The Telegraph-courier. [volume] (Kenosha, Wis.) 1888-1946, 1922-10-26
Under Holding of U. S.
Court Bank VIII Re-
ceive S17,696.
MAKE BEST BARGAIN
Bank Waves Claim for Interest
Amounting to Considerable
and Agrees to Compromise.

Bowling to the mandate of the SUI
preme court of the United States
which has held that cities in the
state of Wisconsin have no power to
assess personal property taxes against
the capital stock, surplus and undivid-
ed profits of National bank, the city
of Kenosha will refund to the First
National bank the sum of $17,696, rep
resenting the major portion of the tax
paid by the bank to the city for the
year 1921. Formal demand upon the
city for the return of this money paid
to the city at the last tax paying time
was made at a meeting of the board
Of review on Friday afternoon and af-
ter discussion of the proposition last
ing a long time an agreement was
reached which is regarded as advan-
tageous to the city. The taxes of the
bank amounting to $20,615, exclusive
of the real estate tax assessed on its
property were paid under protest and
under the decision of the supreme
court the contention and protest of
the bank have been entirely upheld.
Bank Generous in Settlement.
While insisting on it's right to the
refund of the money which has been
wrongfully collected as taxes the Of
fcials Of the bank showed a willing
ness to meet the city half way in an
agreement which would provide that
the bank in the future will contribute
something to the city tax roll. The
law of the state does not give to the
state the right to levy an income tax
against banks but the agreement which
has been reached provides that the
bank shall pay to the city an assess
ment which will be equivalent to the
amount that the state might assess
against it as an income tax if the
banks earnings weres assessed the
same as earnings of individuals. This
amount for the year 1921 amounts to
S2,939 and it is understood that the
city will return to the bank the ball
ance remaining after the deduction of
this sum from the taxes paid. Banks
all over the state have not only de-
manded from the cities the return of
the amount paid in taxes but have in
sisted on being paid interest on all
moneys held by the cities. The Off
Gals of the First National bank waiv-
ed all claims for interest against the
city.
Afford Says Nothing Else to Do.''
"There is nothing else to be done by
the city but to make a fair settlement
with the bank" said Walter H. Afford,
president of the city, council this
morning. "The United States supreme
court has ruled that the state of Wis
consin has no right to assess the
personal property of National banks.
No provision is made in the income
tax law Of the state for the assess
ment of the earnings of this kind of
bank. The bank wants to pay the
fair tax to the city and is willing to
enter into an. agreement with the
council permitting an assessment
against it of an amount equivalent to
an income tax. The return of last
years taxes is to be made on this
same basis. We must compromise in
this matter or we would get nothing
at all. The officials of the bank have
met the city officials in a spirit of
fairness in the matter in fact |
think that we have secured the best
settlement to be secured in any city
in the state'
Milwaukee Banks Want Interest.
1t was declared that National banks
in Milwaukee and in other cities of
the state in taking advantage of the
decision of the supreme court to de-
mand the return of taxes paid have
demanded interest on the money and
that these banks for the most part have
made no agreement to contribute to
the city funds along the lines sug-
gested and accepted in Kenosha. The
loss of the money by the city treasury
is considerable loss, but it is not
an unexpected one. Since the ruling
of the supreme court the city officials
here were. convinced that the money
would have to be repaid to the First
National bank. sThe decision does not
affect the other banks of the city.