The Norfolk Virginian. [volume] (Norfolk, Va.) 186?-189?, 1898-02-05
MIR. AGEY INTERVIEWED.

The Virginian representative yester-
day interviewed Mr.. ID. NJ Agey, gen
eral manager of the Definite Contract
Building and Loan Association, with
the following result:
Mr. Agey have you heard of the pro-
posed legislation affecting building and
loan aSsocia tiOns?"
Yes. have seen copies of both
bills"
What are their chief features, and
how would they affect the building and
loan business If they should be enacted
into law"
The bill introduced by Mr.. Schwitzer
provides for the taxing of the capital
stock of building and loan associations
IN addition TO the license lax of not less
than $50 per year now paid by them. 1t
also proposes that all the stock of such
associations held by private individuals
shall be taxed like other property"
DO the building associations object
to being taxed?"
They do not object to being taxed
once like other people, but when ii is
proposed 10 tax them three or four
times upon the same property they will
naturally resist with all ;helr might.
~ OH understand that building asso-
Citations already pay an annual license
tax OF $50 TO $3.50 and upwards. depend-
capital. And the law specifics that this;
shall he In lieu Of all taxes. Now, the
SchwltZcr bill proposes TO lay upon these
associations property tax, which in
Norfolk would be $40 per $780, The
capital stock of building associations is
made up from the dues on ins:allment
shares paid up (or prepaid shares and
the earning of the association. Consc-
qnentiy. the entire capital stock is the
property of the many Individual mem
bera or shareholders. That. YOU will
see. is practically taxing the same prop
cry twice. But the provisions of the
bill go further. 1t proposes to tax the
stock in the hands OF the individual
shareholder, whether he be a prepaid
! shareholder. with an investment of
| thousands. or poor mechanic striving
| 20 save pi.tance against rainy day
| That is taxing thrice.
Then, again. the entire assets of
| building Observation-Disclosures, interest and
p!oiits-is kept loaned out on real cs-
| tate. And the borrower who is the
owner Of the real estate pays taxes on
his house and lot. Therefore, to the OK
| tent Of the amount OF the mortgage, il
| is taxing four times.
| Take n simple illustration: 4 Nor
folk association has a capital of $4,000.
| 1t pays license tax of $5O II would
also pay tax on its capital $40. 1t has
| ten members having $1,000 each Each
| member would pay sci tax. The ten
membe would pay $40. The money is
| loaned to ten borrowers Each borrower
would pay $2l on that part of the value
| of his real estate. The ten would pay
| $40. The sum total Of taxes paid on the
$4,000 would be $3.50. Besides this, each
borrower being the holder OF ten shares
would have to pay tax on his stock
rs 1t necessary now to answer the
second part Of your question? 1t is now
| easy TO sec what the effect on the ASSOC
! Citations would be. Every association
| in the State would proceed to liuuida-
! ton at once. What the end would be,
no nan can foresec. Millions of dollars
are invested in these associations in this
State, and these millions are loaned on,
to thousands of poor men, who through
this means. are paying for their homes
homes they would no: have, could not
have, except through the agencies OF
these home builders. The proposed
measure would work great injury to
| these thousands of borrowers. as well
az the ten thousands of investors who
are saving their little surplus earnings
through the means offered by these in
stitutions'
Can you explain the object of this
bnl?"
II cannot. In most of the progressive
and prosperous States these institutions