‘, ~‘i~&ablr Ri t, 

### Oroslor, page 

## 11 ,,_,

,, ‘,

mefini of tax* the wrooiml 

### propeity of ttite ; banking odrporatlono in the hands of the, ehar holdora. It follows from thlr that suoh 

### carporatlona are mt now roquirod~to rendor thelt, permonal progorty 

### ror taxation;, . . .* , ,’ Tho &me oozietruotlon of the Toxar rtatuts’r iavb~ved ‘. vai srrnounood by thp Court of Civil‘ f@.r,petiBOf %‘oxncr in the ome 0r First ITatlonnl Bank 0r Impaaos vr: City 

### or.uimpaa~ y ; ;, : .78 

### 8, w. 42, writ or erroti dlemiossd by the S&rem Coui+t., ,ih& * “ , 

### .-oouPt

rtatod an r0im8t

. “It iti settled by doolrrfonrr of the Sup

### roni, Cow: of the United Statea that it linot
.,, ”uithln the $ovor Of a etate to eubjeat tW proparty of natlonal banka to taxation vithout, ” I. : the Comont or the federal Con.gwar The only ‘, provlaion or the redoral etatutoe vhioh authorlcer such taxetion la eeotion 5219 of tho Revlsed Statutec of the United St&tee U.S. Camp. St. 1901, p, 3502), and that permitd ruah.tcuation w agalnat buch benka, ‘upon 

### riml eetate Onlg. It authoyizes atato taxation or the *~ atoek of suoh banke aa a@net the wnom of such #took, btit not a$ agalnat the bar&m. In harmony Vith that rtstuto, the 

### Le&islaturo of .,’ thi8 

### state has we full provlrrlon for the aaawm?nt and colleotlon of taxea,upon national ,. “ ’ b&k stock from the ovnern of uuah rt.oQk, and . . 

### has made no attempt to oom901 national banks 

### to

priy taxes on euah 9roportgr ‘~Sayleo* Rev. Cl?. St. 1897, arts. 5079, 5079a, and 5080, Henoe I, ,;:~ ne’ are of opinion that the bank vae 

### under no legal obligation to render’and 9&y taxer on the proporty’ln question. cd by ntithmity. * Thoee visve are rrupportMiller V. First Ration81 .Bmk, 46,0hio St. 424, 21’R.E. 8601 Blrat lot; Bank 

### Y, Ffshor, 45 fan. 726, ,26 Pao. 482.’ It la our opinionthat under th6 lava of this State

to 

### a matlonal bank:,ir texablo cq&nat ,. loaal bank mcy 

### not raonal ,prapertg bslonging~ to ouch a 

### .Nat- t ‘taxed by the Stats, %rther, &aver of

. .I ’ . a’. b .~.i&k in 

### ‘a dat$onal bank may be taxed in the hand8 of the ’

rharoholder 8. This ha8 been the lav or thir .Stato rinoo the 

### ourly Texae Suprome Court oat30 0r Uarrlsoa Y+’ Yinor, 46 Vex, 

## 15,~ mhs aowt rtatod au 

### 3ollovar

“It fr a& well nettled 

### by the Supreme ‘, court or the United Stattoe, by 

### whose constru0~ ,~’‘. tloa an aot of Congree8 thie oourt Is uri@aortionably bound,. that the rrhaiw of bankin5 a81 roolatlons authorized by the abt of June 

## 3, ‘Y’,1864,

‘To provide a “national 

### ourronc ” &or In the hand8 of the ahareholdorr are iable $6 ; ” I ’ ta?ustIon by, tho Statoa with the lltitatlon8 ; c and on the oondltlono sot forth in **tho** forty-.‘,

.’ ‘first soctloa of said sot, although the entlr@ a&pital of euah bank I8 Invested in national 1 roourltloo, whloh are dealwed **by** theetatuto



## .. ( authoriaing

thorn to be %xcmg * 

## by ‘or ‘under 5tatoWg;horlty. The Ae8088or8, Comafo8loaor8, t 

## ., 5 Wall.., 2 1;:j Natloaal Bmk v., Uoxmtoavoalth, O~Wall., 

## 353. , . .,.I - .

.‘,

,,

“,

The next question that arl~sa fa whether 02 

## not tho mh&rer of- rtook ,la a National bank vhIah are 

### taxed In the name8 of the rhareholdore should bo aeaevsed at 

### a 

## value tioh iu me

## duood b+aueo or tho ,faot that. the 

## National Bank own8 Federal
,Rerervo rtook. Tho rule or lav In euoh a 0088 88 to United 

### Water bonde owned by a Natloncrl bank vaa stated by ,th8 C,owt . or oltii **A9** oala **25** 

## ‘8.: If.. 734. 0r TQXW in the dam 0r Adair V* Robinson, .’ : 

## Th question 

### before 

## theoourt la thatQM@ YOI .1 e 

## ,./ **rt@tad therola**  **80** rollowe: The ‘faoto are sot **oontrovertod oontrovertod**  

### “ and li &iy quo&ion presented for ow 

## de&

quo&ion presented de& 18 the 

### right of the ovnara of the rtock #ion or the. bank to ronder the. awio for taxation at taxation : ‘.‘ftr aotual Y~~UO, lone the amount of the **United** &ate8 bond8 Andy the legal tender not08 owned,



### .’ b 

## thrba@c 

## oa the I8t day 

## ?r.+naary~ Aa‘De ._ 

## .1591:. ...*y . . I ," :

<, '. .* *. ',,,~ .

