Waterbury evening Democrat., 1905-04-13
THE BANK TAX.
Banks Declare that Reliefis Neces.

The long discussed question of relief from taxes on savings banks deposits
 was before the finance committee at
 Hartford yesterday at hearing which
 occupied practically all of the after
 noon. Those in sympathy with the
 bills before the legislature repeating or
 reducing the taxes were heard and on
 Wednesday of next week the other
 side will have their say. Representa-
 tive Fosdick of Lyme seemed yester- day to be the leader of that opposition, as he asked number of questions which were in the line of cross-exam-
 nation. The bank men who testified were unanimous in favor of a change,
 which would either wipe out the tax on deposits or reduce it as much as
 was found to be practicable. They claimed that there must be some re- lief from taxation if the present rates of dividends to depositors were to be maintained for any length of time.
 J. Henry Roraback of North Canaan, who had charge of the affirmative side of the discussion, said that he repre- scented about sixty of the ninety say ings banks in Connecticut and all were III otrolu III uVolllIS lSpSul VI tHC law of taxation or the reduction of the rate. The present law, he said, was largely the result of the demand for war revenues. Mir Roraback gave a history of the state laws as to taxa ton of savings bank deposits. dating from 1S46, when the first law was en- acetd. which laid tax on deposits of over $23O, to be paid by the depositors. Six years later q tax. was laid on all deposits to be paid by the banks. He told of the various changes in the law. the rate being increased at the time of the civil war and reduced after wards. The present law was passed in 1878, requiring savings banks to pay q tax of One-fourth of 1 per cent on all deposits, $5O,OOO being exempted Mir Roraback believed that the figures of the past few years proved that the state could afford to relieve q part of the tax on savings banks and still meet it's obligations. He read figures as to the state debt, which showed a steady reduction since 1897 at the rate of about $600.O0O year. The present bonded debt of the state, less civil list funds in the treasury, is $214,5S4.49, while in 1867 the figures were $7,6G1,- 411.55. Mir Roraback spoke of the great number of people who were af- fected by the tax, as every other man, WOnian and child was a depositor i'm the savings banks. A visit to one of the institutions would tend to contra dict the idea that they were chiefly patronized by the wealth. Last year there were only 369 in the state who had deposits of more than $1O,OOO each and 11S of these were with one bank. Of the total savings bank depositors, more than 47O,O0O, there were more than 41O,OOO who had de posits of less than $1,OO0 each, averag- ing $214. A question was asked of Mir Roraback as to the policy of the banks in case they secured relief from the present rate of taxation, whether they would increase rates to depositors. Mir Roraback understood that no increase would be made, but that the banks would be longer a'Dle to maintain the present rates. He called attention to the fact that banks were availing themselves of the privilege allowed by law of discriminating between large and small depositors as to the rate of interest paid. the difference allowed being not to exceed 1 per cent. Some banks paid 4 per cent on small de- posits and BE on large.