Latham v. Board of Assessors of City of Detroit

• Decision Date: 11 May 1892
• Citation: 52 N.W. 15,91 Mich. 509
• Court: Michigan Supreme Court
• Parties: LATHAM v. BOARD OF ASSESSORS OF CITY OF DETROIT.

52 N.W. 15

91 Mich. 509

LATHAM v. BOARD OF ASSESSORS OF CITY OF DETROIT.

Supreme Court of Michigan

May 11, 1892

Petition for mandamus, ex rel. Charles K. Latham, to the board of assessors of the city of Detroit, to compel the board to assess to the Central Savings Bank the value of certain real-estate mortgages owned by it, and to deduct the value of such mortgages from the assessed value of the capital stock. Granted.

Latham & Rackham, for relator. John J. Speed, for respondent.

PER CURIAM.

The relator is the owner of 75 shares, of the par value of $7,500, of the capital stock of the Central Savings Bank of Detroit. The bank owns real-estate mortgages to the amount of $206,989.56, and real estate to the amount of $1,500. The value of its capital stock, as determined for assessment purposes, is $105,278,211. The relator and the said bank have requested the board of assessors to assess to the bank as real estate the value of these real-estate mortgages as well as the real estate owned by the bank, and to deduct the value of such real estate and real-estate mortgages from the value of the capital stock, as determined by the board of assessors. The board of assessors refused to do this, and have adopted the following resolutions fixing their mode of assessment of real estate mortgages: "Resolved, by the board of assessors of the city of Detroit, that all mortgages having the tax clause inserted, (known as the 'long form,') which are held by banks and insurance companies and all other persons presenting the same, be stricken from the rolls, the property upon which said mortgages are security remaining at the present valuation; and, further resolved, that the real estate owned in fee by banks and insurance companies, together with all short-form mortgages or mortgages not having said tax clause inserted, whether in the city or outside, be deducted from the capital stock surplus, and undivided profits of savings banks, and the assets above liabilities of insurance companies, as determined by the last report of the commissioner on insurance, in conformity with the opinion of City Counsellor Speed, given to the board on March 25th, and the subsequent amended opinion of April 6, 1892, advising the board to act in accordance thereto; and, further, resolved, that all banks and insurance companies not reporting the short form of mortgages previous to the 12th inst., the remaining mortgages will be assumed to be long-form or tax-clause mortgages, and no notice of the same will be taken, and the full amount of the personal property will remain as assessed." A mandamus is prayed, directed to said board of assessors, commanding them "to assess to the Central Savings Bank, as real estate, the full value of all its real estate mortgages, and to deduct the value of all its real-estate mortgages from the value of its capital stock, as determined for assessment purposes, and, if said value of said mortgages and real estate owned by said bank equals or exceeds the said value of the capital stock, then in that event to place no assessment against the...