Union Planters' Bank of Memphis v. Memphis

The Union & Planters' Bank of Memphis was incorporated under a charter granted by the general assembly or the state of Tennessee in 1858, which contained the following provision: 'That said company shall pay an annual tax of 1/2 of 1 per cent on each share of stock subscribed, which shall be in lieu of all other taxes.' The corporation was located in the city of Memphis, Shelby county, Tennessee, and that city, pursuant to an act of the legislature of Tennessee, assessed an ad valorem tax for the year 1899, for municipal purposes, on the capital stock of the bank. The bank thereupon filed its bill in the circuit court of the United States for the western division of the western district of Tennessee, in which it was alleged that the law under which the assessment was made impaired the obligation of the contract created by the above-quoted clause of the charter. The bill further averred that in a former litigation between the bank and the city, wherein it was sought to enforce a municipal assessment of taxes on the capital stock of the bank for the years 1888, 1889, and 1890, it was adjudged by the supreme court of Tennessee that, by the provision aforesaid, the capital stock of the corporation was exempt from all general taxation. The record and judgment in that suit were set out in full, and pleaded as a final judicial determination of the bank's exemption from the payment of ad valorem taxes on its capital stock; and it was averred that the judgment so pleaded was based on the identical claim of exemption now asserted, and on identically the same facts and conditions under which this assessment was made.

The prayer was that the assessment be canceled, and complainant be declared to be exempt from the payment to the city of ad valorem taxes on its capital stock.

Defendants demurred, and the demurrer was sustained and the bill dismissed, November 6, 1900, whereupon complainant prayed and perfected an appeal to, and also took a writ of error from, the United States circuit court of appeals for the sixth circuit, and the case was docketed there on or about November 27, 1900.

On February 11, 1901, complainant prayed, and was granted an appeal from the decree of the circuit court directly to this court, the record was filed here, March 23, 1901, and the case is now No. 67.

The case in the circuit court of appeals was heard June 10, 1901, and the decree below was affirmed October 21, 1901. 49 C. C. A. 455, 111 Fed. 561. Thereupon complainant, appellant in that court, prosecuted an appeal from its decree to this court, and the case was docketed here January 13, 1902, and is now No. 221.

Both cases were submitted, as one case, on printed briefs.

Messrs. William H. Carroll and Tim E. Cooper for appellant.

Messrs. Luke E. Wright and John H. Watkins for appellees.

Mr. Chief Justice Fuller delivered the opinion of the court: