Evening star., 1898-09-22
TAX ON BANK STOCK
Argument by MIR. Nathaniel Wilson
Before Commissioners.
OBJECTS TO PROPOSED ASSESSMENT
Similar Question Previously Settled
in Favor of Banks.
MATTER UNDER AMUSEMENT

A hearing was granted today by the Dis
trict Commissioners in the matter of the
proposed assessment and taxation of the
capital stock of the several national banks
in the District of Columbia. under the pro-
visions of section IL of the act of March 3,
1877.
Mr.. Nathaniel Wilson appeared on behalf
of the banks. and, after he had set forth at
great length the position of the banks. the
Commissioners took the matter under con-
sideration.
Mr.. Wilson stated that the national banks
of the District of Columbia have been in
formed that the Commissioners have under
consideration a proposed direction to the
assessor of the District to list for taxation
and TO assess the capital stock of national
banks in the District of Columbia under
the eleventh section of the act of March s.
1877. which provides that the capital stock
of all corpora tionS in said District not
herein exempted shall be appraised i'll bulk
by the assessor, and the corporation issuing
the same shall be liable for the tax thereon
according to such value. and the shares in
the same shall not be assessed against the
individual owners thereof, but from the ap
praised value Of the stock shall be first de-
Quoted the value of any real estate of said
corporation in said District. which shall be
separately taxed against said corporation
Not n New Question.
Immediately after the passage of the act
of 1877, said Mr.. Wilson, above referred to-
the identical question now raised to the
liability of the capital stock of the
tional banks of the District to be taxed un-
der the provisions of the eleventh section
of the act came up for determination, and
the Commissioners Were requested and
urged by the banks to make test case, in
order to obtain, at the earliest practicable
moment an authoritative and final inter-
pretatiOn of the law.
In reply to the application of the banks,
the attorney for the District. Mr.. VIM. Bir-
ney. recommended that test case should
be made. as appears from the following eX-
tracts of the attorneys letter.
Let each national bank pay the amount
due by 1t under the personal tax law, ac-
companying the payment with a protest
against the legality of it. Let then. one of
the national banks sue in aSsumpsit for
money had and received. setting forth in a
special count all the facts, including their
action In regard to making the return of
the schedule required by the act. / will de-
muir to this special count and the question
can be brought up on short notice, under
the rules, for discussion before the court
and carried promptly to the higher courts
by either party.
"A stipulation can be made that the case
shall be tried as a test one, and that in the
the amount paid in by the national banks
shall be refunded.
The proposition was accepted by the
banks and in order to meet every aspect
Of the questions to be settled it was decid-
ed that two suits in trespass on the case
should be brought. one In the name of the
National Metropolitan Bank plaintiff,
agt. John F. Cook, collector of the District
of Columbia, defendant; the other in the
name Of the National Bank of the Repub-
lie, as plaintiff, against the same defendant.
In Favor of Banks.
Mr.. Wilson summarized the proceedings
| in the courts. explaining that the cases
were decided in favor of the banks, as ap-
| pears from the following report to the
| Commissioners in the matter made by Mr..
A. G. Riddle, the attorney for the District,
| March 6, 1880:
Gentlemen: At the present general term
| OF the Supreme Court OF the District, IN
| the national bank cases against the Dis
| trict. instituted to test the question
First. Whether the national banks are
| taxable as corporations under the eleventh
| section of the act of March 3, 1911 90 Stas.,
| 1861
| Second If so, whether so much of their
capital as Is invested in the bonds of the
| United States, exempt from taxation by
| state and municipal authority by the acts
| creating them, is taxable under a law of
| Congress On full argument, the court, COM
| posed of four judges, unanimously decided
| both questions against the District.
| This decides that the national banks
| are not taxable by the general tax law OF
| the District now in force.
| with this decision, the whole l am
| content, and unless otherwise directed shall
| take no steps to have the cases reviewed
| In the Supreme Court of the United States.
II respectfully suggest that a copy OF
| this report be forwarded to the chairman
| of each of the District committees of the
| two houses. with request that they cause
| such an examination of the questions in
| volved to be made as may be deemed ex-
| pedient. to the end that the District may
| be advised as to the further prosecution OF
the cases, and that Congress may take sucl
action in the way of legislation as it shall
| deem expedient-
| mo written opinion was delivered"
| A Direct Inquiry.
Copies of Mr.. Riddles report were for
| warded to each District committee in Con
| gress. and eight years after judgments
| were rendered in favor of the banks the
| Commissioners put to their attorney the
| direct question, whether he considered tn.
| decision of the court as final, and If h,
| would advise any steps to be taken to OBJ
| tain a further expression from the court
| as appears from this letter:
| Sir: am directed by the Commissioners