The San Francisco call., 1899-04-15
THE STOCK OF
THE NATIONAL
BANKS TAXED
Shareholders Cannot
Now Escape.
TREY |. FORD'S OPINION
ASSESSMENTS TO BE MADE ON
OVER NINE MILLIONS.
a Bitter Fight in the Legislature in
the Interests of Wealthy Cor
porations and Heavy
Capitalists.
TREY |. FoRD's OPINION
ASSESSMENTS TO BE MADE ON
OVER NINE MILLIONS.

Joaquin county. Mr. Muenter Dill pro-
vided for the assessment and taxation of
the entire stock issue of Californias ma
tional banks. 1t was fought, not only by
the agents of the banking institutions,
but by the heaviest holders of their GER
tificates. Assemblyman Grove l.. john
son of Sacramento was the acknowledged
agent of the allied banks on the floor Of
the Assembly and resorted to every pos
sible scheme to prevent the progress of
the bin from the time it first appeared
in the House. Only the constant vigilance
of Mr.. Muenter prevented the success of
the plans of Johnson and the powerful
lobby that was dispatched to Sacramento
to his assistance.
Considering the fact that the bill would
impose a tax on $4,000 900 invested in a
collateral that had previously been al
lowed to accrue it's profits without license
of any sort, the attitude of the banking
fraternity and Johnson's treless energy
in his fight to defeat II are not TO be Won
dered at. The first attempt TO enforce the
provisions of the new statute was made
in Los Angeles County, where the officials
of the warm belt were confronted by legal
mists that they were unable to see
through In order to secure legal light
upon the subject the District Attorney
sent to the Attorney General, Tirey H..
Ford, for his opinion. Mr. Ford answer
is in substance that the stock should be
assessed the same as other property, as
the following shows:
SAN FRANCISCO, April a. 1893
James c Rives District Attorney, Los An
geles, CaL-Dear Sir: In your communication
Of March % 1899 You say:
we desire your opinion upon question sub
mitted TO us by the Assessor of Los Angeles
County, in connection with the assessment Of
national banks for the fiscal year of 1899 1900,
for which the Assessor is now making his as
sessment According TO information obtainable
by US the Legislature has amended section
36OS and added sections 3609 and 1910 to the
~ nrONidinG a scheme
assessment OF stock in national banks. This
statute, we are informed, was signed by the
Governor on March Il 1s99 and went into ef-
feet by its provisions on that day, and the
Assessor asks ana desire your opinion on
the question as TO whether not this scheme
of assessment should be followed in reference
to national banks in assessing for the year in
dicated, or whether the act not havlhg gone
into effect until March a. 1t would be proper
to assess under its provisions this year. March
l being the date on which the liens for taxes
Assuming the validity of the act of 1898 and
of the constitutional right of the Legislature TO
enact the same. as 10 which matters l ex-
press no present opinion, 1 beg leave TO SUBJ
init the following conclusions with reference
to the precise inquiry contained in your COM
rr7unica tior namely whether the schenoe Of
assessment provided for in said act should be
followed by the County Assessors in their as
sessments for the year 1899 ''or whether the
act, not having gone into effect until March
IA, it would be proper to assess under its pro-
visions this year, March being the date
whlch liens Tor taxes attach Prior to the
amendments to the Political Code of 1899 to
shares OF stock of national banks, as such,
situate in this State, could be assessed, for
assuming that such shares of stock were liable
to assessment as other personal property under
article XIII, section !, of the constitution of
this State, and in pursuance of section 5219
of the Revised Statutes of the United States
the section of the constitution here referred 10
was not self-executing and, therefore, re-
quired legislative enactment to provide the
MODE OF liking the valuation, etc, Of such
shares of stock.
McHenry vs.; Downer. lie Cal, 20; People vs..
Ter vs.. Hebron IS Cal l3S-l41
This the Legislature failed TO do prior to the
addition of sections 1868 and 1910 of the Politi-
cal Code in 1899. The constitutional provision
above referred to, in conjunction with section
52l9 of the Revised Statutes of the United
OF national banks other personal property
is taxed.
Following the constitutional provision refer
red to, section 1928 of the Political Code pro-
Yides for the assessment of property to the
persons by whom 1t owned or claimed or
o'clock meridian on the first Monday in
March of each year, and the same section of
the Political Code also provides that the Asses
sor must between the first Monday In March
and the first Monday in July of each year as
certain the names of all taxable inhabitants
and all property in his county subject to tax
alton. etc. Section 1862 of the Political Code
provides that he must complete his assessment
book on or before the first Monday in Julv of
each year and sections 3609 and 1910 of the
Political Code added in 1899. and taking effect
March a. 1893, in other words. Immediately
ment of the stock of national banks. Section
3717 of the Political Code provides that every
tax due upon personal property is lien upon
the real estate of the owner from and after
u o'clock meridian Of the first Monday in
March of each year.
In San Francisco vs. Pennie, SO Cal 465, Har-
rison, j.. in speaking of section 1928. at page
THE Assessor is not required to make his
assessment on that day. Section 1928 of the
Political Code provides that the Assessor must
between the first Mondays Of March and July
In each year, ascertain all property in
his county subject to taxation and
must assess such property to the persons by
whom it was owned or claimed, or in whose
possession or control 1t at 12 o'clock m
of the first Monday Of March next preceding
and section 1925 OF the same code provides that
he must complete his assessment book on or
before the first Monday in July in each year
Assessor must complete the assessment of per
sonal property before the first Monday
of June in each year (Stats. 1874, D. 447. The
value of the property is to be fixed as of the
certainment by the Assessor that such prop
erty was on that day under the control of the
the statute, and In the present case it is not
disputed that such was the fact.
1t is therefore evident that the value of per-
sonal property is TO be fixed as of the first Mon
day in March Of each year.
The tax on the stock Of national banks is
due when assessed (see sections $500 and 3s21
Political Code); in any event, within ten days
thereafter (see section 86l0. Political Code
added in 1899, and so in no case where the
March of each year, but within the time al
lowed by law would the statute operate in any
manner different than II does under said sec
tions 3609 and 36l0. Political Code.
Under the case of McHenry VS.. Downey and
other cases cited, and section 5219 Revised
Statutes, supra, 1t would seem clear that the
shares OF stock of a national bank have been
liable TO taxation, other personal property
at all times since the adoption of the state
constitution in 1879: but. assuming that such
shares were exempt from taxation still this
would not prevent the Legislature from revol-
ing the exemption and imposing a tax upon
the shares within the proper limits because
there is no vested right in a statutory exemp-
ton of property from taxation when the ex-
emption is granted mere privilege or
gratuity and not upon a contract or consider
alton moving to the public. (Cooley's Const
Linn section 3s3: Welty on Assessment sec
tion 1T6: Christ Church vs.. City of Philadelphia
q How, 301.)
There being no vested right in the exemp-
ton conceding such exemption. it was within
the power of the Legislature TO revoke the
exemption and impose tax even though by
so doing 1t might impose a tax retrospectively
am therefore of the opinion that under the
law as It now stands the Assessor of your
county should proceed to assess the shares of
stock of the national banks as required by sec
tions 360S 3s09 and 1910 OF the Political Code
for the fiscal year 1Sa9-1s0o. Very truly yours
TREY L. FORD. Attorney General.