The New York herald., 1862-09-25
IMPORTANT BANK CASES.
THE Liability OF Govcrnmru; Stocks to
Taxation.


Taxation.
SUPREME CoURT-GLSERn. eIM.
Before Hon. Judges Clerke, lngrahau. .ind Barnard.
SEPT 24-7Ae People at The Relation Of tie sank Of Com
srce Of Neo Fork The Commissioners Of 7ares and
Ssveral Ohers-These cases before the Court on
cerorari The plaintiffs state that the capital
stock Of the bank having been assessed at its just vaue
after making the exceptions and deductions required by
the Of this state the REALTORS claim that further
amount equal TO the nominal amount OF the stocks bonds
and other securities OF the United States, held
by them, should be deducted frem such as
sessed valuation, upon the grounds Il. Thai
no stocks, bonds or other securities Of the
United States are. under the Of the United
States, taxable by the states. 2. Thst the stocks
OF the act Of February 25 1852 United States
of 1862, PIP BAG, 2, and that banks
formerly taxed the nominal amount Of their capital
stock whatever might have been invested and
though portion Of il had been lost: but 1t Is
said that they taxable on the actual vaue Of their
capital stock Whichever may be the the tax Ia
upon the capital stock The reators also claiming
eInpton bound 70 show themselves afnrmalively
within the provisions the giving such exempion
They were therefore, bound ~ show by Affirmative ae
cations that the stocks bonds and other securities OF
United states hold by them issued by the United
subsequent 20 the passage OF the law or Feruary 1862
It's tax in question is not imposed upon the stocks
bondH OF the United States II imposed upon the esi
mated value OF the "capita stock Of the bank banks
or ndiv happen 70 hold United States stocks or
bonds the assessed upon tbese stocks or
bonds upon the interest which the banks citizens
of TIE State have In such stocks bonds CON-
mon with other property OF similar description through
the State. The TAX Is not discriminating tax. The
swe cf this State permit no such tax. upon
United states stock SEQ has been declared inva
lid obstructing the government in the of
NECESSARY for its support But to charge all citizens
Sate with contributing 70 the supper, OF government
proportion the value Of their property without regard
10 the OF s investment cannot be regarded
act Of hostility to- or in any manner obstrucng the gene
raj government in the exercise Of its powers inter
ferng with, or imposing any burden upon, the means
adopted Cor its support That the State has power to
levy taxes "a undenabe. IL has been admitted by all
indeed, il n vital TO the existence OF the state
For The roePoHdenis il was conendsd that the papers
show that portions Of the capital of the several
invested in and consist Of the public stocks bonds
and other securities Of the United States against
the obectos Of the REALTORS the defendants have IN their
assessments o the axsble property or the relators in
cudcd the portions o. capital 80 invested That gov
ernment stocks were not taxable sonoine or by emu
meraton and specification, they not taxable at all
Under laws, because such specific taxation Is per.
stted and AZ the time, under the olny system Of
taxation which tolerated "a general taxation Of all pro.
perty) property exempt under the federal constitution II
declared be entirely exempt from taxation or in osher
words that this State docs not tolerate taxation by
specification enumeration or "eonomine = and the
exemps property declared 10 be exempt under
tbe laws Of the United States, II must follow that such
property Intended 10 be exempt under all cir
curnstances. That government stocks could not be
taxed eo-nomne bo included in the aggrs.
gate Of the taxahe property Of the taxpayer
Even il could be osablishsd that State had the in.
herens right 70 tax such securities in q mode which
would not be detrimental 10 the interests Of the federal
government, that woyd furnish argument favor Of
the proposition contcaded for here the State has
by express statute provided Chat there shall he bat one
method Of txaton snd that BY that the stocks OF the
government shall be essnpt. The points submitted by
the defendants foloxsTbe bonds issued by this
state under the act OF 1891 exempt from taxation
when helo by individuals corporations The stock and
securities issued by the United States under The
power 20 borrow money, are exempt from taxa.
ton In the hands Of individuals or coruoya-
Stocks in foreign corporations held by ndvduas
resident m tins State are personal within fbis
state and subject 70 taxation Corporations are entitled
have deducted from the amount Of their capital s,ok
paid IN aud Accumulated surplus, the The bonds
of this state and the stock and pubic securities ssued
BY the United Satss, owned by them the time N a
sesement.
There was great array Of counscl-ex Chief tus,ce
Bronson Corporation Counse and hrs able assistant Mr.
n II Anderson for the people; for the several De
eDdaus, Messrs \. Rurre sullivan, Tracy, ex Jndc
5onney, Dyott, &C.. &c
During the hearing II the arguments Comptroller Haws
present, and paid marked attention 20 te several
,olrts submitted " counsel. Decision reserved