Case Name: City of New Orleans v. Southern Bank
Court: Louisiana Supreme Court
Jurisdiction: Louisiana
Decision Date: 1856-01
Citations: 11 La. Ann. 41
Docket Number: 
Parties: City of New Orleans v. Southern Bank.
Judges: 
Reporter: Louisiana Annual Reports
Volume: 11
Pages: 41–43

Head Matter:
City of New Orleans v. Southern Bank.
The general banking law, approved .April -SOth, 1858, in regard to the privileges and immunities granted under it, is as much, a contract with the individual corporations formed under the Act, as would be a special Act of incorporation containing the like provisions.
The 85th section of the general banking law is a guarantee to the capitalist that, if he invests in the stock of the banks created under this law, his stock shall not be taxed in any other manner that other personal property; and thus far is an obligation binding on the State and all municipal or other corporations deriving their authority from the State.
The provision of the 1st section of the Act of 1S42, which authorizes the city of New Orleans to fix the rate of licenses for “ all other callings, professions or business" not enumerated therein, includes corporations as well as natural persons. Voobhies, J., (with whom concurred Buchanan, J.,) dissenting.
The 35th section of the Free Banking Law, which provides, “ that bankers and banking companies doing business under this Act, shall be taxed upon their capital stock at the same rate as other personal property under the laws of this State,” is applicable only to the capital stock, and not to the calling or business of those institutions. Voorhils, J., (with whom concurred Buchanan, J.,) dissenting.
O. 0. 418, 424,429.
APPEAL from the Fifth District Court of New Orleans, Augustin, J.
Hiestand & Levy, for plaintiff. Bustis, for defendant and appellant.

Opinion:
Merrick, C. J.
The general banking law, approved April 30th, 1833, in regard to the privileges and immunities granted under it, is as much a contract with the individual corporations formed under the Act, as would be a special Act of incorporation containing the like provisions.
So long as nothing is said in the Act of incorporation on the subject of taxation, that power must be considered as reserved to the Legislature, it being one of the most important rights of sovereignty.
It must follow that the thirty-fifth section of the Act under consideration, was a useless provision if it were intended to secure to the State the right of taxation, for it was not necessary for the State to stipulate for this right with any of her citizens.
'We must therefore conclude, that this section was intended for the security of the capitalist, and an assurance to him that if he invested his money in the banks, under this general banking law, that his stock should be taxed at the same rate as other personal property. It was an assurance that it should not be taxed in an}!- other manner. So far then, this section possesses the force of an obligation, binding alike upon the State and all municipal and other corporations deriving their authority from the State.
A majority of the court, therefore, is of opinion that the banks organized under the above mentioned Free Ranking Law, are not subject to taxation in the form attempted.
It is, therefore, ordered, adjudged and decreed by the court, that the judgment of the lower court be avoided and reversed, and there be judgment against the plaintiff and in favor of the defendant, and that the plaintiff pay the costs of both courts.