt Being Made to Collect the Personal
Tax From Them.
An Increase of Over S45,OOO in the
District Revenues From This
Source Alone,

1t is the expectation that a representa-
tive of the national hunks of the District
will be given a hearing by the District
Commissioners about the middle of next
month, the purpose of the bankers being
to convince the Commissioners that banks
are exempt from this tax. Mr.. Nathaniel
Wilson has been selected, by agreem ent
between the banks, to make the argument
IN the case. 1t is rot anticipated that the
Commissioners will decide to leave the
banks out of the annual assessment, and
in that event it is thought one of the banks
Will refuse to pay the tax and then test
case will be made and decision of the
court obtained
This was the plan followed twenty years
ago, when the act of March 8 1877 was
passed imposing this tax The Bank of
the Republic refused to pay the tax AMI
a suit was brought and was argued in The
General Term Of the Supreme Court of the
District. The record does not show that
written opinion was rendered in this case,
and so the grounds of the decision of the
court are not known. The court. however,
held that the nation al banks were exempt
from the personal tax for the reason that
such property was declared exempt by the
national banking law which was passed in
the year 1864.
No Assessment Since.
Since that decision the Commissioners of
the District have made no attempt to as
sess the stock of the banks for the per-
sonal tax, for the reason, as stated before
committee of Congress at the last ses-
sion, that this decision stood in the way.
The Commissioners. however, have the
opinion of their attorney that such a con-
strGction of the law might not be sustain
ed, and, in fact. that the reasons for such
decision do not seem to be very apparent.
1t has therefore been determined to as
certain whether it will be possible to col
lect from the national banks of the Dis
trict this tax, which is at the rate of 81 80
per hundred of the capital stock In the
case or bank with capitalization of
100000 the yearly tax from this source
due to the District would be 81, ,JG0 There
are now twelve national banks in the Dis
trict, and their combined capital is s3.o27.-
oo0. which would yield a total revenue to
the District of Si5, 100
Banks and Their CapitaI.
The names of the banks and the amount
of the capital of each is as follows: Riggs
100000; Bank of Washington. 5000. 900;
Metropolitan, 100000; Central 500. 900;
Farmers and Mechanics, S252 600; Second
$4,000; Citizens $500, ,OOO; Columbia $3.50
900; Capital, $20o000; West End, s2Oo, 900;
traders, $500, 900; Lincoln, $500 0Oo
Inc trust companies are not subject to
d TAX OF TINS sort, as such corporations pay
a certain percentage of their earnings in
lieu OF all other taxes. There has been
some question raised as to whether, in the
event the court holds that the banks are
llabIe TO the tax, they would also be liable
Tor the annual taxes for the past twenty
years since the law imposing the tax was
passed. The attorney of the Commission
ers, however, has held in an opinion that
as no assessment was made the banks can
not be held for these So-called arrearages.