The Billings gazette. [volume] (Billings, Mont.) 1896-1919, 1905-05-09
ITS PROVISIONS HELD TO BE UN-
CONSTITUTIONAL.
AN IMPORTANT BRIEF FILED
Attorney General Holds illegal Ex-
emptions From Taxation of State
Banks Personal Property.

II the brief filed in the supreme
court by Attorney General Galen is
I sustained it will probably have the
effect Of causing many if not all OF
| the state banks to surrender their
charter and operate under the nation
al banking law. The filing made is
in the case Of the DAILY Bank and
Trust company VS.. the county com.
missioners of Silver Bow county, and
it attacks the constitutionality OF the
law relative to the taxation of state
banks.
MIR. Galen holds that the law ex-
empting from taxation the personal
property of state banks is unconstitu-
tional, being in conflict with that part
of the constitution which provides
that the property of all corporations,
Should the attorney general be upheld
in his contention it will mean that
the DAILY concern will have to pay III
excess of $4,000 more in taxes than
it maintains it legally owes.
While the supreme court has never
passed upon the question of taxing
personal property of the state banks,
it has rendered an opinion in the mat
ter Of taxing the personal property OF
insurance companies and this opinion,
Mr.. Galen holds, is substantially IN
accord with his position in the action
Under consideration.
The Question Involved.
The question involved in the case
is the constitutionality of the law un-
der which the state banks and trust
companies are assessed for taxation.
1t provides that such corporations
shall be assessed for taxes in the
same manner as the property of ma
tional banks, and no other"
This law the attorney general at
tacks on the ground that it grants
partial exemption from taxation OF
the property owned by such corpora
tions, because the personal property
Of national banks is exempt from tax
alton under the provisions of the
United States law, under which alone
they are taxed. The states constitu-
tion requires that both the real and
personal property of all corporations
shall be taxed, hence Mr.. Galen's con-
tention that the law is defective.
History of the Case.
The case of the DAILY company came
into the supreme court from an appeal
from a decision of the district court
for Silver Bow county, which rendered
judgment on an agreed statement OF
facts. The bank and trust company
made return to the assessor showing
the amount of it's capital stock and
real estate, together with its surplus
and undivided profits, but made no
return of any other property belong
ing to it. Acting under the directions
of the county commissioners, the as
SCISSOR assessed to the bank it's solv-
ent credits and other personal prop
erty, amounting in excess of $500,
the taxes on which figured up $19,-
257.73, and which the treasurer was
ordered to collect. The bank contest
ed the assessment and on an agreed
statement of the facts the matter was
submitted as already stated. The
court held the assessment to be void
and enjoined the treasurer from col
lecting the tax. An appeal was taken
by the county.
Not Complete Return.
Mr.. Galen holds that the return
made by the bank is not complete, as
it is in no sense return of all of the
property owned by it, but is only sup
elemental to the regular return re-
quired of every taxpayer, and for the
purpose of aiding the assessor in de-
termining the value of the shares of
the stock of the bank to be assessed
to the stockholders. He furthermore
holds that the bank having failed to
make return, as required by law, OF
its own property as distinguished from
that of its stockholders, it was the
duty of the assessor to assess the
property at its true value,
The bank contends that to tax state