The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1920-03-15
DEFUNCT MONEY
TAX ACT TO BE
TRIED ON MERIT
Supreme Court Reverses Judge
Nuessle's Decision in
Favor of State
1919 LEVIES AFFECTED

In spite Of the fact that the Six
teenth assembly Of its own rSlitiOn re.
pealed the moneys and credits acts OF
the Fifteenth assembly, fixing in North
Dakota the situs for taxation Of
moneys and credits originating in this
state. although held III another state,
the supreme court in decision hand
ed down at noon Saturday insists that
the cOnstitutionality Of the act shalt
be tested by due process Of law.
The question Of the cOnstitutiOnality
Of this act was brought before the SUI
preme court in an action filed by the
Capital Trust l. Savings bank and
Ferrell Oznan. Kirk 4 co. Of the
Twin Cities through Miller. Zuger 4
Tillotson Of Bismarck. The action or
iginated in the district court for Bur-
leigh county. and was appealed on an
order Of this court sustaining the
states demurrer to the complaint or
the complainant and appellant. The
state cOntended that the moneys and
credits act was a valid and constitu-
tional enactment and that consequent
ly the complainant's bill. protesting:
the purpose Of the statute to tax in
this state corporations having their
place Of business outside the state and
engaged in an interstate business. stac
ed no cause for action.
The supreme court reversed the low
er court. and the effect of this action
is to remand the case to the Burleigh
county district court for trial on its
merits. The question involved j.;
whether the state can for the years
1913 and 1919 collect the tax assessed
against interstate corporations under
the moneys and credits act. This
statute provided that for purpose Of
taxation the situs Of all moneys and
credits. whether mortgages or bonds or
open accounts originated within North
Dakota should be fixed in this state.
As 4 result wholesalers and jobbers Iii
other states and particularly in Mime
sofa. as well as mortgage and bond
houses and banking concerns were al
fected.
BIRDZELL WRITES OPINION
The opinion for the majority of the
court in each case was written by
Associate Justice Luther K. Birdzel'.
with special concurring opinions by
Associate Justice X. H. Grace.
In the case in which the Capital
Trust 4 Savings bank was named
among the plaintiffs and appellants.
the syllabus Of the courts decision
read: ,"Chapter two thirty Of the ses,
sion laws Of nineteen seventeen, which
provided for the taxation Of moneys
and credits at an annual Hat rate OF
three mills on each dollar Of the cash
value. having been repealed by Chap
ter sixty two Of the session laws Of
the special session Of nineteen
nineteen. the latter providing
that the act should NOT
be constructed to invalidate or
discharge any tax heretofore levied
or assessed. it is held that the plain
tiffs. in respect to the business
described in the complaint are NOT
liable for the tax sought to be i'm
posed
The ma jority opinion described the
plaintiffs in this case as claiming tn
he foreign corporations having offices
in st. Paul and Minneapolis loaning
money on promissory notes secured
by mortgages on farm lands and. in
the case of one plaintiff. chattel mort
cages on livestock.
''The fiction of mobilia sequuntul
personam.' said the opinion. with ref
erence to the rule that property fol
lows the person. lis responsible for
broad assertion Of the lack of jnris-
diction to tax a credit in the state uf
debtors domicile. But while thi;
fiction has been compelled to yield to
facts pointing to the necessity Of equal
taxation of those engaged in business
within sovereign state. the prin.
ciple has never been so completely
reversed SO as to authorize the state
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