New-York tribune., 1901-02-12
ACTIVITY ON TAN BILLS.
RELIEF THAT COMPROMISE WILL BE
MADE WITH SAVINGS BANKS.


bsla se,,aral conferences to-day with Senator'S
KrrIn and Higgins. of the Committee on Tax
alton and Retrenchment upon the bill taxing IN
rurance companies. savings banks ana Hus'
companies The principle ~ taxing the gross
premiums received by the insurance companies
ilpon the business done by them in TINS State
has been adopted, but all the details "f the
COMPROMISE bill have not been approved as yf'
bv the Governor and the leading Republican
members Of the Legislature. Governor odeh
maintains the stand he assumed at Syracuse on
Friday night last OF declining TO retreat from
his declaration that the surplus Of the savings
hanks Of the State should be taxed. Almost
every New England State, il is said. taxes not
only the surplus, but the deposits OF the savings
hanks The taxation of the surplus Of the New
York savings banks is therefore held 10 he mild
taxation compared with that of neighhoring
States Senator Higgins, il was stated had
figured out that the taxation Of the surplus ot
the savings banks would not have the effect Of
reducing the interest received by the savings
hank depositors 10 any appreciahle extent
II was rumored late this afternoon that the
principle Of compromise used in dealing with
The taxation of insurance companies would be
extended 10 savings banks ana that the par
value and not the market value. Of the surplus
would be taxed. President Rosencale, OF the
National Savings Bank Of Albany. when asked
tonight If such a compromise had been made,
answered
r have not heard of such a compromise, and It
must be remembered that the trustees Of the
savings banks are not I'm the same place as the
directors of insurance company. tor IN
stance we cannot make a compromise Nhlch
hands. and 1 consider savings deposits OF that
character. Certainly the taxation OF the sur
plus OF the smaller savings BANKS IN IhIs ,,t
will diminish their power 70 pay their depositors
q certain rate Of interest.
Senator Krum. who introduced the bill taxing
the savings banks, said;
I am not aware that any compromise has been
effected upon the savings bank hlll Inc SAY
ings banks have not offered 10 ccmpromlse'
There is a general belief in tho State Capitol
however that compromise savings bank
taxation bill viii be passed. which will tax the
par value instead Of the market value Of their
securities The effect of this amendment Of the
hin would he the reduction Of the States re-
ceipts from the bin from Sl.lSo00o to 100000
The market value If the savings bank surplus
on January T. 1901. was S1lSo00ee0 and tho
psr value Of the same surplus was S1ooW"e''
Al per cent tax on the market value would thus
ret the state Si,1s00oo whereas a per cent
tax on the par value would bring in only
100000
II is not believed that the savings bank in
terest would oppose vigorously the imposition
Of the smaller tax.
The insurance taxation "compromise' bill II
Is estimated, viii place between SSe00oo and
S1.O00o00 in the State Treasury.
The bill 10 tax trust companies. II Is sald. viii
probably not be changed. unless the representa-
tives Of these concerns make a strong argument
IN their own behalf az the hearing tomorrow
on this measure by the Senate and Assembly
Committee on Taxation and Retrenchment. The
hin taxing the trust companies proposes tax
.r.-ng 1a~e aVaH
undivided profits OF the trust companies This
bill II II becomes q law, it is estimated, VIII
Weld the state a revenue of 81 100000 year
There are some indications that the bill 10 tax
the State and National banks may be abandoned
because OF the knowledge OF the fact that these
oorporations sre already taxed 10 burdensome
extent
The three taxation bills which are nearing
rarfection taxing insurance and trust COM
nanes and savings banks. ii VIII be perceived,
promise 10 draw into the State Treasury an
rualy about So 10000. The direct State taxes
last wear amounted 10 Sl0.104 l5S 81. The new
taxation bills il is thus apparent. may, on the
basis OF last years appropriations, reduce the
direct State taxes TO S1,700000. Bur all the
items IN the reduction OF direct State taxes have
not Vet been considered. There remains 10 he
mentioned the general corporation act, which, il
is estimated, may produce several millions Of
dollars The present corporation tax law yielded
N 1900 the sum of 500 sos %. and the new
statute is framed with the design OF largely in
creasing the receipts from corporations by tax
ing hundreds that now escape taxation.
Governor Odell also viii largely reduce the
cost OF the state Government In his annual
message 10 the Legislature he said that he he
heVed that with no harm 10 the institutions
under the care OF the State Commission in
Bunacy saving Of al least $4,000 could be
made in this department. Already n may be
said with authority that a saving of SSOON0o
has been made in this department. Fully
100000 IL is believed, viii be saved I'm all the
State departments
The direct State taxation OF 1900 OF Sl0eo0.0b0
viii probably he cut in half, if not abolished
altogether, by the new taxation laws and by the
reduction OF the cost Of maintenance Of the state
Government