The county record. [volume] (Kingstree, S.C.) 1885-1975, 1903-03-26
WILL Be TAXED.
Opinion Concerning Building and Loan
Associations.

N!ll.en Uy lES ISSlSldul dtICluty sSu-
eral, Mr. Townsend This is an iano-
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 will act &C
cordingly.
When the auditor Of Richland coun-
ty. Mr.. w. H. Gibbes. Jr.. was told Of
this yesterday, he stated that he had
already decided to call the attention
Of the county board of equalization to
this matter. Mr.. Gibbes states that he
has had number of people to ask him
II they must make a 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
dividual stockholders is subject to the
taxation.
But of all the nine domestic" build
ing and loan associations in the city
OF Columbia, not one has been on the
taXbooks and not one has made a re-
turn this year. There is another com.
pany with headquarters in Syracuse,
n. Y, which is said to be subject to
the laws Of taxation on account of its
business in Columbia.
One of the Columbia companies, the
Domestic, is exempted because it
started in 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 FL
deity, the Security, and the Pruden-
tial. Mr.. Gibbes could find no evidence
of returns having been made by these
companies.
Comptroller General Jones has re-
ceiyed several letters which caused
him to get declaration from the
office of the Attorney General. The
building and loan companies claim
that their credits or mortgages should
not be 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 thereupon. The
opinion Of Mr.. Townsend applies to in
surance companies and other organi-
cations not now taxed.
THE COMPLAINTS.
Mr.. Walter l. Hazard, president Of
the Home Building and Loan Associa-
ton of Georgetown, under date Of jan
uary 29th, filed complaint that the
company has been paying taxes for
several years under protest, claiming
that it 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-
template 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 s150000 but Is not
assessed for taxation. "And your petit
toner Is reliably informed and be-
lieves that the large number of simi-
lar associations doing business in Co.
lumbia' and Charleston also enjoy
immunity from taxation"
Wherefore the company begs to be
relieved of further taxation and asks
for rebate of taxes for 1902 This Pc
tition receives favorable endorsement
from VIM. H. Dorrill, county auditor,
and E. NJ. Lucas, county treasurer.
Mr.. H. ]. Dean, chairman Of the
board Of assessors Of Spartanburg city
school district. wrote to the comptrol-
: Tuesday in regard to this same
after, and asks if building and loan
.0npanies should not return the
value of all credits and evidences of
credit On the first day of the year. In
Spartanburg the custom has been to
return surplus cash on each series on
that date, but no account is taken Of
money loaned on collaterals.
WILL 1T WORK A HARDSHIP?
Maj. John H. Earle Of Greenville, at
torney for the Carolina Loan and
Trust company, also filed a complaint
with the comptroller. He emphasized
the statements that 1--WE have no fixed
capital" strictly mutual" "all loans
on taxed real estate" "Aot bank
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-
cision Of the Illinois supreme court to
show that IL would NOT he 6ouh1o tay-