The people's journal. (Pickens, S.C.) 1891-1903, 1903-03-26
WILL BE TAXED,
"p'"'on concerning Building and Loan
ASSoClstlOus

- '@| 10 liiS auVlCS given inc
comptroller General by the Attorney
"eherais Office, the opinion being
"rltten ny the assistant attorney gen.
cral, Mr.. Townsend. This Is an inno
Vation. at least in some counties, and
the attempt to assess and to collect
taxes may be taken into the courts.
But the attorney general has advised
that this Is required by the law and
the Comptroller General wiN act ac.
cordingly.
When the auditor of Richland coun.
ty, Mr.. w. II. Gibbcs, Jr., was told OF
this yesterday, he stated that he had
already decided to call the attention
or the county board of equalization to
ehis matter. Mr.. Gibbes states that he
has had number Of people to ask him
Z they must make return of their
stock in building and loan associations
and he has told them that the com
pany as such and not through the in.
dlVldual stockholders is subject to the
taxation.
But or all the nine domestic" build
ing and loan associations in the city
OF Columbia. not one has been on the
laXDooKS and not one has made Il re.
turn this year. There is another com.
pany with headquarters in Syracuse
N. Y, which is said to be- subject tu
the laws OF taxation on account of il
business in Columbia.
One Of the Columbia companies. the
Domestic, Is exempted because il
started ia business after the first of
the year. The other eight are the
Building and Investment Company OF
Columbia, the Richland the Citizens.
the Peoples, the Homestead, the ri.
deity. the Security, and the Prudcn.
tlal. Mr.. GfbbeS could fnL no evidence
of returns having been made by these
companies
Comptroller General Jones has re.
ceiVcd several letters which caused
MIN to get declaration from the
once OF the Attorney General. The
building and loan companies claim
that their credits or mortgages should
not De taxed as the property on which
the mortgages are given is itself
taxed and the law does not permit
double taxation" Another contention
IS that while the mortgage might have
been given for $1,000, and while the
party might have made many payment
and have reduced his actual indebted
ness to the company yet The mort
gage would be taxed as if no payments
had ever been made thercupon. The
opinion Of Mr. Townsend applies to in
surance companies and other organi-
cations not now taxed.
THE COMPLAINTS.
oil
the Home Building and Loan Associa-
ton Of Georgetown. under date Of Jan.
uaTy 29th, filed a complaint that the
company has been paying taxes for
several years under protest, claiming
that 1t is not liable to taxation, owing
TO the peculiar nature of it's buSi-
ness. He contends that the funds OF
the association are loaned to the
shareholders, secured by mortgages
on personal and real property which Is
already taxed. The law does not con-
te ,late double taxation" which, he
claims. is the effect OF taxing the build
ing and loan company.
Mr.. Hazard then cites facts which
tend to show discrimination. The only
other building and loan company in
Georgetown Is the Eureka. which has
a capital stock Of $l50,0O0 but is not
assessed for taxation. And your peti.
TONER IS reliably informed and be.
Iieves that the large number of simi.
lar associations doing business in Co.
lumbia and Charleston also enjoy
immunity from taxation"
Wherefore the company bcss to be
relieved OF further taxation and asks
for rebate OF taxes for 1902. This Pc
tltlon receives favorable endorse scmCnt
from VIM. II. DOrrill. county auditor.
and f.. Nj. Lucas, county treasurer.
Mr.. n. j. Dean, chairman Of tho
board or assessors Of SDartanburg CITY
school district, wrote to rhc comptrol-
'cr Tuesday in regard to this .iamc
matter, ard asks if building and loan
companies should not returu the
value Of all credits and evidences Of
credit on the first day Of the year. In
the custom has been to
rctnrn surplus cash on each series on
that date, but no account is taken Of
money loaned on collatcrals.
WILL 1T WORK A HARDSHIP?
Maj John II. Earle of Grecnvillc, at
torney for the Caroline Loan an!
Trust company also fitted complaint
with the comptroller. He emphasized
the statements that we have no fixed
capital 'strictly mutual" "all loans
do not take deposits. make no loans
on endorsed notes." generally have
an overdraft," etc. The complaint con.
cludes:
IF this little company has to pay
the high rate Of tax here on the mort
cages it holds In trust, it Will run them
out Of business for we cannot pay both
on real estate and on our assumed
capital stock, which is represented by
said real estate"
In reply to the comptroller general,
Mr.. Townsend said that building and
loan companies are to be taxed as
other companies and he cited a de-
clsion Of the Illinois supreme court to
show that 1t would not be double tax.
alton. Building and Loan Associa
tions should be required to return all
loans secured by mortgages on real
estate for taxation at their full value"
Tkrsss fatmirs ssct,
greenwood, Special. --RODcrt {,