20 Miss. 456 (Miss. 1849), The Bank of United States v. State

Citation:20 Miss. 456
Opinion Judge:Mr. CLAYTON, Justice.
Party Name:THE BANK OF THE UNITED STATES v. THE STATE OF MISSISSIPPI
Attorney:George S. Yerger, for appellants, Freeman, attorney-general, for the state,
Court:Supreme Court of Mississippi
 
FREE EXCERPT

Page 456

20 Miss. 456 (Miss. 1849)

THE BANK OF THE UNITED STATES

v.

THE STATE OF MISSISSIPPI

Supreme Court of Mississippi

January, 1849

On appeal from the superior court of chancery; Hon. Robert H. Buckner, chancellor.

The President, Directors and Company of the Bank of the United States of Pennsylvania allege in their bill, that on the 10th of February, 1840, they loaned to the President, Directors and Company of the Commercial and Railroad Bank of Vicksburgh $ 250,000, to enable the latter to complete its railroad to the city of Jackson; and the Bank of the United States were protected in the loan by being the preferred creditors in a deed of assignment of the Commercial and Railroad Bank of that date.

In February, 1841, the legislature of Mississippi passed a law to tax money loaned by individuals; and the state sought to subject this loan of complainants to the operation of this law; and to that end, by her officers, had assessed the property of complainants accordingly, and would sell it unless restrained.

An injunction was granted, which was afterwards on motion dissolved, and the complainants appealed.

Decree affirmed.

George S. Yerger, for appellants,

Cited 15 Pick. 381; Dwar. Stat. 710, 749; 3 Conn. Rep. 14, 15; Dwar. 702; 15 Johns. Rep. 393, 394; 6 How. S.Ct. 317; 5 Wheat. 326; 12 Ib. 64; 1 Pick. 297; Ang. & Am. Corp. 19, 152, 158, 174, 187, 188, 195, 368; 7 How. Miss. Rep. 528, 530-533; 3 S. & M. 679, 680; 6 Ib. 596; 8 Ib. 196; 4 Ib. 25; 25; 4 Wheat. 636; 4 Peters, 562; 3 Hill, 570; 16 Johns. Rep. 6; 12 Wend. 391; 7 Johns. Rep. 503; 10 S. & M. 601.

Charles Scott, on same side,

Cited in addition 2 Kent, Com. 266; Ang. & Am. Corp. 372, sec. 1, 2, 3, 4, (new ed.) 377, 382; 1 Kent, Com. 498; 9 Yerg. 490.

Freeman, attorney-general, for the state,

Cited Aug. & Am. 321, 322, 368, 370, 371; 1 Cow. 513; 10 Wend. 186; 15 Johns. R. 358; 13 Conn. 249; 7 How. Miss. Rep. 527; 1 Stew. Ala. Rep. 468.

OPINION

Page 457

Mr. CLAYTON, Justice.

This was a bill filed, in the superior court of chancery, by the Bank of the United States against the state, to enjoin the collection of a tax assessed upon a loan of $ 250,000, made by the complainant to the Commercial and Railroad Bank of Vicksburg. The bill alleges that this loan does not fall within the act passed in February, 1841, to provide for the revenue of the state, and that the assessment and attempt to levy the tax are illegal and unauthorized. The injunction was granted, but afterwards dissolved upon motion, and the case thence comes to this court.

Every government has the unquestionable right to raise a revenue for its support by taxation upon the property within its limits. It is indispensable to its existence, and is the price paid for protection. Those who have property in the state look to the government for its security...

To continue reading

FREE SIGN UP