Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1921-06-08
Tx ON IVTANC|BLEs
MAKES HIGH INTEREST
Oliver j. Sands Says Si.1O Rate
Forces Investors to Buy Nom
taxable Securities.
CITES BANKERS CONVENTIONS
Richmond Banker Declares 2O-Ccnt
Rate ON Money Is bringing
thousands of Dollars Into State
Heretofore Driven Away.

Oliver J. Sands. for many Years
head of tho taxation committee or
TN" Virginia Bankers ASsociatiou.
when asked yesterday To comment on
Ia" decision OF tie United states
supreme Court In the ease of TIM,
ci.' OF Richmond against III. MGR
chants National Bank. which was
decided in the banks favor. ANA
where IL was held that the CITY
cannot tax bank shares at a higher
rat" than other similar property
made the following statement:
Th" taxation committcc of tho
Virginia Bankers Association has
appealed to III. taxing powers a,
every session Of the Legislature for
a number Of years for Il more rcu-
Sonahi rate upon their shares
claiming that the lcvics by the STATE
ana city were much higher unon a
similar class "t property: that tho
hlcthod -; assessment Was such that
The money invested in this class of
property was paving much more in
proportion than any other. The com
mitt"c' efforts were strongly ouuns.a
hy the city Attorney Of tile CITY OF
richmond. and. at his instance. =
number OF other cities Of the state
appeared before the committees o-
tho Legislatures.
Position Of tS>urint ton.
~ IOSlbIon OF inc BANKERS As
Sociatticn has always been that bank
shares should pay their r~casonnhI.
proportion az the taxes. hu, they
should not he Disseminated against.
There We're few classes Of prnpcrtv
IN the state which were payir,r :uxce
on Il basis or 100 per cent Of it's value
Bank shares could not escape taxa
ton. and millions of dollars OF tn"
stock OF our banks arc owned hy
nnnTpSiiHrH NJ nf u.i;.,,. ,,: So. b.
IN this state. at a higher rate than
in adjoining AND competitive states
and cities.
NJ each session ofthc Legislature
in IN" past few years Sigh, relief
has been granted. but the banks were
siill required to pay Il much higher
rate than upOu othnr i~niancihl.s. and
tho method of assessing real estate
owned BY tn" banks is such hat the
banks pay tHN"s upon the entire
hook value of tho real estate, regard
less of tn" assessment There is no.
now. aud never has been. any dis
position upO the part Of tho bank
shareholders 10 crah" his just pro-
norton Of taxes du" tho state ana
city. hut IA. position or his rrprc-
scntativcs before TN" authorities has
always been ,hat tho excessive tax ON
2nrk shares. in many cases amount
ing 10 a srnN equal "a . per cent o:
She capital stock OF the bank. was
discriminatory II prevented the d.
r~c'"Dnrcnt Of tn" banking business in
this state.
1t has been clearly demonstrated
that Il ~reasonahl" and low tax upon
i~niinE!hlr propcr;", being stocks nua
bonds ANA property OF a
which can easily 20 into hiding. will
rrodic" NOR" revenue than q high
rate. For instance, tn" iax was for
nl"rly Sli5 on money. II Is now
20 cents on the Sloo, and is rroduc-
ing NOR" revenue than tho old rate.
,dud no h"rr' thousands OF dolirrs
IN Virgin which formerly
We're driven away. TIL" present rate
II sl1" upor ~intangihl"s makes il
necessary for The borrowers Of money
20 pay very high rates in order tina,
INVESTOR" may rcCciv" 2 reasonable
net return upon their money. and ir
these h!rh rates arc not paid. in
vcst6rS are forced :" buy nontaXahl"
securities such ass gnvcrumcn; bonds.
or preferred stocks. which are not
subject 10 tax, aud the development
of our stat" IS retarded thereby.