The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-06-20
SUIT TO TEST
EXCESS TAX
LAW PREPARED
Bismarck Firm Holds En-.
forcement of Act Would
Force Companies to Quit

Agreeing to q test case to decide
whether the deduction of money and
credits from corporation excess pro-
fits is constitutional the Ga ! ble-Ro
binson Fruit company, wholesale
fruit house Of Bismarck, has brought
proceedings in district court against
T. II. H. Thoresen, state tax commis-
sioner.
Papers were served by the COM
pany's attorneys on Mr.. Thoreson
Just before the commissioners office
closed yesterday afternoon. The case
will be argued at 10 o'clock Tuesday
morning before Judge Jansonius. 1t
is the tax commissioners intention
to ask for an immediate decision
which will be certified to the su-
premc court. The high court will be
requested to give an opinion by July
/ when the corporation reports have
to be certified to the county auditors,
according to law.
Seek Injunction
Meanwhile, the Gamble Robinson
Fruit company is seeking an injunc-
ton against the tax commissioner to
prevent him from assessing cor
porate excess tag of rs per cent on
81, ,667 .O8s so-called corporate excess.
There will be no examining Of wit
nesses in the case. Arguments only
will be presented. Commissions
Thoreson will argue his own case.
1t is declared in the complaint that
the tax commissioner, acting under
chapter 3O5 Of the laws of 1923, had
sent blanks to the corporation and to
some 5000 other North Dakota cor
porations asking for data from which
the amount of taxable corporate ex-
cess could be determined; that on
this blank the plaintiff was asked
also to state the amount Of its money
and credits as defined by law and
that the blank contemplated the SUB,
traction of the amount OF money and
credits from the amount Of corporate
excess, the balance to be shown as
the amount which would be certlfied
to the county auditor as basis Tor
the assessment and taxation OF cor
porate excess.
The company, however, the COM
plant says, learned, after furnishing
this information, that money. and
credits were not to be deducted by the
tax commissioner. If the deduction
were made there would be no tax
Formal notice was served by the TAX
commissioner of his intention not to
make the deduction, it states, and
has threatened to certify the assess
ment in this manner.
|. Claim Money Exemption
The suit alleges that money an
credits are absolutely exempted from
taxation under chapter 80 Of the laws
of 1923, and that the value of money
and credits is reflected in the mar
ket value of the stock Of the cor.
poration; that if the tax commission
er certifies the assessment as ne
proposes to do, money and credits
will in fact be taxed.
1t is alleged in the complaint thai
if the tax is certified and collected
on the proposed basis, the plaintiff
will be denied due process and eQua
protection of the law, in violation Of
the constitution.
The tax commissioners demurrer
| presented today, states that tn
complaint does not state facts "suffl
cient to constitute cause OF actor
! and that the plaintiffs complaint
does not state facts sufficient to en-
title the plaintiff to the relief de
manded in the said complaint
The case is not one of facts, tn
commissioner says, but Of law.
"The Gamble Robinson Fruit com
pany started this injunction at M!
request. arranged for a friendl!
case to test the cOnstitutiOnallty o
the law before the law was put int
operation. We want to know wha
| is due from us according to law.
Save Htigations
"The company has been YER
courteous in this matter in agreeing
to a case.e We will thus save hun
dreds of litigations in various coun
ties. If the law is construed to meal
that money and credits are to b
deducted from corporate excess the
the law is ineffective and mean
nothing. The law was passed by tn
legislature in order to collect take
on property from many corporation
who are now paying only an incom
tax. This amendment was intende
by the tax department to make tn
taxing of corporations possible an
! it was our intention to secure q la'
that was workable. We take no stan
i a. to whether the, law is just or ur
\ Just. It requires US to perform Gel
tain duties and we are seeking t
perform them"
II CORPORATE excess taxes to be col
lected will not amount to more tina
$500. 900, the commissioner said.
FLAG THIEF I'm AGAIN.
Tokyo-Rihei Okada, who escape
1