The Mount Holly news. [volume] (Mount Holly, Burlington Co., N.J.) 1891-1942, 1910-02-01
Bank stock Assessment.

3AAAA 0LOGA AS6C6G0GAL.
That perplexing question of how to
assess bank stock was the subject of dis
cussion by the State Board of Taxation,
last week, and q decision was rendered
which is that the. stock must be assessed
at its true value" The assessors of
Newark insisted that bank stock must be
put down at its market price. An appeal
was taken to the County Board of Taxa
ton, and the decision not being what was
wanted the case was carried to the State
Board and that body reached the conclu-
sion that market value could not be taken
as standard nor could what is termed
"book value" be considered. The rule
laid down by the State Board is that from
the total resources must be deducted the
liabilities, less the capital, surplus and
undivided profits, and from this latter
amount there must be taken the real
estate and exempt securities, the remain
der to be divided by the number of stock
holders.
This is the rule that has been followed
by the Burlington County Board since
the decision in the Court of Errors and
Appeals on a suit to determine the method
of assessment. In the Newark case the
bank carried its real estate on "book
value" at $500. 600, but in its sworn state
ment to the government it returned the
item of real estate, furniture and tx
lures, $262, 000." At this figure the asses
sor made his returns and In this he was
sustained by the State Board. That also,
has been the custom In this county. In
one instance last year, a bank objected to
being assessed for its real estate, furni-
ture and fixtures" at the sum 1t returned
to the government under the affidavit of
the cashier. The County Board held that
was the only proper figure to consider,
and revised the duplicate to that amount,
the assessor declining to agree to such
arrangement, he claiming that the prop
erty was not equalized with neighboring
property. The State Board has decided
that the sworn statement must govern.
Frank b. Jess, a member of the State
Board. put in minority opinion In which
he demurred from the decision of the
Board. Mr.. Jess says true value of bank
stock cannot be gained except through
the market. He calls attention to the
fact that an assessor is required by lay
to assess property at such price as In his
judgment such parcel would sell for at a
bona ide sale by private contract on the
10th day of May. The Legislature ap-
proves and adopts the rule that true value
means exchangeable value in cash, and
true value" has been similarly defined
in judicial decisions The argument ad-
vanced for the assessment of bank stock.
however, seems to be that there must be
different basis adopted; that bank stock
is class of property peculiar to itself,
whose true value is not to be determined
by the standards which the Legislature,
the judiciary and the ordinary judgment
OF mankind apply to other property.
MIR. jess cannot see any reason for this
distinction. His idea is that the true
value of bank stock is the value each
share has in exchange for money, the
shareholder does not go to any other
place to discover the value of his holdings,
but he goes right into the market Mr..
Jess asks: would an executor be allow
ed to appraise shares of stock at a rate
less than their market value2" And then
he puts the question: "Why should bank
stock have one value for all other pur.
poses except for the purpose of assess
ment2"
Mr.. Jess, if he had waited few days
would have been able to give practical
demonstration of the absurity of the
manner in which bank stock is assessed.
There was a sale of this sort of property,
on Wednesday. Shares of the First
National Bank, of Trenton, sold for $165
per share. Par value, 800. Accessible
value, 5000. Fifteen shares of the stock
of the Trenton Banking Company brought
500 per share. Par value, $50 per share
Assessable value $42.46. Compare the
"true value" with the market value and
the value for taxing purposes.