ÆäÀÌÁö À̹ÌÁö
PDF
ePub

of the United States shall be paid into the Division of Redemption of the Treasury and credited and added to the reserve fund held for the redemption of United States and other notes."

(As amended May 30, 1908.)

See Act of March 3, 1883, and notes to section 5219, U. S. Comp. Stat. 1901, p. 3502.

See section 13, Act of March 14, 1900, post.

§ 5215. [U. S. Comp. Stat. 1901, p. 3501.] In order to enable the Treasurer to assess the duties imposed by the preceding section, each association shall, within ten days from the first days of January and July of each year, make a return, under the oath of its president or cashier, to the Treasurer of the United States, in such form as the Treasurer may prescribe, of the average amount of its notes in circulation, and of the average amount of its deposits, and of the average amount of its capital stock, beyond the amount invested in United States bonds, for the six months next preceding the most recent first day of January or July. Every association which fails so to make such return shall be liable to a penalty of two hundred dollars, to be collected either out of the interest as it may become due such association on the bonds deposited with the Treasurer, or, at his option, in the manner in which penalties are to be collected of other corporations under the laws of the United States.

§ 5216. [U. S. Comp. Stat. 1901, p. 3501.] Whenever any association fails to make the half-yearly return required by the preceding section, the duties to be paid by such association shall be assessed upon the amount of notes delivered to such association by the Comptroller of the Currency, and upon the highest amount of its deposits and capital stock, to be ascertained in such manner as the Treasurer may deem best.

§ 5217. [U. S. Comp. Stat. 1901, p. 3501.] Whenever an association fails to pay the duties imposed by the three preceding sections, the sums due may be collected in the manner provided for the collection of United States taxes from other corporations; or the Treasurer may reserve the amount out of the interest as it may become due, on the bonds deposited with him by such defaulting

association.

The obligations and penalties imposed on national banks by sections 5214-5217, U. S. Comp. Stat. 1901, pp. 3500–3501, relate to solvent banks and not to a bank in the hands of the Comptroller of the Currency. Jackson, Receiver, v. United States, 20 Court of Claims, 298.

§ 5218. [U. S. Comp. Stat. 1901, p. 3502.] In all cases where an association has paid or may pay in excess of what may be or has been found due from it, on account of the duty required to be paid to the Treasurer of the United States, the association may state an account therefor, which on being certified by the Treasurer of the United States and found correct by the first Comptroller of the Treasury, shall be refunded in the ordinary manner by warrant on the Treas

ury.

§ 5219. [U. S. Comp. Stat. 1901, p. 3502.] Nothing herein shall prevent all the shares in any association from being included in the valuation of the personal property of the owner or holder of such shares, in assessing taxes imposed by authority of the State within which the association is located; but the legislature of each State may determine and direct the manner and place of taxing all the shares of national banking associations located within the State, subject only to the two restrictions, that the taxation shall not be at a greater rate than is assessed upon other moneyed capital in the hands of individual citizens of such State, and that the shares of any national banking association owned by non-residents of any State shall be taxed in the city or town where the bank is located, and not elsewhere. Nothing herein shall be construed to exempt the real property of associations from either State, county or municipal taxes, to the same extent, according to its value, as other real property is taxed.

1. Under this section and within the limitations therein prescribed, the whole interest of a shareholder in the shares held by him in a national bank are left subject to State taxation, which the State has a sovereign right and concurrent power with Congress to impose (but from the exercise of which Congress, by reason of its paramount authority, may exclude the State), although the capital of such bank be wholy invested in securities of the United States. Van Allen v. Assessors, 3 Wall. 373, 18 L. ed. 229.

2. The intention of Congress in the first of said limitations was that the rate of taxation of the shares should be the same, or not greater, than upon the moneyed capital of the individual citizen which is subject or liable to taxation. That is, no greater proportion or percentage of tax in the valuation of the shares

1

should be levied, than upon other moneyed taxable capital in the hands of the citizens. Id.

3. The test by which to prevent discrimination against the shares is confined to the rate of assessments upon moneyed capital in the hands of individual citizens, so that the fact of insurance companies created under the laws of the State, and doing business in the city of New York, being respectively assessed upon the balance of their capital and surplus profits, liable to taxation, after deducting therefrom such part as is invested in United States securities, has no bearing on the question of the taxation of shares. These institutions are not within the words or the contemplation of Congress; they are taxed on their capital, and not on the shareholder, at the same rate as other personal property in the State. People v. The Commissioners, 4 Wall. 244, 18 L. ed. 344.

