The sun., 1897-12-10
ONE CENT
STlLLINDEClDED.
Two Attorneys Pass Their Opinion on
Adams Tax Law.

|
Adams Tax Law,
The constitutionality Of the Adams
Tax Law is the all absorbing question in
banking circles. In reply to the request
OF the Wilmington Clearing House As
sociation, Lewis c. Vandegrft and Will
lard Salisbury prepared a paper setting
forth their opinion on the question.
The opinion of the lawyers cannot be
taken as a basis on which tie Clearing
House Association shall act as the at
torneys say that the law itself on which
they prepared their opinion is not
strong one.
Their opinion is as follows: "Gentle-
men: You have inquired of us whether
in our opinion the banks of this city
may come within the purvicw Of the act
entitled. AN Act to equalize taxation for
the State and county purposes passed
at Dover, May Goth, 1897, and the sup
plements thereto, or whether they shall
continue to pay the tax imposed by the
act of April sth, 1869, (Rev. Code p. 54.)
By section of the act of May goth,
1897, the assessors of the various hund-
reds or assessment districts in this State
are required to assess all investments
paying interest or yielding an income,
and which are not now taxed for either
State or county purposes
"By the act OF April sth, 1869, the
owner or holder of shares OF the capital
stock Of every bank or banking associa-
ton incorporated under the laws of the
State Of Delaware or the United States
and carrying On business in Delaware, is
required to pay a tax of onc-fourth of |
per cent on the cash value of each share
Of capital stock, and the cashier is re-
quired to deduct the tax from the divi-
dends and pay over the same to the
State Treasurer There is also provi-
sion for collecting the tax in cases where
dividends are not declared.
Assuming, as you request, for the
purpose OF this opinion, that the act
OF 1869 last referred to, is valid then
our opinion is that the institutions you
represent are not liable to taxation
under the act Of May Goth, 1877, better
known as the Adams Tax bill because
said institutions are already by the act
of April Sth, 1863, taxed for State and
county purposes, and are therefore by
the terms OF the late act exempt from
taxation Hereunder.
ITO the suggestion that section Il of
the Adams Tax Bill may be held to re.
peal the priar act under which you have
been paying tax, Our reply is that the
$ 1ction referred to cannot be held to
work a repeal Of the prior act of 1869,
since o h acts, if the iilst be constitu-
j nal, which we Lave only assumed,
may be construed as not inconsistent
with each other, bvt as entire operative
md cffcctiue, the subjects of taxation
; achcd by the act Of 1859 being express
y exempt from the provisionf Of the act
II 1897.
"Iou will understand that the fore
:oing opinion is based upon your in
fractions to us to assume tine fact that
he act Of April Sth, 1869, is valid, and
his we have done. We, however, want
understood that we are not here ex-
'rcssing any opinion as to the validity
r constitutionality Of said last men
ionec act. If is should hereafter be
eld invalid it might materially modify
ur opinion as to your liability under
he act of May Goth, 1897.
Respectfully,
Lewis G. Vanlegrift,
Willard SALISBURY"