Waterbury Democrat., 1900-12-31
NEW YORK BANKS.
Superintendent Kilburn Protests Against Taxing Savings Banks.


 ALBANY. Dec 31.-A strong protest against the taxing of savings banks de posits by the state is an important fea' ture of the annual report to the legisla' ture of State Superintendent of Banking Frederick 1\ilburn. He says:
 If the legislature is to consider this question of taxing the deposits in the savings banks, 1t should approach 1t with the amplest and most reliable informal ton obtainabfe and particularly in re- gard to the mistaken assumption that the moneys held by these institutions consist largely of deposits by people of means. A more searching examination and analysis of accounts than has ever been attempted or than is practicable would be required to ascertain with pre- cisiOn the percentage of deposits which belongs properly in that class, but from my knowledge of the policy which gov crnS the management of most savings banks and from such inspection as l have made of individual accounts. which al most uniformly show deposits ill small sums only, indicating that they are actu ally savings and not investment funds, 1 am entirely satisfied that it is incousid- erablc.
 For every concession or immunity that is granted to the savings banks they re- turn benefits manifold. They inculcatc thrift and diminish poverty. The fact of q wage earner being 6 dcpositor ill them tends to interest him in public Ques- tions and to enroll him in the ranks of those who stand for honest money and for preservation of the public faith in violate. It contributes to make him in dependent and self respecting and there fore a better citizen. As to the system as whole, who will venture to deny that it has q part in diminishing tax bur dens, even though it does not actually pay taxes? But for the savings banks it may well be questioned if the state or any of its subdivisions could float their bonds at the rates of interest at which they are now eagerly absorbcd.'
 Mir. Kilburn again proclaims against the method employed by the so called na- tional building and loan associations and asks for the passage of a bill giving him direct supervision over them. He alleges as some of the existing abuses ''the pay ment of free withdrawals and excessive salaries, the employment of high priced agents, the renting of luXuriouSly ap- pointed offices, speculating in real estate that system of administration which prac- tically ignores the mutual feature which is supposed to underlie all building and loan associations, the second mortgage plan of investment and, in short, in- SonlOuS schemes or all sorts Wnlrn the framers of the law could never have con templated and which have grown up with or out of the so called national sy$tam."
 He then gives q startling list of l3 com panies that have assigned or gone into receivers hands in this state in the past few years.
 Mir. Kilburn says that the financial in stitutions of the state have been remarka- ply prosperous, having gained in resources the last four years more than $7UO, ,0OO,- 0OO Nearly $1 1,5O0,OCO of this gain has been made by the safe deposit companies about $16.OU0.O0O by the building and loan associations. nearly $10O GOO, OOO by the discount banks, $23O.000.0tD by the savings banks and $4O0. .0OO,00U by tho trust companies. The record foG the last fiscal year. ended Sept. 80. though not quite in proportion with that for the re- mainder of the period i'll question, has at | least corresponded to it in that as whole it shows betterment and progress"