The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-08
BANKS And TAXES
AN APPEAL TAKEN FROM THE COUN-
TY BOARDS ASSESSMENTS.
v. It. MaIott. President of Indiana Ma
tionaI, Says Mere Taxpayer
Has No Right of Appeal.
BANKERS APPEAR IN PERSON
OBJECTION MADE TO ANY INCREASE
OF ASSESSMENT.
Interesting Financial Facts Presented
to the Board by the Presidents
of indianapolis Banks.
STOUGHTON J. FLETCHER'S VIEW
A BIG BANK WITH A LITTLE MAN
WILL NOT MAKE MONEY.
Brains, Which Are Not Taxable, a
Necessary Adjunct to Financial
Success, He Says.
Interesting Financial Facts Presented d
to the Board by the Presidents
of indianapolis Banks.
STOUGHTON J. FLETCHER's VIEW
A BIG BANK WITH A LITTLE MAN
WILL NOT MAKE MONEY.
Brains, Which Are Not Taxable,
Necessary Adjunct to Financial
Success, He Says.

State Board of Tax Commissioners yes
terday. They were there to defend them
selves against the appeal of DIR. James
Carter, who claims that the County Board
of Review did not assess the banks high
enough. DR.. Carter appealed as tax
payer of Marion county. He was repre-
sented by Romus F. Stuart.
At the morning session of the board the
question Of whether the doctor had stand
ing before the board was raised. The
bankers, through Volney T. Malott,
claimed he had not and held that the ap-
peals should be thrown out. After an ex-
ecutive session the board announced that
the contention of the bankers would be
overruled and that the hearing would pro-
ceed.
The contention of DR.. Carter was that
the banks should be assessed on their
tual cash value. AS Col H. B. Smith,
county auditor, explained it yesterday
evening, the banks were assessed on the
following basis The county board took the
capital stock of a bank and added to it
the surplus and then added the undivided
profit account, so as to get at all the avail
able assets the bank had. The only credits
given banks were on the paper that they
controller of the treasury, and the un-
earned discount. The assessment then made
was 20 per cent on the remainder. II was
contended by the bankers yesterday that
the law does not contemplate that appeals
should be taken except by persons actually
aggrieved. Mr.. Malott held that if the
law merely means that any taxpayer may
appeal it would make it possible for any
crank or practical joker who pays S. taxes
to appeal the entire 500 assessments made
by the Marion County Board of Review.
BANKERS EXAMINED.
The board began the examination of the
representatives from the different banks in
the afternoon. The American National
Bank was the first taken up. John o. Per-
rim, the president, was asked to testify be
fore the board. The capital of the Amer
lean National is $3.50, 900, and it was assessed
by the Marion county board at s254. 900.
Attorney Stuart held that the bank should
have been assessed at $42O, 900. assessing the
stock at 120, which was the price bid for
il, according to a newspapers quotations.
April l.
In his testimony Mr.. Perrin said that the
American National had never paid divi-
dend. I'VE have not accumulated a 20
per cent surplus yet" he said. I'm tax
ing banks" he continued, you tax that
which is very necessary TO commerce. TX
you put a great burden on banks you
hamper the commerce of that community.
The banking history of this city has not
been happy one. There are many banks
that have gone by the board. This ard
would not wish to bring about a condition
where banks were not entirely sound. The
banks of the whole State are resting large
ly on the strong reserves of the Indianaro-
lie be VTiF rOhf
sessment made by the county board was
high, but he was not disposed to criticise
it. However, ne did not think it should
William F. Churchman, cashier of the
Capital National Bank, was next called
by the board This bank was assessed a
SIS, 800. Mr.. Churchman thought the banks
were taxed rather higher than real cs
tate. He alluded TO farm land, mora es-
pecally, he said He did not know enough
about town property to compare the bank
assessment with ii.
What dividend does your bank pay?"
asked CAPTAIN Hart.
Five per cent. usually" replied Mr.;
their stock is about l25. Their undivided
profits were about $4,000 or $4,000 in April.
THE speculative value of bank STOCK" he
declared, lis controlled in a measure by
the conditions in the bank He thought
the assessment made by the board against
the Capital National a little high. but on
the whole he believed it to be a rather fair
assessment. Attorney Stuart asked Mr.
Churchman what the selling price of his
bank stock is, and was told that it is about
l53 Since the first of July ii has been SELL
ing at from 150 to 100. On April l this was
about the price of the stock.
The Columbia National Bank was repre-
sented before the board by it's president.
this bank was fixed at $2l0, 100. The bank
capital stock Is 100000.
MIR Levering. the board will be glad to
hear what you have TO say" said Governor
Durbin, who is presiding as chairman of
the board.
Il can only indorse what others have
said" remarked Mr. Levering. Those who
have preceded me have stated the banking
business it is. except possibly, they have
not put the figures quite large enough on
bills receivable. We bought the bills re-
ceivable of the State Bank of Indiana
Bills amounting to $4,000 were laid before
US and we agreed to take those that FIVE
men should select as good We accepted
$40 0l0 of this amount, and would not have
taken Anis except with the Endorsement of
the board of directors. They will be years
and years trying TO collect the remainder
of the amount.
Mr.. Levering held that the $4,000 or
$50 900 OF banking furniture taxed by the
county board should not be rated higher
than the household furniture in any home
I'VE think the assessment is high
enough" Mr.. Levering continued. I'VE felt
we would not object TO IT as, after all. il
seemed fair and equitable. We opened for
business on June 3, 1901. We think We
should be entitled to more consideration
than older banks, because new ones are
always approached by the worst securities
possible. We had no surplus on the first
of April. only our undivided profits. We
have paid no dividends. The actual book
value of our stock is about 1O2'
Mr.. FLETCHER'S STATEMENT
Take away the management and brains
OF bank and let somebody else run IT,"
said Stoughton Fletcher, OF the Fletcher
National Bank, "and l think 10 per cent.
depreciation on bills receivable would be a
very fair figure" Mr.. Fletcher's bank