First National Bank v. Anderson, 269 U.S. 341 (1926)
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First National Bank of Guthrie Center v. Anderson
No. 26
Argued January 27, 1925
Decided January 4, 1926
269 U.S. 341
ERROR TO THE SUPREME COURT
OF THE STATE OF IOWA
Syllabus
1. In a case from a state court, the question whether the federal right was sufficiently alleged in the pleading must be determined by this Court for itself. P. 346.
2. When a state court has treated a case as cognizable in equity, this Court cannot decline to review the federal questions involved upon the ground that it was not so. Id.
3. Decree held reviewable by writ of error, and certiorari denied. Id.
4. The restriction imposed by Rev.Stats. § 5219 upon state taxation of national bank shares -- viz., that the taxation "shall not be at a greater rate than is assessed upon other moneyed capital in the hands of individual citizens of such state," was violated where the national and state bank stock within a county, not exceeding $316,852, was taxed at the rate of 143.five mills per dollar, while $5,000,000 of other moneyed capital in the hands of individuals, consisting of notes, mortgages, and other evidences of indebtedness such as normally enter into the business of banking, and which was used in competition with the complaining national bank, was taxed in the county at only five mills on the dollar. P. 347.
5. The Act of March 4, 1923, in reenacting the above provision of Rev.Stats. § 5219 with additions, did no more than put into express words that which, according to repeated decisions of this Court, was implied in the original section. P. 349.
6. The investment of individual capital in farm mortgages is not inconsistent with its being used in competition with national banks, since the prohibition against loans on real estate by national banks was partly withdrawn by the Acts of Dec. 22, 1913, and Sept. 7, 1916. P. 352.
7. Where a bill by a national bank to restrain a state tax on its shares alleged facts showing a discrimination, violative of Rev.Stats. § 5219, in taxing other capital consisting of notes, mortgages, etc. at a lower rate, it was error to assume, on demurrer, as a matter of judicial notice, that such capital was, in practice, loaned by the plaintiff and other banks, acting as agents for their customers, and was therefore noncompeting. P. 354.
196 Iowa 587 reversed.
Error to a judgment of the Supreme Court of Iowa affirming a judgment dismissing the bill on demurrer in a suit brought by a national bank on behalf of its shareholders to restrain collection of a discriminating tax on their shares.