Farmers State Bank (Belden, NE)

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RESISTS TAX CLAIM SUPREME

GUARANTY FUND COMMISSION SAYS THAT TAXING BANK IS WRONG

County Attorney C. E. Haley was served with copy of the brief filed in the supreme court by the state guaranty fund commission in an ef fort to woid the payment of taxes against the Farmers State bank at Belden, which was taken over by the commission as going concern. The amount involved is $875. Mr. Nelson, while county treasarer made several trips to Belden in an effort to secure payment of the taxes and later accompanied by Henry Hoese, special deputy sheriff, served distress warrant on the bank. Later the case was heard by County Judge Bryant whose decision upheld Mr. Nelson's action. On an appeal to district court Judge Ryan also upheld Mr. Nelson. It from this decision appeal now being taken. The transcript was filed some months ago but the brief was filed only this week. Attorneys for the commission say it should not pay taxes betaxes are based on the value of the capital stock and surplus of bank, and wiped out long before it took

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RESIST CLAIM CEDAR COUNTY

Guaranty Fund Commission Says Taxing Bank Taken Over Is Wrong

Lincoln, Neb., The insistence of Treasurer Nelson of Cedar county that the guaranty fund commission should pay taxes on the Farmers State bank of Belden or he would levy a distress warrant has forced the commission to ask the sufreme court to be relieved of the payment of $675 levied. The commission tok the bank over as a going concern, and the treasurer and the district court said it ought to pay taxes. The commission says sit should not because taxes are based on the value of the capital stock and surplus of a bank, and these were wiped out long before it took hold. Its attorneys tell the court, in brief just filed, that it is nc the corporate property of a bank, that is taxed, but the shares held by individuals, and that the bank is assessed merely because this is convenient way of collecting the tax. The further point is made that the claims is inequitable, as the guaranty fund will have to put up $60,000 to $70,000, which comes out of the pockets of the solvent bankers of the state, and they should not be required to put up taxes in addition. The claim is also made that the law is invalid since it taxes banks more than the owners of private capital who come in competition in loaning money, and that as national bank receivers are not required to pay taxes, state bank receivers should also be exempt.

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RESIST CLAIM CEDAR COUNTY

Guaranty Fund Commission Says Taxing Bank Taken Over Is Wrong

Lincoln, Neb., The Cedar county that the guaranty fund pay taxes the Farmers bank Belden would levy distress warrant has forced the commission ask "reme court to be relieved the payment $675 levied. The commission tok the bank over concern, and the treasand the district court said ought to pay taxes. The commission says sit should not taxes based value of the capital stock and surplus bank, these were wiped out long before took Its tell the just filed, that the property that but the held by individuals, that the merely this convenient way collecting the tax. The point is made that the claims the fund have to put up to the the state, and they should not quired to put taxes in addition. The claim made that law invalid since banks than the owners capital come competition in loaning that national bank money, receivers required taxes, state bank receivers should be exempt.

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RESIST CLAIM COUNTY

Guaranty Fund Commission Says Taxing Bank Taken Over Is Wrong

Lineoln, Neb., (Special)The insistence of Treasurer Nelson Cedar county that the guaranty fund commission should pay taxes on the Farmers State bank Belden would levy distress warrant has forced the to the court relieved of the payment of $675 levied. The commission tok the bank over going concern, and the treasurer and the district court said it ought to pay taxes. says sit should not taxes are based on the the capital stock and surplus bank, and these were wiped out long before took hold. Its attorneys tell the court, in brief just filed, that the corporate bank, that taxed, but the shares held by individuals, and that the bank assessed merely because this convenient way of collecting the tax. The further point is made that the claims is inequitable, as the guaranty fund will have to put up to which comes the pockets the solvent bankers the state, and they should not be quired to put up taxes in addition. The claim also made that the law invalid since It taxes banks more than the owners of private capital who come in in loaning money, and that. national bank receivers are not required to pay taxes, state bank receivers should also be exempt.

