The Washington times., 1902-04-05
Trust Companies Opposed
toPaying on Capital and
Undivided Profits.
EXCESSIVE AND PR0HIBITIVE
Tax on Gross Earnings Suggested as
Proper Substitute Measure-Exception
of Clothing and Articles of Personal
Adornment Urged.

delegation of the leading lawyers of
the District and a bank president ap-
peared before the Senate District Com
mittee yesterday afternoon in advocacy Of
an amendment to the proposed personal
tax law
The bank president was Mr.. Charles c.
Glover. of the Riggs bank. and the at
torneys were Messrs. A. S. Worthington.
r. Ross Perry. George E. Hamilton. and
William I. MattingIy. representing tine
trust companies of the District
The delegation explained that it is not
opposed to personal tax law before ar
guments were begun. 1t was explained.
! however, that some features Of the bill
introduced by the committee have seemed
unjust.
The Tax Objected To.
The arguments at the hearing yesterday
were chiefly confined to the section of the
bill which taxes banks and trust com
panies one and one-half per cent on their
capital, surplus and undivided profits.
This the members of the delegation
were unit in declaring too high a rate
Mr. Mattingiy made a short statement
OF the case, expressing the opinion that
the tax proposed will be excessive and
in some cases almost prohibitive.
Senator Mcmillan explained:
1T is a question of how to raise the
money to pay for absolutely necessary
improvements, the filtration plant and in
creased sewerage facilities and other SIM
liar projects. The money We wish to raise
now is not for luxuries. These things will
require s13.000.000 or $4,000. .000 They
can't be paid Tor out of the revenues now
received
Along the Wrong Line.
Mr.. Perry suggested that perhaps the
committee is proceeding along the wrong
line in attempting to make the current
revenues pay for such improvements.
THE people of the city unquestionably
should pay for all the things that they
are using now. the things that are con-
sumed as they are produced, as it were.
But some of the improvements you speak
of-many that the city needs-will be for
the benefit of the second and third and
fourth generations.
Senator Gallinger asked Mr.. Perry if he
would be in favor of bond issue.
Undoubtedly" answered Mr.. Perry. He
stated that the Board of Trade several
years ago had worked for such. a plan.
.. Protests Against Bond Issue.
Mr.. Gallinger replied that there had
been number of protests against a
bond issue from the citizens, and Mr..
Perry stated that the labor organizations
were understood to be against such plan.
Mr. Hamilton, representing the Union
Trust and Storage Company. called atten-
tion to the law of 1890. under which the
trust companies operate.
This law provides that companies must
have a capital of at least 100000 and
of s25O, 900 additional If they wish to en-
gage in the storage business.
"The law is not the same in other cities.
The local concerns have much more capi-
tai than they need. and in other cities
trust companies worth half their capital
are doing ten times the amount of busi-
ness with perfect safety.
Formed Under Old Law.
s'The trust companies were nearly all
formed under this law. and to a certain
extent naturally with the understanding
that there would be no change in legis-
Iation.
my company is less than two years
old 1t has not built up a large business
yet, Such law as Is proposeu "ouiu
work an especial hardship on us"
Mr.. Hamilton also called attention to
the fact that the insurance companies
and other corporations are to be taxed
IL per cent on their gross earnings He
said that it would seem just to apply the
same provision to the banks and trust
companies as well.
I've would be willing to put the old law
into effect" said Mr.. Mcmillan, ''provid-
ing a tax on the market value of stocks
1t has been declared invalid on account
of technicalities. but these could be RENE
died.
..It Is more drastic law than the one
we propose, however, as you know" he
commented
'.It would result in continually cutting
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