The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1927-10-26
BANKER VIEWS
ARE DIVIDED
On AL Smith
National Convention Shifts
Attention to Politics;
Strong in West.
FIGHT HIGHER TAXATION
Caution Urged in Adopting
New Investment Trust
Propositions.
FIGHT HIGHER TAXATION

HOUSTON, Texas, Oct. TO-
Bankers here for the American
Bankers Association convention
turned their attention to national
politics today and revealed a diff
ference of opinion as marked as
that which pervaded other classes
Of voters.
While some delegates predicted
Governor AL Smith Of New York
could carry the South and West
if nominated for President by the
Democrats, j. S. Spaulding Of New
Rochelle, N. Y, said Smith could
not even carry his own State II
President Coolidge were induced to
run again,
eve are willing for our local Of
f1cials to be Democratic" he said,
"hut the national Democratic party
ADVOCATES policies inimical to the
business and financial interests OF
the country.
Opinion Is Decided
"For that reason, New York isn't
likely to go Democratic in national
election unless the Republican nom
inee is someone unacceptable to
business interests"
w. S. Rivers, Elgin. Tex, predicted
Smith would carry the South, nut
said there was little campaigning
for the New Yorker yet.
e. w. Hunt, Olney, Tex, predicted
the election of Smith. Nelson Gray,
Silver City, N. M, said Smith would
sweep his State and carry the en-
tire West.
Charles Boyden, Sheffield, Ill, de-
clared Smith would be unable to
carry that State.
Tax Change Opposes
ANY alteration of the 50-year- old
national taxation statute will meet
with determined opposition from
bankers, delegates to the conven-
ton, was indicated today.
Under this statute national banks
enjoy protection from high State
taxation.
at is practically all the safe
guard there is against destructive
bank taxation" Thornton Cooke,
chairman of the committee on State
taxation, said.
Cooks statement followed predic-
lions that State tax commissioners
would try to force an amendment in
the next Congress.
Act Called Safeguard
''What the tax commissioners
want" Cooke said, sis to have Con-
gress amend Section 5219 so that
the states may tax national bank
shares as highly as they please if
they tax State bank shares to the
same extent.
"Other competing money capital
would no longer be the criterion"
Cooke said the act is a national
safeguard against excessive taxation,
not only for national but of State
banks"
Caution was the keynote of talk
on the investment trust today by
Edgar Lawrence Smith, president of
the Investment Managers Company
of New York before the American
Bankers Association convention.
Urges Caution on Trust
He explained that the investment
trust, a new development of the
banki g practices of the country,
was the banding together of inves-
tors int GA corporation for the pur-
pose Of buying securities. Men of
experience, he said, direct the COM
pany and thereby the investor gains
somewhat by knowledge of the ex-
pert.
Smith said that certain functions
can be performed best for investors
through a soundly conceived trust
and then he added this caution:
"Let us not be stampeded into in
dorsing any plan before we have
reached conclusions about its
safety