Page:Henry Osborn Taylor, A Treatise on the Law of Private Corporations (5th ed, 1905).djvu/500

 § 479.] THE LAW OF PRIVATE CORPORATIONS. [CHAP. VIII. §47S. The Federal Congress, in the exercise of powers conferred on it by the constitution, may tax the Congress. property of corporations : " The Congress shall have power to lay and collect taxes, duties, imposts, and excises, to pay the debts and provide for the common defence and general welfare of the United States." ' But the power of Congress to tax is restricted to the scope of the purposes thus specified, and also by the following provisions : — "All duties, imposts, and excises shall be uniform through- out the United States. 2 "No capitation or other direct tax shall be laid, unless in proportion to the census or enumeration hereinbefore directed to be taken. " No tax or duty shall be laid on articles exported from any state. " No preference shall be given by any regulation of com- merce or revenue to the ports of one state over those of an- other ; nor shall vessels bound to or from one state be obliged to enter, clear, or pay duties in another." 3 § 479. Unlike the taxing power of Congress, the power of a state to tax the property of corporations is not re- u!e V states. stricted in the scope of its purposes and objects by Restric- the Federal constitution ; nor do the specific re- tions. ' l strictions above referred to, on the taxing power of Congress, apply to the states. But, on the other hand, the statute. Ogdeu ». City of St. Joseph, 90 Mo. 522; Mercantile Trust Co. v. Mellon, 19G Pa. St. 176. But the statute may fix it at the place where the corporation is located. Street Railroad Company v. Morrow, 87 Tenn. 406. 1 Cons., sec. 8, art. I. The ninth section of the act of Congress of July 13, 180G, providing that every national hank, state bank, or state banking association shall pay a tax of ten per cent, on the amount of the notes of any state bank or state banking association paid out by them after August 1, 1866, does not lay a direct tax with- in the meaning of the constitution, 480 and is constitutional. Congress, having undertaken in the exercise of undisputed constitutional power to provide a currency for the whole country, may constitutionally secure the benefit of it to the people by appropriate legislation, and to that end may restrain the circulation of any notes not issued under its au- thority. Veazie Bank v. Fenno, 8 AVall. 533; see National Bank v. United States, 101 U. S. 1. 2 Cons., sec. 8, art. I. 3 Cons., sec. 9, art. I. Direct taxes within the meaning of the constitution are only capitation taxes and taxes on land. Springer v. United States, 102 U. S. 586.