The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1927-08-22
HAVE A son
/ SUPREME COURT
From Burleigh County,

Ward county, a municipal corpora
ton, and A. s. Spicher, as sheriff of
Ward county, North Dakota. plain
tiffs and appellants, VS.. L. r. Baird,
as receiver of the American. State
Bank Of Burlington, North Dakota,
defendant and respondent, and Ward
county. political corporation, and
A. S. Spicher, as sheriff of Ward
county, North Dakota, plaintiffs and
appellants, VS.. L. r. Baird, as re-
ceiver of the State Bank Of Berthold,
Berth0ld, North Dakota, defendant
and respondent.
Syllabus: 49,.
l. Section 2ll5, 1918 Compiled
Laws, as amended by chapters 81,
s. L. 1917 and ,289, S. L. 1928, re-
lating to the taxation of banks and
loan and trust companies, contcm-
plates tax on shares of stock be-
longing to the stockholders and not
tax on capital stock or assets, the
property of the corporation.
z. Paragraph of section 2ll5,
1913 Compiled Laws, as amended by
chapters 81, S. L. 1917 and 299, 1923.
providing that any solvent bank or
loan and trust company may, upon
written request Of its cashier or
other officer, have the amount Of
the assessment against it's stock
holders contemplated by section 2115.
as amended, assessed against the
bank or loan and trust company in
ITS corporate name and that the tax
thereon may be paid as other ex-
penses of the bank or loan and trust
company are paid, was enacted for
the convenience of the bank and its
stockholders in paying the tax and in
add % THE taxing authorities IN col
Letting it. by enabling the bank to
act as the voluntary agent Of the
stockholders for the purpose Of pay
ing the tax, and does not contem-
plate that the tax SO assessed shall
DC a tax against the capital stock or
assets OF the corporation.
3. Section 21l7. 1918 Compiled
Laws, was enacted to afford a method
and means whereby the collection of
taxes assessed under section 2ll5
might be insured; and the lien for
such taxes therein created against
the dividends, the capital stock and
the assets OF the bank is a. lien upon
only the dividends. capital stock and
assets belonging to the stockholders
thereof. that is, upon the distributable
assets Of the bank.
4. Where a bank pursuant to the
provisions of paragraph S Of section
Sll5, 1913 Compiled Laws, amended,
voluntarily assumes to, act as the
agent for its stockholders, for the
purpose Of paying their taxes, the
oDilgation thereby arising to pay such
taxes is limited to the distributable
assets that It may hold belonging to
the stockholders, and II the bank be-
comes insolvent and there are no
distributable assets, collection of
such taxes cannot be enforced
against the receiver/of. the bank or
out of the assets in his hands.
Appeals from the district court of
Burleigh county, Hon., Chas. NJ.
Cooley, special judge, IT ISL
Two: actions against the receiver
OF insolysnt banking Operations to
enforce the collection Of taxes as
sessed no shares Of stock in such
corporations prior to their insolvency.
The receiver demurred to the COM
plants. The demhrrers were sus-
tanned and judgments Of dismissal
entered. Plaintiffs appealed. !.
Affirmed IN both cases. ...s \,
nPinion o. the court ~ Nuessle,
T. +. Thoreson, tax conan ii ioner.
and 6 J. Lynch Of Bismarck, attor.
neys far appellants; H. r. Johnson,
states attorney, Of Ward county, 81.
4. Dtckinfons assistant states attor-
ney ~ Ward county, and 3. n. bos,
ard. ~ q Ainot, Of counsel for
appellants. 81 y. !.
zuger 4 Tillotsou Of bismarck, at
tornsys fet respondent. \,
Fson Grnnta Coeutv 81 II.
Cedar Rapids National Bank. = cor.
poration,. plaintiff and appsJlsnt. Is.
=. y. Snoosy and Ed Sn1osy, a.
PENDANTS and resopndsnts.
Sy1labus: II ~ 81 i'
I. Where yromissery notes "a. ~.
lenfAl In aar3aa.s ainA ar 4 b 4fRaf ~ fAhk