New-York tribune., 1901-01-26
SAY BANKS ARE TAXED ENOUGH.
FINANCIERs HERE OPPOSED TO THE BILLS
ADVOCATED BY GOVERNOR ODELI4

The bills prepared in accordance with Governor
Odels suggestion and introduced at Albany on
Thursday. taxing the shares of National and State
banks per cent on their actual value and imposing
a l per cent tax the capital surplus and un-
divided profits of trust companies. were discussed
with much interest yesterday by officers of the in
stitutions affected. None could be found who re-
garded the proposed taxes equitable. but the op-
position was much more pronounced among the
banks than among the trust companies. The Clear
ing House Committee. IT IS understood will very
soon meet to consider the bill taxing the banks
William A. Nash. president OF the Corn Exchange
Bank, said:
Il have not as yet seen these two bills In my
opinion they would somewhat clash with the law
OF the United States which relates to the taxation
OF National banks. I shall study this phase OF the
question at my earliest opportunity. We already
struggling under sufficient taxes. The new tax is
exorbitant and perfectly uniustifabe."
Frederick d. Tappen. president o, the Galatin
National Bank. criticised the bills. The proposed
tax" he added. would be increase OF 800 per
cent upon the that National banks in this State
have 10 pay. II Is an uniustihable attack upon
the banks"
A B. Hepburn. vice-president Of the Chase Ma
tioual Bank when asked what ne thought OF the
Governors plan, said
The bills are not right. just or reasonable. Bank
ing is not a crime. Upstate legislators. whose
constituencies are not affected by such measures
lend their support to the measure as they have
habit OF doing when II IS OF discrfInina ting
against this city. The proposed tax is exorbitant.
and do not think II will succeed in passing the
Legislature Banks and trust companies have al
ways been regarded with envious eyes by the law
makers because Of the publicity given 10 their
finances
Another banker said that he did not believe the
State had a right levy taxes National banks
in excess OF tho taxes levied on the capital OF in
dviduals engaged In the same line OF business. He
quoted the Federal Banking law (Secton 5@l9.
which restricts the States taxation OF a banks
capital follows
The taxation shall not be at a greater rate than
is assessed upon other moneyed capital in the
hands OF individual citizens OF such State
An officer Of the city Trust Company stated that
the trust companies were already paying their
lust dues 70 the Sta'e. We compelled by
law" he declared. ITO buy non-taxable securities.
such as Government. State and city bonds. Now.
TO tax our capital. which is largely invested in
these securities is manifesty unfair We should
he compelled 10 seek investments which would
Weld us a higher rate OF interest than obtain
from these bonds We have our full share OF taxes
at present and we strongly object to having these
increased
The president of another leading trust company
said: :, 49,. . - .
fair tax but the ! per cent rate would place upon
rs a burden unfairly heavy. The imposition OF a
tax so large as 10 he inequitabe would necessarily
resuIt In the withdrawal Of capital and We hope
that the LEGISLATURE will exercise wise discretion
and will modify materially the rate at which trust
companies are proposed TO be taxed. You remem-
ber Daniel Websters saving. The power to tax
is the power 10 destroy