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CLAIM

Guaranty Fund Commission Says Taxing Bank Taken Over Is Wrong

The insistence of Treasurer Nelson of Cedar county that the guaranty fund commission should pay taxes on the Farmers State bank Belden or he levy distress warrant has forced the commission to ask the sucourt to be relieved of the preme of $675 levied. payment The commission tok the bank over going concern, and the treasurer and the district court said ought to pay taxes. The commission says sit should not because taxes are based on the value of the capital stock and surplus of bank, and these were wiped out long before hold. Its attorneys tell the took court, in brief just filed, that the corporate property bank, but the shares held taxed, individuals, and that the bank assessed merely because this convenient way of collecting the tax. The further point is made that the claims as the guaranty have to up to fund will put which comes out of the $70,000, the solvent bankers the of and they should not state, taxes in addition. quired to up made that the law The claim also invalid since taxes banks more of private capital than in competition loaning who come that as national bank money, and receivers are not required to pay state bank receivers should also taxes, be exempt.

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RESIST CLAIM CEDAR COUNTY

Guaranty Fund Commission Says Taxing Bank Taken Over Is Wrong

Lincoln, Neb., The insistence of Treasurer Nelson of Cedar county that the guaranty fund commission should pay taxes on the Farmers State bank of Belden or he would levy a distress warrant has forced the commission to ask the su-reme court to be relieved of the payment of $675 levied. The commission tok the bank over as a going concern. and the treasurer and the district court said it ought to pay taxes. The commission says sit should not because taxes are based on the value of the capital stock and surplus of a bank, and these were wiped out long before It took hold. Its attorneys tell the court, in a brief just filed, that it is n° the corporate property of a bank, that is taxed, but the shares held by individuals, and that the bank is assessed merely because this is a convenient way of collecting the tax. The further point is made that the claims is inequitable, as the guaranty fund will have to put up $60,000 to $70,000, which comes out of the pockets of the solvent bankers of the state, and they should not be required to put up taxes in addition. The claim is also made that the law is invalid since it taxes banks more than the owners of private capital who come in competition in loaning money, and that as national bank receivers are not required to pay taxes, state bank receivers should also be exempt.

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RESIST CLAIM CEDAR COUNTY

Guaranty Fund Commission Says Taxing Bank Taken Over Is Wrong

Lincoln, Neb., The insistence of Treasurer Nelson of Cedar county that the guaranty fund commission should pay taxes on the Farmers State bank of Belden or he would levy a distress warrant has forced the commission to ask the supreme court to be relieved of the payment of $675 levied. The commission tok the bank over as a going concern, and the treasurer and the district court said it ought to pay taxes. The commission says sit should not because taxes are based on the value of the capital stock and surplus of a bank, and these were wiped out long before it took hold. Its attorneys tell the court, in a brief\just filed, that it is no the corporate property of a bank, that is taxed, but the shares held by individuals, and that the bank is assessed merely because this is a convenient way of collecting the tax. The further point is made that the claims is inequitable, as the guaranty fund will have to put up $60,000 to $70,000, which comes out of the pockets of the solvent bankers of the state, and they should not be required to put up taxes in addition. The claim is also made that the law is invalid since it taxes banks more than the owners of private capital who come in competition in loaning money, and that as national bank receivers are not required to pay taxes, state bank receivers should also be exempt.

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RESIST CLAIM COUNTY

Fund Commission Guaranty Says Taxing Bank Taken Over Is Wrong

Neb., The insistence of Treasurer Nelson of Gedar county that the guaranty fund commission should pay taxes on the Farmers State bank of Belden or he levy distress warrant has forced the commission to ask the court to be relieved of the of $675 levied. payment The commission tok the bank over going concern, and the treasurer and district court said ought pay taxes. The commission should not because taxes based on the value of the capital stock and surplus of bank, and these were wiped out long before took hold. Its attorneys tell the court. in just filed. that corporate property bank, that taxed. but the shares held by individuals, and that the bank assessed merely because this venient way of collecting the tax. The further point is made that the claims as the guaranty fund will have to put up $70,000. which comes out of the pockof the solvent bankers the and they should not to taxes in addition. quired put up is also made that the law The claim invalid since taxes banks more than the owners of private capital who come in competition in loaning and that national bank money, receivers are required to pay taxes. state bank receivers should also be exempt.

