98 F. 465 | U.S. Circuit Court for the District of Northern Ohio | 1899
(after stating the facts as above). I am not able elaborately to state the reasons for my conclusions in this case. I think it better, in view of the fact that the case will certainly be appealed, that I should give a very summary statement of them.
Upon the first issue, — whether the action of the state board of equalization was invalid for want of notice, — I do not find it necessary to pass. The action of the state board was embodied in a report to the county auditor, and by Mm placed upon the duplicate, so that it now appears on the face of the duplicate as a lawful warrant for the collection of the (ax.
This proceeding is a hill in equity to enjoin the collection of the 1ax on the ground that it was assessed without due notice to the complainant. If the tax assessed is no greater than ought to have been assessed, then the complainant is not in a position to ask the intervention of a court of equity, because, however irregular the action of the state board may have been, if the complainant cannot make it clear that by a hearing upon notice it would have been entitled to an assessment less than that which was made, the bill must be dismissed. The master finds that the actual market value of the stock is §128 per share. There are 10,000 shares of the stock, making a total valuation of §1,280,000. Bixty per cent, of this valuation would he $768,000. Deducting the assessed value of the real estate would leave a valuation of $650,630. The assessment of the state hoard is $642,000. It will be seen that the assessment of the state hoard of equalization is certainly only 60 per cent, of the actual value of the shares of stock in the market. The finding of the master is that there is nothing in the evidence to show whether the shares of incorporated banks in the counties of the state outside of Cuyahoga county were valued for taxation by the auditors at a higher
The next question is whether the operation of the statutory definition of “credits” to be returned for taxation in Ohio operates to discriminate in favor of other moneyed capital in the state against national bank shares. Upon this point the decision in the case of Bank v. Chapman, 173 U. S. 205, 19 Sup. Ct. 407, 43 L. Ed. 669, leaves no doubt. In that case it was held that the term “moneyed capital,” as used in the federal statute, does not include eapitai tvhich does not come into competition with the business of national banks, and that exemptions from taxation, however large, such as deposits in savings banks, or moneys belonging to charitable institutions, which are exempted from reasons of public policy, and not as an unfriendly discrimination against investments in national bank shares, cannot be regarded as forbidden by the federal statute. The court then proceeded:
“With no purpose to discriminate against the holders of shares in national hanks, and with the taxation of the shareholders in the two classes of hanks — ■ state and national — precisely the same, the question is whether this system of taxation in Ohio, in its practical operation, does materially discriminate against the national hank shareholder in the assessment upon his hank shares.”
The court then proceeded to treat the question of such discrimination as a question of fact, to be determined by the evidence, and reference was made to the report of the auditor to show what the total credits upon which taxation was laid, after deducting the debts allowed, were. It was pointed out that the deductions which might be made included deductions for many other things than what would be strictly moneyed capital, within the meaning of section 5219, and that there was nothing in the evidence then before the court
There remains (o be considered the question arising under the claim of former adjudication made in ihe bill. Upon the argument, and before I bad made a close examination of the bill, my impression was that upon this claim of former adjudication the complainant must succeed. It seemed to me. that the adjudication in the former case was a mere adjudication of the necessary operation of the statute of Ohio, as a matter of law, to discriminate against national banks, and therefore that, that question having been in judgment between the same parties, it must receive the same adjudication here. Looking into the bill, however, in the former case, and after an examination of the case of Bank v. Chapman, I find that, in order to support the aver-ments of the bill, it was necessary in that case for the complainant to rely, not only upon the statute of Ohio defining “credits,” but also on its practical operation in exempting moneyed capital in the hands of individuals in Ohio from taxation. The practical operation of a law of that character to show how much, if any, discrimination there is, is a question of fact to be determined upon the evidence. A large amount' of evidence was taken in the former suit, and the court, in its decree, found the averments of fact as to the practical operation of the law of Ohio, in the bill, to be fully sustained. In other words, the court found the fact to be that for the years then involved the