The New York herald., 1867-03-15
UNITED STATES SUPREME COURT.

Tax Cnses-Taxution of National Bank
Shares bv the Stntes-Thc Right Affirmed,
md the National Bank Act Construed.
The People Of The STATE Of Nsw York, rel Duer, and
the same rel Mead The Commissioners of Tdres and
Assessments Of the city gf NeD Fork and Number Of
Other Cases-The facts in these familiar from
frequent publication and they sufficiently restated
the opinion Of the Court.
BY the Court Mr. Justice Nelson delivering the opn.
ion-These wrlts OF to the Court Of Ap
peas of the State Of New York The relaor in the first
rs an Of hundred and ffty-two shares
OF stock in the National Bank Of Commerce
in New York. The capital of tho bank con-
sists of hundred thousand shares Of one
500 each and which is invested in United States
ities, and exempt from State taxation The Comms.
oners Of Taxes in making their valued the
shares at par and imposed upon them the same rate Of
tax imposed upon other personal property in this
city The Commissioners in their return TO the certio
rar that in estimating the value of the shares they
made no deduction on account of the nvesmentof the
capital OF the bank In United States securities that in
the valuation OF the personal estate of individuals these
securities held and owned by them were deducted and
the tax assessed the balance and the like deductions
were made from the capital Of insurance companies.
The of this tax the shares Of the reator
In the Bank of Commerce carried TO the Supreme
Court OF the State and after argument affirmed.
and thence to the Court of Appeals where the judgment
of the Supreme Court affirmed Tho here
error under the section Of the Judiciary
The first objection taken to the legality OF the tax
is on the ground that the Commissioners in their
valuation Of the shares refused to deduct the
the capital OF the bank invested in United States secu
ties and hence refused to regard this deduction the
uaon Of shares This question has heretofore been
considered by this court and after full deberaton de-
termned the Of Van Allen vs. The Assessors q
Wallace b73), and need not again be examined. That
case Of large class of cases, which were
thoroughly argued and received that time the most
careful examination of the court The next and per.
haps the only material question in the arises upon
construction Of clause In the first proviso of the for.
first section of the National Bank act After referring
the taxation Of these shares by State authority pro.
vdes but not at greater rate than is assessed upon
other moneyed capital in the hands Of individual citi.
Of such States. II is ergued that the
upon the shares Of the reator at greater than
cIseus' upon he ground that allowance s,'U~a was
held and owned by them, when at the same time
The deduction was dsallowed to him. Tho answer is.
that upon true construction of this clause of the
The meaning and intent of the lawmakers that
the rate of taxation Of the shares should be the same
not greater than upon the moneycd capital of the ndi
vdual citizen which s subject liable TO taxation
That IT, greater proportion percentage of tax in
the valuation Of the shares should be levied than upon
other moneyed taxable capital the hands c9 the c
This rule to bo efectual prevent
unjust discrimination against the shareholders could
well be devised 1t embraces class which constitutes
the body polite OF the State who make its laws and
provide for It's taxes They cannot be greater than the
citizens impose upon themselves 1t is known that
sound policy in every we'll regulated and enlightened
State or government exempts certain descriptions of
property and also certain institutions such churches
taxation. But these exemptions have been re
garded as disturbing the rates of taxation, even
where the fundamental law had ordained that II
should be uniform. The objection is q singular
At the time Congress enacted this rule as amita
ton against discrimination il we'll known that body
mat these securities IN the hands oil the cizens were
exempt from .aAa.on. u hau pcen SO heid py tins
court, and for abundant caution had passed into law
me argument founded on the objection u = proves any
thing proves that thess securities should have been
taxed in the hands OF indv duaIs 10 equaze the
on and hence that Congress- by this clause in the pro-
vso intended 70 subject the as thus situated, to tax
alton therefore there in the deduction
THIS we do not suppose Is claimed But il this is not
the result OF the argument then the other conclusion
IRON Is ,na tongIes required mat ,ne Commi soneis
shoaid deduct the securities and at the same time in
tended the deduction, made shoGld operate as vio
auon OF the rate OF tue TAX prescribed. We dissent
from poth CONCLUSIONS ana thnK sound construction
oi the clause, and one consistent with its words and in
tent, IS also consistent with all the acts OF Congress
the subject The Commissioners in their return state
mat insurance companies created under the laws
of New YORK were respectively assessed upon
the balance OF their capital and Surplus
profits liable to TAXATION after deductng therefom such
part as Is invested in United States securities Another
objection aken Is that the taxation OF the shares OF the
relaor is illegal on account or this deduction " being
departure from the rate OF assessment prescribed 10 the
clause already cited The answer Is that the clause docs
not refer To tue rate o assessment upon insurance COM
panies as y 'es. oy wh,.h 70 prevent discrimination
against the shares that Is, confined TO the rate oil
assessments upon moneyed capa ID tho hands OF ndi
Viauai citizens lhese institutions are not within the
words or contemplation ot congress- but even u they
were the answer We have already given to the deduction
W nsse sec't.es ia ,ne assessment. tne properly oil
c,.,%ens ~ equally appeao'e 70 them Inese
are 'aNeu on 'ne caps anu not on ne snare
a. .ne sums Ie,c ~ o.uer personal properly IN he
sae ihere Is no. mucn danger 70 be apprehented OF
,s, il'naus "a ~ .nvn 'avo. PreJua cai 10 .ue
in ss y, W p,op'v % nc Vu.sn, anu, course 10 ,he
s,snd an h as crn,;n " Ina ns'oas osnNs, wno
css 1,inh u1 .y hi aa ,s.aso ~ "a 'ne seeonu
sbarss ~ s" ' ye' ,h GU c o"u.' =, sweny.mse @
w ths ci,v az veS w., NC, o,rDva,a, sS.s nanN
the STE Tn ac r r;, ~ 9scs 'i' ~ 70 Vi
the shsres or thase bants 4, ~ & ~ , 80, "a. vn
lie rai on sccon, NJ 30 refn al or .ho Wv & - -
tbo can,,n s,oc of ~, hsr,l @ ,,, ~ po..on O
,nes,,an ,as t,s, nc,Iy saaer,as % Nv .o sene' ~