The weekly times-record. (Valley City, N.D.) 1912-1922, 1922-03-02
BANKERS V0LUNTA-
RILY PAY TAXES

MILL M lHAEO
Stock in North Dakota banks was
given the same standing and status
! as other stocks and bonds and is
therefore relieved from general taxa.
tion, through decision of the North
Dakota supreme court yesterday, in
the test case brought by the Farm
ers' State bank of Page against the
state tax commissioner, the county
treasurer and sheriff of Cass county.
This decision is the Interpretation
Of law passed at the special session
Of the legislature called by Lynn J.
Frazier in September, 1919, at the
time that the Nonpartisan league was
in full control Of both houses Of the
legislature. One of the laws passed
at that session was repeal of the
old moneys and credits act, under
which all stocks and bonds had been
previously taxed. 1t was found that
the taxation of moneys and credits
was driving capital from the state,
and the law passed at the special ses-
sion expressly exempted "stocks and
bonds.
Notwithstanding this decision the
bankers of the state, anticipating the
decision, will not evade payment of
any general tax on bank stock for tho
past two years as they might do as
the result of this action by the Non
partisan legislature, but a committee
from the North Dakota Bankers asso-
citation will meet with the state tax
ing authorities, agree on a fair basis
Of taxation, based upon what other
personal property is paying, and VOL
UNFAIRLY pay this tax into the states
Golfers, it is announced.
Tax Commissioner Wallace main
tanned, however, that these words
did not include bank stocks and he
proceeded to assess bank stock under
the general valuation tax. This de-
cision relieves the. banks of this gen.
eral valuation tax which was calcu-
lated by the tax commissioners Of
flee to bring $447 900 in 1920 and
$4OS,0 in 1921. @-
The supreme court holds that when
the legislature uses ordinary words,
the words have an ordinary meaning
and that reading into them anything
else by the decision of the. supreme
court is making the court a legis-
lative body. The decision is in the
form of permanent injunction
against tax collection officials, re-
straining them> from taking from
banks more than the taxes specified
by chapter 222 of the compiled laws
of 1919, amounting to SO cents on
each $1,000 Of capital stock.
Will Voluntarily Pay
"While this decision relieves the
banks from paying any general tax
on bank stock, there is no desire on
the part of the banks to escape their
just share of the tax BURDEN" says
w. C. Macfadden, secretary Of the
North Dakota Bankers Association in
a statement regarding the decision.
"The banks anticipated this deci-
sion, upon the advice of the attorney
for the association, A. G. Divet," says
Mr.. Mcfadden, "and about three weeks
ago the executive committee of the
bankers association met with large
number of representative bankers of
the state and unanimously determin-
ed that upon the establishment of the
principle of equal taxation Of bank
stocks with other property the banks
of the state would voluntarily pay
taxes for the years involved, based
upon the rates charged against other
personal property of the state.
"This action by the executive COM
mittee and other bankers OF the state
has been communicated to the state
taxing authorities and it is expected
that within very short time a COM
mittee from the bankers association
will take the matter up with the state
authorities and just and equitable
tax for the years involved arrived at
and the same will be promptly paid
by the banks" IT,. -.,.. 49,.
Some Already Paid ~
Some of the banks Of the state have
already paid in their 1920 assess