Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1903-04-09
.1AX|NG BANK STOCK
Value of Stock Represented by
Government Bonds Held
to Be Taxable
DECISION OF SUPREME COURT
Case From Burlington in Which Board
of Review Added to Value Of Bank
Stock That Represented in the
Value of Government Bonds-Aetion
Of Much Moment to Bankers.
special to Times-Republican.


plain that corporations doing business
in Iowa cannot avoid payment of taxes
on that part of the value of their stocks
represented by government bonds. On
the face of it this looks like indirect
taxation Of government bonds, but the
court holds that 1t is legal and does
not violate the laws of the state or ma
ton. A second case came up from Bur-
lington where the board of review add
ed to the value of the bank stock that
which was represented in the value Of
government bonds held by the bank.
Judge Smyth ordered deduction on
this account. The supreme court sus-
tains the board of review in including
the value of the bonds in determining
the total assets of the bank on which
to base the valuation of the stocks.
In the case just decided the National
State bank was involved. Last year in
the case of the German Savings bank
the court held that there should be no
deductions of the value Of the bonds,
and now it holds that the same rule ap-
plies to national and state banks as well
as to savings banks. 1t Is conclusive
ly settled" says the court, that the
state may provide for taxation of the
shares of stock in g. national bank on
the basis of their value as determined
by the entire assets of the bank, in
cluding United States bonds which 1t
may own, and this is the method Of
taxation authorized by our statute on
the subject" 1t was contended that
this position in the case of national
banks amounts TO a discrim-
ination against holders OF such
shares as compared with The
owners of other moneyed capital and Is
therefore in violation of the statutes OF
the United States, regulating the taxa.
tion of shares of bank stocks. This is
based on the fact that government
bonds held by private banks or bank
ers can not be assessed In this manner.
The court holds that the statutes may
provide for this difference between COR
porations and individuals without rails
ing the question Of discrimination.
There is no good reason why the per-
sons doing business in corporations
should not be taxed differently from
those who are doing business privately.
1t Is believed that the two decisions
in these bank cases will effect quite a
reform in bank taxation. There has re-
Gently been great inquiry from assess
ors and county officials about assess
ment OF bank shares, indicating desire
to reach the. limit Of their assessment.
The two Burlington cases may go TO
the supreme court for final settlement,
as especially in the case of the National
bank, there is much opposition to In
cluding bond values in the assessment.
A number of farmers and market
gardeners living southeast of Des
Moines, have exemplified anew that
brotherly love dwells among them and
that they are willing to help one In
trouble. Mr. +. j. Alber, an employe
of the state, one of the janitors OF the
state house, is small farmer living
southeast OF the city. He has lived for
nineteen years on one farm, which he;
has rented. In the winter time he has
moved down into town to be nearer
his work and the schools. About three
weeks ago he started to move back to
the farm. Tw loads of his household
goods had been sent to the farm house
and he was starting with the remain
der when neighbar rode down the
lane and told him that he need not
take the rest of the goods out as a IRE
had burned up his house and all the
goods first taken out. Another family
had lust moved into the house he had
Just vacated and he was In the road.
Nearly all the clothing of himself and
wife and nine little children had been
burned up in the house. His condition
was pitiable. He was given shelter for
the night and the next day the farm
neighbors gathered and proposed that
If the landlord would get the lumber
for the house they would build 1t, pro-
vided he would give Albers long time
lease with option of buying the land
The landlord had generously offered
him $40 IL he would give up his lease
for the next year. But the bargain
was made. Neighbors hauled the .um-
ber and built the house. and this week
Alber moved his family into the small
house employees and officials generously
to a purse which was pre-
sented him. Alber had also had hard
luck in that his son just old enough to
work. had suffered a broken leg early
in the winter and had been in a hos
pital ever since and will be perma-
nent cripple. He is a plain, honest
German, given his place by favor OF
Governor Cummins and Custodian Nc
Curdy.
The judges of the supreme court are
here at work this week. No difference
can be observed as yet in the work be-
ing done by the $4,000 a year men and
the $4,000 year men on the bench:
but the high priced judges say they
expect to take all the hard cases and
leave the easy ones for the others.
With reference to suggestion that
has been made that the work of the
Iowa department of labor include an
investigation to determine how many