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About The Oregon daily journal. (Portland, Or.) 1902-1972 | View Entire Issue (Oct. 19, 1910)
THE OREGON DAILY JOURNAL. PORTLAND, WEDNESDAY EVENING, OCTOBER 19, I I REAL PROPERTY IS -i ALOHETAXAOLE Oregon Tax . Commission Pre pares Opinion Holding That Fixtures, Assets, Etc., Ex empt from" Taxation. .H 8lm BoMta ot-Th Jonrnal.V . , Salem, - Or., Oct. . 19. Holding that , only the shares of stock In the hands Of stockholders nd the real . property of national banks are assessable under the rulings of the supreme court of. the r United States,' the tax commission ,, has prepared a careful opinion upon the request of County Assessor T. A , Klnehart of Union County." , The per ; sonal property of - , the . national : banks whether t, tangible or ; rn i tangible,- covering banking houses f urnl ture, ; appliances,,, general assets, money. f notes, stocks, . except - shares In ' othefr DanKs, uonds and bills receivable ate 5 held to be exempt from ' taxatlonTT&jr , ths states. - , ' , , -" The commission concludes after citing Minany cases mat the Oregon law for Jhe . j assessment ' of bank stocks," shares and t banking .capital for taxation Is entirely Hn harmony .with the Federal law per vmlttlng the real estate, of national banks and . the shares of stocks In the hands -f the 5 shareho'ders to be" as fsessed for taxation by authority of the .state. Authority has been conferred by. 'congress upon the state legislature to levy . taxes upon the ehares of stocks ; In the hands of shareholders and the - real property of national banks. . The national banks of Union county had resisted the attempt of the assessor to assess their notes. They gave as a. reason that the money for which isuch notes, were given was 'not their money; . The opinion of : the tax ,; commission, - signed , by Tax Commle tsioners - J. B. Eaton and Charles V, ... Galloway, follows; - ' E;'ifc:;.'' -'::'t,? Exha-ustlTe Opinion! H' ',f "The argument you- cite as being maae - oy representatives of banks In Union county, ; to the effect , that the banks should not be taxed on notes held by them, for the reason that the money v ifor which such notes were given does not," - in '. fact," - belortg ' to" .the ' banKs, is not well foupded. . "When a bank makes a loan and takes a note therefor the debt Is to the bank, not to the de positors; the bank holds the note, the depositors never see It Under no con struction of the law can the note be assessed for taxation to the . depositors. If lxable at all, It must-be assessed to the owner or holder, to- the one In re gular and lawful . possession. " National banks are not. on this acr count entitled )to exemption of their general assets, bills receivable, notes, etc, from taxation by the state, such property being . legally taxable wnen owned or held by other creditors. ,ow ever, such property of national banks and, In fact, all of their personal prop erty, whether tangible or intangible m character, is exempt from taxation by state or loaal authority.' But this is for a reason entirely different from the one Just considered "A state is wholly without power to levy any 'tax, either direct or Indirect, upon ,, national banks, their property, assets or franchises, except when per mitted to do so by the legislation of congress." Owensboro National Bank vs. Owensboro 17S XI.- S. 6S4, f : '. .'. ." Case Cited. --.' "Early In the history of nr govern ment, in teases affecting the bank of the United States (McCulloch vs. Mary land, 4 Wheaton Z19f Osborn vs. Bank of United States, 9 Wheaton 738) It was held that an agency such as that . bank was adjudged ta be, created for the purpose of carrying Into effect national powers granted by the constitution,, was not in It Capital, franchises and pera tions subject to the taxing powers fit a state. - CAPT. BOOABSVS AGAIW KXTS THE -: , ... BUJUb'B STB. - This world famous rifle shot, who holds the cliair.plonshlp record of 100 'pigeons in 100 consecutive shots 1 llv ,Ing at Lincoln, 111. Recently lnter - viewed, - he says: "I suffered a long 'time with f kidney and bladder -trouble and used several well known kirWv 'medicines, all of which gave me no re lief until I started taking Foley Kldny Pills. Before I used Foley Kidney Pills I had severe backaches and palns-ln my -kidneys with suppression and a cloudy voiding, i On arising tn the morning I would get dull headaches. Now I have taken three bottles of Fotey Kidney Pills and feel 100 per "cent better.. 1 am never bothered with my kidneys or blad- nrr nu aKaui lcri line my. own selr. Skldmore Drug Co.! '. Main Rtore. 1K1 Third St: Branch Store. Morrison an.l 'West Park Bts. Woodward Clark Drug 1, .! 1 Li i... . II In the celebrated case of McCulloch vb. Maryland, decided , In 1819, Chief Justice Marshall concluded as ' follows: This- opinion does not deprive - the state' of any resources which - they originally : possessed. ,? : It . does not '' ex tend . to a. tax paid by the real- prop erty -of the bank, in common with other real property within s the state, nor to a tax imposed on the interest ' which the citizens of Maryland may hold in this Institution in common wltb other property of the same description tnroughout the state. But it is a tax on the operations of the bank, and Is consequently a tax on the operation of an Instrument employed by the govern ment of the Union to carry its powers into execution. Such a tax must be un constitutional. - . The final result ; of legislation by congress, (Act of February 4, 1868) to permit a certain degree pf taxation of national (banks , by, the states is embodied; in section .