The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1881-02-03
AN IMPORTANT CASE,
THE NATIONAL BANKS OF MAHo-
MING COUNTY VS.. THE AUDI
TOR AND PROSECUTOR.
Injunction Dissolved United States Court
Decides Against the Banks.

An important and interesting G decision
was made by Judge Baxter, iii the o. S.
Circuit Court here, yesterday. The ca
ses were entitled the First, Second and
Mahonirg National Banks leach respect
ivelyl, against James B. Hughs, Auditor
of Mahon ning county, and Monroe W.
Johnson, Prosecuting Attorney of Ma
honing county. The facts upon which
the cases were based are as follows: The
Auditor of Mahoninp county was notified
by the Board Of Equalization, at its
spring and summer session, that large
amount of the personal property of GER
tain rich citizens of Youngstown and vi
Cinity had evidently not been listed for
taxation. That an examination OF the
returns of the assessors of Mahoning
county showed there was only about
100000 of personal property returned
to the assessors under oath; that an ex-
animation of the returns of the banks,
required by law to be made, showed they
had over million dollars on deposit,and
as it was known that most of the money
on deposit there belonged to the people
of the county, it was suspicioned by the
Board of Equalization and Auditor that
some of them had made false returns.
Whereupon the Auditor commenced
proceedings-being advised by the Pros.
ecuting Attorney--under the statutes,
against about thirty of the wealthy citi-
zens, many of them stockholders in the
banks, and sent out his subj 9nas for the
cashiers of the three National banks and
other banks to come in and testify to the
amount of balance of deposits certain in.
dividuals in the county, naming them,
had on their books on the day preceding
the second Monday of April, 1880. They
came in answer to the subj 9nas, and,
being interrogated, answered that these
individuals had balances in their favor
on deposit in The banks at that time, but
they could not further answer without
the books, whereupon the Auditor made
application to the Probate Judge for sub
gna duCes teCum, to bring with them
the books. The cashier came in with
attorneys, and filed motion in the Pro-
bate Court to dismiss the proceeding on
| the ground that lit Was unnecessary and
illegal, because no occasion had arisen
for it, and upon the Probate Judge over
ruling il, they hurried to Cleveland and
filed a bill of complaint in equity II the
U. s. Circuit Court, a,kiDg for an iDjunc'
ton, and alleging, among other Things,
that under their charter they were not
subject to visitorisl powers" and that
"the necessary result of The investigation
will be to unlawfully expose the business
affairs of the banks, lessen public conf
dence in them as repositories of money,
and diminish their deposits, and greatly
impair the value of the franchises with
which they are invested, and praying
for an Injunction against the auditor and
Prosecuting Attorney. Judge Welker
granted an Injunction, and the proceed
ings before the Auditor and Probate
Court had to stop.
A motion was then fled for dissou-
ton of the injunction by the Auditor
and Prosecutor, and general demurrer
to the bill was filed, and although this
was in July, everything had to await the
coming of Judge Baxter.
The case was heard yesterday on the
motion to dissolve the injunction and
demurrer, and Judge Baxter granted the
motion, and dissolved the injunction, and
sustained the demurrer to he bill on the
ground, first, it was case the U. s. Court
should not have interfered with, as it
was matter pending in a State court,
aid ought to be disposed of by the State
courts; second, on the ground that the
Auditor had right to the information
he asked for, and that the banks could
not refuse to give the information their
books contained as to the particular in
dividuals whose returns we're being in
vestigated.
Since the beginning Of the suits, Jas.
B. Hugh's term as Auditor expired, but
on motion his successor, Freeman Fl.
Sherey, was made party, and the pro-
ceeding, which was adjourned at Youngs-
town, awaiting the action Of the court,
will now go on, and thorough investi-
cation made, which will doubtless result
in placing large amount OF personal
property for taxation on the duplicate,
which never before found its way there,
What the next move OF the wealthy gen
tlempn and banks of Youngstown will
be is unknown. but it is probable an ap.
plication of some kind will be made to
the State courts. Exceptions were en-
tered to the discussion, and the case may
go to The Supreme Court at Washington
M. W. johnson of Youngstown, and w.
G. Mcfarland of Cleveland, appeared as
counsel for the Auditors, and Sidney
Strong, T. W. Sanderson and Jones q
Murray for the banks,-CleUe Leader, Let.