Farmers' Loan & Trust Co. v. Town of Fonda
| Decision Date | 18 October 1901 |
| Citation | 87 N.W. 724,114 Iowa 728 |
| Parties | FARMERS LOAN & TRUST COMPANY, Appellant, v. THE TOWN OF FONDA, IOWA, AND THE TOWN COUNCIL OF SAID TOWN, Sitting as a Board of Review |
| Court | Iowa Supreme Court |
Appeal from Pocahontas District Court.--HON. F. H. HELSELL, Judge.
THE proceeding in the lower court was an appeal from the action of the board of review of the town of Fonda in fixing an assessment for taxes against appellant for the year 1898. The lower court increased plaintiff's assessment, and plaintiff appeals.--Modified.
MODIFIED AND AFFIRMED.
M. J Sweeley and Lot Thomas for appellant.
Healy & Healy for appellees.
Plaintiff is engaged in doing a banking business, loaning money and dealing in real estate, and its principal place of business is Sioux City. As a part of its business it conducts branch banks at Fonda and other places in the state. Prior to the adoption of the present Code it was taxed at its principal place of business, on its entire business, whether conducted there or at its various branches, and its branches were not taxed in the localities where they were situated. After the adoption of the present Code, however, the authorities of the town of Fonda, relying on the provisions of section 1317 assessed plaintiff for taxation on the basis of a private banker, with reference to the moneys and credits, less deposits and debts owing by such branch, as authorized by Code, section 1321, providing for the taxation of private bankers; and on account of the alleged refusal of the agent in charge to make any return to the assessor on account of the branch bank the board of review added 100 per cent. to the assessable value of its property, as provided by Code, section 1357. Appellant contends that the action of the board of review in fixing the value of the money and credits of the branch at Fonda, after deducting therefrom the amount of deposits and debts which it owed, was erroneous, claiming that on the first day of January, 1898 its deposits exceeded the amount of the notes held by it for money loaned and other credits. It appears, however, from the evidence, that in the latter part of December, 1897, nearly $ 50,000 of notes which had been taken in the usual course of business by the branch at Fonda, and which had been held by it as a part of its assets, were, by the action of the president of the parent institution at Sioux City, transferred to another bank, of which he was also president, and subsequently again transferred to the Remsen branch of the plaintiff bank, with the view of increasing the money and credits of the Remsen branch, where the deposits already exceed the total of moneys and credits. We do not think that appellant could by any such transaction affect the liability to taxation of the Fonda branch. The statutory provision is that "The personalty, moneys and credits connected with or growing out of all business transacted directly or indirectly by or through the servants, employes or agents of any person, firm or corporation engaged in the banking business, having an office or agency in more than one assessment district for the transaction of business, shall be taxable as provided in this chapter for the taxing of private banks and bankers, in the assessment district where said branch business is done." Code, section 1317. The only result of the transferring of these notes was to leave the Fonda branch with a larger credit...
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