Studebaker v. Perry

On November 9, 1899, in the circuit court of the United States for the northern distract of Illinois, John Perry, as receiver of the National Bank of Kansas City, brought an action against Clement Studebaker, to recover an assessment made by the Comptroller of the Currency on stock held by the defendant in said bank.

The declaration set forth the incorporation of the National Bank of Kansas City; the ownership by the defendant of 189 shares of its capital stock of the par value of $100 each; the insolvency of the bank; an assessment by the Comptroller of the Currency on February 11, 1896, of 16 per cent on the stock; the payment by the defendant of said assessment; a finding by the Comptroller of the Currency on February 25, 1899, that the first assessment was insufficient, and the necessity of an additional assessment of 7 per cent; the levy of said second assessment; the direction by the Comptroller to the receiver to collect it, and the refusal of the defendant to pay.

A demurrer was filed raising the question of the sufficiency in law of the declaration. The demurrer was overruled, and the defendant electing to stand by his demurrer, judgment was rendered for the amount of second assessment upon the stock owned by the defendant. A writ of error was allowed, and the cause was taken to the circuit court of appeals of the seventh circuit, where the judgment of the circuit court was affirmed. 43 C. C. A. 69, 102 Fed. 947. The case was then brought to this court by a writ of error duly allowed.

Mr. Hugh C. Ward for plaintiff in error.

Messrs. George W. Wall, Francis F. Oldham, Walter W. Rass, and M. J. Kirkman for defendant in error.

Mr. Justice Shiras delivered the opinion of the court: