The record-union., 1895-07-16

Mills & Co., he said, is a national
bank and not subject to taxation by the
State. 1t is a creature OF the United
States and is exempt from State control
and taxation. 1t had been held by the
Supreme Court Of the United States that
the Government had the right to create
national banks, and therefore the regula-
tions relating to such banks prescribed
by Congress are exclusive of State
control.
If national banks could be assessed. de-
clared Mr.. Wood, they could be taxed
out of existence. However, the Govern
ment made provision whereby the
banks could not escape taxation. d. O.
Mills shares in the bank could be as
sesssd the same as the shares he might
hold in other corporations. Its capital
and money on deposit with it are not
subject to taxation within this State. 1t
is proposed by the national banks in the
Stale to have the courts determine their
status in the matter.
Mr.. Wood said this was the first time a
national bank was ever assessed In this
State. The bank pays to the Government
per cent. on every Sl00 or the money i'll
circulation under its control Il lieu OF all
assessments. He said the banks prefer
not TO indulge in litigation on account of
the assessment, and concluded his re-
marks with the request that the assess
ment be stricken OF the assessment roll.
Assessor Berkey asked Mr.. Miller how
much money there was in the bank on
the first Monday in March last.
Mr.. Miller said he could not say as he
did not bring the figures with him. He
read from the RECORD UNION OF March
llth a statement of the finances Of the
bank at that time. He said he made no
return of money in the bank, justitying
his action by his interpretation OF the
United States laws on the subject. The
bank owed depositors Sl,600,000.
Assessor Berkey asked Mr.. Miller if
his bank had any bank notes in circula-
ton, and MIR. Miller replied that it had.
Mr.. Berkey then read the State law pro-
viding for the making Of returns to the
Assessor. He said his action in the mat
ter had gone beyond the power of the
board to do anything with 1t. The Con-
stitution, he said, provides that money Is
property, and taxable. He held that the
per cent. of every 500 paid by the bank
to the General Government Is in lieu OF
all assessmennt to the Government only,
and has nothing to do with the State.
Sacramento County. said Mr.. Berkey,
will settle the question whether or not the
money in the bank Is asSeSsa ole. The
bank having failed to make return of
the money under its controlin this coun-
ty, the Assessor nau the power 10 ASSESS
the amount ten times over.
Mr. Wood said there is building in
San Francisco which contains between
SOS, 9,O00,0 and $70,000,000. This money,
he said, had not been assessed, and no
Assessor has been bold enough to say
that it should be taxed. He referred TO
the Sub-Treasury. The National Bank
of ID. .. Mills & Co. is on the same foot
ing.
Assessor Berkey--Do you mean to say,
MIR. Wood, that the money in the bank
belongs to the United states?
Wood-It belongs TO an agent OF the
United States, which is just the same as
though it belonged to the Government.
The Assessor asked MIR. Wood how
many States tax national banks, and Mr..
w ood replied that none of the States tax
such banks. Instead of that, Only the
shares are taxed, and the banks can be
compelled to exhibit to the Assessor their
lists of shareholders, and ii the shares
were not so exhibited they could be
seized.
Mr. Berkey said the Assessor OCCASION
ally encounters a STUN bling block IN en-
deavoring to ascertain values. lie con-
cluded his remarks by saying that he
was not prejudiced in the matter, and
only wanted to perform his sworn duty.
The matter was then taken under ad-
visement until evening, when the board
declined to reduce the Assessors figures.
REDUCTIONS GRANTED.
rtI,N NF i,Ao Dc a al tbarn