The record-union., 1896-08-14
TAXES ON NATIONAL BANKS.
Controller COlSan'S Suit Against That Of
D. 0. Mills & Go.
The Bank Officials Deny That the
Assessments Are Legal
or Just.

State Controller Colgan has filed the
complaint in his suit on behalf of the
State against the National Gold Bank
of D. o. Mills & Co. to recover the sum
of $16,995 70, which is claimed to be
due from the bank as taxes for 1880
and accrued penalties
The papers were filed by Deputy At
torney- General c. n. Post, and the case
will be conducted by the Attorney-Ge
erals department on behalf of the
State.
Last year County Assessor Berlkey ar
bitrarily fixed the assessment of the
bank at $3.50, ,000 and under the law the
County Board of Equalization had no
power to interfere with it. The bank re-
fused to pay the tax, and 1t was de-
Clared delinquent. The Tax Collector
was estopped from selling the bank S
property for the delinquent tax, how
ever, by the Intervention of the State
Controller, who gave the required notice
that he intended bringing an action in
the courts for the recovery of the tax
claimed to be due.
The points involved in the case have
been the subject of discussion off and
on for the past year, not only in this
county. but in others. But in connec-
Slon Will tic oADJcNl SSilt1 elA AoCe1 VI
the defense that will be made by the
bank can be obtained from the affidavit
fled this year by President Frank Miller
when he applied for reduction on the
1896 assessment, and a statement he
made at that time to a Record Union"
reporter.
This year Mr. Berkey assessed the
bank at $4,000 on safe and fixtures,
SSo0,000 on money on hand, and S5l9,-
600 on solvent credits.
The affidavit submitted by President
Miller alleged that the safes and
fixtures were worth but $1,000; that
the money on hand on March 1st did
not exceed S343. .494 40, and that the
solvent credits We're more than offset
by the sums due the banks depositOrS.
While not waving any of its rights, the
bank offered to pay taxes on S2OO,00O
over and above the valuation of its real
property, for the purpose of avoiding
litigation.
I'm 1895" said President Miller, 'the
County Assessor increased the assess
ment Of the National Bank of d. O.
Mills & Co. some SS00.000, and the
bank rendered the tax on 100000.
This year he has raised the assessment
to 81 $4,000, and the bank has made
application to have this reduced to
5000, 900. The city assesses the same
bank for $4,000 and there is no con-
test
THE State Board of Equalization di-
rected the Assessors in each county
TO assess national banks under the pro-
visions of the United States law which,
briefly, are as follows: Assess all realty
and mortgage loans against the bank;
assess the shareholders for the value of
their shares, less the sums dixie realty,
mortga ges and bonds) already taxed or
exempted; nonresident shareholders to
pay the tax into the funds of the county
where the bank is located
Our County Assessor decided not to
follow these directions. AS each ma
tional bank publishes a sworn report
five times each year, it is easy to get
a general idea of the taxable quantity
in the National Bank of d. O. Mills &
Co. under the State laws, laying aside
the United States law.
The bank has a capital of about
SIOO,00O. and holds usually about ST.
500 900 in deposits. OF course, it has
an equal sum in assets. OF the 50. .000,-
600 of assets, some 81. .300. 900 are debts
which are offset under the State law,
by the credits to the depositors. About
5000 more are United States bonds
mot taxable) and mortgages and realty,
on which the tax is regularly paid with
out dispute. Some S125, 900 is money in
Eastern cities.
This leaves the sum of $685.. 900 to be
taxed, and the bank officials consider
that, as values are assessed they should
get a reduction to 5000 900. In our ap-
plication we say that such a reduction
is equitable, and that this tax will be
paid cheerfully'