The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1903-10-29
The COmpIainants Are the Seven Ma
tional Banks That Are Operat-
ing in the City.
ALLEGATIONS THAT ARE MADE
FINANCIAL INSTITUTIONS SAY THEY
ARE wRONGFULLY TAXED.
Constitutionality of Legislative En-
actmcnt Is Attncked-In Conflict
with Federal Statutes.

Seven suits in chancery, the complain
ants of which are the seven national banks
In the city, were filed in the Federal Court
late yesterday afternoon against Harry B.
Smith, Armin C. Koehne, Anson j. Gar
diner. Marion Eaton and James Barnett.
comprising the County Board OF Review.
The suits are to enjoin the board from en-
forcing the new amendments to Sections
go and 81, of the Revised Statutes of In
diana. which pertain to the taxation of
banks and trust companies. The amend
ments were passed at the last session of the
General Assembly and provide for the tax
alton OF not only the real estate Of the
banks and the trust companies, but the
shares OF stock and surplus and undivided
profits as well.
The banks bringing the suits are the In
diana National, the American National. the
Capital National, the Columbia National,
the Fletcher National the Merchants
National and the Union National. Previous
to the amendment of the act banks and
trust companies were exempt from taxa
ton on all property except their real estate.
Under the amendments, however, the banks
are taxed on their real estate, capital stock,
surplus and undivided profits. thus increas-
ing the taxes to the extent OF several thou
sand dollars in each case.
THE ALLEGATIONS.
1t is alleged in the bills of complaint that
the action of the Board OF Review in tax
ing the hank and trust companies on their
capital stock, surplus and undivided profits
will be in violation of Sections 5214 and 5219
of the Revised Statutes of the United
States and by reason of such acts the banks
and trust companies will be unlawfuly
oppressed, harassed and damaged by being
compelled to resort annually to numerous
expensive and successive suits in equity sr
the prevention of such acts or to Ike
actions of law for the successive recoveries
of the taxes they may be compelled TO pay
annually on their capital stock, surplus and
undivided profits. 1t is therefore claimed
by the compIainants in the suits that as
banking association under the provisions of
Sections 52l4 and 5219 of the Revised Stat
utes of the United States. they are entitled
10 immunity and exemption from taxation
of every kind and description levied by the
state of Indiana or by any municipal sub
division OF the State, except as TO their real
estate.
plant that the five members of the County
Board of Review met on the first Monday
of June for the assessment, review and
EQUALIZATION OF taxes ana wrOnEfully and
unlawfully assessed the banks for their
capital stock, surplus and undivided profits
at valuations exceeding by many thousands
OF dollars previous valuations.
CARRIERS APPEAL.
James Carter. proceeding under the laws
of the State, appealed this assessment to
the State Board OF Tax Commissioners and
the appeal was sustained by the tax board
and the auditor of state has certified to
Harry u. Smith as auditor of the county,
the assessment Therefore. in order TO re-
strain the auditor OF the county from ex-
tending the assessments on the tax dupli-
Gates to Armin c. Koehne. treasurer OF the
county. who will collect the assessments,
the banks have filed the suits to enjoin the
board from acting in the levying and col
lecting OF the taxes against their capital
stock. surplus and undivided profits during
the pendency OF the action as 10 the legal
ity OF the amendment.
The defendants are called to appear bo-
fore the court on Nov. 2 to show cause why
they should not be restrained from levyine
acd collecting the above stated taxes.