Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1916-07-26
OLD MAIN STREET BANK
SECURES WRIT OF ERROR
appeals From Decision of Hastings
Court as to Taxes for
1914.
BANK HAS SINCE BEEN MERGED
says value Placed on Banking House
In 1914 Was Excessive, and That
Much Paper Held Was UncoIlcct-
iblc and Worthless,


The Main Street Bank-no1y conso,,-
dated with the Broadway National
Was awarded writ OF error Yesterday
ny tue state supreme Court OF Appeals.
"h'ch VIII review It's plea FOR n cor
rectior of an alleged erroneous assess
/ ment made by the Commissioners 81
/ revenue of the city of Richmond on
tho basis OF an incorrect repor, OF tho
taNnblc assets of tho institution made
by Its cashier
1 Cashier Harlaway in co,rorr,i,.
with the law requiring tho bank TO
report for taxation the sum Of it's can't
tai. surplus and undivided pronis loss
reai estate otherwise taxed. reported
! for taxation in 1914 values av~ro-,.
Ing $4,000 On this basis tho s,a,o
would have received in taxes s537 "a
while tho city would have received
sl.977.7o
subsequently. however. tho bank
brought proceedings against tho city
OF Richmond and the Commonwealth
Of Virginia in tho Hastings Court. ask
Ing for a revision of the assessment
reducing the taxable capital of tho
bank 10 S?3.57o7l ON tho reduced as
sessmcnt tho States taxes would nave
Z t'i'''''itt'''' ~ So ,.op ana Tho riiN'S to
81. 2n52S
Judge Richardson denied tho banks
motion for relief from the alleged or.
roncous assessment In an order entered
on November 30. 1915. The hank thore-
upon appealed to the Supreme Court
which yesterday awarded IL a writ of
error. Bond was required In tho sum
o. 5000.
BANK IN InI4 HELD
tNC0LI.Et'TIRIE PAPER
In its petition Ia the supreme Court
tho bank states that in the year 1914
ii found itself in difficulties because OF
iarG" amount Of worthless and I'M
collcctjhic paper. Witnesses introduced
NJ tho hearing in tho Hastings Court,
the petition relates. BROUGHT on; the
errors committed by Cashier Hardaway
In his report to Commissioner TrcSnon
The main facts established ~ these
witnesses, the petition relates. ARC
that IN the statement uron which the
tax was assessed tho banking house
and fixtures were put tn At Slll,500
and that the actual valuc as evidenced
By an actual sale shortly thereafter
made was s61.5oN, and that in the as
sessmcnt complained of. paper OF tho
amount Of s3l.nioto was treated as
good, when. as matter OF fact, 1t Is
uncollectihle. has not vet been coll
iected and never will he collected.
There was. in fact on February !,
1914. IN Impairment of the capital OF
the hank as follows: $4,000 the dif-
ference between the actual value OF
tho bank building. fixtures and furni-
ture az carried OH the books. and tho
actual value rs aSccrtained by tho sale,
plus s3l,o4o.40 bad paper. making
s75,0io.io Mr.. Hardaway states that
the profit and loss account AS OF Feb
ruery /, 1916. was sl6,22il1.
Add To the par value OF tho ASA
shares Of stock which is $500 and
the result Is s9Os,422.1l Now deduct
from this amount s75.n4o.4". repre-
senting the impairment or the banks
capital, and VIC have the sum Of Sl33-
3Sl.7l. which represents all the assets
of the hank--capital. surplus and un-
divided profits. Now. deduct in ac-
cordance with the statute the sum Of
sac, 500. representing the assessed value
OF real estate. and have the sum
of Sa3.5127l as the basis upon which
10 determine the value Of the stock"
FACES ~ CASE
WE'RE NOT DISPUTED
Since the facts In tho case were not
disputed. the petitioner claimed tho
right to n correction Of the erroneous
assessment unless there u legal
obstacle in the way. Judge Richard
son. In denying the motion for relief.
delivered an oral opinion from the
bench. in which no held:
"First. that the bank had no right
Ia petition for q correction of tho or
roncous assessment. which could only
he done by the Individual stockholders
Second. tina, tho hank having by It's
cashier made the report which was tho
foundation IF tho assessment now
sought Ia he corrected, the bank has
no right 10 complain"
In its petition for writ of error
tho bank replies IL tho first proposition
by constructing section 10 Of III" Act
~ March -, 1908, under which tho
bank stock was taxed to make tho tax
& debt due from the corporation TO
tho state for which il is directly aud
primarily liable.
TO Judge Richardson's second objcc-
proceeding was brought under the au-
code. which, II is claimed, gives the
bank an absolute right 10 the corrcc-
ton Of an erroneous assessment unless
the erroneous assessment was caused
10y the failure or refusal of the appli-
cant To furnish list Of his property. real
or personal. To tho commissioner on
oath AS tho law requires"
'''rhe erroneous asscssmsnt." the pc
/ tition concludes. was not caused bv
I the IN lure re fusal of your petitioner
I TO furnish tho list as required ny law.
Your petitioners cashier did furnish
tho statement as required by law hu,
/ tho statement was confesscdly or
/ roucouS"
FOR URBANNA LINE