Show BANKS MUST PAY taxes on funds deposited in foreign banks california decision affecting ha assets of a bank for assessment poses san francisco dee 31 judge seawell baa rendered a decision in th wilt bf the nevada bank of san Franc bro the city and county of san francieco the suit was brought to recover paid protest for taxes into the city treasury by the bauk the court held that tie money was property receivable by the tax collector and accordingly give judgment for the city if the bank had in this auit the city of sau francisco would have suffered a loss of not less than in back axes and more than a year in the future attorney T I 1 bergin who represented the bank contended that the accio actio of the assessor in taxing held by the various correspondents of the bank throughout the mercantile wild wae in fact taxing for local purposes bonev that was outside the elate of california assistant chief attorney berjen opposed thie view of the matter he said to the bankers you da not own the money in controversy for you have given it over to your correspondents and have accepted their obligation to the amount indicated mr berlin insisted that the money deposited abroad in the banks of the correspondents was special deposits and that money deposited with a bank for a special purpose remains the property of the depositor that it is not a general deposit takli R up the argument mr burden said that according to the of the courts of this detate when money becomes ming leil with ahe money of a bank it is a general deposit that it is no longer the property oro perty of the depositor for he takes in lieu the promise or obligation of the bank to pay his chebbe up to the amount of the deposit that llis to pay ie an intangible abet and has no eithe 0 its own but follone fol love the eithe ot the domicile of the owner and can then be taxed that if the depositor such as the nevada bank seemed to be inthia case bad kept the money in a separate package the name of endorsed end orbed on it tor instance it would still be the chattel cf the depositor and woold be taxable when it wae judge that the deboa ite abroad coi ti fuTe dratte due from those nevada bana of san francisco and blat the suits of the credit i the residence of the creditor tor the purposes of tax allon tor which reason it is adjudged that the bank must pay the taxes imposed |