Pittsburg dispatch. [volume] (Pittsburg [Pa.]) 1880-1923, 1890-01-11
Is THE TAX LEGAL?.
Heavy Lawyers Battle For and
Against the Savings Banks.
THE DECISION WAS RESERVED.
Judge White Wouldn't Allow a Squire to
Say He Blundered.
OTHER GENERAL NEWS OF TIE COURT

/
The arguments in the case of the Dollar
Savings Bank, Germania Bank and Silas
| n. Benham against the County Commits
sioners and the assessors of the First and
Second wards took place before Judge
Stowe yesterday afternoon. These suits in
equity were brought for the purpose of re-
straining the defendants from levying and
collecting 3-mill tax on the deposits of the
banks, under the act of June 1, 1889.
George W. Guthrie, Esq, argued for the
plaintiffs, while Deputy Attorney General
Sanderson and County Solicitor Geyer
represented the defense.
The argument was opened by Mr.. Guthrie,
who, after reading the prayer and specifca-
tions of the plaintiffs, stated that the Dollar
Savings Bank was incorporated under
special act to receive deposits and invest the
same. 1t is purely beneficial institution,
having no capital stock, and is under the
guidance of Board of Trustees They have
about S13, ,O00, 900 in deposits.
The German Bank was also incorporated
under special act, but has capital stock
of $3.50, 600 and deposits of s., 750, 600. Among
its investments are many securities taxable.
under the act of 1889. Silas N. Benham, is
depositor in one of the banks, and be re-
sists the alleged law requiring him to return
the specific amount of his deposits.
Mr.. Guthrie argued that in the case Of the
Dollar Bank the return would be double
taxation. first on their securities and real
estate, and again on their deposits; while in
the case of the Germania Bank it would be
A TRIPLE TAXATION,
First on their capital stock, then on their
securities and lastly on their money depos-
its. Mr.. Guthrie argued that the Legisla-
ture did not intend in drafting such meas
ure that there should be an unequal taxa
tion. Such laws would be very burden
some legislation, and in opposition to a
class that has for many years been the care
of wise craftsmanship, as they encourage
the poor to save.
Thus it would be that the poor man, who
has a small amount of money saved up,
would also be subjected to double taxa
tion, and TO carry out such q thing would
be- an open violation of the tax law. In sec
ton 25 of the act of 49, it says that if a tax
of mills is paid they shall be exempt from
all other local taxation.
Assistant Attorney General Sanderson
did not make lengthy argument. He read
the acts of 1874 and 1876, showing that the
stock and security of banks were taxable,
and stated that the poor man in the country
who had his savings invested in his horses
and cows was taxed for them, then why not
the poor man in the city who has his savings
in the bank.
IT IS LAWFUL.
Suppose there was tax levied on depos-
its, capital stock, etc., there was nothing in
the law to forbid that. He argued that IN
the first place it was not double taxation,
and in the second place if it were it is per.
mitted by the Constitution.
S. H. Geyer, ESQ.,, followed Mr.. Sander
son, and after reading the act of 1889 said
that it was constitutional, and the Supreme
Court had so decided. Therefore the tax on
the Dollar Bank was constitutional, and as
the bank had mortgages Of over q
million dollars and should nay tax
on them, it remained with Mr.
Guthrie to show that the act was unconsti-
tutional, and if the act we're constitutional,
then Silas n. Benham and the Dollar and
Germania banks had no standing in court
He did not see any use in going away back
into English law to argue the case when
there was an act of the Legislature covering
the case in full.
MIR. Guthrie stated that as to Mr.. Ben
hams standing In the case which had been
questioned, the gentleman had a good
standing. He does not refuse to make
proper return for taxation, but he does re-
fuse to make a return of specific deposit. |
Mr.. Guthrie again reiterated that the banks
are not compelled to return their securities !
for taxation so long as they pay the mill |
tax provided for.
Judge Stowe took the papers in the case,
but gave no indication as to when he would |
render a decision.