The daily Gate City. [volume] (Keokuk, Iowa) 1855-1916, 1913-01-31
In Case of keokuk National Bank
Against Lee County Juuge
Bank Points Out Bank
Victory.
SUPERVISORS TO REFUND
Indicate That at Meeting Monday
They viii Refund Money
and Save County
Over $1,000.

Judge Henry Bank, Jr., called the
supervisors of Lee county, J. A. Dun
lap, of the Keokuk National bank, and
attorneys in the case to the court
house this afternoon and explained his
position in the case Of the Keokuk
National bank against Lee county,
wherein the bank sought to recover
money to the amount of more than
$500 paid to the county on govern
ment bonds.
Judge Bank told the supervisors
that IL they would voluntarily refund
the money that they would save the
county more than thousand dollars
OF interest on the amount and the
costs of the law suit and that under
the law with the exception of the
taxes for the year 1902 which the
bank is prohibited from collecting I'M
der the statute OF limitations, the
county would have to refund the
money
Il may be mistaken" said Judge
Bank, "but never felt more certain
on proposition in my life" The SUI
pervisors indicated that at their next
regular meeting to be held on Mon
day they would refund the money.
Many Decisions on It.
In Des Moines In the Polk county
courts Judge Bank told the super
yisors there was decision in which
the supervisors had voluntarily re-
funded the tax and the bank proceed
ed to sue for interest and 1t was held
by the court and the supreme court
that where voluntarily returned the
tax and the bank proceeded to sue fol-
interest and it was held by the court
and the supreme court that where
voluntarily returned the county was moi
liable for interest. Judge Bank sale
that the decisions on the other sim
liar cases have mostly been one way.
Judge Bank said 1t had been decided
by the state and national supreme
courts that United States bonds were
not taxable but that under a peculiar
section of the Iowa statute, many as.
SCISSORS had several years ago pro-
ceeded to take government bonds
held by banks and that was the case
in this county. The case Judge Bank
cited the Iowa code section 1417 that
the board of supervisors shall direct
the treasurer to refund to the taxpay-
er any tax enormously exacted Or paid.
The money will have to be re.
funded from the various funds to
which it went and attorneys for both
sides will meet in Fort Madison Mon
day to arrange the fina "details of the
matter. In pointing out the way to the
supervisors by which they could save
the county over thousand dollars in
interest and costs Judge Bank said
he did not feel that the country should
pay the interests or the cost.
History of the Case.
The case was filed in the district
court on August "a, 1908, and on No
vember Z, 1908, Judge Bank granted
a temporary restraining order pend
ing adjudication prohibiting the coun-
ty from collecting the tax not paid Of
1evying. In he trial here in Novem-
Der in the district court the case was
deemed of such Importance by the
state of Iowa that Assistant Attorney
General G. A. Robbins came here to
assist County Attorney T. A. Craig in
trying the case.
In its original petition the bank
states that portion of it's capital
was invested in government bonds
amounting 10 some $4,000. In 1902,
1908, 1904, 1905, 1906 and 1907 the
county levied tax on these bonds
under a law which has since been de-
clared to be invalid and the bank
paid the tax under protest amounting
to about $4,000 as follows: 1902, $801.-
-; 1903, $4,000; 1904, ss5s0o; 1905,
s574.50; 1906, ss67oO. The tax for
the year 1907 was not paid although
it was levied.
The bank claimed, as has been done
in many cases presenting similar
points in this state, that the state
had no right to tax federal bonds
and that the tax paid under law
which has been declared to have been
not valid should be returned. The
county claimed that the bank was
estopped from claiming back the
taxes because in each of the years the
bank appeared before the board of
equalization and voluntarily agreed
with the board on the amount and
that the tax for the year 1902 is bar
red by the statute of limitations. Also
because the money had been distribu-
ted ia the various denari ments and