The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-10-24
THE TAXING OF NATIONAL BANKS.
Is National Bank Stock Subject to
Taxation BY the Statei
Decision Of Chief Justice Dsnis. Of the Court
Of Appeals, In Three Important Cases.
Tho Question Decided An TN,
Affirmative.
In the Ceurt Of Appears.

In the Ceurt Of Appeals.
Inc CITY g Utica w. @. Clarence CkxvcAiU and OtAes-
Ado~ Va~ AHsw 10 kiekaeI A. Nolan and OtAvs, ne
Seerd y Assser Of 0s Ciaev Annvt- cAaswoy r,
winiams and OsAvs ~. As Sawe
Dn1o, G. 1.-The appeals In these three cases were
heard together, and the general question in each b,
whether the shares Of the sockhoder In tho banking
associations created under tho acts Of Congress which
provide for the creation OF National banks can b.
ected 70 taxation by State authorities In the nrst
the institution whose stockholders taxed eseab
lishcd on the 9Th Of January 1884 with capital Of
$500 the whole Of which invested In the securi.
Ties Of the public debt Of tho United States The plain
tits and other shareholders taxed by the Common
Council Of tho city Of Utica In September 1884, for
much personal property their respective shares in tho
stock Of the hank represented In tho second se tho
institution Is the First National Bank of Albany which
was established in February, 1854 with capital OF
$500 O00 tho whole OF which and considerably larger
sum Ia invested In similar national securities. It's
shareholders, Of whom the plaintiff is one assessed
upon the respective amounts OF their shares between tho
months Of April and September in the present year. In
the remaining the institution the National Albany
Exchange Bank and was established in January 1895
with capital Of $500 600 oil OF which IL invested In fed
cal securities The plaintiff is shareholder and with
the other shareholders has been taxed during the pres
ent year IN the in the other cases The
defendants In two actions arc the individuals who
constitute the Board Of Assessors Of the city Of Albany
Each Of the three actions came before the supreme
N"ooo
ton Of the Code of Procedure the purpose OF deter
mining whether the parties who had been assessed and
taxed were legally liable to such taxation. The plain
tbs proceeded ia behalf OF themselves ana all other
Stockholders Of their respective banks
In the first the decision Of the supreme Court
that the plaintiff Churchill was liable to the tax his
residence BIO in the First ward OF tho city Of Utica
In which wnrd tho bank located and that the other
plaintiffs not liable, account OF their residence
beirg without that ward Judgment was given accord.
ingly and costs awarded TO the prevailing parties
In the two other the taxes adudged to DO
In thfp
two plaintiffs; and 1t directed that the Of the
several stockholders be stricken from the assessment
rolls Appeals have been taken TO this court by all tn
parties against whom the Judgments were rendered,
There some questions which are not common to an
ltshed, and the which challenged i'm.
posed prior " the Enabling statute Of this STATE which
passed and became law the 9th day OF March,
1865 Only of the plaintiffs resided In the ward oil
the city ~ Utica In which tho bank Is situated The
princy % which have thus far been stated show
taxed resided in another ward OF the city
ono In the same county, another In another
tho District Of Counbs Pror TO the Enabling &C, ou
laws required that the taxation OF personal property shai
be in the town ward In which tho taxpayer ros.dos
WAS inclined 10 the opinion that tae provision Of
the national banking law often referred to might be
considered change OF our OVID law and might be
sustained account Of It's relation 10 the national bnnks
which within the sphere OF federal legislation On
further reflection have concluded that II would be
correct To hold that the effect OF thc proviso Is "a
permit OF
tax all tho shareholders the place who're the bank
situated has been done by the Enabling act FOL
lows that the Judgment OF tho Supreme Court in favor
OF the plaintiff against William Churchill should be
affirmed and that the judgman in favor Of tho other
aef.nA.,, That should likewise DO affirmed. In
tho second caH Tie bank wss est.bl shed pro'
70 The passage Of go au' sSs banking act 'o q
toned, and alan prr ~. issa The Enss,,r
act which authorizes the taA ~lon OF shareholder
otherwise than in the place OF their seuenco declares
knp NJ lin huUL
organized under this act the act OF Coz soss men
toned In section OF this act shalt be Assessed OF
taxed In the town ward in which the bank Is l0c>d
lava ls6S CHI o., sec lo, and Oh, sct Of Congress.
mentioned 10 that first section u the act Of Congress OF
June g. 1854 The first national banking act passed
February 49, 1868 Thirty seventh Cong $685. ch 49,,
mentioned bank OF Albany organized. This would
DO conclusive in favor Of such OF the Of that
institution reside out Of the proper ward Of tho bank
were It not that section Of the act OF 1854 hc d) FRO
vidcs that all the banking associations organized
that former banking act which In terms repealed Wy
that section, should enjoy oil the rights and privileges
granted and be subject To oil tho duties liabilities aud
restrictions imposed by that act Of 1884. am OF
opinion that whom the and full Enabling act
embraced within its scope all the associations organized
undor the set o! 1884 IL included BY reasonable con-
ftruction these associations, which, although irst
established under the earlier act. continued aud
confirmed by the banking art Of 1854 ana which stood
AT the passage Of the New York solely upon the last
banking act OF the United States Hence tho judgment
In the second and third q the above contested
judgment Of the Court that taxation OF tho share
holders mentioned In The agrc d in these
tons loyal and valid The costs In each OF tho
appeals awarded Ia favor OF the prevailing parties
Tho form the Judgment be settled by OF tho
judges unless reed by the partics order that
proper clause may be inserted showing thnt question
arising undsr the constitution OF the United States
involved In this decision.
All tho judges concurrsd 10 these conrlusions cx-
cept that Judge Porter did not sit In the last mentioned
case account OF interest the bank concerned In t.