The Harrison times., 1919-03-01
TAX ON LOAN ASSOCIATIONS.

On loan dSSOCldllOua- lie says lhdN
these associations are formed by peo-
pie intending to build homes. and that
ii would force these people to pay a
tax on property they do not own, but
are paying for
The letter follows
Harrison, Ark, Feb. IS, 1919.
Hon. Ben + McFerrin.
Hon. Rue Porter.
Little Rock, Arkansas.
Gentlemen.
As the representatives OF the people
OF this county | as an interested citi-
zen, in measure introduced in the
House of Representatives by Wilcoxon
(llB 50 An act to be entitled. AN
Act for Listing. Assessment and Tax
alton of Building Loan and Savings
Associations, Doing Business in Ar
kansas wish to ask YOU both to op-
pose this measure on the ground that
| il has tendency TO destroy the prin-
ciple Of thrift among our citizenship
it purposes to make il harder for the
man without means to own home or
a farm by the fruits of his industry
and savings
You will be mindful OF the fact that
our statutes already provide a tax on
cash surrender values of all Building
and Loan certificates as required GER
titled by the secretary of every nsti-
| tuition doing busines in the state (See
! Sec S544 Statutes OF Arkqusas)omit-
ting from taxation those pledged or
| hypothecated as collateral security
| loans made thereon or where same
form the ever increasing fund which
is to finally discharge by its surrender
for its final matured cash surrender
value the debt secured thereby
| have acted as local secretary for
two of these institutions alternately
for the past u years or more and my
observations have to me proven for
| chilly conclusion that had it not been
for the habit of thrift and saving
/ formed by the holding of such install
ment stock, and paid to maturity and
| surrendered to cancel the original
/ loan made to the holder but few, in
fact / would say a very few of the
holders would have ever been other
than Rent Payers AS it is they
now own happy homes free of debt
and are good citizens while the rent
payers are rambling over the face OF
the earth unsettled, complaining that
! they can never get enough ahead to
buy or own a home This is the diff
| ference and the conclusion and | have
the evidence right here in Harrison to
show you or any other person inter
ested in seeing a fair and full demon
stration and to convince you that our
| lawmakers should be extra cautious
not to interfere too radically with 50
well an established institution for
good among our people by making
burdens that must as a natural Sc.
quence of such drastic legislation as
said bill proposes fall on the man who
should be favored and his obligations
/ doubled. This man who assumes the
owning of home becomes a tax pay.
! er for its value even before ne owns
but a small percentage of its value
therefore to add to his burdens tax
upon the cash surrender value of his
stock certificates subscribed for and
! pledged as collateral for the final dis
charge of his debt when said Certifi
cate is matured would be diabolcal
and doubIe-headed taxation which nc
one will hesitate to condemn.
Any assessments of taxes or bur
dens upon the physical corporation
which is composed only of its mem
bers, mutual in its workings so tc
. speak reaches the members. This fact
cannot be denied therefore as ! stat
ed in the outset the burden falls or
the enterprising progressive man who
takes upon himself the mission Of
building himself and little family a
! home and under no circumstances
should have extra taxation or burden,
thrown on him but of all men should
be favored if it were possible TO dc
so but he does notask for special fay
ors, only to be shown a reasonable
consideration while he is a,temptng
TO accomplish something omitted by
the thriitless, the negligent, whose in
tereSts are everywhere periorce the
fact that they can come or 90 at will
am suggesting that you oppose tn,
! measure purely because | see no gOO(
coming from its enactment, and be
cause know its enactment WOulC
prove detrimental to the unbuilding o
many localities wherein The people
have the opportunity Of becoming