The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1891-11-25
A VICTORY FOR THE BANKS.
Comptroller General Ellerbe Crerruied.
Judge Hudson Decides that the Rais-
ing of Bank Stock Tax Assess
nents from Par TO
Market Value is
Illegal.

18th. Judge Hudson left the same af-
ternoon for his home. He rendered a
decision that day IN a case that will be
of ofinterest to the public.
A great deal has been said lately
about the assessments of banks at the
market value Of their stock. The Ma
tional Bank of Newberry has always
returned it's stock al par, Sl5O,00O. The
market value is about $3.50 per share.
The comptroller general ordered the
auditor to list the stock for taxation al
$3.50 per share, thereby increasing the
total return of the bank $50, ,000. The
bank made application to the auditor
to reduce this assessment, and upon
his refusal application was made to the
comptroller general, and he too refused.
On Monday, the petition was filed
before Judge Hudson asking that a
writ of mandamus issue to compel the
auditor to reduce the assessment. An
order was issued and served upon the
auditor to show cause why the writ
should not issue. The case was heard
Wednesday morning the 18th.
Tuesday afternoon, in response to a
telegram from Gen. Ellerbe, Auditor
Croner went to Columbia. He re-
turned the next morning with Assist
ant Attorney General Townsend, and
submitted, through his attorney, his
reply to the rule to show cause.
The auditor in this case, has been
acting in response Ia the orders and
commands of the comptroller general.
The Newberry bank is the first to take
action in this matter.
J.F. J. Caldwell, Esq, represented
the bank. The case was argued by Mr..
Townsend for the auditor, and Mr..
Caldwell for the bank.
Judge Hudson said as it was mat
ter of some Importance he would an
nounce his decision at once, and later,
that be would file it in writing, giving
his reasons therefor. He held that the
township board of assessors and the
county board Of equalization having
adopted the valuation of the personal
property of the bank fixed in the re-
turn Of the board-S150, ,000-the comp
troller general had no authority under
the law to raise that assessment. That
his order to the county auditor to add
$4,000 to the assessment was illegal
and nugatory. That the county audi
tor was therefore under no obligations
to obey that order and acted illegally
in ooeying it. He held therefore that
the auditor should correct bis last tax
list and tax duplicate IS they now
stand so as to restore the original valu-
alton of tie property and make the
corresponding reduction in the tax
payable by the bank, and ordered that
a writ of ofmandamus be beforthwith issued
by the clerk of the court, requiring the
auditor to make these reductions.
The position by Mr.. Townsend in bis
argument was that the auditor could
not now make the correction or reduc-
tiop, as the tax duplicate had already
passed out Of his hands into the hands
of the treasurer.
The case will be taken at once to the
Supreme Court. An order was passed
in accordance with this decision direct
ing the clerk to issue forthwith the writ
o. mandamus.
The decision of Judge Hudson is a
victory for the banks, and it has reason
and justice on its side. Judge Hudson
remarked in rendering his decision that
whether the return of the bank was too
high or too low was rot the question
before him, and he had nothing to do
with it. He had only Il decide whether,
under the law, the auditor had the
right to raise an assessment after 1t had
been made by the party and passed
upon by the township board Of assessors
and the county board of equalization,
the legally constituted authorities to
change or correct returns.
THE APPEAL.
Late Wednesday evening, DR.. Samp-
son Pope, acting for the Attorney Gen
eral, served the papers upon Mr.. Cald-
we'll, and they were filled with the clerk
of court. This raises another question,
upon which there is difference of opin-
ion: Will this notice of intention to
appeal as supercedeas, 1--WE believe that
is the law term and stay all further
procee edings until the Supreme Court
passes upon the case? The Attorney
General, of course claims that it does,
while Mr.. Caldwell claims that it does
lot.
COMPTROLLER GENERAL ELLERBE
THINKS JUDGE HUDSON HAS
MADE BIG BLUNDER.
THE State, 20th.]
COMPTROLLER General Ellerbe is. in or
dinary parlance, "red-hot" about the
"check" called on him by Judge Hud
son in the wberry National Bank
case.
The State man called on him yester-
6ay morning and asked him what be
had to say about it. With display of feel
ing he answered: "All l have to say is
that all the bankers and railroads and
other corporations have been fighting
me. Now the erircuit judges have ejumped
on me. Butit they make as big blunders
as that made in this Newberry bank
case it will be an easy fight"
He said the decision did not amount
to anything. Even the auditors books
were changed the treasurer's duplicates,
which were made from them and