The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-01-02
lThe Right of the State to Tax National
Banks.
OPINION OF ATToRNEY-GENERAL MEREDITH.


My opinion is requested by the Auditor-Gene-
= ral on the question whether the second section
OF the act of 30th April, 1864 Imposing addl-
n tonal taxes for State purposes), imposes tax
\ on the National Banks located within the Com
monwealth.
The section referred to imposes tax upon
& <among other persons and institutions therein
mentioned) 'every incorporated and uncor-
II porated banking institution not paying tax TO
+ the State upon dividends under existing laws"
n am of opinion that this description includes
the National Banks, and therefore that the ques-
& tion presented to me ought to be answered in
Il the affirmative.
3 Some of the National Banks were formed by
certain State Banks of issue, in conformity with
the enabling act passed on the 22d August, 1864,
and it has been suggested that the National
n Banks so formed are in some way, by reason of
q the provisions of that act exempted from tax
alton under the act OF 3Oth April, 1864.
The enabling act provides that, on compliance
with certain requirements, the surrender OF the
Charter of any State Bank which may become
Hetlona Bank shall be accepted
a l do not think it material to the present ques-
Non tnatthe act provides in favor of State Bank
30 surrenderIng a corporate quasi-vitality for a
short term, for the purpose OF closing its con-
Germs, "but not for the purpose of continuing
under the laws of this Common wealth the busi-
ness for which it was established"
NCr do conceive 1t t. be material to inquire
n whether the section which provided that the
bank tax wiz the tax on capital stock under
+ the act OF 1874, and the tax on dividends under
n the act OF lSbU), f0r winch lnOSe state Banks
were liable, should be apportioned to the day of
surrender, would by complication release them
from tax on net earnings, under the act of 30th
April, 1864, for which they were never liable.
Il No implication would seem to be necessary, for
it is beyond all doubt that they never were sub
: ject to taxation under the act of 90th April 1894
inasmuch as they did pay "a tax to the State
upon dividends" Further, l think it abun-
dainty clear that on the surrender they ceased
to exist State corporations authorized to pur-
sue any business whatever, and therefore could
n not be taxed at all under any existing State laws
A National Bank, formed in accordance with
" the enabling act, by State Bank, has in my
opinion no identity with the State Bank FROM or
H by which 1t was formed. 1t is different politl-
cal person-its name has been altered-it has
7 been created and exists under the authority OF a
different iurisdicuon-it is q new institution
"A We are, think, no more to look for the rule of
= its taxation to the laws which applied to the
ii former State Bank, than, in the case of a Ma
r. tiOnal Bank formed by individuals, we are to
look for the rule of its taxation to the laws which
applied to the individuals who formed it,
We are, conceive, to regard the status not of
the deceased progenltor, out OF the living pro-
geny; and il the latter be within the terms OF the
act he cannot take himself out Of them, by show
n ing that the former was not.
These considerations appear to show that the
A legislation of the Commonwealth is not involved
~ In the injustice of taxing one portion OF the Ma
tional Banks and eXemp5mg another portion,
81 while there is in fact no difference whatever
between the two portions as they now exist.
am, therefore, of opinion that the second sec
ton of the act Of aeth April, 1864, embraces all
the National Banks within the Commonwealth.
am quite aware that grave (and perhaps somt
new and difficulty questions may be raised undel
the Constitution of the United States, on the
subject to which this opinion relates. / express
no opinion on them. because conceive that tht
& AuditorGeneral would in no event be justhabl
+ in deciding them peremptorily and finally agains
the Commonwealth, by refusing to execute thu
act OF Assembly on which they may arise.
W. M. MEREDITH, Attorney General.
Attorney Generals Office, December 20, 1865.