Evening star., 1898-09-22

of the District to ask your attention to the
fact that the question as to whether the
capital stock of the national banks in the
District of Columbia is taxable has been
trought to their attention by the assessor
D. Z. The Commissioners are informed Of
ficially, by notice transmitted from your
office to a former board of Commissioners
that the question of the taxabilNy of the
stocks of the banks in question has been
decided by the Supreme Court of the Dis
trict of Columbia in favor of the banks
(See letters from your office dated March
Il, 1880, and May 30, 1ss4.)
In this connection the Commissioners
ask to be advised whether you consider the
decision referred to as final upon the ques-
tion involved. or whether you would ad-
wise such steps as will obtain a further ex-
preston from the court"
To this letter. said Mr. Wilson. the at
torney made the following pointed reply: II
regard the decision of the bank tax case as
conclusive OF the law. I fully reported it
to the Commissioners, the District commit
tees OF the two houses, and, SO far as l
could secure advice, further litigation
seemed useless.
Il suggested further legislation if Con-
sress desired to tax the banks beyond what
the law as settled by this decision did tax
then. 1t might be well to call the atten-
ton of Congress to the subject again if
tElS rule is unsatisfactory
Accepted by yCommissioners.
was accepted and acted on by the Com
missioners, and was made the basis of a
formal order directing the assessor to can
eel the personal taxes against. the banks. -
He also said that from that time until
very recently no doubt has been suggested
as TO the correctness and fiuality of that
decision, and that the law has been for
nearly twenty years continuously admin
1stered according to the rule established by
n
rom the foregoing statement" remark
ed MI. Wilson, ''it appears to be incon'
uCVertihie: First. That the Commission
ers OF the District. and the full consent OF
the national banks, invoked the jurisdic-
ton of the Supreme Court of the District
OF Columbia to determine the meaning of
the eleventh section Of the act of 1877 and
Wfat taxes on personal property the banks
: ere required to pay under said section.
second. That the suits agreed upon were
orc ught by the banks and prosecuted at
their own cost and under the penalties of
approved bonds, and that the court. after
tGli disc1ssi9n md deliaeration, decided
that the banks We're exempt from the tax
sought to be levied on them IN respect of
their capital stock. and entered judgment
accordingly.
Third. That the Commissioners of the
District being fully informed us to results
of the suits. and of the decision of the
court and under the advice of their attor-
ney decided to accept, and did accept, the
Judgment of the court as final and pro
Ceeded to execute and did execute the
same by ordering the assessor to cancel
the personal taxes against the banks
Fourth. That the results of the suits,
the views of the attorney for the District,
and the necessity for further legislation If
it should be considered desirable or just to
tax the faEks beyond what the law as
settled by rhe court did tax Them were
communicated to Congress.
Fifth. That the law which was passed
tl,.-Nr tod h1y bn ON
of the District in 1850 in the two decided
suits. and which is still in force (sec. II OF
the act of 1870, is the law upon which any
fresh proceedings to tax the capital stock
of the banks would necessarily be based.
Established Facts.
''These established and indisputable
facts" continued Mr.. Wilson, Suggest the
following inquiries:
us 1t competent for the Commissioners
Tow to disregard the solemn judgment Of
the Supreme Court of the District, which
they themselves obtained. to rescind Their
decision to abide by ard enforce that juds-
ment. and to reverse their former action
directing tha cancellation of the personal
taxes against the banks?
IF the Commissioners have the power TO
reverse their decision or rescind their ac-
ton taken III pursuance and execution OF
the judgment of a court, would 1t in this
case be just ana right, and in accordance
with correct 2OHiniSTatlcn, 1CF the com =
miSsioners to rerudate their solemn agree
Tent undeliably entered into to present 10
the court and to abide by the results Of the
test cases hereinbefore referred to?
IF the Commissioners had the power.
and it was just and right for them to eX-
e1cise that power, and to repudiate their
agreement, to reScind their former decision
and action and set on foot another pro-
Cecding to retry the issues that were de-
termined against them in 1880, is there any
proceedings
new suits would result in judgments
against the banks and in favor of the Dis
trict?'
Mr. Wilson submitted that the Commits
slorers are precludeG by their own action
and agreement from now seeking to reopen
the controversy that was settled nearly
twenty years ago, ard that they have no
more rigntful authority to disregard their
own action and decision, taken and made in
pursuance of plain and binding judgment,
than they have to disregard and set aside
and refuse 20 execute q written contract
entered into delbera tely, and for valuable
consideration, after it had been fully ex-
eCCted by the other party thereto.
And he declared that if it should lie con-
ceded that, Notwithstanding their former
action and decision, and the lapse of years,
the Commissioners still have the power to
again put n operation the disused and dis
credited machinery of taxation. heretofore
declared to lie inapplicable to the national
banks of the District. such exercise of pow
good conscience.
Decided Years Ago.
Should the Commissioners order Of 1888
Ito cancel personal taxes against tho
banks be revoked and an attempt be
made to collect such taxes, contended Mr.
Wilson, the issue raised would be identica
with that which was clearly, definitely ant
certainly presented and decided by The
courts years ago. ut would be difficult tc
imagine case to which, said Mr.. Wilson
'fn some of its aspects, the doctrine of re:
judicata, so frequently declared to be con
ducive to peace, reform and morality, coult
more properly or justly be applied.
Il have been informed" said Mr.. Wilson
that the present revival of the contro
versy as to the taxation of their capita
stock, which, as has been shown, was final
| ly adjudicated in favor of the banks NOR
than twenty years ago, is due, in part a
least, to a proposition that has recently
| been made to the Commissioners to under
| take the collection of sums alleged to b
| Que from the banks for back taxes for
contingent fee payable out of moneys col
lectcd.
Il understand, however, that those wht