The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1875-05-27
/ Tbe Hon. David a. Well! ON the
eeation 81 Stocks and Bonds.

corporation hLOcAAy arc b9A0HtSl - -
in the States where they are as bits Of pa
per, and not in the State where the pro-
perty itself is, or whence the corporation
derives its charter" but directly the re-
verse. In my very earliest reports Of To-
cal taxation to the Legislature Of New
York, I took the position which the New
York court has now affirmed, (the Ian
puase Of the reports and the Language Of
ibe Secisop being almost identieall, name
iy tbst certidcates Of stock in corpora
tions-baAks, railroads, maRpiact1Flng
companies, and the hke,-are mot IN them
,elyes property, bat simply titleasto or
evidences Of, shares, or interests in prop
erty, At the place where the corporation
is chartered and the corporate properly
located. And, iuEtheE, that this pOsitian
must b correct from the very nature Of
the case; for certificates Of stock are not
negotiable instruments, whose title passes
by mere delivery, and runs With the hold
er, but must be formally trasterred on the
books Of The company, by the corporate
officials, and new certificates issued, be-
fore a valid transfer Of title can DO effect.
ed: the parallel being almost complete b e
tween the transfer OF titles OF CotPoESVS
stocks, and the trapsieF OF titles Of
real estate
| would also in the same connection
call attention 10 certain decisions Of the
United States Supreme Court (which thus
far seem 10 have almost entirely escaped
the attention Of the legal fraternity and
State tax officials, which prove that the
New York Supreme Court in its recent
decision did not announce any new prln-
ciple, but simply followed the path which
the United States Supreme Court had pre-
viously, by at least three decisions, In
dicated to be the only correct one. Thus
in the case Of MilET "a, dated Siatt5 III
Wallace, 295,) the United States Court
held that the owner Of q railroad stock
could be dispossessed Of his property BY
constitutional and legal OoDfscatiOn, by
legal process served on the officers Of the
railroad company controlling the issue
and transfer OF the stock, although the
share certificates OF the stock remained
untransieFred and in possession Of the
owner resident in another and rebel State;
the court thereby rejecting the theory In
corporated in the tax system OF Massa-
chuSetts, that property, a. represented BY
railroad shares, follows the owner and
holder Of the credit certificates and has q
IiuJ for taxation at the place Of his dOmi'
cile, And in the case Of BrOEE ~, Kennedy,
| Us Wallace, 50l,l the same decision was
given in respect TO bond and mortgage
form Of HCredit;" and in the case Of Top
pan "a, Merchants Bank, (l9 Wallace, 1907
also, in respect TO the Siius Tor taxation Of
shares in the national banks,
On the other hand, the case Of mort"
gage bonds, Issued by cOTpOrauOnS,-the
same being negotiable instruments, --iI
altogether different; and it IL the position
which have taken In respect TO the siius
Of this class Of securities, that you have
COMPOUNDED with the position which ]
have taken in respect to thecertiGcates Of
corporate stocks. A mortgage bond being
I a negotiable Instrument, ils title runs
with Itself, rests with the holder for the
time being, and is transferred by mere de.
livery. II this was not 30, negotiable In
strumSnts, like United States $40 bonds,
railroad mortgage bonds and bank notes,
could not 10 bought and sold as they now
are 10 the stock exchange; and where ne
gotiable instruments, which have been
lost or stolen, pass for consideration into
the hands Of innocent third parties, The
title to the same 10 vested In hands oil
such posseSsors; whereas, on the contrary,
! il stock certificates, 1F stSistsfSl R,VI!
gage bonds, or real.estate deeds, are lost
or stolen, the legitimate owner does not
thereby become In any degree divested OIL
his title and ownership 70 the property
thus Represented. And the position thus
taken has been fully sustained by the
United States Supreme Court in the case
Of the sO-called 'Joreiga.keld bond eaSe," %
Wallace 369,) in which the court held
that Pennsylvania could not tax, a. per.
sonal property, mortgage bonds issued by
railroads chartered by Pennsylvania, pro.
vided such bonds we're not within the ter.
ritory Of the state; the language Of the
decision being az follows: even where
tho bonds negotiable, salable chattels
having n HiuS where f0und) IRE held BY
residents Of the State, the retention by the
company lin conformity with aSGtelaw)
"of o portion Of the stipulated interest,
can only DO sustained as mode OF col.
leCting d tax upon the species Of property
ehieh sin heStdte. When the property 4
ont ofhe STATE, there can be no tax Upon II
for which interest can be retained. The
tax laws Of Pennsylvania can have No
extra territorial operation / 155ger
So far, then, from the recent decisions
Of our highest courts being In any degree
antRgonistic 10 the positions taken by me
in reference 10 the limitations Of the
powers OF States in reference 10 the tax
alton OF certain property, j find them, on
the contrary. 10 every way coincideht and
confirmatory; and, 10 use familiar ex-
preston, / think / have q right 70 point
with priden 10 the general result GhOpe
also soon 10 ace another direct decision
(confrmatOry Of q numbeIo % 4tciaions
which are more or less indirect); that one
State cannot tax is citizens for contricts
for the repayment Of money, made in,
and executed by, the citizens Of some
other States; or, in palmer language,
that the practice which now 80 extensive.
u prevails Of taxing by Stale authority
deliR 10 a creditor who resides In u State
other than that Of the residence Of the
debtor il illegal and unconstitutional, Dis
an interference with commerce between
the States. When this Is done, think
the Legislature and people Of MasSachI.
sets will find II expedient TO have an.
other commission for revising their tax
laws, as the French would Say, "tOnt de
suilc,' am yours respectfully, 10
Norwich, e., May 10, 1875.
lArPtScorrs M4GAnSE FOR JuSE
nnob, w;ih Tho ILn ,arrtt All cn,,oIu1;t,,