TAXATION-Continued.

18. Unjust discrimination — restraining collection of tax at suit of bank — par-
ties.] The shares of stock of a National bank were taxed at their full
value, while other property was assessed at from thirty to forty per cent
of its real value. Held, that the discrimination was unjust, and that the
bank was a proper party to maintain a bill to restrain the collection of the
tax beyond the proportion assessed on other property Merchants' Bank
v. Cumming, 926.

19. Authority of assessors.] Assessors of taxes possess no authority except
such as is conferred upon them by statute, and they must see to it that
they act within the authority committed to them. Nat. Bank of
Chemung v. Elmira, 715, and note, 722.

-

20. When assessment void · recovery back of taxes.] Assessors assessed a tax
on the capital stock of a National bank, which was expressly prohibited
by statute. The property of the bank was seized by the collector of taxes
and sold to pay such tax and the proceeds paid over to the municipal
treasurer. Held, that the assessment was void and that an action lay on
behalf of the bank against the municipal corporation to recover the money.
Ib. and note, 722.

21. Where State banks are exempt.] State banks were exempt from taxation
under a statute passed prior to the National Banking Act. Held, that
shares in National banks could nevertheless be taxed. City of Richmond
v. Scott, 445.

22. Double taxation.] A tax was levied on money belonging to plaintiff on the
first day of January. In March, he bought, with this money, shares in
the stock of a National bank. Held, that the shares could be also assessed
under a statute providing that persons should be assessed for bank stock
held by them on April first. Ib.

23. Restraining collection of tax.] Where shares are taxable and no excessive
valuation is complained of, the collection of a tax will not be restrained
even though the assessors have arrived at a correct result by an erroneous
method. St. Louis Nat. Bank v. Papin, 326.

24. Shares, how assessed cash value.] A statute which requires assessors to
tax shares of stock in National banks at their actual cash value, and in
ascertaining that value to include in the estimate all reserve funds, profits,
earnings and other values of the bank is valid. Ib.

25. Of surplus capital.] Where the shares of National banks are by statute
required to be taxed at their par value, the surplus fund of such banks,
in excess of the amount they are required by law to keep on hand, is tax-
able by the States in which the banks are located. First Nat. Bank
v. Peterborough, 658.

26.

-

-] The undivided surplus of a National bank-if not invested
in Federal securities may be taxed against the bank, provided it is not
included in assessing the value of the shares of stock in the hands of
stockholders. State, North Ward National Bank of Newark, Prosecutor,
v. City of Newark, 672.

TAXATION-Continued.

27. How taxed in New Jersey.] A local statute providing a special method of
taxing shares of stock in National banks was rendered void by a consti-
tutional amendment providing that "property shall be assessed for taxes
under general laws and by uniform rules." Ib.

28. By the present law of New Jersey the stock in National banks
owned by non-residents of the State is taxable in the township or ward
where the bank is situated, and that owned by residents of the State is
taxable in the township or ward where the owners respectively reside. Ib.
29. Nature of restriction on power of State to tax.] The restriction on the
power of the States in the matter of taxation of National banks does
not arise from the fact that they are created corporations under an act of
Congress. The States may lawfully tax the property merely of a corpora-
tion created by act of Congress, in common with other property of the
same description throughout the State. But to the extent that such prop-
erty is invested in the securities of the Federal government, it is beyond
the power of the States to tax it against the corporation, without per-
mission of Congress, for the reason that taxation, in that respect, would
be indirectly a tax upon the credit and securities of the Federal gov-
ernment. lb.

30. Rate of, how determined - deductions for real estate.] In assessing shares
of stock in National banks in New York, the assessors must determine the
actual value of the shares-taking into consideration all the capital of
the bank, whether surplus or in real estate or otherwise, and then de-
duct from such value such sum as represents the proportion which the
assessed value of the real estate bears to the assessed value of the entire
capital. People v. Commissioners, 752.

31.] Thus, the capital of a National bank was $1,000,000, and was rep-
resented by 25,000 shares of $40 each. The assessors assessed the shares
at $56 each, making in the aggregate $1,400,000, and the real estate at
$200,000. Held, that they should deduct from the assessed value of
each share $8, being one-seventh, or the proportion which the real estate
bore to the aggregate assessed value of the shares. ib.

