Case ID: ohio-st_22/html/0630-01.html
Source: Caselaw Access Project
Author: {"author": "By the Court.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

The Farmers’ Insurance Company v. George La Rue, Auditor.
    Motion for leave to file a petition in error, to reverse tht». judgment of the Superior Court of Cincinnati.
    The Farmers’ Insurance Company was incorporated under the “ act of April 11, 1856.” S. & C. 360, as amended in 1865 (S. & S. 228).
    In pursuance of these acts, the company was organized with a capital stock of $100,000, divided into shares of twenty dollars each; five dollars was paid upon each share,, and for the unpaid subscription, notes were given in this-form, viz:
    “ Cincinnati,--, 18 — .
    “On demand,-promise to pay to the Farmers’ Insurance Company the sum of- dollars, for value received, the same being a balance due on-shares of the capital stock held by--in said company, subject to the-call of the board of directors, in whole or in such installments as may be required to meet their liabilities.”
    In 1869 (66 Ohio L. 325) another act was passed, requiring each company heretofore organized, and which had' taken notes or obligations of its stockholders for any portion of the stock subscribed by them, to cause the capital stock to be paid up to at least $100,000 within five years from July 1,1869, and the same to be invested in government bonds or loaned out on bonds and mortgages.
    Before the year 1870, these stock notes, as they are called, had never been treated as subject to taxation; but in the-spring of that year, the defendant, La Rue, professing to-he acting under instructions from the auditor of state, undertook to .place upon the county duplicate, for taxation, all said stock notes of such company, as a part of its credits and assets.
    The company thereupon brought an action against him, in the Superior Court of Cincinnati, to enjoin him from placing the amount due the company on said notes upon the duplicate.
    This action was submitted upon an agreed statement showing the foregoing facts, and reserved for hearing at general term; and there the petition was dismissed. The company now asks leave to file a petition in error, to reverse that judgment.
    Lincoln, Smith $ Stephens, for the motion.
    
      Scarborough $ Williams, contra.
   By the Court.

Insurance companies organized under the act of the general assembly of this state, passed April 11,1856 (S. & C. 360), and subject to the provisions of the acts amendatory thereof and supplementary thereto, passed April 13, 1865 (S. & S. 228), and May 7,1869 (66 Ohio L. 325), are bound, under the provisions of the act of April 5, 1859’ (S. & C. 1438), for the assessment and taxation of property, etc., to list, for taxation all notes for unpaid balances on stock subscriptions.

Whether stockholders in such companies may, under the provisions of section 2 of the tax law of 1859 (lb.), deduct the amount of such notes from their credits, we are not. called upon to determine.

Leave refused.