New-York tribune., 1885-09-13
BANKS OBJECT TO TAXES.
SUITS BEGUN AGAINST THE CITY.

NATIONAL BANKS TAKE ACTION TO PREVENT TIE
TAXATION OF THEIR CAPITAL STOCK.
Suits were begun yesterday in the United
States Circuit Court In behalf OF twentyseven OF the
National banks OF this city against the Mayor Aldermen
and Commonalty OF the city and George W. Mclean, the
Receiver Of Taxes to restrain the collection OF taxes
upon the shares OF the capital stock OF the banks.
Brown & Wells appear as coansel for all the banks,
with one or two exceptions, and Charles W. Wells
aud Frederick W. whitridgc are of counsel The
banks In whose bills OF complaint have already
been fled are the Mercantile, Bank OF the Republic,
American Exchange. Bank Of NewYOrk National Bank
ing Association, Chemical Park importers and Traders
Shoe and Leather Citzens', Phoenix, Ninth, Third,
Leather Menuacturers Central. Fourth, irving. Mer-
chants Exchange, Seventh Ward, Second. Market
Butchers Drovers Fifth Bowery. Bank ofCommerce,
NewYork County, Continental aud East Roer Other
banks will begin suits in few days aud the state banks
arc exueeted to take similar action they
placed by law the footing as the National banks
slight attempt 10 relieve the National banks from
taxation was made two three years ago when salts
were begun, but afterward withdrawn. The present
suits are based on different principle, wllch ls ala
down IN decision rendered last week by the United
States Supreme Court in the case OF Francis w. Boyer
against Daniel Boyer and Others. the County Commits
slOners OF schuyklll County, Pennsyyenia. In In
counsel In tho present suits was counsel,
thero was no discrimination in the ievyng of county
tax National bank shares; that It woad TO
tho law OF Congress, winch provides that shares OF Ma
tona banks may bo taxed by the States subject TWO
restrictions Of which is "that the taxation shall not
be at greater rate than assessed upon other meneyeg
capital the hands OF citizens OF such state
The Supreme Court held that there was such discrin
naton In favor OF other mOneyed capital Ia that case as
not consistent with the acts OF Congress- as many
kinds OF personal property including railroad and other
corporate stocks paid county tax The design OF the
legislation by Congress was to PTsvsas sTe
fS'' Ts aed,"n G% m 1"'as tnS Boyer
substantial equality of taxaton Is atainable and is re-
State taxation OF National bark shares, when the tn
equality is so palpable to show that the dscrmina
the courts have no discretion but to interfere
The complaints In the suits begun yesterday, which
substantially similar. set forth that the shares or
capital stock OF the various banas have been assessed by
the Tax Commissioners and that 1t Is proposed 20 col
10 the taxation OF National banks are referred TO- ana
each complaint continues:
shares OF tho capital stock OF the said bank are not
legally liable TO taxation by the Mayor Aldermen and
COmmOnatY OF the City of NewYOrk, FOR the purposes
OF the said corporation that the said statute, approved
July 1882 Chapter 4O9 IN so far as lt seeks TO a,
stock Of National banks located within the state o. Sew
STE i rs contrary % 20 s o be OI nes Satss and
70 the Constitution OF the United states ana s VOid toF
the that the State OF NewYork has imposed no
xatiOn whatever upon the said "ohermOncyed capital
Ia the hands OF the Individual citizens OF such state
within the meaning OF said Section 52l0 and OF the Con-
stiuton the United Sacs but has upon the contra
~, expressly exempted It from taxation within said
state ana ihat the said valuation and sessment OF The
said levy OF taxes thereon. are also void"
from local taxation that AZ Least II 100000 900 OF
capital stock corporations liable totaxatOn on their
capital (not including life insurance companies trust
companies. banks, etc Is exempt from taxation IN the
hands of individual holders that @iOOOOOO shares Oh
capital stock OF life Insurance companies and S2OoOOO.-
900 OF personal property held by those companies are
exempt BY express statutes that among otilr otler
exempt personal property arc capital
stock OF trust companies (T6OOoO,O1Ol,
city securities SIS 600 OOo and shares Of stock OF for
elgn corporations $500. .OOO, ,OOO Other alleged dis
cTmlnatnus are pointed aud Is ayeTred that the
converted capital exempt from taxation IN the hands OF
individual owners at least E243l OOOOOO, while only
Ss3 900 OF such capital Is taxed. OF which large
proportion Ia the capital of the National banks. MrWes
counsel the banks. said yesterday that there
spositou their part 70 shrk the mcI ot
fair proportion ~ the expenses OF government Inc
objection was the dscr animation by which the bank
were taxed and most other moncycd capital was
exempt He illustrated by diagram the dispropOrtion
n bulk between the exempt aud tho taxable capital.
The small squire taxable capital appeared inslgn-
cant uesIde the great OF the unaXed capital Ihe
proportion OF taxed aud exempt capital was as ono To
lie said that grust companies receiving deposits OF
various kinds largely exempt. Mnle banks we're
fully taxed The banks wanted he said. 10 be relieved
under the law. against discrimination, OF all taxation
while much other property was exempt or 10 nave all
moucycd capital taxed alike I'm which case the banks
would willingly bear their part Of the burden.