Talbott v. Board of County Commissioners of Silver Bow County

Decision Date30 March 1891
Citation139 U.S. 438,11 S.Ct. 594,35 L.Ed. 210
PartiesTALBOTT v. BOARD OF COUNTY COMMISSIONERS OF SILVER BOW COUNTY
CourtU.S. Supreme Court

J. W. Forbis, for appellant.

J. H. McGowan, for appellee.

BREWER, J.

This case was submitted to the district court of the second judicial district of Montana territory, on the following agreed statement of facts: '(1) That the First National Bank of Butte is now and was during all of the year 1885 and before that time a corporation duly created under and by virtue of the laws of the United States relating to national banks, and located and carrying on a general banking business in Butte City, in said county of Silver Bow and territory of Montana, and that the capital stock of said bank is one hundred thousand dollars, divided into one thousand shares, of one hundred dollars each. (2) That during all of said year 1885 the said defendant, Andrew J. Davis, was the owner and holder of nine hundred and forty shares of the capital stock of said bank, and that said shares were during all of said year and are now of the true value in money at private sale and of the market value (which is the same) of one hundred and twenty-five dollars each. (3) That for and in the said year 1885 there was duly levied and assessed, according to the laws of Nontana territory, in said Silver Bow county, for territorial, county, and other purposes, upon all property in said county subject to taati on, an ad valorem tax amounting in all to thirteen and three-tenths mills on each dollar of assessed valuation. (4) That said nine hundred and forty shares of stock of the said the First National Bank of Butte were assessed for taxation, in the manner prescribed by the laws of said Montana terrtiory, for said year 1885, to said defendant, Andrew J. Davis, (who then owned and held said shares in said county of Silver Bow,) at their estimated true balue in money at private sale and at their market value, (which is the same;) that said defendant has not, nor has said bank, or any one for him or it, ever paid said tax on said shares so assessed as aforesaid, or any part of said tax. (5) That in the general assessment in said Silver Bow county for said year 1885 shares of stock in corporations generally were assessed in accordance with the provisions of section 1003 of chapter 53 of the fifth division of the Revised Statutes of Montana territory, as amended by the act of the legislature of February 22, 1881, on page 67 of the Laws of 1881, and where the entire capital stock of any incourporated company was invested in assessable property in said territory such stock or the shares thereof were not taxed, and that mining claims not held under patent from the United States were not assessed or taxed at all, and where held under patent from the United States were assessed at the government price of five dollars per acre, without regard to their market value; that there are a large number of mining corporations in Montana territory whose entire capital stock is invested in assessable property, and that part of said property consists of mining claims.'

And upon these facts the following questions were presented: '(1) Under the laws of the United States and of the territory of Nontana, are shares of stock in national banks located in said territory subject to taxation at all? (2) Upon the facts in this case, was the said assessment and taxation of said shares of stock to defendant in violation of or in conflict with the restriction contained in section 5219 of the Revised Statutes of the United States relating to the taxation of shares of national banks, and providing that such taxation shall not be at a greater rate than is assessed upon other moneyed capital in the hands of the individual citizens of the territory?' In the district court these questions were determined in favor of the plaintiff, the county commissioners, and this decision was affirmed by the supreme court of the territory. The case is now here on appeal.

That shares of stock in a national bank are not subject to taxation without the consent of congress is conceded. McCulloch v. Maryland, 4 Wheat. 316; Osborn v. Bank, 9 Wheat. 738; Weston v. Charleston, 2 Pet. 449; Peo- ple v. Weaver, 100 U. S. 539. And the contention is that congress has given consent to taxation thereof only by states, and has not extended like privileges to a territory. Section 5219 of the Revised Statutes contains the declaration of congress in respect to this matter. It reads: 'Sec. 5219. Nothing herein shall prevent all the shares in any association from being included in the valuation of the personal property of the owner or holder of such shares, in assessing taxes imposed by authority of the state within which the association is located; but the legislature of each state may determine and direct the manner and place of taxing all the shares of national banking associations located within the state, subject only to the two restrictions,—that the taxation shall not be at a greater rate than is assessed upon other moneyed capital in the hands of individual citizens of such state, and that the shares of any national banking association owned by non-residents of any state shall be taxed in the city or town where the bank is located, and not elsewhere. Nothing herein shall be construed to exempt the real property of dassociations from either state, county, or municipal taxes to the same extent, according to its vale, as any other real property is taxed.' In this section no express reference is made to territories; states only are mentioned. Tested by the letter, the argument is short and clear. Congressional permission is essential; no permission is given to the territories; therefore territorial taxation is unauthorized and void. Whatever may be the voice of the letter, the argument fails because the minor premise cannot be sustained. Can it be that congress meant to give power to the states to tax, and to withhold that power from the territories? Some plausible reason should be suggested before the intention is imputed to congress of granting to an independent jurisdiction, such as a state, the power to tax one of its own instrumentalities, and at the same time withhold a like power from a political organization like that of a territory, wholly dependent upon congress, and subject to its absolute supervision and control. Such is not the ordinary lesson of experience. If the matter in respect to which such anintent was imputed were wholly of interest to the states, or designed purely for the exercise of powers within the states, then properly all general expressions in the statute might be limited to states, and the intent of congress be supported and established by the character of the subject-matter of the legislation. The converse of this is true. The national banking system was national in its design, coextensive in its operation with the territorial limits of the United States, and intended to be the banking system for the whole country, territories as well as states. Section 5134 of the Revised Statutes, which provides for the incorporation of a national bank, requires in its second clause that its organization certificate shall state 'the place where its operations of discount and deposit are to be carried on, designating the state, territory, or district, and the particular county and city, town, or village.' Section 5146 requires that 'at least three-fourths of the directors must have resided in the state, territory, or district in which the association is located for at least one year immediately preceding their election.' Section 5178 provides that 'one hundred and fifty millions of dollars of the entire amount of circulating notes authorized to be issued shall be apportioned to associations in the states, in the territories, and in the District of Columbia, according to representative population.' Section 5180 provides for a statement showing the amount of circulation in each state and territory, a withdrawal from those states having an excess of circulation, and that 'the circulation so withdrawn shall be distributed among the states and territories having less than their proportion, so as to equalize the same.' Section 5197 authorizes the association to charge and receive 'interest at the rate allowed by the laws of the state, territory, or district where the bank is located.' Section 5239 provides for a forfeiture of the franchises of the banking association upon an adjudication of a violation of the act; 'such violation shall, however, be determined and adjudged by a proper circuit, district, or territorial court of the United States, in a suit brought for that purpose,' etc. Section 5240 prescribes the compensation to be paid to examiners of...

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