Norwich bulletin., 1912-03-09
STATE TREASURER OPPOSES
 SAVINGS BANK TAX
Differs With His Deputy in Regard to
 The Question.

The commission appointed under the law passed at the last session of the legislature to investigate the tax alton of corporations which pay taxes to the state held hearing for say ings banks in the capitol at Hartford Friday. The commission consists of Judge John Walsh of Norwalk, Tax Commissioner w. H. Corbin and Pro- lessor Fairchild of New Haven.
 Among those present were H. B. Moves of Mystic, F. F. Robinson of Jewett City, Costello Lippitt of Nor wich.
 A. E. Hart. the treasurer of the So- ciety for Savings, which. said Mr. Hart, is the largest savings bank in the state, said that the tax on say iDss banks began shortly alter the civil war. The banks then were able to make loans at 8 rate from to per cent. interest. Four per cent. was then a mere bagatelle, Their secuFi- ties then yielded the banks larger return than now. They are struggling 10 Fay four per cent, and they have kept it up long beyond the time it was expected. He frequently hears per sons say that they wonder how the banks can pay 4 per cent. There are about 10000 accounts in the Society for Savings, and the average amount of deposit is $500. He did not deny that sorle rich people had taken ad- vantage of the savings bank to in crease their deposits. The bank does not pay interest on deposits which ex- eeed $10.000
 The banks will have paid for ten years over S6,0o0, 900 in taxes to the state at the end of this year. This Is more than their share. considering that the money belongs to the work
 ing people. The savings banks do . great deal Of good. If the taxes are increased it will be necessary to re- duce the rate of interest. The seCuri-
 ties of the Society for Savings do not net them more than 4 per cent. Their
 tax and the expenses bring that down to 1-2 per cent. They are able to pay per cent. because of their large surplus. The banks buy state bonds. His bank ha3 bought $500,0 900 of the last issue The banks are backing up 1 the state.
 Deputy Treasurer E. Frank Marsh
 said there ought to be an tncrease in the tax rate He called attention to the small attendance and said that 1 it did not show much interest in the matter.
 MT Marsh said the assessment for | the examination of banks ought to be ] abolished. The state ought to pay this. l The state ought also to pay for the 1 salary of the building and loan com 1 missioner.
 1 State Treasurer Costello Lippitt said l that while he honored his deputy, MT ! Marsh, for his devotion to the inter- l ests of the state, he differed with him i in his view regarding the state tax ! The savings banks are a good and
 easy mark for the legislature. The ] state tax on towns was killed in the I senate by some senators who, it was
 said, had political aspirations He
 was afraid it Is useless to try to gel l & reduction in the savings bank tax 1 The examinations of the banks are moi | satisfactory to any one, not even tC the commissioners who make them. | MT. Moves of Mystic suggested thd' 1 the tax be graduated. He thought they
 should follow the New York law by i which the amount of deposits was re- | stricted. The bank commissioners dC 1 good work and the one instance O
 dedication should not be an excuse
 for criticising the commissioners Hartford Times.