-'-.-6219, Revised Statutes of the United States; "Section 6219. Nothing herein shall prevent all the shares of any associa turn from being included in the, valua tion' of the personal property of the owner or holder of such shares, in as sesstng taxes Imposed by authority of the state within which the association Is located: but-the legislature or eacn state may determine and direct the manner and place of taxing all shares of national banking associations to cated within the "state, subject only to the two restrictions, that the taxa tion shall not be at greater rate than is assessed upon other moneyed capl tal 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 oi. associa tlons from either state, county or mu nlclnal taxes, to the , same extent, ac cording to its- value, as other real prop erty is taxed ' v "In Owensboro National bank v Owensboro.. 173 ,66.4.. .the -supreme court, after quoting this section, (6219), says: ; . This section, then, . of the revised statutes, is the measure of the, power of a state to tax national banks, their property or their franchises. By its unambiguous ; provisions the power is confined to a taxation of the shares of stock in the names of the shareholders and to an assessment of the real es tate of the bank. .ny state tax there fore which Is in excess of and not in conformity ' to these requirements is VOid." -.-'' : ; ' . ' "Since the taxing power of the state in relation, to national banks rests upon the permission of congress, and congress having provided the method In which this , power may be exercised, that method excluded all others. 1 ffadson's Opinion. ' "Frederick N. JndBon. in his excellent treatise on the Taxing Power,' State and Federal, in the United States'- (p. 801). says? .: ":: M.'No license can 1 be exacted by the state or under state authority for the prlvjlege of . carrying ' on the . business of a national bank, nor can an occu pation tax be Imposed, nor can a tax levied by a atate on ' the president ;of each of the banks of the atate' be en forced as to the president of , a ha tional bank, ; The state can tax the real estate of the bank as other real estate Is ; taxed, because authority to do so is expressly given by act of congress. But this is the- only tax which can be levied upon the property of the bank. for ; the only other tax authorized is upon the shares of the shareholders. It follows therefore that n tax- can be levied , by the state upon" the personal assets of the .bank.-such' as safes, or flea furniture, eto., and this is equally true whether the .bank Is sohrenj or insolvent. Thus the assets Of the bank. when in the bands of a receiver, are not txatle. '. ; A tax oh the personal property?, of . a national bank Is Invalid, even though the legislature has made no provision for taxing the shares thereof, and the tax actually levied does not exceed the amount Of what might have been assessed on the shares - under local authority therefor," "The term 'personal property' as here used has its regular meaning. It covers banking house furniture and appliances, general assets, money, notes, stocks (ex cept shares In other banks), bonds, bills receivable, eta There are .many court decisions to substantiate this . conclu sion, i Difference in Tax. The tax on the shares of the indi vldual shareholders is not the. same as a tax on the capital of the bank. The Interest of the -shareholder entitles him to partlclpate-in the ffet 'profits earned by the bank in the employment of Its capital. This Is a distinct and .lnde pendent Interest or property, held by the shareholder like any. other property that may belong to him. It la this In terest which the act of congress has left subject to taxation by the states, under the limitations prescribed. "The Oregon law for assessment of bank- stocks, shares and banking capl tal for taxation (chapter 265, laws of 1907), Is entirely in harmony with the federal law permitting the real estate of national banks and the shares of stock in the hands of the shareholders to be assessed for taxation by author ity of the state. By following, care fully., the rules and requirements laid down In said chapter 266, an assessor will make no mistake in his assessments on. the taxable property of and on 'the taxable Interests in a national bank. He IS not authorized to assess,, any other property of a national bank under the general laws providing for the assess ment of property for taxation. "In case any direct assessment has been made by you against the personal property .of a national bank such as essmeni 1- in vlid nd -should, be tan celled. This can be done, hythe boardlThe east half of the block1 win be held of equalization, which' is now in ses- j by Mrs. Gratton as an Investment Slnco slon. i - ;the sale of this holding was , concluded "You will probably note that this t last week. Mrs. Qratton has received a letter is one of considerable length; but) number bf offers to take jthe deal off the subjectdiscussed is Important and we 'have endeavored to treat it care fully." r.V'"i BUY 85 ACRE Mra Laura M. Gammans has sold to Grlndstaff & S chalk and Dr. Sandford Whiting : 85 acres of land located 10 miles southeast of Portland on the Caza- dero line of the C;W. P." The considera tion involved in the deal was 815,000, which is equivalent to 8176 an acre.' It is the purpose of the new owners to plat; the tract into acre lots, and