Taxes on the person.

360. Taxes in respect to the person can only be imposed by the nation in which the person is domiciled.

Bluntschli, (Dr. Int. Cod., § 376,) qualifies this by adding that the country of origin may levy certain taxes on its own members domiciled abroad, (for example, taxes for the assistance of the poor,) but that the State of the domicil is under no obligation in reference to the collection thereof.

Equality of taxes.

361. No other or more burdensome taxes can be imposed upon foreigners, whether in respect to person, property, or vocation, than on the members of the nation.

Equality of taxes is secured by a number of treaties. See
Treaty between France and

Treaty between the United States and

Nicaragua, June 21, 1867, Art. IX., 15 U. S. Stat. at L., (Tr.,) 59. Bluntschli, in stating the rule on this point, qualifies it by adding that the State may demand a sum in payment for the privilege of sojourning in the country. Treaty provisions forbidding such burdens are now so common that it seems advisable to discard that right.

This rule, perhaps, should be qualified by excepting foreign corporations, which it is usual, in some countries, to tax more heavily than domestic corporations.

Corporations.

362. The interests of owners of shares in the capital of a corporation are taxable as the personal property of such owners.

By the American law, the property of the corporation is distinguished from the interests of its shareholders, for the purposes of taxation, as well as for other purposes.

A State has no power to tax the interest of bonds, (secured in this case by mortgage,) given by a railway corporation, and binding every part of the road, when the road lies partially in another State; being one road owned by a company incorporated by the two States. The effect of allowing such tax would be to enable each State to tax property beyond its own limits. Railroad Company . Jackson, 7 Wallace's U. S. Supreme Court Rep., 262.

Upon considerations somewhat similar to those referred to, it may be suggested that shares in corporations, as distinguished from the property of the corporation, should not be taxable.

Shipping.

363. Shipping is taxable only by the nation whose character it bears.

This is the rule laid down in Hays v. Pacific Mail Steamship Co., 17 Howard's U. S. Sup. Ct. Rep., 596, as applicable at least so long as the vessel gains no situs in the foreign State.

See also People ex rel. Hoyt v. Commissioners of Taxes, 23 New York Rep., 240; and Report of Wells and others, Commissioners on Local Taxation, Harper's ed., p. 45.

Property in transit.

364. Property of a foreigner, in transit between different jurisdictions, whether actually in motion or awaiting directions or means of transportation, is only taxable under ordinary revenue laws applicable to importation or exportation.

This rule we understand to be generally recognized. The power to tax property sent into a State, and lying there awaiting sale, seems clear, although the policy of it is questioned. Report of Wells, and others, Commissioners, on Local Taxation, Harper's ed., p. 45. The treaty between the United States and Belgium, 1858, Arts. XII. and XVI., (12 U. S. Stat. at. L., 1046,) provides that during the period allowed by law for the warehousing of goods, no duties, other than those of watch and storage, shall be levied on articles brought from either country into the other, while awaiting transit, re-exportation, or entry for consumption.

And articles, the transit of which is allowed in Belgium, are exempt from transit duty there, when transportation is effected on Belgian railways.

Debts and evidences of debt.

365. Debts, and the evidences thereof, due from domiciled residents of a nation to another nation, or domiciled residents therein, are not taxable in either.

Sound political economy forbids the taxation of evidences of debt. (See Report of Wells, and others, Com'rs, on Local Taxation, Harper's ed., p. 45. They are instruments of commerce. The systems of England and France are understood to recognize this principle.

It is for each nation to adopt such a rule or not, for its own members; but in an international point of view, it is suggested that this rule should be observed. It leaves all tangible property to be taxed according to the previous rule.

Commercial paper.

366. Negotiable instruments made in one country, to be negotiated or paid in another, are not taxable, except by stamp duties in the nation where made,' and that where transferred.

1 This rule is new.

A tax on the business of a dealer in exchange is not a tax on bills or commerce. Nathan . Lousiana, 8 Howard's U. S. Sup. Ct. Rep., 73. By the English law, foreign bills are liable to stamp duty, when paid, indorsed, transferred, or otherwise negotiated within the United Kingdom. Griffin v. Weatherby, Law Rep.,3 Queen's Bench, 753.

No nation to tax national obligations of another. 367. No nation can tax the national obligations of another; nor its own obligations, except in the hands of its own members.

This rule is suggested as founded in comity, and one that will, on the whole, be equal and just in its operation.

The Report of Wells, and others, Com'rs on Local Taxation, (Harper's ed., p. 66,) states that, "England, Austria and Italy tax the non-resident holders of their national debts at the place where the debt is held to have been created or is now inscribed."

PART III.

UNIFORM REGULATIONS FOR MUTUAL
CONVENIENCE.

TITLE XI. SHIPPING.

XII. IMPOSTS.

XIII. QUARANTINE.

XIV. RAILWAYS.

XV. TELEGRAPHS.

XVI. POSTAL SERVICE.

XVII. PATENTS.

XVIII. TRADE MARKS.

XIX. COPYRIGHTS.

XX. MONEY.

XXI. WEIGHTS AND MEASURES.
XXII. LONGITUDE AND TIME.
XXIII. SEA SIGNALS.

COMMERCIAL REGULATIONS.-A number of provisions affecting commerce are contained in the preceding Chapters of this Book, particularly in Chapter VI., on NAVIGATION; in Chapter IX., concerning FISHERRIES; in Chapter XVIII., Section II., entitled the EXTRADITION OF DESERTERS, and in Titles IX. and X., relating to the DUTIES OF A NATION TO FOREIGNERS, and the DUTIES OF FOREIGNERS TO THE NATION.

Those provisions are there placed, because they define what are regarded as the intrinsic rights of nations, or are proposed as modifying the absolute rights there stated.

The provisions of this Part, although to some extent cognate to those above referred to, have an independent character, as a system of regulations founded not so much on questions of right and obligation, as on the convenience of having uniform rules for the facilitation of commercial and social intercourse; and they are, therefore, presented here, in connection with others originating in the same general purpose.

TITLE XI.

SHIPPING.

CHAPTER XXXI. General provisions.

XXXII. Rules of navigation, [law of the

road at sea.]

XXXIII. Collision.

368. The term "ship," as used in this Code, signifies any structure fitted for navigation. Every kind of ship is included in the term "shipping."

"Appurtenances" defined.

369. The term "appurtenances," as used in this Code, in respect of a ship, includes all things belonging to the owners, which are on board of the ship, or attached to it, and are connected with its proper use for the objects of the voyage and adventure in which the ship is engaged.

See 1 Parsons' Maritime Law, 71.

Employment of ships.

370. Ships are engaged either in foreign or domestic navigation, or in the fisheries.