The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1899-11-21
0. S. BONDS NOT TAXABLE
Court Of Errors and Appeals
Reverses Decision Of the
Supreme Court.
lsnscial to ..The Jersey city News."1

Especial to Tine jersey City news,
TRENTON, Nov. 81, 1SS9.-The Court Of
? Errors and Appeals yesterday rendered
decisions in the cases argued before that
body at the June term.
The most important decision was that
in the case of the Howard Savings Bank
against the city of Newark. The bank
carried up on a writ of error the decision
of Justice Depue in the Supreme Court
that sthe United States securities in the
hands of the bank were taxable by the
local assessors. The opinion of the Court
of Errors, which is by the Chief Justice.
holds that these securities are rot taxable
in this State, Notwithstanding the act of
Congress of 1894, which makes the taxing
of Federal securities permissible in the
different States. The Chief Justice holds
that under a law passed in New Jersey
previous to the act of Congress referred
to. United States securities were made
exempt and that this situation was not
changed by the Congressional act. except
to allow the States to tax the securities
if they so wished. mo statute has yet
been passed in This State taking advantage
of the Congressional permission, and
therefore the securities still continue ex-
empt in this State. The opinion of the
Chief Justice IS of the utmost Importance
for 1t exempts from taxation all United
States securities held by the banks of this
State. amounting to several million dol
lars, and which have been assessed in
nearly all of the taxing districts in which
banks are located. The effect of the de-
cision will be to reduce the direct assess
ment on saving banks. It is the opinion
of lawyers that the decision will have a
material effect on the appeal of the Me
chanies' National Bank from the assess
ment levied against its stock by the city,
and which is now before the Supreme
Court.
The syllabus of the opinion delivered by
the Chief Justice yesterday was:-s'The
property of the United States and the
bonds and securities issued by the United
States are not taxable by or under the au-
thority of any State without the permis-
sion of the United States. They owe
their exemption from such taxation to
their nature and character and not to
avs of the State requiring such ex-
emption.
THE supplement to the tax law of
April Il, 1866, by Section 5. as amended by
the further supplement of May IL, 1884,
cAPfcSScS d 4cS1SlGafO 4AlCiht ~ CAc4tiPk
from taxation the property and the bonds
and securities of the United States abso-
lutely and without qualification.
THE act of Congress of August u. 1894,
may be construed as permitting States to
tax some of such securities as are in ques-
ton In this case, and to that extent their
n-on-taxability has been removed But no
subsequent legislation of this State has
imposed the burden of taxation upon
such securities. Taxing officers require
no power to assess such securities for tax
alton from the act of Congress, for the
State Legislature must determine what
property shall be taxed, nor from our
tax laws, for the rule presented thereby
absolutely exempted such securities from
taxation.
The requirements of section / of the
supplement to the tax law of February
90. 1885, tina an owner. claiming exemp-
ton of such property from State taxation,
must furnish the taxing officers a de-
tailed list of his securities and of the
dates at which they were purchased, will
be complied with by a statement OF such
securities in detail without q statement OF
the dates of purchase. when such securi-
ties are not the subject of purchase but
are issued to circulate and do circulate
as money and they have been received
by the owner in the ordinary course of
business