Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-12-04

method to be employed in tax legislation
| SECOND. that it would cripple the effi-
cheney of national banks,
| THIRD, that it imposes a listing pro-
vision upon a part of the property where
general listing is not required.
| FOURTH, that ii is unconstitutional
for the state to place a franchise tax
upon a national bank or otherwise re-
quiring national corporation to make
return to the State.
| The last objection which was the most
serious one has been removed by de-
cision of the supreme court of the United
states: No. %, October term 1913, Clement
National Bank VS.. The State of Vermont,
in which the constitutionality of the law
was tried out and the law was sustained
in every point.
MAINE.
After making deductions for real estate
and tax exempt securities held by the
bank, interest bearing deposits of trust
companies are taxed ! OF Ice, while with
savings banks the deposits invested in
business within the State are taxed * of
% while investments outside the State
are taxed Is of 1eo. but since these in
vestments are about equal it practically
makes a tax of of 10 on the deposits,
the same as with the trust companies
Deposits in national banks are not taxed
to the banks, but are taxable to deposit
tors at local rates
T'eh Following approximately correct
statement will show the number. the in
terest bearing deposits and the tax of the
different classes of banks in our State
and the change in the past five years:
1909:
Number of savings banks 50
Number OF trust panies, 80
Number of national BANKS with
interest deposits. SO
Amt. of deposits in savings bank
paying taxes. s114 pa, 900
Amt of deposits in trust COM
panies paying taxes, 1891 400
Amt of interest bearing de-
deposits in Nat. banks, 1884,. 227
on deposits. 571,173
Amt of taxes of trust COM
panies ON deposits, s4,507
Amt. OF taxes Int bearing de-
posits in Nat. banks, 0
1914:
Number of savings banks As
Number OF trust companies, 46
Number of national banks with
interest deposits. AZ
banks, So. OS2. 500
Amt of deposits in trust COM
panies. 2s.214. 500
Amt of interest deposits in Nat.
banks, So. 0S2, 500
deposits, ass. 1863
panies deposits. 1913
Amt of taxes int deposits in
Nat. banks,
1t will be noted that in five years the
number of savings banks has been re-
duced by four and the amount of depos-
its on which taxes are paid, by 100000
The trust companies have increased by
seven in number and about 100000 in
deposits.
While the national banks with interest
in number and about sl3,0o0,000 in interest
bearing deposits.
Bills, similar to the Vermont law, in
tended to tax interest bearing deposits
in national banks. have been presented at
the last two Maine Legislatures.
The advocates of the bills were few
while the opponents constituted strong
and able lobby, and it Is not strange that
the tax committee reported unfavorably
on the bills.
If 1t is the desire of the coming Legis-
lature to tax interest bearing deposits in
national banks. as such deposits In saw
ings banks and trust companies are
taxed, which would yield tax of $4,000.
Il would seem an easy matter since the
Constitution of the State has been
changed allowing the Legislature to
classify intangible property for taxation
purpose, and the United States supreme
court has upheld the Vermont law tax
ing deposits in national banks
From the foregoing summary of the
laws and conditions in the different New
England states relative to the taxation
of interest bearing deposits in our va
rious banking institutions, two things
seem plainly to be desired:
First, that similar deposits should be