Eddy v. First Nat. Bank of Fargo
| Decision Date | 29 July 1921 |
| Docket Number | 5608. |
| Citation | 275 F. 550 |
| Parties | EDDY, County Treasurer, et al. v. FIRST NAT. BANK OF FARGO. |
| Court | U.S. Court of Appeals — Eighth Circuit |
Frank E. Packard, Asst. Atty. Gen., of North Dakota (William Langer, Atty. Gen., of North Dakota, on the brief), for appellants.
Edward Engerud, of Fargo, N.D. (A. G. Divet, D. B. Holt, and J. S Frame, all of Fargo, N.D., on the brief), for appellee.
Before HOOK and STONE, Circuit Judges, and JOHNSON, District Judge.
This is an appeal by the treasurer and auditor of Cass county, N.D from a decree in favor of the First National Bank of Fargo enjoining the collection of taxes for the year 1919 upon its capital shares in excess of the taxes 'assessed upon other moneyed capital in the hands of individual citizens of such state. ' Rev. Stat. Sec. 5219 (Comp. St. Sec. 9784). The suit was brought by the bank as the statutory tax paying representative of the shareholders. Comp. Laws N.D. 1913 Secs. 2115-2117; Cummings v. Bank, 101 U.S. 153, 25 L.Ed. 903. The general taxes for city, county, and state purposes, including schools, etc., assessed upon the shares of banks, national and state, aggregated 35.3 mills per dollar of valuation, exclusive of that invested in real property and taxed as such. That was the tax rate applied generally to real and personal property. By the Money and Credits Act of North Dakota (chapter 230, Laws 1917; section 2074, Comp. Laws 1913) all other moneyed capital in the hands of individual citizens of the state (except mortgages on which a registration fee was collected in lieu of taxes) such as moneys loaned at interest and invested in interest-bearing notes, bonds and securities, and shares of associations engaged in such business, were exempted from all taxes, except at the statutory rate of 3 mills on the dollar of valuation. The result of this was that the taxes assessed against the shares of the plaintiff bank amounted to $17,483, whereas, had the 3-mill rate of the Money and Credits Act been applied the amount would have been but $1,482. The bank made and kept good a tender of the latter amount and the injunction appealed from went to the excess.
The effect of an exemption or partial exemption from the general burden of state taxation, in relation to the provisions of the act of Congress (Rev. Stat. Sec. 5219) designed to prevent injurious discrimination against the moneyed capital of individual citizens invested in the shares of national banks, is always open to consideration. This is so because the discrimination must be appreciable or substantial, else it will be taken as but an instance, generally unavoidable of a failure to maintain exact uniformity in taxation, or as ascribable to the variable schemes or forms of taxation largely within the control of the states. But it would be quite improbable if a major part of the moneyed capital individually held by citizens of North Dakota, giving to the term 'moneyed capital' its accepted meaning (Amoskeag Savings Bank v. Purdy, 231...
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