The Honolulu republican. [volume] (Honolulu, T.H.) 1900-1902, 1902-01-17

mOnsEsd capital in the hands OF inlE
viduaI citizens Of such state. and
that the shares OF any national bank
ing association owned by roa-resi
dents Of any State shall Be taxed II
the city or town where the bank Is
located. and not elsewhere. Nothing
herein shall be construed TO exe7np,
! the real property OF associations from
either State. county OF municipal
taxes. TO TIE same extent. according
TO its value. as other real property
IS taxed
National banks are not liable to =
privilege tax imposed by city ordin-
anee- Chattanooga " Mayor. etc. s
-Ieisk. Tennessee SD Nor in view Of
the fact that the shares alone are
taxable. 10 any tax upon their bust
ness imposed BY the municipal au-
thorities OF the city where the bank is
located. Mayor Of Macon '. First Ma
tional Bank. 50 Ga SIS. In the case
OF McCulloch Y. the State of Mary
land. Wheaton 316. it was held that
Congress had the constitutional right
to authorize the incorporation of
banks; that a bank so incorporated
had a right TO establish its Offices of
discount and deposit within any
State. and that when so established
the State could not tax IL This de
cision was made with reference to
the question whether the State of
Maryland could impose a tax on a
bank of the United States incorpor-
ated under an Act of Congress. April
10th. 1916. The principal therein an
nounced has been reaffirmed and APP
piled to the Act of Congress authoriz-
ing the incorporation OF National
banks in the following cases:
Van Allen Y. Assessors. 5 Wall. 573:
Bradley V People Wall. 45s;
Lion6erger V. Rouse. Wall. i6S:
Tappan V Bank. 10 Wall. 400;
Hepburn Y. School Districts. %
Wall $50:
People V National Bank. SO Am. st.
R. 80.
In all these cases it was held that
a State could Impose only such taxes
as were authorized by the Act of Con-
gress creating National banks. and
that said act only authorized tax on
the shares in such bank. and not
npon its capital; and that such banks
derived their authority TO do business
in the State by virtue of a United
States statute. which is supreme
Therefore. it follows that the right "
such banks TO do business in a State
is not dependent upon license to be
obtained from the State authorities
The right of a National bank to con-
duct its business as a banking insti-
tuition is in no way dependent on
license to be obtained either from the
State or any of its municipalities
City of Carthage V. First National
Bank of Carthage, II Mo. sos.
A National bank derives its exis-
-ence and its powers from the Govern I
nent OF the United States 1t pays
4 revenue to the United States in lieu
IF all local taxes. except such as the 1
United States authorizes. Its shares
ire taxable 70 shareholders by the
Territorial government. and its real
estate. if it has any. is taxable by the
Territorial government the same as
)ther real estate. if it has any. is tax
Ible by the Territorial government
he same as other real estate. pursu-
mt TO Section 5219 of the Revised
Statutes of the United States. But it
5 beyond the lawful power of the
Territory either in the form of IL
,ense or otherwise TO tax its fran
.hise or banking privilege. l think it
lear that Sections 724 and 725 of the
PENAL Laws of 1897 cannot be applied
o the First National Bank of Wailu-
u. or to any other National bank IN
his Territory.
Very respectfully yours.
E. P. DOLE.
Attorney General