The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-22
1t Carries Compromise
Rate Of 10 Cents on
Each $100
OVERRIDES WISH
OF NEW GOVERNOR
Senate Takes Decisive Action
After Long Debate, in Face of
Stuart's Well-Known Oppo-
sition to Reduction of
Tax Rate Below
Is Cents.

over the protest of IA small fighting
minority, the Senate OF Virginia yes
tcrday passed under suspension of
the rules the cchols bill. scgrcgating
bank deposits and making them tax
able by the State alone at the rate Of
10 cents on each 800 AS originally
drawn by Senator Echols. the bill pro-
vided for tax OF only cents on the
500, The Senate Finance Commit
tee made the rate 10 cents, and the
amendment adopted.
The bank tax bill furnished the Sem
ate with the first real debate of the
session, the discussion consuming fully
an hour and half. One-fourth of the
senate membership took a hand in the
debate. and several Senators took the
noor two and threo times.
From the opening day of the pres
cnt session of the General Assembly
the agitation for the removal OF the
heavy tax on bank deposits has over
-hadowcd every other immediate is
sue before the lawmakers. Much Of
its prominence Is directly attributable
TO the divergent views held by Cover
nor Mann and Governor -elcct stuart
and the unanimous demand for relief
on the part OF the States bankers
Action WA. Decisive.
The Senate's decisive action In pass-
ing the bank tax bill by vote OF 81
to .. taken To show a marked
difference to the wishes OF the Gov
crnor- elect who made II clearly
known that he was opposed to reduc-
ing tho tax per s1o0 to point below
20 cent? His strong feeling In the
matter became known last week. when
lac asked the House Finance Commit
Tee TO give him an opportunity to be
heard before taking action on the
Weaver bill. which, like the bill of
Senator Schols, originally provided Il
tax rate Of 2 cents per sIpo.
In the course OF a long hearing on
Monday. before the House Finance
Committee, Gorerror-elect Stuart spoke
at length against n sweeping reduc-
tion OF the tax on bank deposits. and
urged as a compromise 25-oent rate.
tt begin the tax-reform program with
what was practically an exemption
from taxation of S2oo,00o,ooo OF prop
erty. he said. was to proceed In the
wrong way.
Mann for Lower Rate.
Governor Mann, on the other hand.
speaking AZ the same time before the
same committee. was strongly in favor
of the cent rate provided by the bill.
The tax on bank deposits. he held.
should be nominal in order to attract
capital to this state and keep IL from
seeking better investment elsewhere.
The committee. at the conclusion of
the conference amended the bill TO
provide a tax rate OF 10 cents, and
the Senate Finance Committee on the
following day took the same action.
The Senate spent n full hour yester-
day in debate over AN amendment Of
fered by Senator Buchanan, amend
ing the committee amendment so as to
make the rate OF taxation OH bank de-
posits 90 cents instead OF 10 cents on
the 500, as recommended by the com
mittee The increased rate found
strong champion In Senator Feather
ston.
How They Voted.
At :45 o'clock. after ten Senators
had spoken to the question Lieuten-
snt-Governor ElIyson called for vote
on the Buchanan amendment. 1t was
defeated By the vote of 90 TO o. the
Senators voting as follows:
Ayes: Brock. Buchanan, Drewry,
Featherston, Gayle, Gravatt, Holt,
Saunders and Sowder--o.
Noes: Blanks. Bowers. Cannon. Ca
iron. Early Echols, Edmonson. Fletch-
err. Garrett. Harman. Hart. Hobbs. Les
ner, Mapp Massie. Moncure, Montague,
Parr, Paul, Paxton Rinehart, Rison.
Royal. Smith, Tavenner Thornton.
Watkins Wcndcnburg, West-29
With this amendment lost, Senator
l'eatherston sought to have incorpor-
ated an amendment making the act APP
ply only to the years 1914 and 1915.
He was willing, he said, to pass an
emergency measure to afford relief to
the bankers of the state. but wanted
tho final disposition OF the bank deposit
tax question deferred until the next
General Assembly. which Will probab-
ly enact tax-reform laws affecting all
classes Of property.
The Featherstou amendment was op-
posed by Senator Echols, and was
overwhelmingly defeated when put to
{, vote. Senator I'eatherston's call for
Il division was not sustained. min
ute later the bill amended was
placed on it's passage. and was passed
by a vote of 81 to >. Senators Feather
ston and Buchanan. alone. voted against
it, Senator Crockett was absent from
the chamber.
Echola Moves Suspension.
Senator Echols, as patron of the
iill, moved. as soon as'the routine bust
ness of the day was disposed of. that
the rules lie suspended and tho bill
placed on Its passage. 1t was an
emergency measure, lie said. and in
order to afford the relief that was ex-
pected had to become effective before
February I.
Information that came to him from
every section Of the State. said Sena-
tor Echols, convinced him that there
was a general desire for relief from
tho present heavy tax on bank de-
posits. not alone OH the part of the
banks, but on the part of citizens and
business men at large. He expressed
the fear that If the bill were not passed
I'm time to give. the relief asked for.
enormous sums OF money now on de-.
posit In the banks OF tho State, will
leave tho Commonwealth and never
roturn
Senator buchanan took tho floor