The Saint Paul globe., 1897-09-25
COUNTY AUDITOR SULLIVAN WANTS
THE BANK OF MINEsOTA's
STOCKHOLDERS
TO PAY LAST YEARS TAXES.
INSTITUTION LIKE ALL OTHERS
WAS TAXED, BUT HADN'T
PAID WHEN CLOSED.
RECEIVERS DIsALLowED CLAIM.
Then Came the Idea Which is Go
ing to Cost the County Money
TO Experiment With.

Will the owners of stock in defunct
banks be compelled to pay the tax i'm
posed upon such stock? That is the
question that has arisen in consequence
Of some eighty suits instituted by Ram
sey county against the individual stock
holders of the Bank of Minnesota to
collect a tax of $7,9S0 besides interest,
costs and penalties, imposed on all the
shares of stock for the year 1896.
1t has been the custom in Ramsey
county to make an ass 5ssment upon the
capital stock of banks, and tax the
banks and collect the tax from the
banks themselves, instead of 1evying a
pro rata tax upon the individual stock
holders. In May, 1896, the county as
SCISSOR, according to the usual custom,
assessed the capital stock of all the
banks. The solvent banks paid the
tax last January as soon as, it fell due
But the Bank of Minnesota, havini,
closed it's doors Dec. %, 1896, of course,
did not pay the tax.
Early in February, the county treas
urer filed with the receivers of the
Bank Of Minnesota, a claim for the tax
due the county, to-wit, S7,980S5. It is
reported that the receivers have disal-
lowed the claim. About March 10, 1897,
warrants were issued by the clerk Of
courts and delivered to the sheriff,
against the individual stockholders, for
the collection of their proportionate
amounts Of the tax Most of these
warrants were not honored by the
stockholders, who had to face the
music of the double liability law
The county commissioners in going
over the returns of the sheriff, did not
see fit to cross off the names of the
stockholders, but sent them back to the
clerk of courts with instructions to
issue citations requiring these stock
holders to appear before the general
term of the district court to be held
Oct 4, 1897, and show cause why judg-
ment should not be. entered against
tax. penalty and costs.
County Auditor Sullivan will, in all
probability, be called upon to explain
how the assessment in this case came
to be made against the individual
stockholders, instead of against the
bank, as is the regular custom.
assessor made an assessment against
the bank, but not against them, and
that. If the auditor made such assess
ment, it was done without notice to
them or knowledge on their part They
say that the first notice they received
was the appearance of the sheriff with
warrant of distress, which they
would cheerfully have had levied on
the stock of the Bank of Minnesota
in their possession.
The stockholders now realize that
they might have appeared in due time
before the board of county commits
sioners and possibly have induced that
body not to cause citations to be is
sued. but this precautionary step was
overlooked, the stockholders having
heard that the county, through it's
treasurer, had filed a claim for the
tax against the bank with the receiv-
ers thereof. Consequently, they wera
considerably surprised when they were
finally served with citations.
A number of the stockholders have
employed Moritz Helm as their attor-
Eey. Mr.. Helm was asked yesterday
what the line of defense would be, but
he was 10th to discuss the merits of
| the suits, in view of the recent tilt he
had with County Auditor Sullivan
who at one time refused to allow him
access to the bank tax books in the
| auditors office. MIR. Heinz however
declared that the answers would con-
stitute complete defense. Leaving out
the strictly legal aspect Of the case
Mr.. Helm thought it was a great in
| justice to attempt to wiring about
! $4,000 of actual tax, besides $1,000 pen
atty costs, out of persons who are al
ready subject to a liability Of over
| 1000, ,000.
Mr. Helm suggested that the best
wow ont of tho dilemma Woll1d Ia for
the county commissioners to dismiss
the suits, and, by such action, save
money to the county. He didn't think
the court would ever give judgment
for the county, if all the facts were
! revealed.