Merchants' Manufacturers' National Bank of Pittsburg v. Pennsylvania

This case comes on a writ of error to the supreme court of the state of Pennsylvania, and involves the validity of the statute of that state of date June 8, 1891 (Laws Pa. 1891, p. 240), in respect to the taxation of national banks. The decision of that court was in favor of its validity. 168 Pa. St. 309, 31 Atl. 1065. Sections 6 and 7 of the statute contain these provisions:

'Sec. 6. In case any bank or savings institution incorporated by the state or the United States shall elect to collect annually from the shareholders thereof a tax of eight mills on the dollar upon the par value of all shares of said bank or savings institution that have been subscribed for or issued, and pay the same into the state treasury on or before the first day of March in each year, the shares and so much of the capital and profits of such bank as shall not be invested in real estate shall be exempt from local taxation under the laws of this commonwealth.

'Sec. 7. That from and after the passage of this act, every national bank located within this commonwealth, which shall fail to elect to collect annually from the shareholders thereof a tax of eight mills on the dollar upon the par value of all the shares of said bank that have been subscribed or issued, shall, on or before the twentieth day of June in each and every year, make to the auditor-general a report in writing, verified by the oath or affirmation of the president or cashier, setting forth the full number of shares of the capital stock issued by such national bank, and the actual value thereof, whereupon it shall be the duty of the auditor-general to assess the same for taxation at the same rate as that imposed upon other moneyed capital in the hands of individual citizens of this state, that is to say, at the rate of four mills upon each dollar of the actual value thereof.'

J. M. Wilson, for plaintiff in error.

J. P. Elkin, for defendant in error.

Mr. Justice BREWER, after stating the facts in the foregoing language, delivered the opinion of the court.