5 I .~‘.,., .,. “” -“~. ‘*‘~:j’f’.

‘,

. ’

‘. 

### ( .. ’ ' The oourt'hald OII follwel

I.4 . !l%crcs is ho decision of that oourt known to u; whloh tenda to sustain the content&on of eefondcnt II ln 

### ,errorj but, on the contrary, la. filie oaffo of Vm Nlon v.~Aoa~~~~r, 3 lidll. 573;. :’,it~,ia eqmmily dooided by a majority of the ,

.. supreme cowt of. 

### the, United Etatou, after thor- ‘, ‘ough tuul e~hauotive ~dleouoeion of the question; :. ,,, that it was not tho r&at of the ehareholdare .~. ’ 

### ‘.of .a national bank to hem deducted from the ~’ “ ‘-value of their sham@ of 

### atook, when rendered to the state offioor 

### for taxation, the drum of tione;r invested by the bank in United Etatgs ‘. : bonda. 

### Nor 18 there anything in the deoieionr.

of. the tu~rome, court of thla state, that Yo hare discovered, which coL-stonauoee tho rule

,.’ 

### for easeermont 

### of chaws 

### cf bauk stook vhlch ,~’ ,,the defendants in error contend for, . .~ ,”

In the case 

### of Fimt E!%sional Zank of'C5.m.ioinui~t1, Chio, 0. Qutir, 246 FM. 163, the shareholders in a Rational bank’oontendsd that the value of the sharer of stock in said : bank must be reduced for etate ad valorem tax purpoaor beoawe’ the bank'r ovqorohip of lahtcrcs of rtock 4~ a 

### Fedorsl Remrvo b&k. The oontontlon of the bank’s Wwoholderr’in that 

### 08SO ~wu”88 t0110vr 8 ii.

:

*The plal&iff oltiims that the provision8 ‘:

. .of’riotion 5219, R.8,U.S. (Aot June 3, 1864, # d. **106** ( 41, 13 Stat, 111, aa amended Febrmarg .: ,.lO, 1868 (15 Stat. 34, c. 7)), are so far ro- , .’

‘~ Pealed by oectlon **26** of the Federal Resorve 

### AoC : **Act, Dee.**  23 15113, 0. ..6, 30 Stat. 25 (Omp. St. : i, 1916, ’ 1 gSo3j~), that the sharoholdora in the plaintiff be& aro oxenpt fron taxation by via’- tuo of rootion 7 

### of the last-nmod eat (Corsp,
,, St i 1916 ! 979%) on ao much of ito capital : ,. **8na ‘**  **rurpiur** a8 **ia, invoated**  **ir,** rtook of the 

### peder0.l **ReseHs Bank.**  **'4 telqlorary**  **ul$lnotion~,** : irruod tmeA'the 

### bill Vai filed. "

II ,. ..**, w :.

, , .' :~Honorabl* i. L. 

### Croaler, page.14

;:


### ,’ ‘ 1. . i P6r **the** subscription. thus made.”

thd national bank 

### booomor a 

### 8-c fholder oc rtookholder In the Fedomil Reserve Dw, but may not.
, +nsfer OP hypotheoato lte ahWeaj each of tiLti $a.of’the face value 

### of $100. SubaeOtion 3 

### of . 

### ,‘,‘, ~

### ,@Otion’ 7 

## prorldeo that J

. wVcdoral 

### Roa’erve D&&a, inolud% the : capital 

### atookand atipluo therein, 

### and the ino&a dwivcd thorofrom, ah&l1 bo exmpt from ~eeberal, state, end looal taxation, oxoopt tex- / 

### es ,upon red estate, 1”

’ Ia **tho** above quoted portions of the First liatlonal :, Dank Y, Sh.wroaao it may be soon. that Thor ehmeboldora in the Rational Dwk.vere oonteridlng that the provlnlon.ln the 

### Federal Resews **Act,** vhioh providoa that tho Fodoml ReaOrvo; 

### : .banklaoludhg tho oAplt+l stock 

### and tho aurplw 

### therein and ,lncome dorived tharof’rom voro exempt from Stat0 taxation rOqkihwd tho State tw&q authorities to rcduoe t&o value 

### of thr .aIqarea of atock.in the plalntlff~a National Bank boo&use ,aa%d ~benk’ovncd eharoa of etook in a Federal Reserve Dank. l’he oourt @nevered the aontention and stated ae 