4. Shares of stock in national banks are a species of personal property which is in one sense, intangible and incorporeal, but the law which creates them may separate them from the person of their owner for the purposes of taxation, and give them a situs of their own. This has been done by this section, which is a law of the property, and by virtue of which every person, resident, or non-resident, on becoming owner, voluntarily subjects himself to the jurisdiction of the State in which the bank is established for all the purposes of taxation on account of such ownership, and the State may legislate accordingly. Tappan v. Merchants' National Bank, 19 Wall. 490, 22 L. ed. 189.

5. The effect of this section is not limited to a discrimination in the percentage levied as a tax without regard to equality in the valuation on which, that tax is levied. It is intended to prevent any rule of valuation which will operate unjustly or unequally against these shares, as well as to secure uniformity in percentage. People v. Weaver, 100 U. S. 539, 25 L. ed. 705.

In this case it was held that a statute of the State of New York, which refused to plaintiff the same deduction for debts due by him from the valuation of his shares of national bank stock, that it allows to those who have moneyed capital otherwise invested, is in conflict with this section.

6. Where, notwithstanding a statute required all moneyed capital to be appraised for the purpose of taxation at its true cash value, the assessors systematically appraise all other moneyed capital at much less than its true value while national bank shares are assessed at their full value. Held, that the tax on shares thus assessed was invalid, and that upon payment into court of the amount due upon a valuation determined according to the rule by which other moneyed capital is valued, a court of equity will restrain the collection of the balance. Pelton v. Commercial National Bank, 101 U. S. 143, 25 L. ed. 901. See, also, on this subject, Cummings v. Merchants' National Bank, 101 U. S. 153, 25 L. ed. 903; Pollard v. Zuber, 65 Ala. 635; Miller v. Heilburn, 58 Cal. 133.

7. But where by a State statute the citizen may have the amount of his indebtedness deducted from the total value of his personal property, thus ascertaining the amount of his personal estate subject to taxation, and a subsequent statute relating to taxation of bank shares makes no provision for such deduction, the latter statute is nevertheless the valid rule for assessing such shares in all instances which there are no debts to be deducted. That the latter statute does not authorize a deduction for debts does not invalidate it, except as to that distinct and separable principle. Under such statutes, assessments of bank

shares, where there are no debts to deduct, are valid. Even in cases of assessments where debts exist, which should be deducted, but are not, the assessments are voidable only, not void. Supervisors of Albany v. Stanley, 105 U. S. 305, 26 L. ed. 1044.

8. National bank shares may be assessed for the purpose of taxation at an amount above the par value, when the latter is exceeded by the market value, if such valuation is made by the State law, on other moneyed capital in the assessment of taxes. Hepburn v. School Directors, 23 Wall. 480, 23 L. ed. 112. 9. The right of a national bank to conduct its business is in no way dependent on a license to be obtained from the State where located, or any of its munici· palities, and a fee therefore cannot be exacted. Carthage v. Carthage National Bank, 71 Mo. 508, 36 Am. Rep. 494; National Bank v. Titusville, 13 Fed. Rep. 429.

10. By a statute of Pennsylvania, it was enacted that "all mortgages, judg ments, recognizances and money owing upon articles of agreement for the sale of real estate shall be exempt from taxation, except for State purposes." It was objected that this exemption by relieving certain specified property from taxation brought the case within the first restriction mentioned in this section, and thus violated the tax sought to be enforced. The court held otherwise in Hepburn v. School Directors, 23 Wall. 480, 23 L. ed. 112. See Adams v. Nashville, 95 U. S. (5 Otto) 19, 24 L. ed. 369.

11. Where national bank shares are required in any State to be taxed at their par value, the surplus fund, if any, of such bank, in excess of the amount they are required by law to keep on hand, is taxable (First National Bank v. Peterborough, 56 N. H. 38, 22 Am. Rep. 416), and, when the State laws so provide, may be taxed against the bank as to non-residents; but where such law provides that it be taxed in connection with the capital stock in the hands of the stockholders, it is not taxable separately. State, etc. v. City of Newark, 10 Vroom, 380; reversed, 11 id. 559, on ground that bank cannot be taxed for shares of resident stockholders (note amended in accordance therewith).

