Section 2

Section 2. That hereafter all corporations, paying interest on a loan or loans which are taxable for state purposes whether secured by bond mortgage, recognizance or otherwise, shall report annually, in the month of November, to the auditor general the amount of such indebtedness owned by residents of this commonwealth, as nearly as can be ascertained, under oath of the president or treasurer, and shall pay into the state treasury four mills upon every dollar of such indebtedness so returned and owned by residents as aforesaid, within fifteen days after the thirty-first day of December in each year; and for every failure to report or pay as aforesaid the auditor general shall add ten per centum as a penalty to the said tax; and the said tax may be deducted by the corporation paying the same from the interest on such indebtedness, whereupon such indebtedness, whether secured by bond, mortgage, judgment or otherwise, shall be exempt from other taxation in the hands of the holders thereof.