Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1900-04-10
QUESTION INVOLVED.

The material question involved was
whether the bank was entitled 70 de-
auctions from the stock assessment for
the value OF the real estate situate
without the limits OF the State, and TO
have the bona iide debts Of nonresident
shareholders deducted from the value
Of their stock.
In the case mt bar deductions We're
made. from the value Of the stock. OF
the value of an real estate owned by
the bank IN the State. but deductions
fOr It's real estate situate without the
State. were refused by the assessor and
board of equalization, but the court be-
low ordered that the value Of the real
estate situate In other states should
also be deducted from the value Of the
stock. In this the Supreme court finds
Judge Rolapp erred.
Suppose" says the court, three
fourths OF the property. I'm value. OF the
stock were situate In another state. and
its stock was worth one hundred cents
on the dollar and for the purpose Of
taxation. the value OF such property
were deducted from the value Of the
stock. could it be said that the stock
was assessed az its cash valuey'
QUESTION OF DEDUCTION.
on the question whether the bank was
entitled 20 have such deductions made
from the valuation OF the capital stock
the court reasons as follows.
The question remains whether the IN
dividual stockholders We're entitled TO
have their debts deducted from the
value OF their stock, or rather whether
the bank was entitled to have such de-
ductons made from the valuation Of
the capital stock
1T appears that individual debts
owed by resident shareholders were de-
ductCd from the value OF their shares,
but such deductions We're refused nom
resident shareholders by the assessing
officers The court however. allowed
the deductions also 20 be made TO non
RESIDENTS. Certainly II shareholders,
who ale residing On this state, are en-
titled 90 deduct their debts from the
Valus Of their shares those who are re-
siding In another State are likewise en-
tued The law permits no discrimina-
ton between the two classes OF share
holders in national banks, and the dis
tnction attempted 20 be made hy the
assQssus officers would be a clear and
unjust discrimination In favor OF resi-
dent owners OF stock, ana it would be
difficult 10 assign any good reason
therefor, for the nonresident. the same
as the resident stOckholder, may have
debts which he owes IN this State. and
the capital OF both alike Is invested In
tnu bank No such discrimination Is toll
Grated bv the laws Of this State or Of
the United States. Aside from the fact.
however that no such unfriendly dis
elimination can be permitted by what
authority can any such deduction be
made whether the stock be held by a
resident or nonresident In vain have
We searched the Constitution and statu-
tory provisions OF this State, relating
TO the subject Of taxation. for the exist
ence a. such a power. ana none has
been pointed out by counsel on either
side The Constitution provides Cor the
deduction Of debts from credits"
but as we have seen, that provision
does not authorize deduction OF
debts from stocks" Stocks are not
credits any more than cred
its are stocks within the
definition Of the statute respecting the
term credit" As has already been OBJ
served. credits" and Stocks" under
our system N taxation are separate and
distinct species n property Neither
one includes the other and as the franz
ers Of our Constitution have seen fit 10
single ont and mention credits" as the
kind of property from which debts"
might be deducted. they have expressed
an intention 20 prohibit the deduction
Of debts from any other species Of prop
erty The expression Of the one ex-
cludeg every other kind No doubt the
banking corporation In It's capacity az
an artificial personals a distinct enti-
ty-has the right 10 have its debts con-
tracted by u Ia the conduct Of It's bank |
ing business deducted from It's credits
or money and capital employed. for that !
Is necessary TO determine the real value |
OF the stock, which value amounts 20 !
what can be realized from the property |
Of the corporation after is obligations |