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COUNTY

Fund Commission Guaranty Bank Taken Says Taxing Over Is Wrong

Lincoln, Neb., The insistence of Treasurer Nelson Cedar county that the guaranty fund commission should pay taxes the Farmers State bank Belden he levy distress warrant has forced the commission to ask the court be relieved of the of $675 levied. commission tok the bank over going and the treasurer and the district court said ought to pay taxes. The commission says sit should not because taxes are based on the value of the capital of bank, and stock and surplus these were wiped out long before Its attorneys tell the took hold. brief filed, that court, in the corporate property of bank, but the shares held that taxed, and that the bank individuals, assessed merely because this convenient way collecting the tax. further is made that the The point claims is as the guaranty will have to put to fund $70,000, which comes of the pockthe solvent bankers the ets of and they should not state, to taxes in adition. quired put up also made that the law The claim since taxes banks more invalid owners of private capital than the competition in loaning who come in that as national bank money, and not required to pay receivers are bank receivers should taxes, state be exempt.

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G. I. PARKER IS BANK RECEIVER George Parker, former Coleridge Hartington banker, for been Farmers State Bank of Belden by the Nebraska state bank commission. The commission took the bank over two years expected that Mr. Parker come Belden himself, but will appoint an assistant to take direct charge.

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CHARGE FAVORITISM IN BANK'S HANDLING

Shallenberger Says Guaranty Fund Operation of Belden Institution Improper

Lincoln, Aug. 3.-(U.P.)--The operation of the Farmers State bank of Belden, Neb., by the guaranty fund commission from March 15, 1926 to March 10, 1928, resulted in a net loss of $49,955.71, according to an announcement today by A. C. Shallenberger, in charge of the state bank investigation. The balance of the deposits to be paid depositors is $147,014.07, which was come from the assets that are valued at only 6.7 per cent of the amount due to the depositors. Consequently, the report of Shallenberger's auditor said, the loss to the depositors will be $136,761.91, or 93.3 per cent. "The depositors were not placed on a uniform basis with reference to withdrawals of deposits during the period of operation as a going bank by the Guaranty Fund commission, and that as a result, some depositors withdrew more in proportion than others," the report charged. The records show that there were 44 depositors with deposits aggregating $239,213.96 and that 230 of these or 51 per cent, withdrew their deposits in full, amounting to $24,318.29, which is slightly more than 10 per cent of the total deposits. The district court of Cedar county on July 6, 1928, allowed $172,436.14 as valid claims of depositors payable from the depositors' guaranty fund. Some of this was ordered withheld pending further investigation of the claims. "It is evident that the depositors who were allowed to withdraw all or a large part of their deposits were favored over the other depositors,' the report stated. "But it seems reasonable to assume that this inequality as permitted by the guaranty fund commission and its special agents because of the belief, quite prevalent until a few months ago, that all depositors would eventually be paid in full from the guaranty fund. This belief, while it seemed sound, has been found to be erroneous, and the result is that an injustice has been done the large number of depositors of this bank who have received less than 29 per cent (the average per cent of withdrawals) of their deposits." One of the reasons stated for the failure of the bank was given by the report as "lax supervision by the bureau of banking. "The examiners reports on this bank for' nearly three years prior to the date it was taken in charge by the department of trade and commerce repeatedly called attention to bad, doubtful, slow and excessive leans, excessive overdrafts, past due notes, low reserve and failure of of. ficers to folow instructions and remedy the unfavorabe and dangerous condition of the bank. In spite of these reports, the bank was allowed to operate in an insolvent condition.