Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1878-01-15
R . DECISION
In Favor Of Half a Dozen Leading
Municipal Banks aud Insurance
COmpanies-History Of the
Suits and Amounts
Involved.

Suits and Amounts
Involved.
A dispatch was received yesterday
evening from Washington to the effect
that the Supreme Court of the United
States had decided the bank aud insur.
ance cases against the city of Memphis.
The local corporations gaining these
suits are as follows: Union and Planters
Bank, DeSoto Bank, Bank of Commerce,
Memphis City Fire and General Insur-
ance Company, fernando Insurance
Company, Bluff City Insurance Com
pany and Washington Insurance Gem.
pany. The history of these suits and
the nature Of the cases are Of interest to
the public. These corporations have a
provision in their respective charters
that each should pay the State Of Ten.
nessee one.hslf of one per cent. annu.
ally upon the amount of capital stock
paid in, which shall be in lieu of all
other taxes. The State Of Tennessee
and county of Shelby proposed in sddi-
ton to this sum to levy a tax Of forty
cents on the value OF each share of CAPT.
tai stock, the same as other property was
subjected to. Moreover, the city of Mem.
phis proposed to tax this stock ad valo-
rem, as it does other property, thereby
making the exclusive amount a total
of from three and a half to four per
cent. These corporations resisted
this State, county and municipal tax
upon the ground that their respective
charters was a contract, and therefore
they could not be taxed more than one.
half Of n per cent. on the capital
stock. With this view these banks and
insurance companies filed bills in the
Chancery Court and obtained judgment,
The cases being appealed, the Supreme
Court Of the State reversed the judg
ment; thereupon writs of error were
prosecuted to the United States Supreme
Court. This tribunal decided in favor
OF the complainants ia error, holding
that the banks and insurance companies
we're only subject to one-half of one pei
cent, aud releasing them from the State.
county and city taxes.
The respective amounts of capita
stock represented in these suits was as
follows: Union and Planters Bank
$500, 900; Memphis City Fire aud Gen
eral Insurance Company, S25O,OOO; De
Soto Bank, 25e, 900; Bank of Commerce
$25O,OOO; fernando Insurance Com
pany, $3.50, 900, Bluff City Insurance
Company, 5000, 900. Total amount, 81,
825, 900. These suits have been in cour
since 1873, Messrs. Myers & Sneed be
ing attorneys for the Memphis City Fir
and General Insurance and Washington
Insurance companies, Harris, MeKissicI
& Truley for Union and Planters Bank
Estes 4 Jackson for fernando and BLU
City Insurance companies, and Humes 1
Poston for DeSoto Bank. The Suprem
Court Of Tennessee upon first hearing o
these causes was unable to come to an,
decision three being for and three agains
judgment for the appellants. A rehear
ing was granted, bat after able aud thor
ough argument the tie was as before
Shortly thereafter judgment Nicholson
died, and as he was in favor of the cor
poration having judgment, the court de
cided in favor Of the complainants il
error by two to three, Judge Freeman
delivering the opinion. It will be re
membsred that Judge Mcfarland in thil
case delivered a dissenting opinion
which was yesterday sustained by tht
United States Supreme Court, and with
the result above given. OF the above
corporations the DeSoto Bank and Wash.
ingtoH Insurance Company are out o.
business, the charter of the former cor
porstion having expired. The charter
Of the Washington Insurance Company
is in force, and it can be revived at any
time, This leaves for the remaining
companies aud banks a total of $1,45O,
600 Of capital engaged in business enc
exempt from this tax Of three aud q hal
or four per cent. The tax, however, wa,
to be assessed on the market value Of
this capital or stock, which would not be
less than 81, OOO, 900, exclusive of that Of
the Washington Insurance Company aud
DeSoto Bank. The ad valorem tax OF
this 1000, 900 market value) wodld be
from $50, 900 tie $4O,O 900 per annum. /
is thus seen what a great saving there i,
to these corporations. The effect Of tn,
decision is already seen in the increase
Of ten per cent. value on the bank anC
insurance stocks. Bank stock, which be
fore and up to the announcement Of thu
decision sold at ninety cents, is nov
worth one dollar.