New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1900-02-04
A BANK TAX OPPOSED.
BILL TO MULCT DEPosIToRs TO BE RE-
COMMITTED
rpr TELEGRAPH TO THE TRIBUNE

element among the depositors in the savings
banks of the State. 1t is reported here, in con-
sequence of the favorable report made by the
Assembly Committee on Taxation and Retrench-
ment on Mr.. Treats bill taxing the deposits OF
all savings bank depositors who have deposits
exceeding 81 900. The bill reported with
out any hearing upon 1t, although It may affect
$500. 900 of deposits. This is example of
reckless legislation rarely paralleled in Albany.
The members of the Committee on Taxation and
Retrenchment De Graw, of Kings; Litchard.
of Allegany; Gleason, of Monroe: Fancher. of
Cattaraugus; Roberts. of Jefferson: Post, Of
Suffolk; Treat, of Cayuga; Stevens. of Franklin;
Swift, of Broome; Guider and Farrell. of Kings,
and John B. Fitzgerald and Phillips, of New
York.
1t will be perceived that large proportion OF
the membership of this committee is rural. and
the Democrats alone on the committee, with the
exception OF Mr.. De Graw, live in the cities,
where the savings banks are located and where
most of the savings bank depostors live. 1t is
probable, however. that the Democrats of New
York and Brooklyn the committee who voted
to report this bill favoraby will receive some
letters shortly from the savings bank depositors
in their districts.
There has been such a protest. uttered i'm
mediatey against the bill that the members of
the committee, 1t is said, have decided to have
II recommitted for a hearing on Tuesday
Wednesday next
Superintendent Kilburn, Of the Banking De-
partment is in New-York to-day His repre-
sentative said that in his judgment it would be
just as indefensible to tax savings bank deposits
as. 1t would be to tax the deposits in trust
panies or in the State or National banks. With
millions of property of rich men escaping taxa
ton. 1t seemed to him preposterous that at
tempt should be made to tax the savings bank
depositors. who were people OF comparatively
small means. The rate of interest on savings
bank deposits was small only 31s per cent on
ings bank depositors were getting small return
for their money.
MR.. KILBURN OPPOSES MEASURE.
Superintendent Kilburn. in his annual report
just sent to the Legislature thus expressed his
sentiments the proposition to tax savings
banks:
A decision handed down by the Court of APP
peals in March last declared that the statutory
exemption of savings banks from taxation ap-
piled and was intended to apply, as well to de-
positorS in savings banks as to the banks them
selves. The question had long been Il contro
verted one and the lower courts had rendered
conflicting opinions in regard TO it. The law in
the case having now been settled finally, indica-
lions are not lacking that the Legislature will
be mportuned to amend it. The search for new
sources or tax revenue is unceaSlGg, ana the
billion of dollars of massed wealth in the saw
ings banks, where it can be easily and surely To-
Gated. is apparently regarded by the tax hunt
rich field for exploitation. Taxed at
merely nominal rate. it might yield million or
two year. But tax other financial institutions
and private bankers on their deposits at the
same rate, and a still larger SIN could be
realized. OF course, it would be rank injustice
and practically confscation, and no one would
seriously advocate it.
And yet if equity is to be disregarded as to
the savings banks, why suffer it to be a factor
in other fields? The proportion of personally
which finds its way to the tax rolls in this State
is probably under twentieth of the whole, and
nearly all of it represents estates the stocks
of corporations. The man Of affairs and the re-
tired capitalist find ready methods for escaping
any part Of the burden.
WHERE THE LAW IS AT FAULT.
In it's present application the law is an OPP
preston in some instances and in others farce.
If it could be made to bear uniformly upon all,
there might be justification in taxing the
ings banks. though even then the question
would arise, If 1t were not wise encour-
agement TO providence and thrift to forbear tax
ing the small accumulations of the wageworker
the pittance OF the widowed and orphaned.
1t will be frankly admitted that percentage of
the deposits in the savings banks belong to in
dividuals without these classes, by whom no
special exemptions may be properly claimed,
and as to these no such considerations are
urged. Nor would these be likely to be reached
by any scheme of taxation which should be APP
probable in it's effects. for their funds would
then be withdrawn with the consequence of
forcing all of the burden upon the poorer de-
positors, and also adding to the percentage
which the cost of management of the banks
bears to their resources. Besides the injustice
of singing out the savings banks for taxation,
the act would be impotic in the extreme. The
impression is already general that wealth con-
tributes disproportionately to the amount taken
from the poor for the support of government,
and if so glazing a discrimination were to be
established as the taxing of savings banks
while the larger interests were not reached, the
fortunate.