SUPPLEMENTARY
TO
THE BREVIER LEGISLATIVE REPORTS.
VOLUME ELEVENTH.
Municipal Taxation of Bank Shares----Mr, Chapman's Liquor
Bill----Debate in Continuation,
IN SENATE.
THURSDAY, May 13, 1869.[IN CONTINUATION-p. 220.]
On motion of Mr. GRAY, the bill [H. R. 170,] a bill to provide for the assessment and collection of taxes for municipal purposes on the shares of stock owned in banks or banking associations doing business in this State, was taken up.
Mr. RICE, in behalf of the majority of the Judiciary Committee made the following report:
MR. PRESIDENT:
The Committee on the Judiciary, to which was referred House Bill No. 170, "to provide for the assessment and collection of taxes for municipal purposes, on the shares of stock owned in Banks, and Banking Associations doing business in this State," have had the same under consideration and have directed us to make the following report:
The bill, in its terms, applies to the stock of "all Banks and Banking Associations," but it is well known that its principal object is to reach the stocks in National Banks. The questions are:
1st. Whether such stock now bears a fair proportion of the burthens of taxation, and,
2d. Whether the Legislature can rightfully authorize incorporated cities and towns to tax the stock of National Banks for municipal purposes.
We will consider these questions separately and in the order stated.
The Official Report of the Comptroller of the currency for 1868, page 19, shows the amount of tax paid by National Banks in each State and in the United States :
The National Banks in the State of Indiana paid in the year as follows:
| To the United States, | $278,797 60 |
| To the State, Counties and Tps. | 200,372 89 |
| Making a total tax paid per annum by the National Banks of this State, | $479,170 49 |
From the same official source it will be seen that the average rate of tax paid by National Banks in the United States amounted to 4 1/3 per cent.
The late Auditor of this State, in a published letter, stated that the revenue derived from National Banks in this State amounted to a sum equal to the ordinaty expenses of the State government.
The official records show that about one-nineteenth of all the tax flowing into the treasury of Marion County is derived from the taxation of National Bank stock.
It will thus be seen, by facts which cannot be controverted, that National Bank stock now pays a larger aggregate tax than other property in the State.
One reason for this is because it is assessed in a different manner, being never returned for taxable purposes at less than par, whereas real estate, and other property, will not, probably, average above one-half its real value; and another reason is that it pays a higher tax to the General Government.
It is true it does not pay a municipal tax. Neither did the old State Bank, nor the present Bank of the State; so it will be seen that the history of the State has been uniform upon the subject for nearly forty years.
There are some strong reasons why this exemption is not unjust, only a few of which can be presented within the limits of this report: Capital is the life blood of commerce and man-
page: 387[View Page 387]opposed to making any contract throughout the whole progress in this matter. I say in this there was no contract but that the vote simply was an expression of individual Senators-those who voted in the affirmative may be pledged, but I voted "no" and am not pledged on this question. I vote "no."
Mr. SCOTT, when his name was called, in explanation of his vote, said: I vote to lay this motion on the table because. I think the matter is well understood that it shall lay there till next Friday. I do it as the shortest way to get at the motion I made myself. I vote "aye."
Mr. GRAY having now desired that his name be called, said: I want to say in explanation that I shall vote to lay upon the table for the following reasons: Yesterday a half a million of dollars was voted out of the pockets of the people; the Specific appropriation bill has not passed, the gravel road bill has not passed, the fee and salary bill has not passed-and every measure in which the people are interested has not be acted upon; and as long as the interests of the people are neglected and nothing is done but to get money out of the Treasury, I will vote to put this question off till the end of the session.
So the proposition to take up the Constitutional Amendment question was laid on the table.
The amendment [Mr. Craven's] was also laid on the table.
The motion to take up the bill [H. R. 113[ to render taxation for common school purposes uniform and provide for the education of colored children of the State was agreed to.
EDUCATION OF COLORED CHILDREN.
Mr. HADLEY demanded the previous question.
The Senate seconded the demand.
Under the pressure of the previous question, the bill was read the thire time and passed by yeas 33, nays 9-as follows:
YEAS-Messrs. Andrews, Beardsley, Bellamy, Bradley, Case, Caven, Church, Cravens, Elicit, Fisher, Fosdick, Gifford, Gray, Green, Hadley, Hamilton, Hess, Hooper, Huey, Huffman, Jaquess,Johnson of Spencer, Kinley, Laselle, Morgan, Rice, Reynolds, Robinson of Madison, Robinson of Decatur, Scott, Stein, Wollcott and Wood-33.
NAYS-Messrs. Bird, Carson, Henderson, Humphreys, Lee, Montgomery, Sherrod, Taggart and Turner-9.
Pending the roll call-
Mr. BRADLEY in explanation of his vote, when his name was called said: I dislike to vote against this bill and vote "aye" with great reluctance.
Mr. CARSON, when his name was called, was understood to say, in explanation of his vote, that he would not vote to tax himself for the purposes set forth in the bill and therefore would vote "no."
Mr. CHURCH, in explanation of his vote, when his name was called said: I understand this gives the negro a little more than equal, according to the Senator from Alien, [Mr. Carson,] but still I shall vote in favor of the bill. "Aye."
Mr. GRAY, when his name was called said: This is not such a bill as I should like to vote for, but it is one step in the right direction. I believe this law will fall before the courts of the country, but being one step in right the direction I vote "aye."
Mr. JOHNSON of Spencer, when his name was called said: I have come to the conclusion that in all human probability, the negroes will be voters next year, and being in hopes that they may be qualified to vote properly I vote "aye."
Mr. KINLEY, when his name was called said: I have serious doubts as to the propriety of passing this bill for the reason that I believe the Constitution already gives the negroes more rights than this bill, but I have decided to give the friends of the bill the benefits of these doubts. I vote "aye."
Mr. SCOTT, when his name was called said: I want to say in explanation, that I am very sorry the item for taxing the poll has been left out. It is an oversight I am satisfied. I vote "aye."
The LIEUTENANT GOVERNOR then announced the vote as above.
So the bill passed.
