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.
.- -