The Chickasha daily express. (Chickasha, Indian Territory [Okla.]) 1899-current, 1915-11-09
Judge Linn in Case Of First National
Bank Upholds Validity Of Stat
ute Making Certain Sc
curities Non-Taxable
MANY BANKS In
STATE ARE AFFECTED
Ruling Of State Board Of Equaliza'
tion Set Aside; Case Likely to
Supreme Court for
Final Test

In the district court yesterday Judge
Will Linn handed down a most impor-
tant opinion-one that will prove OF In
terest in every county in Oklahoma,
in that 1t affects the assessments OF
certain holdings OF banks throughout
the state and construes an act of the
legislature OF 1911 authorizing banks
60 own certain building bonds and
providing that those bonds shall be
nontaxable.
The style OF the case settled by
Judge Linn's opinion is: "In re, the
assessment or the property of the
First National Bank. Chickasha, Okla
homa," and in the matter the banks
officers sought relief. through the ad-
judication of the right of the State
Board of Equalization to authorize and
instruct the county assessor 10 levy
n tax upon SlSO,000 invested in Okla
homa bonds and exempt from tax
alton through the act of 1911, laws
1911.
The court, in the findings. says:
"The assessment Of the property OF
the First National Bank OF Cfickgsha.
Oklahoma, for taxation for the year
1915 is an assessment upon the net
value Of its moneyed capital. surplus
and undivided profits of said bank,
less its real estate separately taxed;
that at the time Of the assessment
and equalization OF the property OF
said bank for taxation for the year
1915. said bank was owner Of public
building bonds of the state OF Okla
homa issued pursuant to the act OF
legislature. 1911, session laws 1911,
page 1S9, in the sum OF s1SO,000; and
that the capital OF said bank was and
Is invested in said bonds. and that by
the provisions of the said act of leg
isIature said bonds were made exempt
from taxation for any purpose"
The court further found that the at
torney general and the governor of
the state had construed the section of
the 1911 laws as exempting such
bonds from taxation. thereby exempt
ing that part of the capital and sur
plus OF bands and insurance com
panies invested in such bonds from
taxation. The court also found,
that prior to the purchase of the bonds
held by the First National Bank Of
Chickasha. the county board Of
equalization and the State Board Of
EQUALIZATION had so construed this
act and permitted banks and trust
companies to deduct from the money
capital assessed for taxation the
amount Of capital which might be
found to be invested in such bonds
and that the directors Of said First
National Bank of Chickasha, Okla
homa, authorized the purchase Of the
bonds herein by 1t with the capital OF
said bank, relying upon the construc-
tion so placed by the attorney general
and governor of the State Of Okla.
homa. and by the State Board OF
Equalization"
The findings Of the court in this
matter further showed that the proper
county officials of Grady county had
for the year 1915, listed the followins
holdings OF the First National Bank oi
Chickasha for taxation: Capital stock
100000: surplus, 100000; invested II
real estate, $4,000. That the county
assessment officers found the banl
owner of siS0,0OO Oklahoma buildinA
bonds, exempt from taxation. Th'
record shows that the assessment o
the banks holdings were made in com
nliance with such findings and ap
proved bv the county equalization
board, and that the state equalization
board ordered the county board t
raise the assessment of the bank tn
amount OF the state building bond
held by said bank.
In the matter decided by Jud2
Linn the entire list Of contention
made by the State Board of Equalizs