New-York tribune., 1922-12-23
Kellogg Insists
Bank Tax Bill
Be Put to Vote
senate Measure Permits
States TO Levy on National
: Institutions Same rs on
similar Corporations
Reads Letter of HyIan
MAYOR and the COmptroller
Show How S20,OOO,0 900
Revenue Is Lost TO City

- r-,s.,e's woshinsfon Bsysos
s,sHtSGroN. Dee. %. -Unless the
- p.,klse and Currency Commit
'1,'. -, by next Wednesday bill
~ -, - ,,stss 70 tax national banks
-, a. ether banks, Senator Frank
y.ns,v Of Minnesota, declared 10
= Asse to.day he would move 20
tst o.n ,hs eommittee and ask I'M
essests' .osssderstion Of the bill by
ne .:as.I ssns.II' hanks. updcr a decision by
Nt,,.ssssd states supreme Court a
te en.''iS !. Virginia case, are con
yea, eso so,,.es..fuily IN New York City
-endihs ~ rtstcs that the present
ano hs,t law does not permit
n.uon., t,s national banks more than
th,s. " 49, Intangible assets OF indi-
.5JaeI eitiferA
"es.,er Ksllogg and Senator Wads-
- ~ New York. introduced bills
80 last spring that would put ma
800 h,nks In the same class as other
f.-finr Institutions so far as state tax
Irrs are concerned. Hearings were
"a By subcommittee last June, but
tks committee has done nothing.
Puts Burden on Taxpayers
II this situation IS not remedied
SgflnR the present Congress- Senator
Eel,ogx said, "the City Of New York,
~ STATE Of Massachusetts and n num-
ssF Of other states must place an added
brTden on other tax payers. It will
dssaoy the taxing systems Of eighteen
AZ twenty states"
lathe Virginia case II was stipulated
ltss intangible assets OF individuals
tors in competition with nationa
isnks Senator Kellogg said In a suit
rn1ing on the national bank tax ques-
tcn In Minnesota the state Is contest
inx the proposition that intangible as
psls OF individuals are IN competition
Nth banks.
Iny one who knows anything about
tusiness," Senator Kellogg said, knows
lhst they dc not come In competition
wllh national banks. Ny bill provides
thal the tax imposed By the states
shnil not be at a greater rate than Is
erssssed upon other moneyed capital
Employed in the business Of banking.
nat includes individuals, private
lsnks, state banks and trust companies.
Supreme Court Decisions
she Supreme Court has held that
q, states may tax real estate at one
M ard bank stocks at another; corpo-
ntors at one rate and bank stock az
nother, but they must not tax banks
r. than the individual citizen pays
sis intangible assets; that IS, de-
s,slts IN bank, notes, bills receivable
s.i accounts held by individual. There
hro consistency In such a rule"
aar.or Kellogg read letters from
NtYw Hylsn OF New York and the
Esr York City Comptroller showing
hsw rshonal banks have been able TO
nsotsf sbout 500, 100000 in taxes.
n the Senator will allow me-" SEN
~ Lodge, of Massachusetts,, inter-
7used, "the State Of Massachusetts is
Is he same position and unless some
nnsdy Is given by Congress, the de-
d,lon to which the Senator has re-
tsrsd will 20 far toward bankruPting
f5ne Of our towns"
n reply to Senator Pomerene, OF
Ohio, who expressed the opinion thar
Ae states could correct the trouble
rlthout action BY Congress. Senator
Ke iogg pointed out the states have
ID power 20 tax the national banks ex-
,Ipt by the consent Of Congress.