The evening star and Newark advertiser. [volume] (Newark, N.J.) 1907-1908, 1907-08-30
ON STOCK TRANSFER
ORANGE BANKER ATTACKS
THE TAXING SYSTEM.
Says Stock Was Transferred to Essex
Fells to Attract Attention to
Many Alleged Abuses

John d. Everitt. president Of the Orange
National Bank, today answers the Essex
County Tax Board regarding the questions
submitted 10 him relative to the transfer
OF 1000 shares of the banks stock from MS
name to the name of Thomas j.. smith, OF
Verona, who is connected with the orange
Bank. Mr., Everitts answers are the sant
rs he would give il testifying before the
board, he announces. They follow;
Orange, n. j.. Angus 80, lWi..
Essex County Board of Taxation, Newark
New Jersey:
Gentiemen-Referring to your favor of
the 10th instant, requesting my attenaanee
warded to me at Watch Hill. Rhode island,
reaching me after the latter date; weulu
state that having returned home, l snai ne
pleased TO appear aud answer uiiy question:
you may desire 10 ask relative 70 the
transfer of 2,0O shares of stock of orange
National Bank from MY name 10 the name
with the present data 1 have Of your
demand for Information, l mter you uesire
the facts connected with tho transfer or the
stock by me TO Mr.. Smith. If such Is the
case. / would state that the Orange ON
Gals have been aware, ever since tne Stock
was transferred to my name, thaf II was
nominally only owned bN me, tne leaI
Invertebrates OF such stock were and are
the United States Mortgage ana Trust
Company of New York. II was put in my
name for the purpose OF insurlng It's TAXA
tion In the district in which the bank does
business. BY the transfer OF the STOCK 70
the nnme OF Thomas J. Smith there mas
been no change in beneficiary. the actual
beneficiary being still the United States
Mortgage and Trust Company.
l would say further that the owners or
the stock, and also the bank and IT'S OH
GERS, are still DESTROYS. and always ave
been, that the stock should be taxed IN
Orange at n fair rate and fair valuation.
and my purpose in making the above
statement Is to render this possible.
The transfer of the above stated stock
was not made for the purpose, or IN tne
hope Of eventually effecting any evasion
OF my just tax.
The reasons for the transfer, on the
other hand. were as follows:
/. To bring to your attention. In the
only manner that it could be done VIII
out q personal attack. the DISCRIMINATION
by last wears assessor, In raising the valu-
alton of this stock seventy points, ana
assessing stock of a competing institution
at the nominal value Of par, and that this
discrimination vas protested against by
us and the assessors promise or a re-
valuation Of the nominal assessment, was
not kept.
2. BY the publicity given this action, 10
cause investigation of reports that evasion
has been permitted in other cases, either
by swearing off for debt, or otherwise:
Q. To also bring to an issue, and with as
much publicity as possible, the unfairness
OF existing State laws regulating tax on
institutions competing with national oanks,
claim exception on the major portion. II
not all, of the capital invested, While nnder
existing laws 1t IS Impossible IOf ndtlonat
banks TO secure any such exemption,
thereby creating a competition 10 the
banking business that is absolutely unfair.
and in violation of the spirit, but not the
letter of the federal laws governing the
taxation Of financial Institutions.
4. Hoping that the result of such pub
licity will be the enactment of a law pro-
viding for a fair tax to be imposed under
uniform rules and applied with equal JUS
tice to and upon trust companies and
banks (they being in direct competition
one with the other, based upon a lust
valuation Of capital employed and at a
uniform rate. Yours truly.
JOHN D. EVERITT.