The Indianapolis times., 1929-01-28
BANKERS OPEN
FIGHT AGAINST
OvERTAXATION
Indiana Heaviest Assessed
State in All U. S.,
Association Told.
FOUR BILLS APPROVED
Wide Powers Given TO
Committee to Press
Legislation.

Indiana Bankers Association to-
day showed its teeth preparatory to
bitter war on overtaxation, map
ping out first steps in spirited
drive for equalization at the mid
winter meeting today at the Clay
pool.
Four bills, one of which has been
introduced in the state legislature,
were approved. A resolution adopt
ed gives a legislative committee wide
power to act toward suitable legis-
lation, and provides finance to back
the committees endeavors.
The bills approved:
l. Providing for the creation Of a
bank charter board, four in num-
Der, and no more than two of which
shall belong to the same political
party. The object of the bill, in
sofar as is possible. is to get the
state bank system out Of politics.
The present state board consists Of
the Governor, secretary of state and
the state auditor. The members
would receive $40 a day for actual
service and be named for one, two,
three and four-year terms of Office
and appointed by the Governor.
Loan Limit Urged
?. Relating to reserve whereby
state banks and trust companies
would be required to carry 1914 per
cent reserve against demand and 3
per cent against deposits.
3. Putting restrictions on lend
ing powers of banks, substantially
the same restrictions as provided in
the McFadden bill on national
loans, the main object being to
hold down bank loans to 10 per
cent of capital and surplus to any
one person, except in case Of loans
secured by mortgage, in which case
the loan may extend to 25 per cent
of capital and surplus. This does
not apply to u. S. bonds or those
secured by warehouse receipts or
shipping bills.
4. Authorizing loans to officers
of trust companies by the compa-
nies of which they are officers when
properly secured and approved by
directors of the institutions.
Elmer w. Stout, president of the
Fletche~ American National bank
of indianapolis told the 100 MEM
bers of the association present of
the work of the legislative commit
tee and a motion that the bills be
pressed to the utmost was carried.
Must Fight for Privileges
F. D. Stalnaker, president of the
Indiana National bank of Indian
apoIiS, declared that much depended
upon the defeat of any effort to
modify section 5219 of the federal
revised statutes, which gives the
bankers of Indiana protection from
overtaxation.
It was pointed out by several
speakers, including Eugene P.
Gumn, secretary Of the Oklahoma
Bankers Association, that unless
bankers of the state pressed fight
for the privileges given them by this
statute there is real peril of some
institutions being taxed out of ex-
istence.
A. G. Brown, Greencastle, presi-
dent, declared that Indiana is of q
group of middle west states now
taxed 20 per cent more than any
other group in the country and of
this group Indiana is taxed 20 per
cent more than any other state.
Indiana Highest Taxed
Indiana is the highest taxed
state in the Union as concerned in
banking" Brown declared.
Senator c. Oliver Holmes, Gary.
e member of the association, de-
cIares that ''the tax board has our
legislative committee bluffed."
"Wel get no place in our effort
to get a fair taxation until we serve
notice on the tax board that if we
have to Wen bust the machine" he
said.
ri AM CH0iIT PIPTu0hY