The times. [volume] (Richmond, Va.) 1890-1903, 1900-02-22
NEW FEATURE in
BANK TAX FIGHT
No Revenue Paid on Notes
Recently Issued.
NOW IN CIRCULATION.
Received as Deposits and as Payment
in Trade.
Received as Deposits and as Payment
BANK OF IRON GATE THE MAKER.
President w. L. Royal Declares That
the Federal Tax is Unconsi'tu-
tional and That He Will Fight
the Case to the End-Govcrn-
mcnt Officials Have Been
Notified Of Their Issue.

against the national tax of 10 per cent.
on the circulation of State banks by
prominent iinancers of this city, an in
terestinG sequel is found in the action
taken by the Bank of Iron Gate, va.
This bank has issued notes, and these
notes are now in circulation. NO TAX
has been paid on them. They are ac-
cepted bv the various banks throughout
the State, and not alone by banks, but
are used as q medium in trade.
The right of the Bank of Iron Gate to
issue the notes without paying the pre-
scribeG tax is in question The United
States statutes say that it. is illegal, but
Mr.. ". L. Royal, president of the bank
Ing institution, declares that II IS not.
AS Mr.. Royall stated when seen regard
ing the matter: 1T is simply q case of
the United States against Mr.. Royal.
l have not been arrested as yet, put am
expecting to be most any time
Regarding the issue OF these notes, the
Hlychanan Banner of this date will say
editorially:
"The attention of the United States rev
enue officials has been called to the fact
that notes of the Bank of Iron Gate to
the amount oil SiV0, nave peen lSSueu iiiu
are in circulation.
..The Bank of Iron Gate was chartered
by the Circuit Court nj -ti.cghany county
about the year 1892. Il did q general
banking business at Iron Gate for several
years For the past four of five years 1t
has not been in active operation, though
its charter powers still exist. Mr. w. l.
ROYAL, the well known lawyer of Itlch-
nond, is the president of the bank. and
its office is now at OIL east Main street.
in Richmond MIR. Royal believes that
the provision OF the United States rcTcaue
statutes imposing 4 tax of ten per cr::t.
on the circulation of State banks IS un-
constitutional, and his bank has issued
these notes. on which, of course, the tax
has not been paid with q view, it is sup
posed, of having the validity sf the tax
tested. The notes are printed n this form:
$1,000
Iron Gate, Va, Dec. %, 1899
1.-The Bank of Iron Gate will pay to
bearer Twenty Dollars.
..............., President.
'NIr Royal declares that his bank eN-
poets to issue many more of these notes,
and that they will be made to show on
their face that they will be redeemed at
tie office of the bank at OIL east Main
street. Richmond, Va.
This seems rather q bold move on the
large experience in the legal arena, where
contests are fought involving constitu-
tinnal questions. 1t will be remembered
that he fought almost single handed for
years the legal battles for the Virginia
bondholders, and in those battles the pen
alties {: statutes that he thought uncOn-
sttutional had no terrors for him.
THE fight that he has now undertaken
against the authority of the United
States government to tax the circulation
Of State banks will probably be the big
gest fight he has yet had. Mr.. Royal has
given great attention TO the matter, and
this move of his is the result of years
OF study.
'.-The outcome of the contest may be Of
national Importance"
MIR. ROYAL TALKS.
. Mr.. Royal stated last night that the
Bank or Iron Gate had issued notes to
the amount of 500, and that no tax had
been paid on them.
do you intend to increase this amount
and if So by how much?" he was asked.
II intend to increase the amount of
notes and by as much as l please" MI.
Royal responded. Il have made no
secret of it, and if the holder wants
money for his note he can get it at the
office Of the bank, No. OIL east NIa!n
street The notes have been in circu-
latlon, ana nave uSed them myself
in paying for goods purchased
.'Yes, the United States authorities are
after me. l was asked for a full re-
port by Mr.. Agnew, Of Alexandria, and
have already made one and forwarded
it to him. I was informed by Mr.. As-
new that the government would fight
me, but have heard nothing further
from him.
.'I am going to fight this ruling of the
government It is unconstitutional.
am going to fight it, and I am going to
win !