New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-04-14
Savings Banks and IN
surance Companies May
Win Exemption.
DECLARE MEASURE
WOULD CUT VALUES
Financiers Tell Legislators
Problem Should Be Studied
by a Commission.
From st.r Correspondent Of The Tribune

tr,or, st,r Corresponden' Of The Tribune
Albany, April 49, A direct tax OF
$4,000. 900 must be levied annually
for the next FIVE years unless new
methods Of taxation are found, was
the announcement Of the majority
loader Of the Senate. Elon r. Brown,
at the hearing to-day on the secured
debt hill Of Senator ogden /. Mills.
~ want to say now, and 10 make ~
impressive" said Senator Brown, that
the commitments Of the state are such
thai every year hereafter for at least
five wears there must be n direct tax
unless new methods Of revenue are
discovered. The tax will continue TO
90 higher. too, instead of lower unless
We raise more indirect tax. This Is
matter which is no more pleasing 10
us here than to you somewhere else'
but il is fact
Senator Brown made his announce
ment before representatives OF lie IN
surance corporations, trust companies
and savings banks, real estate men
and some Of the best known hEanclers
in the STATE. 800,
Most of these men opposed the Mills
bill in its present shape, and IL was
generally conceded that the measure
would be radically amended
The bill seeks 10 tax bonds secured
by property outside the state BY I'M
posing registration fee Of 50 on
every bond Of s. 900 running for hve
wears or more. and after that an ri %
nuai tax Impost Of $50 while the
bond pays interest. c.o
At the close Of the hearing Senator
Mills said il was undecided when 'he
bill was drafted whether II would De
desirable 10 include in It's provisions
secured debts of savings banks and IN
surance companies.
AT rough guess" said Senator
Mills. 81 would say these corporations
will be excluded / have no doubt that
legislation suggested in my bill VIII De
adopted. 1t has been clearly estao-
lished that some holders Of securities
do not pay their share OF the taxes
while others pay in excess OF wha'
they should. ! believe Dill increas-
ing the revenue this year should De
passed at this session, and then nave
a thorough investigation Of the whole
problem by a legislative committee to
report back to the Legislature next
year
Representatives OF insurance CoiHPo
MES and savings banks broadly hinted
that they considered the imposition or
the proposed tax would rob widows
and orphans. Insurance premiums
would be raised and interest rates to
savings bank depositors would be low
cred, they declared. 49,,
Paul D. Cravath, speaking for Jacob
II. Schif. declared that, while he
favored a revision Of the distribution
Of the burden of taxation between real
and personal property, he thought IT
would be dangerous 20 attempt radical
legislation at the present session.
ANY idea" said Mr.. Crsvath. would
be TO raise the emergency tax this year
and next year do something define
and permanent. certainly would hest
tate 10 re-enact the old secured debt
law. | would reimpOse tax OF hve
mills. with an exemption for five years
Beyond that, and to bridge over a dlt-
fcult period. ! would increase the d.
rect tax. would think that the very
best thing to do would be to appoint
a competent commission to take up the
entire matter"