-

32. Erroneous assessment — failure to tax at real value — injury to other share-
holders correction of assessment.] The relators were owners of stock in
the N. bank, which was assessed at par, but which was worth more than
par in the market. The shares of the M. bank, located in the same city,
were also assessed at par, although they were worth more than the shares
in the N. bank. The relators demanded a reduction of the assessment
on their stock, either by a direct order of the court or by reassessment.
on the ground that their stock, being less valuable than that of the M.
bank, was erroneously taxed at the same rate. Held, (1) that the assess-
ment was erroneous; (2) that although the assessment on the shares of
the relators would be increased on a reassessment of their property pur-
suant to the statute, yet, as their shares were worth less than those of
the M. bank, the failure to tax the latter at their full value increased the
ratio of taxation upon the shares of the relators, and thereby injured

TAXATION-Continued.

them; (3) that as the return to the certiorari did not set forth the value
of all the bank stock worth more than par in the city or ward, the court
had not the facts from which to determine the real extent of the injury,
and could not, therefore, direct a reduction of the assessment; and (4)
that the court could not, under the circumstances, direct a reassessment.
People v. Assessors, 776.

33. Of shares in a National bank situated in another State.] Congress has
the constitutional right to establish National banks in any State, and to
provide that the shares of their capital stock shall be exempt from taxa-
tion by other States. Flint v. Board of Aldermen of Boston, 571.
34. Under section 41 of the National Banking Act of 1864, it is un-
lawful for a State to impose a tax on shares owned by an inhabitant
thereof in the capital stock of a National bank located in another State. Ib.
35. Of shares of non-residents.] Under a State Constitution requiring all
property not specifically exempt, to be taxed, State assessors must tax
the shares of National bank stock belonging to non-residents of the State
in the city or town where the bank is located, although there is no State
statute expressly directing such taxation. Kyle v. The Mayor, 808.
36. Where shares to be taxed.] A State statute required the assessors of each
city and town in which any shareholder in National banks resided to
include such shares in the assessment of such person. The defendant
resided in Boston, owned shares in several National banks there situa-
ted, and was there assessed on such shares. He refused to pay the tax
on the ground that the State statute was in violation of the National
Banking Act permitting States to tax shares of National banks "at the
place where such bank is located and not elsewhere." Held, that as in
this case the assessment was in conformity to the act of Congress, the
defendant had no cause for complaint and could not impeach the validity
of the State statute. Austin v. The Aldermen, 15.

37. Validity of statute providing where tax shall be assessed.] A State statute
provided that the stockholders in National banks should be taxed on
such stock in the county, town or district within the State where such
bank was located, whether such stockholders resided in such town,
county or district, or not. Held to be constitutional and valid. Tuppan
v. Merchants' Nat. Bank, 100.

38. Constitutional law.] By an act of the Indiana Legislature passed in
March, 1867, shares of the capital stock of National banks within the
State were taxed for that year, and the cashier of each bank was required
to represent each stockholder in listing and valuing his stock. Held,
that the statute took effect from the 1st day of January, 1867, that it was
a valid exercise of the taxing power, and that it did not conflict with
the constitutional requirement of " a uniform and equal rate of assess-
ment and taxation." Whitney v. Ragsdale, 429.

39. Place of taxation.] The requirement of such act, that the stock shall be
taxed at the place where the bank is located, is not invalid where the
owner of the stock lives in another county or State. Ib.

TAXATION-Continued.

40. What is not a tax for "municipal purposes."] Under a statute of Indiana,
National bank stock was not taxable for municipal purposes. Held, that
a tax for school purposes or for a donation by a township to aid in build-
ing a railroad was not a tax for "municipal purposes," and, therefore,
not within the restriction. Root v. Erdelmeyer, 432.

41. Of personal property of National banks.] The personal property and as-
sets of National banks, such as safes, office furniture, etc., are not taxa-
ble. Nat. State Bank of Oskaloosa v. Young, 451.

42. Of banking-house.] Under a statute requiring shares in National banks
to be taxed at their actual value without reduction for real estate, the
banking-office and lot, owned and occupied as its place of business by a
National bank created, is not liable to assessment and taxation as real
estate eo nomine against the bank. Board of County Commissioners of
Rice County v. Citizens' Nat. Bank of Faribault, 629.

