The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1905-08-01
BANK STOCK To-
BE ASSESSED
John P. Dullard, President
of The State Board Of AS
SCISSORS Makes a Movs
WHAT THE LAW SAYS
New Plan Will r ssult Ia An
Increase Ia Municipal
I1com s.
WHAT THE LAW SAYS
Special 10 "The Jersey city News..7

p7PSelaA " Inc Jersey lily news
TRENTON. August /. Through
clever movement made by John r.
Dullard, president Of the Trenton Board
of Assessors. the bank stock of New Jef-
sey, much of which has heretofore es
capped taxation. despite the State law.
will now be assessed. and the various
municipalities will have their incomes
increased accordingly.
The tax law prior to the passage Of
an amendment last winter provided thar
sit shall be the duty of the officers of
every bank to give the assessor of the
taxing district on his application true
statement of the names and residences
of its stockholders on the twentieth day
-of May in said year. as shown BY its
stockbooks, and of the number Of shares
held by EACH etc.
This was interpreted by the State
Board of Taxation to mean that a bank
should furnish to the assessor Of the
taxing district in which the bank was
located a complete list of its stockhold-
ers and their residences, and in the light
of this Interpretation the State Board
had a rule which read: That it shall
be the duty of the assessors in each tax-
ing district in which a bank is located
the shares of which are held by owners
in any other taxing districts, to notify
the assessors of these other taxing dis
tricts where such owners reside, that
such bank shares are taxable in such
taxing districts
This plan of reciprocity, which was
/ designed to prevent bank stock from
escaping taxation in those cases where
the bank and the owner Of the banks
stock we're located in different districts,
was never a complete success, because
the banks throughout the State did moi
construe the law the same as did the
State Board of Taxation. and would noi
furnish the assessors Of their taxing dis,
tricts with a complete list of their stock
holders. The contention of these banks
was that they were not obliged 10 furnish
the assessor of the district in which
bank was located with anything mars
than a list of the stockholders assessabls
in such assessors district. This is the
view that was held by three of Trenton'a
banks, and as result the Trenton as e.
sors were not in position 10 either com
ply with the State Boards rule or to ex-
pect much reciprocal consideration from
other assessors.
The Legislature last winter passed an
| amendment to the law in question. Tit
amendment made it quite clear that the
bank could not be required to furnish
complete list of their stockholders to tbs
assessors in the taxing districts in whieh
the banks We're located. This amend
ment. which was really substitute fol
the old law, provided that 1T shall b
the duty of the officers of every bank Il
give to the assessor of each taxing dis
trict, on his application, true statement
under oath of the president, cashier o.
e ~. - 49, a,,5 .as;,5or,..a, a
its stockholders in such taxing district
on the twentieth day of May, IN sail
year. as shown in the stock books ana
the number of shares held in each"
The new law made a compliance viii
he reciprocal rule of the State Board q
Taxation out of the question. and tn
Trenton assessors found themselves in
position where they could not expect II
receive even the partial reports they bat
been in the habit of getting from otha
assessors 1t was then that Mr.. Dullars
hit upon plan. He had a circular lei
! ter printed, which he sent to every on
of the more than one hundred and ift
banks in the State, making applicetioi
| under the new law for list of the Tre4
ton stockholders of each bank, togethe
with the number of shares of the stod
of such bank held by Trentonians.
Thus far all but two of the banks haN
made reply. The result has been rhe r.
turn of just $50 shares of stock Of out
of-town banks that was never before az
/ sessed against Trenton taxpayers. Th
assessors have sent out an additions
lletter TO the assessors in taxing district
where banks are located inquiring tn
assessed valuation Of the bank stock /
these districts and the replies thus fa
/ received indicate that the additional 50
shares that are to be assessed this yes
for the first time viii have a total as
sessed valuation Of $4,000. The othe
assessing bodies of the State win ua
doubtedly follow up the plan, and Patef
son and other municipalities will thereA
increase their ratables and add 10 tAei
income.