State v. Bradford Sav. Bank & Trust Co.

• Decision Date: 03 February 1899
• Citation: 44 A. 349,71 Vt. 234
• Court: Vermont Supreme Court
• Parties: STATE v. BRADFORD SAV. BANK & TRUST CO.

44 A. 349

71 Vt. 234

STATE

v. BRADFORD SAV. BANK & TRUST CO.

Supreme Court of Vermont. Chittenden.

Feb. 3, 1899.

Exceptions from Chittenden county court.

Action by the commissioner of state taxes against James B. Hale, as receiver of the Bradford Savings Bank & Trust Company, to recover state taxes. From a pro forma judgment for defendant awarding costs, plaintiff excepted. Judgment for defendant, without costs.

D. J. Foster, for plaintiff.

John H. Watson, for defendant.

THOMPSON, J. The defendant is a savings bank and trust company incorporated by this state, and for some years prior to the 1st day of February, 1898, was doing business at Bradford, in Orange county. It was assessed and paid taxes to the state, as required by sections 583 and 584 of the Vermont Statutes, up to January 1, 1898. On the 1st day of February, 1898, the inspector of finance, having ascertained, as he believed, that the defendant was insolvent, made application to the court of chancery for an injunction against it and its officers, and such proceedings were had thereon that on the day last aforesaid an injunction was issued by the court, and James B. Hale was appointed receiver to take charge of the property and effects of the defendant. Said suit is entitled "Hosea Mann, Inspector of Finance, vs. Bradford Savings Bank & Trust Company," and is still pending in the court of chancery in said county. Since the issuing of the injunction and the appointment of the receiver, the defendant has not been doing business in this state or elsewhere, beyond what has been done by the receiver, and he has done no business except to proceed in the winding up of the affairs of the defendant, as provided in sections 4054 to 4064, inclusive, of the Vermont Statutes, under orders of the court of chancery. For the purposes of this suit, it is agreed that the assets of the defendant are less than its liabilities. The commissioner of state taxes has furnished the receiver with the necessary blanks to be filled out and returned for a basis of taxation, as provided in chapter 31, V. S., but the receiver has refused, and does refuse, to fill out and return the same; claiming that the defendant is not subject to such taxation, and particularly not after said injunction was issued and its affairs went into the hands of the receiver. No one but the receiver and a clerk employed by him have access to the books of the defendant. By the terms of the injunction, it was enjoined from transacting any business as such savings bank and trust company, or in its behalf. Chapter 31, Id., being sections 547-594, inclusive, is entitled, "Taxations of Corporations." Section 547 is as follows: "A state tax for the payment of state expenses, is hereby assessed upon the property, business or corporate franchise of this state, of railroad, insurance, guaranty, express, telegraph, telephone, steamboat, car and transportation companies, sleeping-car companies, savings banks, savings Institutions and trust companies, mortgage, loan or investment companies, and other corporations and persons, associations, societies or firms, as provided in this chapter, and shall be payable in money to the state treasurer for the use of the state." Section 583 is as follows: "Every trust company or savings bank and trust company incorporated by this state, and doing business therein, shall pay a tax to the state treasurer, which is hereby assessed, at the rate of seven-tenths of one per cent. annually, upon the average amount of its deposits, including money or securities received as trustees under order of court or otherwise, deducting therefrom the average amount, if any, of its capital and accumulations invested in United States government bonds, also, the average amount of the assessed valuation of the real estate owned by such corporation, and also the amount, if any, of individual deposits in excess of fifteen hundred dollars each, listed to the depositors in towns of this state where such depositors reside." Section 584 provides that the taxes assessed under the preceding section shall be paid semiannually, one-half in the month of February, and one-half in the month of August, and shall be based upon the returns for the six months...