Baltimore daily commercial. [volume] (Baltimore, Md.) 1865-1867, 1865-10-26
IMPORTANT DECISION.
Stockholders in National Banks Liable to
Local Taxation.
From the New York Post. 24th. !

IRON the New L lOrK POSt, Z4tn.
In the cases argued before the Court of Appeals at
its last sitting, of the City of Utica against G. c.
Churchill and Others and Adam Van Allen, against
the assessors of the city of Albany; and c. P. Will
liams and others against the same the question of
the right of State and local authorities to tax share
holders in the National banks fully considered.
The decision of the court given by ChiefJustice
DEMO, all the other judges concurring, except Mr..
Porter who did not sit in the last account Of
being party interested.
Judge DEMO declares it incontestable that property
devoted to publ uses by the general government can
not be subjected to the taxing power OF the govern
mentS OF the States of the Union. National lnstltu-
tiOns and establishments of every kind brought into
existence by laws conSttutionay enacted by the ma
tonal legislature exist independently of the State
government, and cannot be made tributary by means
OF State laws for taxation or IN any other manner to
the needs or eXigencieS of the State governments.
But the Bank of the United States was equally with
national banks now existing trading corporation.
The individual means invested in the stock by the
private stockholders were before such investment
the proper and legitimate subjects of State taxation.
There Is no reason why they should not be subject
to that liability after being invested unless the i'm
munlty was necessary to the existence and preserVa
ton OF the confederate body with which they were
connccted If this liability 10 taxation be sustained
II would appear that the States may tax them out OF
existence but so long the property thus invested
Is only taxed IN common with other individual pro-
pery, is done in the taxing of lands of this State
the apprehension of such danger is purely fancifu.
In the decision of the United States, supreme
Court in the case Of Mccullough against the State
Maryland, the tax declared unconstitutional, was
upon the operations of the bank, an instrument EN-
poyed by the government of the Union to carry it;
power into effect, and did not deprive the States o.
any revenues which they originally possessed
The proposition To draw all the property OF Tho
people Of the Union invested i'll banking, cOnstitu
ting large proportion of the personal property of the
nation Tor the duty OF contributing to support th'
State governments whose sphere it is to enact anC
administer all the laws which regulate the acquis
ton enjoyment and transmiss OF property and th
administration of justice. and the conduct of statt
and local government, would be frightful TO contem
plate, The court concludes with entire confdenc,
that there is no mpediment to the taxation of thes
shareholders arising out of the consideration tha
banking corporations not themselves taxable
The National Currency Act expressly authorizes
the shares OF these assoc caons be included in th
local amounts OF taxes imposed by State authorit!
where the banks are located and such amount is no
taxing OF the property on which the capital of th
bank has been invested. The shareholders are no
the owners of the United States bonds held by tn
banks. The banking corporation and not the share
holders, its creditors entitled to the exception; am
therefore the Court Of Appeals sustans the action
the Supreme Court of the Fifth District and
that of the Third District, and declares that tn
shares held by stockholders in National Banks ar
liable as such to local taxation like other persona
properly.