The San Francisco call., 1906-08-18
STOCK Of NATIONAL
BANKS TAXABLE.
Supreme Court Sustalns
Statute That Affects
the Public Revenue
SCOTT is UPHELD

According to a decision handed down
by the Supreme Court yesterday, stock
of national banks in California is as
sessable and taxable, the, same as any
other property and at full cash value.
The decision is one of more than ordi-
nary Importance and will mean a sub
stantial income to the city and State
from source heretofore unproductive
of direct taxes.
The case involving this important
issue was that of Ethel w. Crocker
against Joseph Scott, as Tax Collector
for the city and county of San Fran
cisco. She had obtained an injunction
to prevent him from selling certain
real properly to satisfy an assessment
against her 5096 shares of stock in the
Crocker- W oolworth National Bank.
The Tax Collector asked the Superior
Court for an order dissolving the in
junction, but it was not granted. The
Tax Collector then appealed the case to
the Supreme Court and the decision
yesterday provides for the dissolution
of the injunction, thus giving the city
the right TO sell her property to satisfy
the taxes due, unless she pays up.
ALTERATIONS IN LAW.
A similar case to that decided yes
terday was that of the San Francisco
National Bank against Assessor Dodge
of the city and county of San Francis
co. This case was taken to the Supreme
ourt of the United States and was de-
cided against the people. 1t was be-
lieved that this was a final decision and
would affect all similar cages, but as
the Federal Government has statute
allowing each State to FIX its own
method of assessing national banks,
subject to some restrictions, and as
some alterations have been made in the
1a Al - - 20 la w q
subject to the State Supreme Court and
the decision yesterday will be effective
in the rulings of the future in all cases
of the same kind.
In describing the effect of the deci-
sion yesterday it was explained by w.
T. Baggett, Assistant City Attorney,
that the United States Supreme Court,
in deciding the Dodge case, acted solely
in accordance with it's Interpretation of
the decision of the California Supreme
Court, as result of the rights given
the State to make such a law. Of the
nine Federal, Supreme Justices Ave
made one Interpretation and the other
four another. As a result of the loca
decision yesterday the action of the
Federal Court affects only the Dodge
case. which does not test the validity of
the California statute in its present
form.
NOT DOUBLE TAXATION.
1t was the contention of the plaintiff
in the case decided yesterday that to
tax her shares of bank stock would be a
form of double taxation and that the
law, If valid, would discriminate against
national banks and favor State banks.
In answer to this it is explained that a
State bank is assessed for its real prop
erty and for stock in excess OF the
value of that property The national
f~ Af ms nd
and to assess the stock therefore would
not be any form of double taxation.
Justice Angellotti wrote the Crocker
decision and Justices Shaw, Sloss, Lori
gan and Beatty concurred with him IN
the decision. Justice Henshaw con-
Cured and added two or three pages of
typewritten matter on the taxation of
various kinds of franchises. Justice
Mcfarland dissented from the decision.
but failed to give his reasons for so
doing. The case will not go to the
Federal Court.