43. Requiring banks to pay tax assessed on shareholders.] National banks
may lawfully be required to pay the tax assessed on the shares of stock.
Nat. Bank v. Commonwealth, 34; First Nat. Bank v. Douglas County, 268.
44. Payment of tax by bank.] Under the statute of Iowa a National bank is
not liable for the tax assessed against a shareholder unless it have in its
possession dividends or property belonging to such shareholder. Hershire
v. The First Nat. Bank, 476.

45. Distraint of bank property to enforce payment of tax.] A State statute
provided that the stockholders of every National bank located in this
State, or of any bank incorporated under the laws of the State, shall be
assessed and taxed on the value of their shares of stock therein, sub-
ject to the restriction that taxation of such shares shall not be at a
greater rate than is assessed upon any other moneyed capital in the
hands of individual citizens of this State in the county or precinct where
such bank is located. The taxes against such shares shall be levied
against the holder of the same, and shall be paid by the bank." Held,
that a tax so imposed on the shares of a National bank was valid, and
that payment thereof could be enforced by distraint of the property of
the bank. First Nat. Bank v. Douglas County, 268.

46.

47.

-] A collector of taxes has not, in the absence of express statutory
authority therefor, no authority to seize the property of a National bank
to satisfy a tax against a shareholder. First Nat. Bank v. Hershire, 465.
-] A warrant for the collection of a tax assessed to the shareholders
on shares of stock in a National bank, directed the collector" to levy the
same of the goods and chattels of such persons." Held, that the collector
could not thereon seize the property of the bank to pay the tax. First
Nat. Bank of Sandy Hill v. Fancher, 697.

48. How collected in Maine.] The plaintiff, a non-resident of Bangor, was duly
assessed therein, upon his shares of stock in the First National Bank. After
legal demand, the plaintiff, refusing to pay the tax upon the warrant of the
collector of the city, issued April, 1870, was duly arrested by the sheriff
of the county in the following May, for the tax, which the plaintiff then

TAXATION-Continued.

paid under protest, together with costs, to the officer, and he to the city
treasurer. In assumpsit to recover the money thus paid, held, (1) that
the collection of such tax is to be enforced in accordance with the general
law;
and (2) that chapter 209 of the Public Laws of 1868 related exclu-
sively to the assessment, and in nowise affected the collection of taxes
duly assessed under previously existing laws. Weld v. City of Bangor,

521.

49. List of shareholders

State statute.] A State statute requiring the

cashiers of National banks to send list of shareholders to town clerks is
valid. Waite v. Dowley, 137.

50. Must be expressly authorized.] Municipal officers cannot assess a tax on
shares of stock of a National bank unless authorized by a law of the
State. Stetson v. The City of Bangor, 520.

51. -] A statute authorizing “the taxation of all shares in moneyed cor-
porations," held sufficient authority to tax shares in National banks. Ib.
52. State statute prohibiting banking companies.] A State statute prohibiting
the establishment of banking companies in the State, without authority
of the Legislature, does not apply to National banks. Ib.

53. On increased capital.] Where there is a vote to increase the capital stock
of a National bank and the shares are issued and paid for, they cannot be
taxed until the Comptroller of the Currency has approved of the increase
and issued his certificate therefor. Charleston v. People's Nat. Bank, 898.
54. Not liable to privilege tax.] National banks are not liable to a privilege
tax imposed by city ordinance on occupations and business transactions
although "banks and banking are in terms included. Nat. Bank v.
Mayor, 903.

55. Construction of statute.] A State statute imposed a tax " on bank stock,
of fifty cents on each share thereof equal to one hundred dollars of stock
therein owned by individuals, corporations or societies." Held, to be a
tax on the shares of the stockholders. Nat. Bank v. Commonwealth, 34.
-] Under the Illinois statute of June, 1867, no deductions from the
assessed value of shares in National banks could be made for the debts

56.

57.

58.

of the owner. Mc Veagh v. Chicago, 381.

lb.

-.] Method of taxation under the Illinois statute of 1867, explained.

-] A statute providing that shares of stock in National banks shall be
taxed in the county, town, or district where such banks are situated,
whether the shareholder resides there or not, is valid. First Nat. Bank
v. Smith, 390.

59. Construction of Alabama statute.] A State statute provided that all prop-
erty, real and personal, not otherwise specified therein, or exempt from
taxation, should be "listed" for taxation. There was an exemption of
"all shares of the capital stock of any company or corporation which is
required to list its property for taxation." Held, that this exemption did
not apply to National banks whose capital was invested in government