The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-08-08
BANKS AND TAXES.
INCLUDED FROM FIRST PAGE,

tCONCLODED t1tOM FIRST PAGE)
much money it would cause his failure /
would not give 80 cents on the dollar for
the accounts of a grocery house if the
thing stops. OF the eleven banks that have
failed in Indianapolis in the last seven
teen years L have been called to appraiSe
the assets. In some of these cases %
per cent. would not cover the losses In
one instance know Of 40 per cent. would
not cover the loss, notably Fletcher &
Sharpe's bank. We appraised the paper
in that bank at less than 80 per cent its
face value. We were told afterward that
the amount realized out of that paper did
not vary $4,000 or 5000 from our appraise-
ment. In indianapolis we are under some
disadvantage on account of these bank
failures. There are only three of six
teen banks remaining since | became presi-
dent of the Indiana National. Eleven have
failed We are required in this city to
keep % per cent. OF our deposits on hand.
Ia Chicago, Pittsburg and Cincinnati they
do not. We have no control over the rates
of interest here. Our manufacturers and
Chicago and New York for their paper at
very low rate. We do not average more
than per cent. on our loans.
The result will be, If we are taxed more
down our surplus fund The Indiana Ma
tonal Bank has to earn from SIS, 900 to $50. 600
before it earns a penny for its stockhold-
ers. We can't afford to pay any more tax
alton We feel we are paying all we ought
to pay. We believe in having good banks
and we want to keep capital sufficient to
The Indiana National pays per cent. divi-
dends.' Throughout Mr.. Malott's testi-
mony there were occasional illusions to
krag-Reynolds paper.
OTTO FRENZEL HEARD
Otto Frenzel was the last of the bank
ers TO testify before the board In telling
of the consolidation Of the Merchants Ma
tional with the Meridian National Bank he
said the latter institution had s153, 900 worth
of haf hn NJ.
would not consider at all. Referring to
the Indianapolis National Bank Mr. Frenzel
remarked to the Governor: You remember
when they were paying 127 for indianapolis
National stock and ten days later they were
paying an assessment OF $lOO'
The testimony of the afternoon was
wound up by the statement of Colonel
Smith, county auditor, as to the manner in
which the board found basis for assessing
the banks. Colonel Smith said he called on
twenty financial men of this city and got
their views on the matter before the as
sessments were made. In reply TO d ques-
ton of Mr.. Stuart, Colonel Smith said they
found the special statute covering this
/ matter imperative because they were I'M
able TO get at the real market value of
bank stock. Colonel Smith thought the
quotations of bank stock in the newspapers
could not always be relied on. He said the
! assessment OF the banks and trust COM
panies has been raised every year since
he has been auditor. He did not feel he
said. that the trust companies are entitled
to the same consideration as the banks in
the way of eliminating paper
Colonel Smith was asked about the as
sessment of real estate. He said he be-
lieved the assessment OF real estate in Mar
ion county outside Of Center township will
exceed 81 per cent. OF the valuation OF the
property. In Indianapolis there are places
where the assessment is at least 30 per
cent. and in some cases more than 100 per
cent. Then there is other property in GER
tain localities in the city that is only as
/ sessed al 81 per cent.
The board took the testimony Of the In
dianapolis bankers under consideration. At
/ the conclusion Of the session Governor Dur
bin asked Attorney Stuart II he felt that
! the examination had been sufficiently thor
ough, and he expressed himself being
satisfied.