Globe Security & Loan Co. v. Carrell

• Decision Date: 21 November 1922
• Docket Number: 17212 to 17216
• Citation: 106 Ohio St. 43,138 N.E. 364
• Parties: The Globe Security & Loan Co. v. Carreel, Auditor; The Cincinnati Collateral Loan Co. v. The City Of Cincinnati Et Al.; Beneficial Loan Society v. The City Of Cncinnati Et Al.; The Welfare Loan Co. v. Carrel, Auditor; The Citizens Mortgage Loan Co. v. Carrel, Auditor.
• Court: Ohio Supreme Court

138 N.E. 364

106 Ohio St. 43

The Globe Security & Loan Co. v. Carreel, Auditor; The Cincinnati Collateral Loan Co. v. The City Of Cincinnati Et Al.; Beneficial Loan Society v. The City Of Cncinnati Et Al.; The Welfare Loan Co. v. Carrel, Auditor; The Citizens Mortgage Loan Co. v. Carrel, Auditor.

Nos. 17212 to 17216

Supreme Court of Ohio

November 21, 1922

Licenses-Regulatory or revenue measures-Loans on chattels or wages-Sections 6846-1 and 6846-B, General Code-Powers of municipal corporations-Excise or occupational tax.

1. The provision of Section 6346-1, General Code, making it "inn-lawful for any person * * * to engage * * * in the business of making loans * * * upon the mortgage or pledge of chattels or personal property * * * or making loans on salaries or wage earnings * * * without first having obtained a license," is a regulatory as distinguished from a revenue measure.

2. The provision of Section 6346-2, General Code, "no other and further license fee shall be required from any such licensee by the state or any municipality," while restricting the state and the municipalities of the state from exacting further license fees in the regulation of such business, in no way restricts the state or the municipalities from levying an excise tax upon the business of such licensee as a revenue measure. (State, ex rel., v. Carrel, Aud., 99 Ohio St. 220 approved and followed.)

The Globe Security & Loan Company plaintiff in error in Cause No. 17212, filed a petition in the court of common pleas of Hamilton county, Ohio, of which the following is a copy:

"Now comes The Globe Security & Loan Company, and says that it is a corporation organized under the laws of the State of Ohio and engaged in doing business and making loans on chattel mort. gages at its place of business in the city of Cincinnati, Hamilton county, Ohio, and that in conformity with the laws of Ohio it did, On or before the first day of March, 1920, pay to the superintendent of banks of the State of Ohio, a fee of one hundred ($100) dollars, and obtained from said superintendent of banks of the State of Ohio, a license to engage in the chattel loan business for the year beginning March 1, 1920, and expiring February 28,1921.

"Plaintiff says that the defendant, George P. Carrel, is the duly elected, qualified and acting auditor of the city of Cincinnati, Hamilton county, Ohio. Plaintiff further says that on the twentieth day of August, 1920, the council of the city of Cincinnati, State of Ohio, passed an ordinance number 312-1920,`to levy an annual occupational tax upon persons organizations of persons, firms and corporations carrying on certain trades, professions, occupations and businesses in the city of Cincinnati, by amending Sections 812-1 to 812-15, both inclusive, of the Code Ordinances of the city of Cincinnati.' That said ordinance, under schedule two, provides as follows:

"`Brokers' (chattel mortgages)-every person, association of persons, firm or corporation engaged in the business of lending or advancing money (or negotiating for the loan or advance of money) or Of securing chattels or by a mortgage shall pay an annual tax of one hundred ($100) dollars. Also,

"`Brokers' (industrial loans )-every person, association of persons, firm or corporation engaged in the business of loaning money on plain notes or personal security at legal rates, other than a national or state bank, to be paid in weekly or monthly or other periodical installments, shall be deemed an industrial loan company, or Morris Plan Bank, and shall pay an annual tax of ($150) one hundred and fifty dollars. Also,

" `Brokers' (salaries)-every person, association of persons, firm or corporation engaged in the business of loaning or advancing money or negotiating for the loan or advancement of money or assignment of salaries or wages due or to become due, shall be known as a `salary broker' and shall pay an annual tax of one hundred ($100) dollars.

"That said ordinance aforesaid provides that the taxes provided for therein shall take effect as to all provisions thereof in so far as the same relate or apply to the trades, professions, occupations or businesses mentioned in schedule two in Section 812-1 thereof from and after the first day of November, 1920, and that the annual taxes provided for in schedule two of Section 812-1, thereof, shall be payable in semi-annual installments, in advance, between the first and fifteenth days of May and November of each and every year, commencing with November, 1920.

"Plaintiff further says that said ordinance of the city of Cincinnati in so far as it purports to provide an occupational tax or license for the occupa tion or business of loaning money on chattel mortgages or assignment of wages, is unconstitutional or void.

"The defendant, George P. Carrel, as auditor of the city of Cincinnati, is taking steps and preparing to collect said tax against the plaintiff. Plaintiff states that it has no adequate remedy at law and asks the court that a temporary order issue restraining the defendant from collecting said occupational tax as aforesaid, and that upon final hearing said temporary injunction be made permanent; and plaintiff prays for all other relief to which it may be entitled in the premises."

The plaintiffs in error in the other cases filed similar petitions in the common pleas court, to...