HomeMy WebLinkAboutMN-CC-1932-12-13 Vi
Co1z.-W COUNCIL
ADJOURIT"D RZGULAR IIEETING DICE: B_ 11, 1332
PR ZSJZNT--'mayor Her::lar_ Bergholt z
Aldermen--Causer,Lovre, Townsend,Campbell,Ca::lfort ,
Sa::1 cons,Gill,Rogal sky.
Bank
Tax I:eeting called by the ::ayor to consider and act on the
Refund claims filed by the two Fa.tional Banks of Ithaca for the
return of the bank taxes collected illegally by the City
in the years 1923, 1924,1925,1926 as outlined at
preceding meeting.
:•r. Sherman Peer and ::r. Allan Tre�::an, appeared on
be'lalf of the banks and exn_ lained the clai::is and their
offer to accept 500 of the. tax paid with interest at 3%_
•° and further to accept certificates of indebtedness at
o 0 4% in order to aid the City in meeting the payment.
•, Alder.ian Gill ::loved that the City co.-..,promise by re-
C paying the tax of 7, 400 for 1926, which teas within
the six year li::Iit. The Notion ras not seconded.
d There was a general discussion of the proposals.
f � By Alder_1an Causer: seconded by Alder.aan Tomnsend:
o WHTRE S the First National Bank of Ithaca has institu-
�' ted an action against the County of Tonpkins, the City
of Ithaca, and the Board of Dducation .of the City of
Ithaca, in the Supre;::e Court, County of Tampkins, and
¢, o State of Ilevr York, and, against the sane defenda.iits in the
m same Court, for the repuymeiit of certain taxes paid by
� d such bnhlks respectively, for the years 1923,1924, 1925
and 1926 under Chapter 597 of the Lars of 1923, a part
of Article 2 of the Tax Lana as then in force, which
taxes were paid to the County of Tompkins and distributed
by it pursuant to law, and said actions --ore instituted
by service of a su::Llons and complaint in each case upon
the City of Ithaca on the 5th day of Dece::iber, 1932,and
v7HB EAS the City of It'iaca received as its share of
the taxes paid by the first- national Bank of Ithaca j%Y. ,
in 1923 �Ir, 679.05, in 1924 �2, 935.00, in 1925 �3, 010. 57,
and in 1926 .,,3, 111.35, and in such action said banks
demanded the repayment of such su:�s with interest from
the respective dates of paynent at 6 -per annul, the
total cl airs with interest to Dece.lber 16,1932 x;;152 420.460
and
t:HBR::AS t! e Cit?r of Ithaca received as its share of sus
such taxes paid by the Toimpkins County Fational Bank,
in 1923 %,`1,404-15, in 1924 '2, 410.50, in 1925 "'2, 477- 6o,
and in 1926 1)2, 519. 28 and in such action said bank
deL.anded the repay::lent of such su:js wit'i interest from
the respective dates of Payment- at 6% Der annu.:, the
total cl:c-�i::t ��it'� interest at Dece.aber 16, 1932 being
y)12, 663. 57, and
OH3� °l
AS the atter of tae unconstitutional3 y and in-
validity of the assess.aent and collection of such taxes
has been deter-.:lined by the United States Sunre:,!e Court
Dece::iber 7,1931 in The Public Ita.tional Bank of ile;,vOr1:
v. eating„ 2&4 U. S. X37, a-id
?';H R,, S the Legislature of the State of I?ewYork by
Chixoter 219 of the La :-ra of 1932 beco.�ing effective
aTC.L 16, 1932 has autaorized i_icurring its indebtedness
to refu_Zd such taxes or past thereof witn interest there-
o,Z fro::: t'ie date of p�?y::le:lt ,and
?;,-Fite -AS the First ii:,.tiona,l Ban'_: of Ithaca,I'i.Y.
and the Toi-in'=ins County ITat-ional Bank are each Trilling to
ca,pro:_:ise tho said actions against the City of Ithaca
1iitf,out costs On t1de basis Of 50% Of tlic 1)r1i.ZC1-")a 1 of
such taxes so paid, t,it'z interest on such 50;'� at 3% Per
an,zu: fro the respective d.&ates of pa,y:�ellt t'lercof
(or 1-'-% on the Origins-1 -principal paid, fro:--1 the re-
spective dates of pay:_Zent t-aereof) or a total proposed
co: pra ise se;ttle•::ent o:..-1 t'le pert of the First D tional
Ba_z'_c of Ithp.ca, i...Y.,, of ',6, 539,57 and on the part of
To:-.pkins County Fa,tional of w5, 368. 61 as of
December 16, 1932, and
':;HE ZAS the Board of Supervi,ors of the County of
To 1phins on DecG::lber 6, 1932 by uliani::;ous vote (13-0)
reco i-:ended to the various taxing districts that a
settle:-.lent of such bvah tax refund rlai:ms be : ade with
4 6'
C.0. —2— 12-13-32
the respective b,--nks concea7ncd on the proposed
co::.ipro::.iisc oasis of 50o of the entire tax paid for
such years at the rate of ' lo per an-niu:: fro- the
rospective dates of pay:.ie.zt , and further approved
any settle:--ent :.iada directly bete oon such taxing
districts ^imd the respective be.nk.s insofar as tie
Board of Supervisors and/Or the County of Tonphins
has any interest therein a_�d reco_.
. .ended i:., .e diate
action, and
WHEREAS it appears that there is considerable doubt
as to nether the City of Ithaca leas an adequate
dcfc_Zse to the repay-ient of all or ccny part of the
taxes so clai::ied z7ith interest, and the outcone of
such actions appears to be uncertain but it is certain
that considerable expense wovad be incurred oil behalf
of the City of Ithaca, if such actions store carried
through the Courts, and
!:HERE,AS it appears that the Board of Education of
the City of Ithaca which shared in the above :_ientioned
taxes paid by the aforesaid two banks during the years
1923. 1924,1925 and 1926 has accepted the proposed
co:lpro:iise on the advice of its .Attorney, C.Traeey
Stag; upon the basis reco-aiended by the Board of
Supervisors aforesaid; and
ZCMAS it seers for the best interests of the
City of Ithaca to co::ipro::iise such action so far as it
is concerned upon the basis heretofore :::entioned,
NOT-, THEREFORE B3 IT,
RESOLVED that the Cite of Ithaca accept the pro-
posed co::pro° ise settic: ent of t:ze actions brought
by the First National BanI: of Ithaca, N.Y. and the
To 1p��ins County -11ational Ba.n'_. against t_-e City of
It:zaca. and others in so fax as the City of Ithaca is
concerned, on the basis of tihe repay:2ent of one half
of the ban'', taxes for the years 1923, 1924,1925 and
1926 distributed to said City of ItI-Laca, r-ith interest
on such 50% at the rate of 3% per annim fro::: the
respective dates of p-ay_:ent thereof and that the
:ayor and the City Clcrh be, and they hereby are,
authorized to notify the said banks and/or their
attorneys that such Cit-v accepts such co: pro:.ii se
proposition, and be it further,
RESOLVED that the liayor andthe City Cler'_: be, a.id
their hereby are, authorized and directed to tr'_.c any
and all other steps to settle a-.d co pro:aise such
action and to discontinue the;:- in so far as the
Cit-, of Ithaca is concerned without costs, upon the
basis herein above setforth, and to pay the respective
a:.ounts as co:..pro:-..iise inc .uding intorest to the
said Ban'.ts.
Ayes--8 Na,ye--0 Carried.