Collett v. Springfield Savings Society

7 Ohio Cir. Dec. 146
CourtClark Circuit Court
DecidedNovember 15, 1896
StatusPublished

This text of 7 Ohio Cir. Dec. 146 (Collett v. Springfield Savings Society) is published on Counsel Stack Legal Research, covering Clark Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collett v. Springfield Savings Society, 7 Ohio Cir. Dec. 146 (Ohio Super. Ct. 1896).

Opinion

Summers, J.

Counsel for defendant claims that until 1819 the defendant was not required to make any return for taxation of the property held by it, but that the depositors were the real owners of the property, and are now, and always have been, required to return their interests for taxation; that in 1879, by an amendment of what is now section 2734 of the Revised Statutes, (76 Ohio Laws, 28), the society was required to return and pay taxes upon the surplus; and that so the matter stood until April 16, 1890, when section 27593 was enacted, and that since that date the defendant has been required to make the return provided by section 27593; that the society is merely the incorporated agent or trustee of the depositors; that the depositors were, and are, taxed upon their deposits, and the society upon the surplus, and that thus a complete taxation of the entire property is affected, and that this result, and not double taxation, is what the legislature intended, and all that the constitution requires.

Counsel for plaintiff claim that the defendant is now, and alwaj^s has been, required to list its property in the same manner as an unincorporated bank; that the society in its corporate capacity is the owner of the property; that the deposits are debts owing by the society to its depositors; that under the constitution and laws of this state debts cannot be deducted from cash and bonds, and that Treasurer v. Bank, 47 Ohio Sc., 593, holding that section 2759, in so far as it provides for the deduction by unincorporated banks of debts from cash and bonds, contravenes section 2, of article 12, of the constitution, is decisive of this case.

The defendant, for each of the years in controversy, returned and paid taxes upon its furniture, real estate, and surplus, less that part of the surplus invested in United States bonds, and the court, in one of its conclusions of fact, finds that in each of said years 1887 to 1892, both inclusive, said savings society paid taxes on a larger amount than it would be required i© pay taxes upon, by the letter oí section 2759 of the Revised Statutes.

The findings of faet. sustained by the evidence, will warrant no other conclusion of law than that the return for each of the years in controversy, prior to the year 1892, was not false ; so that only the return for 1892 is involved, and the principal question is, does section 27593 of the Revised Statutes, in so far as it directs the auditor , in ascertaining the amount tc place on the tax (implicate in the name of societies organized under the la'tv of 1867, to deduct the sixth item, the deposits, from the third and [148]*148fourth items, cash and stocks and bonds, conflict with any provision of the constitution?

Or, to state it in a different form, do the deposits held and controlled by the defendant, The Springfield Savings Society, belong to it, or do they belong to the depositors, and are they held and controlled by the society as the incorporated agent or trustee of the depositors, and for their sole use and benefit ? Do the interests of the depositors for the purposes of taxation represent the deposits and the property in which they are invested, and are the depositors taxed upon their interests, and the society upon the remainder of the property not represented by such interests?

“The relation of bank and general depositor is simply the ordinary one of debtor and creditor, not of agent and principal, or trustee and cestui que trust.” Spear, J., in Railroad Co. v. Bank, 54 Ohio St., 60, 71. Bank v. Brewing Co., 50 Ohio St., 151; Covert v. Rhodes, 48 Ohio St., 66, 71; Treasurer v. Bank, 47 Ohio St., 503, 522.

But that the relation of savings societies, such as defendant, and depositor is that of agent and principal, is settled by an unbroken current of authority. Ridenour v. Mayo, 40 Ohio St., 9; Morse on Banks and Banking, section 3; Grant on Banking, 614; Commonwealth v. People's etc., Bank, 5 Allen 428, 434; In re Newark Savings Inst., 28 N. J. Eq., 552; Cogswell v. Bank, 69 N. H., 43; Osborn v. Byrnes, 43 Conn., 155; Huntington v. Savings Bank, 96 U. S. 388, 394; Stockton v. Bank, 32 N. J. Eq., 163, 165; Hannon v. Williams, 34 N. J. Eq., 255, 258; Mechanics Bank v. Granger, 17 R. I., 77; Lewis v. Lynn Savings Inst., 148 Mass., 235; Ward v. Johnson, 95 Ill., 215.

Such societies were authorized, because their objects are conducive to the public good. These are to induce persons of small means, who have not sufficient money to make a loan, or sufficient experience to invest it, to husband their resources by providing a safe agency for receiving and loaning their money, wholly and solely for their benefit.

In some respects the relations between such societies and - their depositors are hardly distinguishable from those between corporations and their stockholders. The property of the former is held in trust for its depositors. That of the latter for its creditors and stockholders. Upton v. Tribilcock, 91 U. S. 45, 48. The capital of the latter cannot be withdrawn until the winding up of the company, and the stockholders are given certificates as evidence of their interests in the company. The society can have no capital or anything with wrhich to carry on business other than the deposits; and, in order that it may induce people to entrust their money to its care and so accomplish the objects of its creation, it is necessary that the depositor may, from time to time, put in whatever he can spare, with the assurance that he can, at any time, upon short notice, draw out the whole or any part, as his desires may prompt or necessities require, without awaiting the winding up of the institution, or relying upon the uncertainties of finding a purchaser for his interest. And so the law provides that he may withdraw his deposits upon thirty days’ notice, and that an account shall be given him in a book, or otherwise, of the sum deposited, which shall be the evidence of his property in such society.

In Jones v. Davis, 35 Ohio St., 474, it was determined that for the purposes of taxation, the capital stock of the corporation is represented by whatever it is invested in, and that when the corporation is required to list its personal property for taxation, the owner of shares of its capital stock is not required to list his shares for taxation.

[149]*149Judge Cooley, speaking of what is meant by duplicate taxation in its proper sense, and “which would render It wholly inadmissible under any. constitution requiring equality and uniformity in taxation,” and then giving instances of such duplicate taxation, says: “ The same may be said of a tax on the property of the corporation, and also on the capital which is invested in the property; if the latter is taxed.as property,, tMs also is duplicate taxation, and as much unequal as wouid be the taxation of a farmer’s stock by value when on the same basis it is taxed as a part of his general property. When, for instance, the money paid in as capital of a manufacturing corporation has been invested in buildings and

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Related

Upton v. Tribilcock
91 U.S. 45 (Supreme Court, 1875)
Huntington v. Savings Bank
96 U.S. 388 (Supreme Court, 1878)
People v. National Gold Bank of D. O. Mills & Co.
51 Cal. 508 (California Supreme Court, 1876)
People ex rel. Burke v. Badlam
57 Cal. 594 (California Supreme Court, 1881)
Lewis v. Lynn Institution for Savings
19 N.E. 365 (Massachusetts Supreme Judicial Court, 1889)
Osborn v. Byrne
43 Conn. 155 (Supreme Court of Connecticut, 1875)
Ward v. Johnson
95 Ill. 215 (Illinois Supreme Court, 1880)
State v. Sterling
20 Md. 502 (Court of Appeals of Maryland, 1864)

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Bluebook (online)
7 Ohio Cir. Dec. 146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collett-v-springfield-savings-society-ohcirctclark-1896.