The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-11-22

your great State. upon which congratu-
late you 1 am glad that the president IN
war revenue tax and also the gentlemen
from the Sixth district. but / think some
Information have here will surprise you
little bit when l come 10 IL. or course.
twice two is four and everybody knows
that and you can all say Il, and this sub
Ject OF express competition Is pretty old
and IL is hard TO say anything new about
IL. but in regard TO taxation perhaps some
thing new may be said about IL.
Competition by express con- panies first
attracted general attention because OF the
immense growth Of the money-order bus
mess. and for FIVE years or more has been
one OF the standard themes for considera-
ton and discussion at bankers conyen-
tons
The large business OF express companies
has been one Of evolution-Starting with
one man who made the trips hinself-irst
carrying handsatchel-it has row devel-
oped into tens of thousands OF Offices, en-
ployes and routes, operating on every rail-
road and steamship line in all parts OF
the world. from the one handsatchel till
now whole trains OF cars are employed.
Without doubt these companies have served
the public we'll and in the main s8tissactor-
lily, but always with large profit TO them
selves. Their growth has been so stead
lily continuous and insiduous that the
change from simple carriers to carriers
and bankers was hardly noticed until We
suddenly realized we had competitor bet
ter equipped in some ways than any single
bank Their facilities are as great as the
immense foreign banks with their many
agencies. They reach many places where
there are no banks, anS I'm fact, the banks
themselves often employ the EXPRESS COM
panies TO collect items on such places.
Such being the case, there is no reason for
complaint so far as competition goes, pro-
vided such companies are not given any
unfair advantages
Their joint advertised capital amounts
to tens of millions of dollars. on which
of n ar
sessed. i am told that before the agitation
or the subject by the banks these cor
porations were evading local taxes i'm near
ly all the smaller towns and cities through
out the country, and paid taxes to only one
State in the Union-New Eork--and that in
1885 they all paid on their claimed millions
paid by one bank in New York city.
PAY LARGE TAXES.
Banks pay larger pro rata portion OF
local taxes than any other taxpayers. The
express companies pay nothing as a war
tax. even escaping the stamp required on
their receipts for packages. Banks pay
from one-half Of / per cent. TO per cent.
on circulating notes. They also pay 81 ger
$1,000 on all capital, surplus and profits and
hundreds of thousands OF dollars for
stamps. as war tax. and have done il I'M
complainingly.
MIR Stickney. in speaking of this tax to
the Michigan bankers in June. 1898. said:
Yes; We have the law, and IL will be ours
to obey, honestly and loyalty: still. we
were craven did we not protest. The
country must meet the financial demands
of great war, and IL is not for us TO shirk
or evade the particular responsibility that
falls on our shoulders, heavier though IL be
than that of our 1eighbor. 1t is not In the
payment of a tax only that the duty of a
bank lies. 1t is for us to do again what
the banks did a genera ON ago. without
them army and navy were impossible
No1l nf only .afd f,rt
subscribed for the war loan over and over,
and then asked the government. not to re-
lieve US. but TO tax our competitors equal
| ly. This the attorney general refuses on
| the ground that brokerage Is not the busi-
ness of express companies: they are car
| riers, and the Issuing OF money orders and
| travellers cheques is mere incident of the
| business of carriers
Let me briefly enumerate some OF the
| points made by the committee of Amer
| lean Bankers Association in their report
of the express companies. In a small
pamphlet issued by the American Express
Company you win find on Page the fol-
lowing: Travellers cheques of the Amer
lean Express Company are practically GER
titled cheques of the company. These
| cheques are more available, economical
and secure than any other form of travel-
ers' credit and are virtually a uni
versal currency CHEQUES may be pur-
chased at any of the company's 800
agencies in the United States: also
through many banks and tourist steamship
agencies. The committee contends that
certainly these $500 agencies. besides the
steamship and tourists agencies. are act
ing as brokers for the sale of these cheques
and should each pay the brokers' tax.
ACT AS BANKERS.
On Page of, the same pamphlet there is
proof not only that the company's agents
are acting as brokers, but also as bankers.
:" Terms of Issue CTravelers Cheques.)
| 'Fourth-Agair deposits of cash Com
mission will be payable same as under
paragraph third Interest will be allowed
| or cash deposits of $500 or over.
ION Page is the following: Gable
| transfers of money TO and from the United
| States and Canada and Europe, or other
| foreign countries. may be made through
any of the company's Offices
Also on Page 6: American Express
| Company draws sight drafts for any
amount payable at all principal points OF
| the commercial world
Still the attorney general decided that
| the company is not engaged in the business
| of negotiating purchases or sales of ex-
change. On Page Z: The company is pre-
pared TO buy or sell foreign money at any
| OF its agencies in the United States or
Canada, well as at its London
and Bremen office.
I'm folder pamphlet entitled Notes and
| Maps of Interest to Travellers and Ship
pers,' issued by the same company. many
of the features of the business of the conf
pany given above are repeated. and in
| addition thereto other declarations are
| made, clearly showing not only that the
company and sts agents are brokers and
| liable to such tax, but also that they are
acting as bankers, and should pay the
| tax on the SlS,COO,OOO capital stock they
advertise.
I'm that folder we find. first, American
| Express Company, with its ;ncomparable
| organization reaching upwards OF
| 10000 places in the United States and
| Canada. a universal currency Is the
| term often applied TO these cheques.
| LET us remark that presumably there
/ is an agent i'm each of these 10000 places
| acting as a broker for sale OF securities
/ advertised. II so, and the tax enforced.
| the government would receive H,JcO,OO0 an
| nually.
| ANOTHER QUOTATION.
1--WE quote again: Commercial bills OF
exchange purchased by the American Ex-
press Company at (here follows a list OF
/ nine principal cities only)-a change
| In advertisement brought about prob
ably by the commissioners ruling.
viz: There appears TO be no reason
able ground for doubling that the
American Express Company has been en-
gagged In the business OF buying and selling
foreign exchange, and that Il is accordingly
required to pay special tax as a broker for
| each and every district and separate place
| of business at which such purchases and
sales have been made.
| ION another page will be found the fol-
lowing: Collection OF accounts. bills, notes.