Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1922-12-22
ALLEGES TAX IS
DISCRIMINATORY
Action by Owner of 500 Shares
in Peoples Bank.
Mrs. Lindsay Asks for Injunction
Would Restrain Town, Village, SchoO
District ard Tax Collector.

Mrs. Lindsay Asks for Injunction
Would Restrain Town, Village, School
District ard Tax Collector.
A bill in chancery returnable to the
Windham county court of chancery was
sc"ved Saturday by Sheriff Frank l..
Welman upon the town of Brattleboro,
the village of Brattleboro, the Brattle-
boro graded school district and Frederick
Greasy, collector of taxes for the three
municipalities, brought through the law
office of Harvey, Maurice 4 Fits by
Mrs. Agnes NJ. Lindsay of Bridgewater
N H., owner of one-quarter OF the stock
Lindsay seeks to prevent the collection
of taxes on her bank stock by the de
PENDANTS. on the ground that the stock
is taxed at n rate that is discriminatory
under the laws of the United States.
Should the complaint be sustained it
doubtless will mean the removal OF
large amount of --operty from the local
taxation lists, not only in Brattleboro
but elsewhere in the state where there
are national banks. This naturally
| would increase the value of national
| bank stock. which it is now claimed IL
taxed to the limit, and this fact is of
special interest here in view Of the pro
posed consolidation of the Peoples aud
Vermont National banks.
The complaint sets up TINT Mrs Lind
say is the owner of 500 shares of the
capital stock Of the Peoples National
bank of the par value of $4,000, and
that this stock was appraised for the
purposes of taxation at $165 share,
making q total appraisal of $4,000, and
n grand list of 1926. The bill alleges
that the town tax is for 81, 1925, the
| village tax 1887 rs. and the school dis
trict tax 1925. The bill goes on TO al
lege that this stock is only taxable by
the provisions of the United States stat
utes ard that these statutes prohibit the
state or municipality of the state from
taxing stock of Il national bank at u
greater rate than other moneyed capital
in the hands Of individual citizens of the
state is taxed.
The bill alleges that there is large
and material amount Of money loaned
h. citizens of Brattleboro and the other
towns in the state at q rate of interest
rot greater than five per cent, and that
these loans are exempted from all taxa
ton, making the grand list of the towns
and state much smaller than it other
wise would be, and obliginC the plain
tiff TO pay a much larger tax. ard sets
forth that this is an alleged dscrimna-
ton AGAINST the national bark stock and
that the tax is illegal on account of this.
| The complaint further alleges that a
large ard material amount of money is
loaned by individuals Of the defendant
municipalities and other towns in the
state to counties towns, town school dis
tricts, villages and other municipalities
a. rate of interest not exceeding five
per cent. all of which Is exempt from
taxation in the state, and that this eX-
nmption creates an illegal discrimination
a"ainst the tax on national bank stock,
nd that all these loans are in compila-
tim with the business of national banks.
1t also Is alleged in the complaint that
if Mrs. Lindsay paid her tax under pro
test she would be obliged to bring suit
, against each of the municipalities and
thereby would be subjected tn a multi
nlcity Of suits to determine the validity
of the tax, and alleges in such a case that
she would be put to large expense for
services of counsel and expense OF the
litigation which she never could recover,
ard that this would cause her irrepar-
able injury and damage. The complaint
valves an answer under oath and prays
for subpoena. for an injunction against
each of the defendants restraining the
I relief az the plaintiff may be entitled to
= The defendants are cited by Judge
Harrie b. Chase to appear before him al
I the county clerks office Dec. % at II
o'clock in the forenoon, to show cause. il
any they have. why the injunction
prayed for should not be granted.
Similar litigation is now pending il
many states; hearing has been il
. progress for some time in the Massnchu
setts courts. and similar question was
before the, courts of New York in re
cent case decided by the Court of APP
= peals for New York Dec. ~. 1922 II
the New York case bank shares wer,
taexd at fiat rate and mOneyed CAPT
e tai in the hands of individuals was taxed
, only on its income. The New York cour
I held that this was a discrimination pro
hibted by the United States statute an,
that the tax was void. Taxes amountin,
: to about $12,000.000 were involved il
= the New York decision. This subjec
has been before the United States court
|, during the past few years several time
;, on various kinds of discrimination. ant
|, the courts have uniformly upheld thu
, law to be that stock of national bank
cannot be taxed any differently thai
other moneyed capital in the hands o
individuals. The questions presented il
g different cases present various phases o
y this question.