Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1911-08-17
BOARD Still ThREShES
BANKING QUESTIONS
HARD MATTER TO ARRIVE At
PROPER EQUALIZATION
OF TAXES.
Individual Cases Will Not Be Tackled
but an Equalization by Countie
ATTEMPTED,

Results accomplished by the state
board of equalization yesterday after
noon were not large. A way to equal
ize bank assessments was the prob
lem. 1t is not new. This same vex-
ing question comes up every year and
it will continue to arise until some
system of appraising property Is de-
vised which will show more accurate
ly true conditions.
But the board has been making
Roadway. It now has list prepared
showing the capital stock, surplus
and undivided profits Of all the banks
by counties. This is compared with
the returns made by the county
boards and by this method some idea
may be gained of the amount charged
off for real estate. 1t is the large
amount of real estate owned by the
banks which is so perplexing. For
example: A bank may have, as shown
by its report to the bank examiner,
capital stock, surplus and undivided
profits of say 100000. The law pro-
vides a reduction Of five per cent
for bad loans and losses. Deducting
this, $4,000 is left. From this $95, 900
a further deduction of $4,000 is made
for real estate claimed to be owned
by the bank. This leaves a valuation
of $35, 900 to be assessed. Now the
bankers insist that their assessment
should be as low as that Of other
property owners and they want the
$685. assessed at about $780,, or
at the outside $4,000, twenty-five or
thirty per cent.
Out of a total capital stock, surplus
and undivided profits of $17,565, 755
in the state, the bankers show in real
estate, furniture and fixtures OF
$5,338,987. The five per cent deduc-
ton as provided by law for bad loans
and losses takes off of the total
amount $3,O15,735, making the total
deductions $S,354,722.
Now the question is how are the
returns to be equalized so as to not
do an injustice to the banker making
an honest return and where no real
estate is deducted? The equalization
board is powerless to deal in indiyid-
ual cases. It must take the tax re-
turns by counties and equalize them
not as between banks but as between
counties.
One instance came to the attention
of board member where bank
asked to deduct its real estate hold
ings in Canada.
Real estate is deducted from the
bank taxables at it's full value in cash
and when appraised for taxation as
real estate it goes in at an appraise-
ment Of Is per cent or less. This the
bank representatives do not deny. 1t
has been claimed and dismissed as
joke before the board that real es-
tate is sometimes borrowed by bank
ers for taxation purposes.
BY the system of appraisement in
augurated by the equalization board,
the amount of real estate is separated
from the capital stock, etc., by counr
ties, and the equalization will be
made along these lines. 1t is the fair
est equalization yet devised under the
taxing system of the state.
An effort will be made at the next
session of the legislature to have the
tax law amended so as to eliminate
the real estate deduction features by
it unlawful for banks organ.
lied under the state laws to own
more real estate than is necessary for
their bank structures in which they
do business. And thorough in
vestigation will be made by the new
board of state tax commissioners and
a report of conditions made to the
next legislature.
The appraisement of banks will
probably be completed this evening,
when elevators and warehouses will
be taken up. And following the tele-
phone property of tie state will be
appraised and the work Of the board
will be completed. 1t is hoped to get
through this week.
HAVE you THOUGHT
OF buying rug? The sale of 9x12
r,1ps at Wehh Rrothers will convince