### follova~ ,. ’ .

.“The CJX~llQtfOA

ppoildod in .?ootiOa 7 dOOS ‘not extend to national banks orgnnieed undo? the,lVational DanUng’Lan,’ I&adCoagmsa Ant&d- ‘. od that their capital otoolr..ehould be **relieved** from taxation, it would have oaid 80~

,. ***T& stock**  pkohaeed by the plaintiff ia. ‘the ‘Pedoral 

### Roaervi3 Da& irr but & nontaxable inveatmont of 

### a psrt of its oapltal and aurplus. 

### As acrid’ 5n Firlit Hat. Bank vw &bright, 208 u. 8.
,,‘L. zd. 614 48, 553, 20 5up. Qt. 349, 350 (52

J .. .’ .I ,. n~The’lav 

### does not oonaidez. the xkatuw 

### Of ,a b&k18 investment not texed in f$xing tho ~~ ooluo of t ts atook. 

### u.S; 669, Palnor 

### V. Mal&ho~, 

### 1%

lo sug. Ct. 324, 33 Ii. Ed. 772). ’ ,..

::‘%hatever value the ohares lsaucd by the

:., ,’ppbfatlff .natiorml benk po~oem, they are :to
., that extont tax&bU in the hand8 of their own-
,..em 

### .a.nd holdera. Rosonblatt v. Johnrton, 104 Ur. 

### I ’ 8. 462, 26 L. Ed. 

### 832~ my, oto., 

### of SanFranoirob, Y. Croaker-Xoolworth Nnt. Bank (0.0,) 

## .* 92 Fed,273. The oourte have repeatedly ruled’ ” ‘, .that., IA Sixbig. ‘the value of the shnros OS stock of natlonal bank8 for .tfWng purpof~o8, ” ;, the value due ,t3 the bank’s olmershlp or non-‘, taxable United Btates~bonda as a part of ltr

..“ ‘. aaaets must be lnoludod. se, for inntanoe, Cleveland Trurt Co. v. L!indcr, 184 0.9.. 111, ' ‘22 8up. Ct. 394 

### 46 L. Ed, 4%~ Xa or o.~Anwi~' ~"?: oan Nat. Bank, i5g Pod. 

## 396,401,86 C .C.A. 3?b;c ;, , : : (C.0.A. 6)~ Van Allen,v. Aeaeseorr, 

## 3 Well. e” 

## _ 2

### 73, 18 L. Ed, 229 Well. at pago 25 ,



## 6 Peoplo ve Comlsrionera, ~..’ ” *. 18 Lt. Ed. 

## 3441Nat,Bank Y. Comonvealth, g Wall* at p&8&e 

## 359,19 II.

Et& .,7Olj Born0Cavings Bank Ye De* Moines, 205 lJ.8, ’ .at pwoe 528, 513, 27 Bupr. Otr 571, 51 Lr Ed..
.,’ ,901. .Tho ~amo rulo~ appllea to nontaxable stook e ;y tho plaintiff in tho Fsafwai Roaorvo

. The cotit denled the oodtentioa of tho ~rhareholdorr ls tWXiation&l bon4 and held that the mm rulip applied aa $0 .rtook ovned bu the,Natlonal bank in a Federal 

### Roeerve bank ‘&a har beon p:oviouely announoed CtQpma vhere the NatlOn8l bank ouaed United .Stator 

### bond8 ~8 p8rt pi it8 &88et8r

ihe Ceoult Court 

### or Appeale’ 

### affirmed the 

### de0bi081: of the ‘Matriot Court aud utsted ~a Sollow;

“Ne are aatiafled, not only with tho oor- 1~ reotners OS this oonoluaion; but with the peak aonlng of the opinion on vhloh the conoluaio~ ,,’ 18 baaed, and 8ro oontont to affirm the juds- .~‘, ., ment upon that opinion; Uo think its oloar that .. Oongreso ihtendcd to place a r.mtlonal bank@ 8 holdingr OS Federal Reeerve Bank rtock ugoa pl+ ‘. oieel the, uame beair ar its’holdingr OS governmeat. Ii onde, eo 

### r8p ae exemption *iron taxation. : 

## 44 ~o&rabloit:

L. **Cro&r,** 

## pwe 16 ._ *
,. " of 

## ihares

of natlonel 

### bank #took 

## heldby “ ‘,atookholdera therein*”

You are therefore’ advised that in the opinion of thla deiartment, 

## thevalue of ahyea OS atook

owned by atookholdera in a National bank may not 

### be reduood beoauao of 

### the I fiwt~thot the Nationd 

### bank own8 aha??oa of atook in a Pxloral Reaewo bank.

We trust that the f6regoing fulli 

### tfnayerr youc la- 

### ‘**q&y O?I** 

$hla ptter, . 

## Your8 verytruly