Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1872-02-09
IMPORTANT SUPREME COURT
DECISION.

ne Auneased for TaKattOn-StOckh
Tsxabie where the corPoration A.
Located.
On Wednesday last Justice McFar-
land, of the Supreme Court, delivered
an opinion at Nashville in the stock tax
cases. The cases decided are nine in
number, eight of them being cases OF
certiorari, to bring up the distress war
rants of the revenue collector OF the
city of Nashville. and the assessments
on which they were founded. The
other was an agreed case with Robert
Caldwell, collector of State and county
taxes.
One Of the defendants was resident
OF the city of Nashville, and owner Of
national bank stock. On his behalf, as
we'll as Of the others, il was argued that
the stocks of national banks were not
liable TO taxation in the year 1870, under
then existing laws; because the national
banking law forbids the imposition OF
taxes on such stocks at a greater rate
than islleyied on other moneyed capital
in the hands of individual citizens by or
under State authority. But the court
held that while the national law pro-
hibits the taxation Of these stocks at
greater rate than is levied ON such other
moneyed capital in the hands of individ-
nal citizens as is taxed under the State
| laws. il does not amount to an inhibition
10 tax the national bank stocks, unless
All other moneyed investments are taxed.
The exemption of some kinds of property
from taxation is. usual under all we'll
regulated governments, and such ex-
emptions have not been held to disturb
the uniformity Of the rate of taxation
where the fundamental law requires 1t
to be equal "a Wallace, 1861 y
Another Of the defendants is q mem
resident of the city of Nashville; and
still another is a nonresident of the
county of Davidson, but both residents
OF the State. And for these it was argued
that they could not be assessed for taxa
ton in respect to their national bank
stocks in the city OF Nashville. But the
court held that the provisions Of the
national law leave no question on this
point. 4ttJi ~
A further question was raised i'll favor
Of all the defendants taxed as owners OF
national bank stock, that while under
the national law .hey may be subject to
q State tax, or taxation for State pur-
poses, said national law does not intend
to subject them to taxation for county
and corporation purposes. But the
court held that, properly speaking, the
authority to tax these stocks does not
arise. under the national law; but rather
that law withdraws all prohibition to the
taxation except the restrictions spe-
officially reserved in said law; and with
these reservations ledreS these stocks
subject to taxation by and under State
authority as other personal property, |
All county and municipal taxation IS
imposed under Stnte authority; and the
language of the act of congress itself
indicates the intention to have these
stocks subject TO all such taxation, as
similar property is subjected to by and
under State authority.
The court also held that the act OF
March /, 1869, has made the stocks of all
kinds Of corporations subject to assess
ment for taxation at the place where the
to which they pertain are
located, and not at, the residence Of the
owner.
The owners of national banks speak
Of carrying the case by writ Of error to
the United States supreme court.
The Nashville papers claim that their
city will henceforth derive $4,000 from |
the taxation of stocks by municipal cor
porations under the above decision.