Daily Arizona silver belt., 1909-10-24
C1NvENT|0N CLOSES
 IN BANQUET
.Cournued from Page Ono)

an" ft f, to apply it. Courts cannot con see u, as cySrcise, unless such exercise tio,s is;@ts with some provision of the con ,Oh",; ,O,nu.;or or in territories, some act of ,I,oCr, .ncrrss it's organic laws, or the eonsti- ,v@e ,.ion of the United States.
 Chi, is a convention of bankers As .E,rsI no. only from this common. sa,,Itb hu, from others, l shall only nsot' ,o,o. of taxation as it applies to banks, S,tb ,[I' national and state,
 .bo rar,v history of national banks, III -,,rr,r,. , court of the United States, tue nnmhrr of decisions, declared that on institution was a part or an ,ncy SuC" of the federal government, like as'",; n,;ct or postoflice, and as such was 'nt snbiect r ta taxation. And this is still y "o and national banks, as such, are ia' nnw subject to taxation by local nO. o.horities This being true, congress S.n permitted the several states and nsI ns-itaries to tax the shares of stock of U.;nnaI hanks in the hands of its hold rroviled. however, that it is as- & "5 in the same manner as the sev- .oI state banks and not at greater s.to % than moneyed capital in the hands S' ;r5;vidral citizens. But you will O.,s that this is a permission of-eon' uy,s s, permitting the several states to ! stns tax but it is not tax against the ,,noratior, and a state, or territory, or .sya,nl;singEtv. that has failed to legislate DrI direct the manner of assessing na- s,1. hanks: or in other words, the ,,oto. territories, or municipalities that Lors failed to carry out and provide nocbinerv for the taxation of the shares \ .F stoek of national banks, as permitted S,. eorgress. such states, territories or %nri,iHaIitics cannot legally levy tax. The question of taxation of banks has hssr a question of litigation since the ,,ggpizgtion of banks. The first ease ;mrortanre decided by the supreme < ,,nrt of the United States was the ,os. of Van Allen vs. Assessors, in 1865. ma, case not only discusses the man nor and mode of assessing shares and gnkboIders of national banks, but dis r,ses the power and the right of eoni gress to exempt the capital or property 0f tbe bank by virtue of it being an 4 agency of the federal government. A great many bankers, under the modern Srstem of assessing banks, fall into the errOr and seek to escape taxation. on tbe sI,res of stock held by individuals, by DIacing the entire capital stock of the hank into bonds and securities issued by ba federal government, believing that by inc exemption of such bonds and Securities from taxation and the money represented by the shares of stock, to- 'Eit capital stock, being invested in such Sturities, would relieve taxation on the ISbares held by individuals, but this is erpneOus. In the first place, the cap nl stock of a corporation is the prop Irty of the corporate being, in which it lone has tile, Stockholders have no ta or interest, legal or otherwise, in he capital stock of corporation or Is property, except profits derived there from and, on dissolution of such cor rOration, to share in the proceeds of the profits in proportion to the number of hares he may own. To illustrate, if a tOckholder should inappropriate, take Dr otherwise dispose of the capital stock f bank he would be guilty of crime Ha could be punished therefor. If it his property, or if he had the title hereto. he could net be, but he can be Emisbed for the very reason that the tie to such property is vested in the 1pOrate entity aud not in the stock Jlders. The shares of stockholders arc 5i exempt from taxation by virtue of uch a corporation investing it's capital stock, wholly Br in part, in bonds or Securites of the federal government hat may be exempt from taxation. If he capital stock of corporation was taxable and ts other property and the hareS of stock owned by individuals TeTe exempt, and such capital stock -"' tben paced in federal bonds and ecuiU'ieS arf course, such capital stock, tlg invested in federal securities, you'd be exempt. You will note, there ore thS the taxation of the capital
 ck Of bank and the taxation of it's lareS in the hands of individUal stock oloers are two distinct and separate leees of property.
 It has been held that under the pecu- 4f statute of Kentucky, in the case of "enSboro First National Bank vs. City
 OWenSooro, the supreme coust of the med States said, that there are four Huhct clements of taxable property la' may be found in a corporation in lv absence of any statute or eonstitu- maI limitations.
 ,, The franchise.
 The capital stock.
 o. corporate property.
 Shafes of stock in the hands of T'lduaI U, shareholders.
 me hFst is plain. The word franchise ans 'h" right or permission granted
 "r government to a corporation to ausaSl certain businesses This is
 .oI .rg'I and being property is subject
 tue second. capital stock. This is
 5;',. ;"DIAing capital of a corporation and
 Ts''.e, T5 from its franchise.
 ,D' 'D'Id IS property that it may ae-
 '''0 as buildings, office fixtures, 1'."' Inc Nharcs of the stock which
 oouPofa'ion does not own, cannot
 nd, ' convey 90 long as it is in the sce5 Gl 5! the individual and when once ~---.L-l1e ~-- .n the hands of an individual it
 $ B '' =.