12. The surplus fund which a national bank is required by this section to reserve from its net profits is not excluded in the valuation of its shares for taxation. Strafford National Bank v. Dover, 58 N. H. 316; First National Bank v. Peterborough, 56 id. 38, 22 Am. Rep. 416; Thomp. N. B. Cases, 658; National Bank v. Commonwealth, 9 Wall. 353, 19 L. ed. 701; Thomp. N. B. Cases, 34; People v. Commissioners, 67 N. Y. 516; S. C., 94 U. S. 415, 24 L. ed. 164.

13. The personal property of an insolvent national bank, in the hands of a receiver appointed under section 5234, U. S. Comp. Stat. 1901, p. 3507, is exempt from taxation under State laws. Such property is legal contemplation still belongs to the bank, though in the hands of a receiver, to be administered under the law. The bank does not cease to exist on the appointment of a received. Its corporate capacity continues until its affairs are finally wound up and its assets distributed. If the shares have any value, they are taxable in the hands of the holders or owners under this section; but the property held by the receiver is exempt to the same extent it was before his appointment. WAITE, C. J. Rosenblatt v. Johnston, 104 U. S. (14 Otto) 462, 26 L. ed. 832.

14. The tax on capital and deposits was abolished by the Act of March 3, 1883, and it is a question how far the same is retroactive. The tax of one half

of one percentum each half year on notes in circumation is all that remains of the original act. See Act of March 3, 1883, post.

15. The purpose of Congress in fixing limits to State taxation of shares of national banks was to prevent the State from creating unfriendly competition by favoring institutions or individuals carrying on a similar business.

The term "moneyed capital," as used in section 5219, U. S. Comp. Stat. 1901, p. 3502, includes capital employed in national banks, and capital employed by individuals in the business of making profit by the use of moneyed capital as money. It does not include the capital of a corporation even if its business is such as to make its shares moneyed capital when in the hands of individuals, or if it invests capital in securities payable in money. Savings banks deposits are exempted from taxation in New York for just reasons, and such exemption does not discriminate unjustly against national bank investments. Mercantile Bank t. New York, 121 U. S. 138, 30 L. ed. 895, 7 Sup. Ct. Rep. 826, followed in 125 U. S. 60, 31 L. ed. 689, 8 Sup. Ct. Rep. 772.

16. Section 5219, U. S. Comp. Stat. 1901, p. 3502, does not require perfect uniformity of taxation between national and State banks; but requires the avoidance of a method of discrimination unfavorable to investments in national banks and favorable to State banks and corporations.

A statute regulating State taxation which is not on its fact intended to discriminate as above, in the absence of proof that it works an actual and unjust discrimination, will not be unconstitutional. Davenport Bank v. Davenport Board of Equalization, 123 U. S. 83, 31 L. ed. 94, 8 Sup. Ct. Rep. 73. Affirmed in Bank of Redemption v. Boston, 125 U. S. 60, 31 L. ed. 689, 8 Sup. Ct. Rep. 772. 17. The intent of this section is to permit the State in which a national bank is located, to tax the shares of capital stock without regard to the residences of the owners of such shares; subject, however, to the limitations of the section. This is also the intent where national banks in other States are the owners of such stock. Bank of Redemption v. Boston, 125 U. S. 60, 31 L. ed. 689, 8 Sup. Ct. Rep. 772.

18. Where a county officer fixed the taxable value of national bank stock at 60 per cent. of true value in money, as was the local custom adopted for the valuation of other moneyed capital of individuals in that State, and a broad of equalization increased the national bank valuation to 65 per cent. without a corresponding increase in the valuation of other moneyed capital stock. Held, to be a discrimination in violation of section 5219 [U. S. Comp. Stat. 1901, p. 3502]. Whitbeck v. Mercantile Nat. Bank. 127 U. S. 193, 32 L. ed. 118, 8 Sup. Ct. Rep. 1121.

19. The method of appraisal and the time for the correction of errors in assessments are within the legislative control of the State. The legislature may remedy any omission or error, provided that intervening rights are not impaired. The statute passed by the Legislature of New York, April 30, 1883, to confirm the assessments in Albany for the years 1876, 1877 and 1878 is not in conflict with the Acts of Congress respecting taxation of national bank stock and was a valid exercise of State legislative control. Williams v. Albany Supervisors,

122 U. S. 154, 30 L. ed. 1088, 7 Sup. Ct. Rep. 1244.

[ocr errors]

20. This section does not authorize a tax upon the bank itself. in solido. Only the shares can be assessed, and these only as the shares, i. e., individual

« ÀÌÀü°è¼Ó »