New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1866-07-19
UNITED STATES CIRCUIT COURT-JULr ls.-Before
JaIgs NELSON.
INV LIABILITY OF BANKERS TO PAY TAXES on SALES OF


Tgv LrABnIrY OF BANKERS TO PAY TAXES on SALES OF
STOCKS As NEUTRALITY-SUSPICIOUS. By JUDGE NELSON.
In June last motion was argued IN the case OF
Glars Dodge 60. against The ned Staes ana otheTS o
VI John Burri. hbaf OF the plaintiff aud Mr. L. g.
uriney United States District Attorney fr toe defendants
-csin tie collection o. TIE Internal keyehue TAI 90
brokers' ssles Of stocks &c. by The Collectors IRON Inc
IN hill stated ,Ast thoy were duiy licensed
bsrte mi TIA, their transactions were Of four knd me
receiving al ocs &C. for sale ead discelnt and IA such
ot, t nato s.lei To lend advance MONEYS on such
,.d in those oascs TO se 70 reimburse themselves
To huy and sci such securities their own account T. To
Inv when tev r.cc orders from parties bat IN her
name IN sac cases TO transfer The STOCK so b0asAi 10
rre orsissoers OF Internal claimed that PLAIN
tits pay all saes made By taen IN tie
enumerated 1lsses OF nsncors aud Aa II any one
o. these cl,es any II their transactions msde them
liable TO tx their whole busress subses OF
brokers' mach ~ II they were not oansor', 1880
The arguments oil the counsel for Clark Dodge Co. were
r,a That the tax was only imposed brokers' and not
oad The 79A section Of the act expressly authorized
b. kcr. such 70 DO the acts specified IN ne BIN
Tdf That the transactions stated 10 the last seoton were
not saos properly least sales as Drokcrs tut either were
ansIs OF sales Of stocks received sac or on linen %
That the Distinction between banker and broker
well defined and tLa easasng IN the transactions snun
broker
F, That II tho fourth elias, Of transactions part Of
the brokors business ald ta1a as slc s dd moi rena
them a IN respect Jurisdictions which formed part OF
So MAJ by combining TIE business Of banker and
broker the banker dd not lose the exemption to which he
SrenG THAT Il tie plaintiffs were tlIlbe in respect TO
Transactions for others this did rot render them ape ior
EigSh That the Supreme Court in Fisk agt Hatch d.
cied bankers were exempt from taxation on all the
T LAT ia the case Of Cutting that Cour, decided thG
brokers' Gong business under TIE eih paragraph OF sec ~
liable pay taxes on all transactions speohed In A'
rid. That The Supreme Court had NO, decided that
banker licensed under the st subdivision OF section ~ was
liable Any tax on the business for which he
that where bankers engnge 10 iraneetons IN wneh
brokers likewise that they thereby lose the eA
Mr. = G. Courtney the United States District Attorney
oontr0yerei arguments and urged that the coeiho
coneadei f9r by the plaintiffs would sooh urse vac rae rae
Of brokers IL xonce though TIE loss OF the Wod ~ %
vog be more than compensated by an increase III
similar motion was made in the Of En.ten Co..
there being this difference that al OF tho sales OF
Erstcn Co. made not bythenseSes but by Licensed
broker. -
Luther c. Clark and others ag sylvester A. "oer' ana
sheridan shook.
NILSSON G.. 1.-THE bill is filed, IN tins case against
the defendants who the assessors and collectors OF loe
Thirty second Collection District OF how Iofk under the III
eiDfl revenue laws for the purpose Oh restraining mem rom
tho and collection Of tax claimed to nave accrued
against the plaintiffs as bankers dong buness as prokeS
within said district under the following crc1nstancesi
TIC plaintiffs have license bakers and have from time
10 time received at thor banking house. stocks bonds ena
bullion Tor SALE and ao have durlns the same time received
bills OF exchange and gronssofy Note os uisco1us H BIZ
and did discount and sell the same on and Tor the ao
oouat q the parties from whom received . anu
and. also during tho time aforesaid, DID, at their
house, lend and ADVANCE
stocks bonds and buon and aile such advances ana oans
did stocks bonds aud bullion on account OF pars
from whom the received and 10 whom tie moneys
were lent and advanced deductng r1 said sales the moneys
40 loaned and advanced with the Interest and customary
charges bAnkets and also bought aud sold socks conds
&c their account aIa not on soi4ihlssoh " ioF
others. 70, - ,,,
IA O OF m er oentum monthly all the sales OF the stock
bond a a. under fh gJh section OF the act ~ H. 81 no
which impos the tA on brokers' and BANKERS doing bnsi.
ne. "A Ie question tho Vs. whether or not
the plaintiffs carrying tho Aforesaid business under
banker license be regarded 40 bankers dong business
The this 18th s-ction that hank
err cata exceeding eOOo0 sha pay slNfora
license ana dollars for every thousand over TINS aoIA
and then defines banker Livery person. hn
COMPANY Sc having place OF BUSINESS % where credits
opened by e deposit ooIeetoh =. ohy VI cureho
uhect 10 b. paid RENTED upon dTa ehec or oter "
where money Is dyancgd loaned on STOCKS bonds buoa
bills exchange promssory notes. w sloeA Dohu
bullion bills 0. exchange or promsU! s nv seseNeu 1Of
disoun; OF sale shall be regarded BANKER uDdcr THIS act
Besides license fee excted TIE banker under me oth
section pays tlx OF ia Que r centun monthly upon
tia OF depOsitsli OF per cehtlH monthly
upou tho average the csa OF h oank beyond tho
amount Inv sod In United States ne pes eehtun
bak-aud in addition, 6 Of one per cehtuu monthly on tle
amount OF circulation beyond 90 per cel VI VIC espta
The ceuse and the above tax are inc puucs iposeu Oh
the banker the privileges conferred 10" among tnese Is
ths privilege doing the business set III quo u VI coA
nt and 70 which we have referred a large anu yet
ed to liable the additional tax as brokers.
specified IN the 99th section Of tho act Avcog 20 TINS
tho license privilege OF the banker would De OF
l.ttle value. might indeed. receive ueposns anu
pay them out advance or ieuu no.V: ~ 10 49,.
nj an tho hedge a. reimburse hmstl-nc may receive
stocks bOlds &C. Tor Discount SALE 9u1 rs hos NipeW