Page:Henry Osborn Taylor, A Treatise on the Law of Private Corporations (5th ed, 1905).djvu/508

 § 484.] THF LAW OK PRIVATE CORPORATIONS. [CHAP. VIII. of the state, the tax conforms with the National Banking Act. 1 And the state tax law will be valid unless an inten- tion to discriminate against national banks or actual and ma- terial discrimination against them be shown. 2 It has further been held under the act of Congress of February 10, 1868, 3 per- mitting the state legislatures to direct the manner of taxing shares, that shares in national banks may be valued for taxa- tion at an amount above their par value. 4 1 People v. The Commissioners, 4 Wall. 244, affirming Van Allen v. The Assessors, supra. The fact that the state, in the charters of two state hanks, has disahled itself from tax- ing them, does not prevent the state from taxing shares in other state banks and in national banks. Lion- berger v. Rouse, 9 Wall. 468; com- pare First National Bank v. Waters, 19 Blatclif. 242. A grant to owners of a certain class of property called "credits" (Ohio) of the right to deduct certain debts, not granted to other owners of moneyed capital does not invalidate a tax on national bank shares. First Nat'l B'k of Wel- lington v. Chapman, 173 U. S. 205. See, also, Commercial Bank v. Chambers, 182 U. S. 556. 2 Davenport B'k v. Davenport, 123 U. S. 83; B'k of Redemption v. Boston, 125 U. S. 60. Unless there is an in- tention to discriminate, the mere fact that the national bank is not allowed to deduct stock in other corporations which are taxable upon their capital stock in Washington, does not violate §5219. Pacific Nat. B'k v. Pierce County, 20 Wash. 675. Money in- vested in railroad and manufactur- ing enterprises which do not com- pete with the banking business is not within the meaning of § 5219, for- bidding taxation upon shares in national banks at a greater rate than " upon other moneyed capital in the hands <>f individual citizens of the 488 state." Aberdeen Bank v. Chelialis Co., 166 U. S. 440; nor is money in- vested in trust companies organized under the laws of New York. Jen- kins v. Neff, 163 N. Y. 320; cf. Me- chanics' Nat. B'k v. Baker, Rec'r, 65 N. J. L. 113. 3 Ante, §5219, U. S. Rev. Stat. 4 Hepburn v. The School Directors, 23 Wall. 480; see People v. Commis- sioners of Taxes, 94 U. S. 415; Staf- ford National Bank v. Dover, 58 N. II. 316. But the provision of § 5219 of the U. S. Rev. Stat., that state taxation on the shares of any national banking association shall not bo at a greater rate than is assessed on other mon- eyed capital, has reference to the entire process of assessment, and in- cludes the valuation of the shares as well as the rate of percentage charged thereon. A New York statute which permits a person to deduct his just debts from the valuation of all his personal property, except from so much thereof as consists of national banking shares, taxes them at a greater rate than other moneyed capi- tal, and is void as to them. People v. Weaver, 100 U. S. 539; Supervisors v. Stanley, 105 U. S. 305; Whitbeck v. Mercantile National Bank, 127 U. S. 193; Newport v. Mudgett, 18 Wash. 271. See Pelton v. National Bank, 101 U. S. 143; Cummings v. National Bank, 101 U. S. 153. The personal property of an insol-