The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1902-02-07
Parks vi. Martins Paper.

Parks VI. Martini Paper.
1.-THE Assessment of Banks was treated
upon thoroughly in a paper read by Parks
NJ. Martin, state tax commissioner. He
quoted the tax laws fully, explaining what
is meant by cash value and summed up
the provisions OF the law regarding the
assessment of banks as follows:
Il. That national banks are to be as
sessed and taxed the same as state banks.
so. The shares Of bank stock shall be
assessed to the owner in the township,
city or town where the bank is located.
"3. Whenever a bank has acquired real
estate or other tangible property, the as
sessed value of the same shall be deducted
from the valuation of the capital stock.
"A. In determining and fixing the value
OF the shares of stock, the assessor shall
be governed by the market or selling price
at the place where the bank is located.
"5. If there is no market value, the as
SCISSOR shall determine the actual value.
taking into consideration the surplus and
individual profits, just as he would the
money capital in the hands of Individuals
ASSESSED AT LOWER RATE.
Mr.. Martin showed that the banks in
large cities and manufacturing districts are
assessed at a much lower rate than the
banks in the smaller towns and agricul-
tural districts. He said the banks in six
of the principal large cities are assessed
at 70 per cent. of the total cash value of
their stock, while the banks in six agri-
cultural counties are assessed at 100 per
cent. of the total cash value.
Mr.. Martin said that no officer should
nave trouble in arriving at the true value
for the assessment of bank stock. If the
rules pointed out were followed In every
county of the State there would be a uni
form and equal assessment OF all bank
stock, he said. An examination OF the
ocEaCCvonnf of fnnnpnnrnfnH hanEC for 1ln1
shows that there have been some great
variations from the statutory rule as set
out above. Continuing Mr.. Martin said:
There were i'm Indiana on the first day
of April, 1901, 233 Incorporated banks with
a capital stock of 81, 100, 600, and undivided
profits and surplus of &,l23,0l4. The as
against these banks on capital stock was
SIS, SOC, 500. These banks had real estate of
the appraised value of S,SOl,6 SO, which,
added to the assessment made by the
boards, made the total assessment upon
which they paid taxes $50. Cos, ASP. leaving
6.SO5. 1872 that escaped taxation, or an es-
seSSment of 16 per cent. on the total value
of their property. One hundred and seventy
one of these banks, with a capital stock of
$13, 645, 200, were assessed at ST. 9S, 420. or 81
046, $50 less than the total OF the capital stock.
being an average assessment of SIS per
share on capital stock. They also had
$7S6. 153 of undivided profits and S,0l3,330 of
surplus, making their assessment S,S46,
263 less than the true value of their prop
erty.
Il find from the assessment actually
made by the boards of review on bank
stock that two banks were assessed at
from $40 to $50 per share, six from $50 10
$50, fifteen from $50 to $40, thirty-four
forty-fve from $50 10 800. thirty-hve at
500 per. share and ffty-fiYe above 500, the
highest assessment being 1888.
A SPECIFIC INSTANCE.
The assessment made by the boards
shows that two banks were assessed at
between 40 and 80 per cent. of their capt.
tai stock, undivided profits and surplus,
less appraised value of real estate; fifteen
banks between so and so per cent, fifty
four between 60 and 70 per cent, seventy
between 20 and 50 per cent, thirty-nine
between so and 80, thirty-three between 30
and 100, and twenty at 100 or over. An ex-
animation OF the assessment clearly shows
that the banks in the cities and manufac-
turing districts, with large deposits and
that have accumulated large funds Of sur
plus and undivided profits. are assessed at
a very much lower rate than the banks in
the smaller towns and agricultural dis
tricts, which, as a rule, have small deposits
and are unable 10 any great
surplus or undivided profits.
'Of the four principal banks in the city
of Indianapolis one, with a capital stock
of $500, 600, carrying a line Of deposits of
s., $685. 13, having $l3,64 undivided profits
and 500, 600 surplus, was assessed on stock
at $24S,0OO. This bank had real estate of
IAI aIIl - all Va III NNAAALAAH dAAN1
to the assessment on stock, made the total
assessment $293, 129, leaving 1851 OF the
capital stock, together with Sl3,644 OF sur
plus and undivided profits, or Sl20,5l5 that
was not assessed. Another, with a capital
stock Of 100000 and a line Of deposits that
probably was so great that 1t did not care
TO give the amount, was assessed at $500. OOC
on stock; yet this same bank had $350,OOC
of surplus ard S225SS Of undivided profits,
or a total of Sl2,5Ss that escaped taxation
entirely. Another, with a capital stock OF
$500. OO0. with $6,503,03f deposits, S700,00 90 sur
plus and $2lS,644 undivided profits. was as
sessed ON stock at $4,000. Adding re.l
estate of the appraised value OF SIG. 405
would make a total assessment Of 81. OPS. 4O5
leaving 1892. 239 that never found it's way
on the tax duplicate Another bank report
ed only the amount OF its capital stock
the same being $l.OO0.00O. This bank was
assessed at $S50.0O0. L find from a state.
ment made by this bank on July q. 1901
and sworn TO by the cashier. that Il had a
surplus Of $4,000 and undivided profits OF
$26. i72.T. which would show that IL had
property of the value OF S426, l72.n that was
not assessed in 1901.
Compare with this the assessment mad.
on the two banks in Pike county. One witt
n capital stock OF 5000. deposits OF 800.
600 with no undivided profits and only 81
250 surplus. was assessed AT $3.50. SIS
more than the total OF it's capital. undivided
profits and surplus. Another bank. with a
capital Of $25.00. with Sl60.092 OF deposits
$1,000 undivided profits and $3.50 surplus
was assessed at 1920 on the stock. to-
gether with real estate Of the appraised
value OF s12. rs, or "A total assessment o
SSs. 96s. o. SO, rs more than the full value
OF capital stock, undivided profits and sur.
plus. The only Incorporated bank in Pose,
county. with a capital stock OF SO. 600. un
DIVIDED profits OF 5000 and surplus OF SIP.
600. was assessed at S49,2 200. 10 which add
real estate OF the appraised value OF $I7. 500
making a total assessment OF $4,000. 81
100 on every dollars worth Of propert,
owned by the bank.
a LARGE ASSESSMENT.
81 find that the banks in six Of the large
cities of the state. with deposits OF S1s. 24s.
522. undivided profits Of $685. SIS and surplus
OF s3.OS.5O0 are assessed. including thel
real estate. at u per cent Of the total valu.
Of their stock, while the banks in six o.
the strictly agricultural counties. with de
posits Of only 1890. III. with only SCI $50 o