The national Republican., 1866-12-25
The Courts.
SUPREME CoURr OF THE UNITED STATES

MONDAY, December n, 1855.
The Nsw York 7as CaNsTT1s Qusition Of he
Taxation Of National Bank Shares Usdr ths Re
cent Aet q 4s Lssi'ia,srs-TaM q People efths Stats
error, ". The Commissionsrs Of 7a1ss aud Aiss,s.
msnts for tie City and County Of Nsw York, and
E2spsn Other Casss.-Thsss CASES arise under the
act Of the Legislature Of the State Of New York Of
Esd April, 1885, entitled IAN aot authorizing the
taxation Of stoskholdss Of banks and the surplus
rsmsdying the then existing law on the subject,
pointed out In the opinion Of this court In Van
Allen vs. Commissioner, % Wallace, 573,) pro
nouneed at the last term Of the court.
Under the prs-sxisting laws Of the State each
State bank was taxed directly upon the amount Of
It's capital, actual or assumed. In applying that
system II was necessary, according to the decisions
Of this court, to deduct the amount Of any securi
ties for the United States loans held by bank as
an Investment Of Its capital. Without an sltera-
was conferred upon the shareholders in the State
banks an indirect but mapifest advantage over
shareholders In the national banks. This advantage
In favor Of tho shareholder 10 State banks was not
intended BY tbs national bank law Of 1854, the
second provision in the forty section Of which
any State ION the shares Of national banks In the
bonds of Individually should not exceed the rate
imposed upon tie shares in any Of the banks organ
issd under authority Of the State whore such asso
citation 10 located"
State taxation in respect to the State banks was
required 10 bs upon the shares therein, indis
psnsabls prerequisite to the exercise Of any power
BY State TO tax shares in the national banks; and
upon this ground the decision Of this court was In
favor Of the relator Allen and against the validity
Of the tax. Accordingly, the act Of 1855 was de.
signed to obvats this dilculy by providing for the
taxing in like manner the sharss in both the State
and National banks, and to bring into operation In
the State Of New York the taxation Of shares in
the National banks, sanctioned BY the National
Bank law q sxpoundsd BY this court.
The present cases came from the Court of Ap-
pssls Of the State Of New York, whom the legality
Of the present tax asserted, in conformity with
the judgment Of the Supreme Court Of tho State.
The relator the holder OF certain shares In tho
Phoenix Bank Of the city Of New York, an associa-
tion organised In that city under the National
year for the purpose Of taxation under the laws Of
the State by the commissioner, rs personal prop
srty Of the reator, in the ward in which the bank
was located.
Upon notification Of the assessments the rslator
objected that no allowance or deduction was made
on account Of Investments BY the bank in Govern.
ment Securities whilst such . deduction or allow.
anoe was made In assessments upon insurance com.
psniss and individuals. These objections were
disallowsd, and the case went to the courts, and
thus comes here, where the question Is, as stated
BY tho defendants In error. whsthsr the exemption
from State taxes incident to the subject consti
tutional grounds, and by the loan acts, formally
guaranteed to the holders Of United States seouri
ties, entities o shareholder In . national bank to
havs the taxable value Of his shares In such bank
obliterated or reduced by the fact that all por
tion of the banks capital Is invested in public
curities.
The cases are all argued together, and the fol-
lowing gentlemen arc retained: For relators b.
D. Sslliman, Z. s. Van Winkle and VIM. M.
Evorts For respondents. Richard OGormon,
Waldo Hutohins Anasa J. Parker, and Charles
0'Connor.
Rs,,dsnee, Of ths Judge Of the Supreme Court Of
hs United States.
Mr. Chief Justice Chase, Z street north, corne
Of Sixth street west
Mr. Justice Wayne, No. Q Franklin Place,
street.
Mr.. Justice Nelson, National Hotel.
Mr.. Justice Grisr, No. 8 north A street, Capitol
Hill
Mr.. Justice Clifford, National Hotel.
Mr.. Justice Svsyns, Wil!ards Hotel.
Mr.. Justice Miller, National Hotel.
Mr.. Justice Davis, National Hotel.
Mr.. Justice Field, Willard's Hotel.
John W. Wallsos, reporter, National Hotel.
D. W. Middleton, clerk, No. 56S Now Jersey
avenue.
David S. Gooding, U. s. Marshal, 4sl E street.