put it on the market this fait . The Smith & Everett Realty firm has purchased from Edward Wiles two hand- some new dwelling houses in irvmgton Park, paying $7000 for each. The bujld ings are modern two story frame struc tures of attractive design. .They were purchased for investment purposes. TURNS T m her hands at an-advance, one Investor, a California capitalist, offering .325,000 cash for the contract . Acting upon the advice or ner agent, Mr. Reed. Mra Gratton refused all offers to buy, be- ON CAZADERO LINE 001 MCE 0 CLEAR $25,000 The home property of the lata Judge George H. Williams, comprising the block bounded by Eighteenth, Nine teenth. Couch i and Davis streets,, the sale of which was announced last week. was purchased by Mrs. Mary J. Grat ton, the purchase price, as announcea at the time, being 3140.000. .The trans fer was negotiated by . Ferdinand i is. Reed, who secured a four-days option on the block September 11 from Smith & Everett, representatives ot Misa isti lie Williams, owner of the block y Mrs. Gratton has interested local cap ital and Is planning to erect on the Viaif nf the block a modern, six- story family apartment building of the New York type. Construction or tne im provement will not begin for 13 months Causes Sickness Good Health Impossible With a ..... Disordered Stomach. , There is nothing that ; will create loirness or cause more trouble than disordered stomach, and many people daily contract serious maladies simply thfonirh disregard or aouse oi ins stomach." . i f W urge every one suffering from any stomach derangement indigestion or flvsnensia. whether acute or chronic, to try Rexall Dyspepsia laDieis, wim the distinct understanding that we will nfunii iihir monv without Question or formality, if after reasonable use of thi medicine they are not satisfied with the results. : We recommend them to our customers every day, and have yet to hear of any- one, Who has not been benefited by them. ' Three sizes, 25c, 60c and 31.00" a box. Sold only, at Th Owl Drug Co.. Inc. Cor. Seventh and., Washington streets. ,... lleving that quarter blocki la that vi cinity will be "worth 360.000 within the next -.year. '-- -. ;v r- Ai'Greek priest who seemed to- be well known by all the Greek railroad laborers he saw was an arrival on the' Kesemoung , similar acplmncee n afternoon train today,, tells the Eugene I street cars is an automobile fender pat Guard. Wherever he passed a man of lented by a German to pick up a peroa his nationality the man would take who may be struck. off his hat and. bowln. k!m hit bar. v It was an Interesting; sight i h t alon the gas ditch on Vet Fift i street, where there Is a Grerk crew at work, and went along speAktng tv the men. -.. , . si Sis i Off do iiiicu , Proves a popular and mutually profitable event. Every business house on the EastSide has entered the cooperative movement with , 'a determination to prove to the buying public that the East Side is the'logicaireconomicair well - pleased with the'success 6 the first twd days, and thousands of cus tomers are delighted with the special bargains secured. r LM NlgKt's Grand Opening Was a Big Success .4 r;j. Thousands and thousands of people crowded Grand avrinue,ast Morrison and East Burnside. Orchestras at a dozen stores enter tained the peoples while souvenirs were given out at other places. .The. on an ; man, could have given us? All Nature smiled on the East Side in .warm approval.',,. .'.J;.1 "c -". - - - - - - - i East Sidejtosiness Mens Club had a band parading ie streets in auto truck. : And wasn't it the most perfect night the weather 1 M" Special Values by all Merchants Will Continue Each Day This Week And it is an opportunity to secure specials in all lines not heretofore experienced. ' It is not only, a money-saving event, but it is well , ' . worth anyone's" time to come down and examine East Side stores, ., note the many new places, theenlargea and better stocks, the tapid 3 -7 . growth of the business center - ? - -!' -EAST SroB:BUINESSEESilLlIR IS it ..V . 1 ,N .V'.v- ''. rr, ,,. - , ; i ,rT.ir .i r .j.;' The Best Way. to Settle th e .Glomes' Questioa To settle it satisfactorily economically and with the least inconvenience to yourself is to come direct to this store of GOOD VALUES. ANYTHING YOU BUY HERE MUST BE SATISFACTORY. Our success depends upon gaining and holding your good will. This we do by giving you the . best - possible values and making anything right that YOU think is not satisfactory. OUR LADIES' and MISSES' DEPARTMENT contains many novelties in MAN-TAILORED GARMENTS. " ' BEN LEADING CLOTHIER .py h i f'fv'J "Tliey are A Till ' IS tl U I I I I II I 111- j.-.. 1 11 ilJULLLiO Tliats What Mr. and Mrs. Piano Buyer Say About ; ' Shenplay & Co. COR. SIXTH AND MORRISON, PORTLAND, OREGON That's what you will- say, too, because . ho matter what test you' apply,-you will find their policies made up of all the little vital units that compose ' 1 . ' , "A SQUARE DEAL" Mn nttnn hprnnnmfr at the time of a customer's first look, and thence all through the negotiations ana purcnase, ana unaiiy, inrouga iac ages ui mc instrument's service to the end of one's lifetime of supremely enjoying it) - no question, we repeat, ever came up between firm and patron that Sher- man, Uay & vo. jian t ..setue, m xayor oi us patron strirtlvJaAci.Q&mL . ft. . I . . 4 4 t .it-use a-sfL; square deal-.". Thus, when buying here, you are-. . assured ot all tnat could De aesirea m tne price, quality, style and character of any instrument you nr. .- -