Northern tribune. [volume] (Cheboygan, Mich.) 1875-1885, 1878-04-20

AN IMPOR rANT DECISION.
Judge Baxter. of the United States
Circuit Court. has rendered an important
decision at Cincinnati, which, if correct,
has an important bearing upon the as
sessment aud collection of taxes in this
state, as we'll us others. The csse was
that of the Merchants National bank, of
Toledo, Ohio. against the County Treas
urer. The laws of Ohio. as do the laws
of Michigan. require that all assessments
for taxation shall be made at the actual
cash value; bat the assessors of Ohio.
like the supervisors OF this state, do not
obey the law. Real estate there being
assessed at only about forty per cent oil
its real cash value. The shares of the
Merchants National bank were assessed
at their par cash value. The bank re-
fused to pay the tax. but rendered the
amount which would have been due bad
its shares been assessed on an equality
withsreal estate assessments-that is, at
forty per cent. of their actual cash value
An attempt was made to force the pay
mcnt of the tax, and the bank applied
for an inj JUNCTION to prohibit the collec-
ton of larger rate than was collected
from property in general. Judge Baxter
held that the bank should pay a tax on
forty per cent. OF its valuation. and no
more. the decision being based upon a
law of Congress establishing the national
banks, which forbids the states from
levying any higher rates of taxation OH
the banks than they levy upon other
property.
The Cincinnati Gazette takes excep
ton to the decision. aud says: The as
SCISSORS did list this bank stock at its true
value in money. as the law requires, but |
it is shown to the court that real estate |
in that county is listed at only |
about 40 per cent. OF its true value, there
fore it is unlawful to list the bank shares
at more than 40 per cent. Of their trne
value, and all collection in excess of that
is enioined. If this be law, there is an
opening for contesting the taxes. not
only on every bank in the state, but OIL
every other piece of property or sum of
business capital. Surely its most direct
application is to the collection of back
taxes from every species of property |
that has been endervalued. Valuation
of property is but fsllible at the best.
Valuation Of property for taxation I'M
der our popular system is very imperfect
and unequal. The. decision offers to
every owner OF land or capital a chance
to contest payment OF taxes, not simply |
on the claim of generalization, but that
some other piece of property is valued in
lesser ratio to It's true value. 1t opens !
q way to dispute all taxed titles, and it |
reaches to the titles to all real estate. In
this cese there is no claim that the bank |
shares were assesSessetl at mere than
their true value i'm money. nor that the |
rate of tax levied on the bank was not |
the same in form as on other property;
&ut the decis ion lays do xn the principle |
that tax which is in itself legal, is made
Illegal because the law is not fulfilled in
the valuing of some other kinds of prop
erty. Therefore, to make things even,
the local assessors are required to violate
the law in this case. Without being a
professed lawyer, we venture to say that
the principle is novel one i'm jurispru-
'denee that thing which in itself is law
ful is made unlawful by the circumstance
that some other things are unlawful, and
that la xful thing must be made unlaw-
full in order to be lawful" This criticism
appears logical upon its face, but the
Gazette entirely ignores the law of Con-
gress, upon which the decision OF Judge
Baxter was based. But, leaving this out,
1t appears to us thereIis an inconsist sncy
In making assessments which discrim-
mate between the value of money and
other properly In other words, per-
son may bepossessed of 81 900 cash, upon
which, if retained, tax upon the full
value must be paid; but if it should be
invested in real estate. while the full
value remains unimpaired, and the owner
is as well off as before the investment,
the taxable valuation is at
once reduced two-thirds. We think it
would be we'll if those making assess
ments should heed this decision as a
lesson, and guard against making un-
equal valuation for taxation. We are
OF the opinion that if thoroughly invest
igated there are very few tax rolls that
would be found legal, and this is very
important matter. Chicago is suffering at
the present time. OH account Of the tax
payers resisting the collection of taxes on
account of unequal and irregular assess
ments. 1t is q notorious fact in Michi-
gan that tax title is OF but little value
from the fact that if contested it would
almost invariably be shown that there
was some irregularity in the assessment
and collection of the taxes which render
ed them illegal.
The Journal de st. Petersburg, review
ing the opinions of the foreign press up