The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-10-25
UNITED STATES SUPREME COURT.
National Bank Shares and state Taxa
tiOn-The Distinction Between Tax
on Bank Capital and Bank Shares.

Tobias s. Bradley ct al. US The People Of nj.
aO1S.-ln error to the Supreme Court or Illinois.
The plaintiffs in error we're the owners of the
capital stock of the Second National Bank OF
Peoria. The Assessor of the town of Peoria
assessed the shares of the bank at their par
value. The plaintiffs in error, believing the
assessment Unauthorized, applied by petition TO
the Board of Supervisors Of their county, and
that Board aher consideration, held the shares
were not subject to taxation, and gran ed the
prayer OF the petitioners that the assessment be
stricken from the lists.
The State Auditor declined to approve the
action of the Board, and brought the case into
court under an act authorizing the proceeding
to test the questions Involved. The cause was
taken to the Supreme Court of the State, where,
after considering the objections of the Auditor,
that the money invested in such shares Is
clearly within the meaning of the term invest
ment IN stocks as defined in the second section
of the act of February IL, 1868; that the rate of
taxation sought to be LEVIED on the she res was
no greater than would be levied on the capital
stock or shares OF State banks, aud therefore not
in contravention OF the provisions OF section
forty-one of the act of June g. 1864; and that the
taxation sought to be imposed was not in viola
ton OF any law of Congress eXemptIng United
Sta es bOnns from taxation under State au-
thority." The order of the Board OF Super
visors wasI reversed and annulled. The
cause thence came here.
Mr. Justice Nelson delivered the opinion of
the Court, In substance as iolloWs:-The case
came before that Court on an appeal from a
decision of the Board OF Supervisors OF the
county Of Peoria, by which they had refused to
assess a 3 ate and county tax on the shares OF
Bradley and Howell in the First and Second
Banks of Peoria. The appeal was taken by
the Auditor of Public Accounts, in behalf Of the
State The Supreme Court reversed this deci-
sion Of the Board and held the shareholders
liable TO the tax. The ground of exemption relied
on, both before the Supervisors and the Supreme
Court was want of authority in the Board,
within the torty-hTst section OF the National
Bank actof June, 1864, and particularly Withln
the second proVise of that section, which de-
clares that the tax shall not exceed the rate
Imposed upon the shares in any OF the
banks organized under the authority OF
the States" The act Of the State,
dated February IA, 1857, provides for taHlag
! the capital stock OF the banks, tosether wltu
! the surplus profits or reserved funds. NO TAX ls
Imposed specifically on the shares held py tne
stockhoider; This question came before us vi ~
the case OF Van Allen VS.. Tbe Assessors % Wa.l,
b1S, 68ll from New York, where the statute
| taxing the State banks was substanuaIiy IKE
| that OF ILLINOIS. We then held the tax unsu.
thorized, for the defect stated. 1t waS IN toat
case attempted to be sustained on the same
| ground relied on here, that the tax on tue oapl-
| tai was equivalent TO tax on the shares as re.
| spected the shareholders. But this position was
answered that, admltting It 70 be 10, Jet, mas