The herald and news. [volume] (Newberry S.C.) 1903-1937, 1918-04-12
DONINICk AMENDMENT WAS
WHAT COMMITTEE DESIRED

Columbia, April S.-The friends %
I,cYs ressman Fred H. Domirice es
the third congressional district will
read with interest and pleasure the
account in the Congressional Record
of the action of the house in accord-
ing Mr.. Cominick credit for setting
it right upon the third Liberty Loan
bill with Respect to the taxation CT
banks holding Liberty Ponds. When
the measure came up in the mouse,
Mr.. Dominick offered an amendment,
which was voted down. Several days
later, after a thorough investigation,
Majority Leader Kitchen was con-
yinced that the Dominick amend
ment really expressed what the ways
and means committee desired, and
what it had intended to write into
the bill. and Mr.. Kitchin called q
meeting of the committee, which lii
dorsed the Dominick amendment, and
went back to the house with the re-
quest that it be adopted, which was
done. IN stating the situation to the
aease, Majority Leader kltchiR gave
Mr.. Dominick full credit for putting
the matter straight.
During his term as assistant attor-
ney general of South Carolina, Mr.
Dominick successfully handled the
bank tax cases here, and is thorough
1y familiar with the taxation laws as
applied to banks.
Mr.. Kitchin's statement on the
floor of the national house, with re-
gard to the Dominick amendment.
which was first voted down, and then
resurrected at the request of the ways
and means committee and passed by
the house. is included in the Con
gressional Record and explains the
whole matter, as follows:
Mr.. Kitchin: Mr.. Speaker, I ask
unanimous consent to reconsider the
bill H. R. 11123, known as the third
Liberty Bond bill, that passed the
house on Saturday, and to return TO
that stage in the procedure of its pas
seoe in the house Immediately before
I .~ade the motion for the previous
question.
The Speaker: The gentleman from
North Carolina (Mr. Xitchin) asks
unanimous consent to vocate all the
proceedings on the bill H. R. HIPS.
back to where he made his motion for
the previous question. Is there objec-
ton?
Mr.. Wingo: Mr.. Speaker, reserving
the right to object in order To-
Mr.. Kitchin: Mr. Speaker, I made
this request for the purpose of offer
ing an amendment to section Of tt:
bill. This section embraces a provis-
ion with respect to the determination
of the values of the shares of stock OF
national banks, state banks, trust
companies, and other banking insti-
buttons Cor the purpose of state taxa
1tou. The committee of the whole and
the house on Saturday voted against
the motion of the gentleman from;
South Carolina (Mr. Dominick) to
Strike out section under the grim
impression and belief, because ether
members of the committee and myself
assured the house, that the only fair
construction admissible to that section
was that it exempted from state tax
taxation only. an amount of the value
of the shares Of stock of the bank
equal to the same proportion Of the
value of the shares as the par amount
of any bonds or other interest-bear-
ing obligation helS.by the bank bears
to it's gross assets. In other words,
the intention OF the committee. and
the fair and reasonable construction
of that section. as the committee and
myself contended on the floor. was
that if bank had S1.000,000 OF assets.
and 100000 Of government bonds IL
those assets, or 10 per cent of its as
sets in government bonds. that fo-
taxation purposes only 10 per cent
could be deducted from the value q
the shares of stock of the bank Tn"
gentleman from Illinois (Mr. Cannon,i
the gentleman from South Carolina.