The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1876-01-25
raxatson or aatsonal.nauk stock.
iFram the AlbanY Law Jcnrnal.l

| EJuf supreme SCuFG Oh tue Oufteu ,St3ieS,
| in Hepburn as. School Directors Of the Bor-
| cugh OF Carlisle, Pa, held that shares Of
national. bank stock may be valued for taxa.
| ton by State, Ia some cases, at an amount
exceeding their par value. The case also
holds that such shares may be assessed in
| Pennsylvania for municipal or school taxes.
| The opinion was delivered by ChiefJustice
Waite, and is as follows:
The most important question presented
| by the assignment OF errors in this case is,
whether shares Of stock In national bank,
can be valued for taxation by the State In
which the bank IS located ut an amount ex
ceedng their par value. It is certain that
they cannot be taxed at q greater rate than
is assessed upon other mopeyed capital In
| the hands OF individual citizens of the State.
Such is the express provision OF the act OF
Congress.
It's contended that the term "moneyed
capital" as here used, signifies money put
out at interest, and that as such capital Is not
taxed upon more than its par or nominal
value, the par value OF these shares is their
maximum taxable value.
We cannot concedc that money at interest
is the only moneyed capital included in that
term as here used by Congress. The words
are 'othcr moncyed capital" That Ger.
taiuly makes stock in these banks moneyed
capital, and would seem to indicate that
other investments in stock and securities
might be included in that descriptive term.
But even If 1t were true that these shares
can only be taxed as money at interest is,
| the result contended for would not necessa.
rily follow. The money invested in bank
| is not money put out at interest. The money
| of the bank is so put ont and the share OF
| the stockholder represents his proportion of
that money. What the amount Of this share
ia must. in some form, be ascertained In Or
der 10 determine its taxable value. If the
nominal or par value Of the stock necessarily
indicated this amount there might be some
propriely in making that the taxable value,
| but, as all know, such Is not the case. The
| available moucyed capital belonging to
bank may be diminished by losses or in-
creased by accumulated profits. Therefore,
| some plan must be devised TO ascertain what
amount of money at interest is actually re-
presented By share of stock. The State OF
Pennsylvania has provided that this may be
| done by an official appraiSement, taking care
| to prevent abuses by declaring that such ap.
! uraisement shall not be higher than the cur
| rent market value OF the stock at the place
wncre the bank is located, and by giving an
| appeal 10 the 'Auditor-General, who is al.
| ,noriZe0 TO inquire into the value and correct
ans errors that may appear. There certainly
is no apparent injustice in this. 1t is not the
amount of money invested which is wanted
for taxation, but the amount OF moneyed
CAPITAL which the investment represents for
the time being.
If the value set upon the share does not
exceed this amount it will not be assessed at
q greater rate than other money at interest.
Other plans may be devised to accomplish
the same eEd, but it is sufficient tor the pur-
pose OF this case that this plan is not unrea.
souable If q shareholder is not satlshed
with the original appraisement all he mas 10
do is to appeal to the Auditor Generai, make
known TO him the actual condition Of the
Eatrairs Of the bank, and have the error, if any
exists, corrected. Hepburn did not see mt
10 avail himself of this right which he bad.
He preferred to rest upon hissupposed right,
under the act of Congress, to limit the power
of assessment to the par value. This right
we think be did not have.
It is next insisted that no municipal or
lschool taxes could be assessed upon the
shares of the First National Bank OF Car
llisle-a national bank located within the boz
rough of Carlise-because by the laws Of
PENNSYLVANIA, az is claimed, other mOneyed
capital in the hands Of individual citizens at
that place is exempt from such taxation.
In support of this claim it is shown that
all mortgages, judgments, recoSnizances,
and moneys owing upon articles OF agree
ment for the sale OF real estate are exempt
from taxation in that borough except for
State purposes. This is partial exemption
only. 1t was evidently intended to prevent
double burden by the taxation both OF
property and debts secured upon it. Neces-
sarily there may be other moneyed capital in
the locality than such as is exempt. 1t
there is, moneyed capital, as such, is not
exempt. Some part of it only is. 1t could
not have been the intention of Congress to
exempt bank shares from taxation because
some moneyed capital was exempt. Ger.
tainly there is no presumption in favor of
such an intention. TO have effect it must be
manifest. The affirmative Of the PROPOSE.
ton rests upon him who asserts it. In this
case it has not been made to appear.
This, we believe, embraces all the errors
: assigned on this record. Other questions
we're raised in the court below, but they are
not relied upon here. The judgment is at.
firmed. -.-#