The herald and news. [volume] (Newberry S.C.) 1903-1937, 1918-04-12

OSN~o'
t!emen who opposed the provision iii
the b:ll took the position that the cor
struction was that if bank purchased
bonds ec@al in amount to the capita!
stock and surplus of that bank. tnen
the shares Of stock would escape taG-
alton by the states altogether. And
naav Of them opposed and votea
against the provision in the bill and
with the gentleman from South Caro-
l-.:2 CIR. Dominica to strike out that
provision, upon the assumption that
that was proper construction.
l myself would have voted with the
gentleman from South Carolina (M-.
Dominick) On his motion to strike out
the section. and certainly to amend
the section; and if not to amend Il
to strike out the section, if had be-
lieved it was fairly reasonable to con
strue it in the way in which the gen-
tleman from Illinois (Mr. Cannon.
and the gentleman from South Caro-
lima and the other gentlemen con-
strued it. l assure the house that
that amendment would not bear thai
construction and arn certain, hut for
that assurance. that many gentlemen
would not have voted for the section
and the privision as it now is in the
bill.
On Monday morning I went down tc
the Treasury Department to see how
it would construe the language of the
provision, and, to my surprise. 1 was
told that it would construe it to mean,
and the Treasury Department intend
ed by the language for it to mean.
that if bank invested an amount
equal to it's capital stock and its SUI
plus in Liberty Bonds it would es-
cape all taxation by the state. | said,
81 would not favor it if | though
that was the construction. and | feel
in honor bound to go back to the
house and make this statement and
ask the house to reconsider the bill!
and amend the section to carry outt
the intention of the committee and IL
the house, and make the intention ST.
clear and so plain that it will admit
of no other possible construction.
Mr. Longworth: Mr.. Speaker, vii;
the gentlemen yield?
Mr.. kitchin: will.
Mr.. Longworth: Would the gentle.
man object to having read at the
clerks desk the reason given by the
Secretary Of the Treasury for urging
the passage of this provision?
Mr.. Kitchiu: IN mornect viii
be pleased to have you do that. I
called the committee On ways and
means together yesterday afternoon
and we discussed the matter and, Ne
committee unanimously instruced lie
to make this request and to propose
the amendment which shall read. Il
is as follows:
On pages and of the bill. strike
out all the matter beginning on page
6, line % down to and including line
4, on page :. and inserting the fol
lowing:
"In determining the value OF the
shares of any national bank. stat:
bank, trust company, Or other banking
institution. for the purpose of taxa
ton by any state or any Of the pos
sessions of the United States or any
local taxation. authority. there shall
be deducted an amount equal to the
same proportion of the value of the
shares as the par amount OF any
bonds or other interest bearing obj
cations of the United States issued
during the present war owned by such
bank or trust company or banking i'll
stitution bears to its gross assets.
That expresses exactly what tho
committee on ways and means
thought. and what | thot 5ht. IN pre-
senting the bill. the meaning Of sec
ton > was as it stands in the bill:
and it expresses the thought and cor
struct;on and intention which the
house had when it voted asaC Mr.,
Dominick's motion to strike out
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