622 NATIONAL-BANK TAXATION. 



NEBRASKA. 



vs. Boyer et al. was a suit against the Commis- 

 sioners of Schuylkill County to restrain them 

 from levying a county tax for the year 1883 on 

 certain shares in the Pennsylvania National 

 Bank. It was claimed that the levy was in 

 violation of that provision of the national 

 banking act above quoted, inasmuch as " other 



I moneyed capital in the hands of individual 

 citizens " of the county was exempt from taxa- 

 tion. The case went on demurrer to the Su- 

 preme Court of Pennsylvania, which upheld 

 the levy and dismissed the suit. An appeal 

 was then taken to the United States Supreme 

 Court, which held the taxation illegal and void. 

 The Pennsylvania Supreme Court based its 

 decision chiefly on the opinion of the Federal 

 Supreme Court in the case of Hepburn vs. 

 School Directors, reported in 23 Wallace, 410. 

 " That case, 1 ' the latter tribunal now says, " is 

 authority for the proposition that a partial 

 exemption by a State, for local purposes, of 

 moneyed capital in the hands of individual 

 citizens, does not, of itself, and without refer- 

 ence to the aggregate amount of moneyed 

 capital not so exempted, establish the right 

 to a similar exemption in favor of national- 

 bank shares held by persons within the same 

 jurisdiction. But it is by no means an au- 

 thority for the broad proposition that national- 

 bank shares may be subjected to local taxation, 

 where a very material part relatively of other 

 moneyed capital in the hands of individual citi- 

 zens, within the same jurisdiction or taxing 



i district, is exempt from such taxation. Indeed, 

 such an interpretation of the statutes might 

 entirely defeat the purpose that induced Con- 

 gress to confine State taxation of national-bank 

 shares within the limit of equality with other 

 moneyed capital, for it would enable the States 

 to impose upon capital invested in such shares 

 materially greater burdens than those to which 

 other moneyed capital in individual hands is 

 subjected." The Court then reviewed its re- 

 cent decisions on this subject, and deduced 

 from them the following: 



*' (1) That the words ' at a greater rate than 

 is assessed upon other moneyed capital in the 

 hands of individual citizens ' refer to the entire 

 process of assessment, which, in the case of 

 national-bank shares, includes both their valu- 

 ation and the rate of percentage on such valu- 

 ation ; consequently, that the act of Congress 

 is violated if, in connection with a fixed per- 

 centage applicable to the valuation alike of na- 

 tional-bank shares and of other moneyed in- 

 vestments or capital, the State law establishes 

 or permits a mode of assessment by which 

 such shares are valued higher in proportion to 

 their real value than is other moneyed capital. 

 "(2) That a State law which permits indi- 

 vidual citizens to deduct their just debts from 

 the valuation of their personal property of ev- 

 ery kind, other than national-bank shares, or 

 which permits the tax-payer to deduct from 

 the sum of his credits money at interest or 

 other demands *to the extent of his lona 



fide indebtedness, leaving the remainder to be 

 taxed, while it derives the same right of de- 

 duction from the cash value of bank-shares, 

 operates to tax the latter at a greater rate than 

 other moneyed capital. 



"These decisions show that in whatever 

 form the question has arisen, this Court has 

 steadily kept in view the intention of Con- 

 gress not to permit any substantial discrimina- 

 tion in favor of moneyed capital in the hands 

 of individual citizens as against capital invested 

 in the shares of national banks." 



The act of Congress does not fix a definite 

 limit as to percentage of value beyond which, 

 the States may not tax national-bank shares. 

 The Supreme Court admits that "exact uni- 

 formity or equality of taxation can not, in the 

 nature of things, be expected or attained un- 

 der any system." It concedes that there may 

 be a partial exemption of other moneyed capi- 

 tal without conflicting with the act of Con- 

 gress. What the law requires is substantial 

 equality; what it prohibits is discrimination 

 to a material extent against national - bank 

 shares. Whether in any given case the dis- 

 crimination is sufficiently great to make the tax- 

 ation illegal, is a question to be determined by 

 the courts. "Cases will arise," says the Court, 

 "in which it will be difficult to determine 

 whether the exemption of a particular part ot 

 moneyed capital in individual hands is so se- 

 rious or material as to infringe the rule of sub- 

 stantial equality. But when the inequality is 

 so palpable as to show that the discrimination 

 against capital invested in national-bank shares 

 is serious, the courts have no discretion but to 

 interfere." 



NEBRASKA. State GoYernmcnt. The follow- 

 ing were the State officers during the year: 

 James W. Dawes, Republican, Governor ; H. 

 H. Shedd, Lieutenant-Governor; E. P. Rog- 

 gen. Secretary of State ; Charles H. Willard, 

 Treasurer ; H. A. Babcock, Auditor of Public 

 Accounts ; Joseph Scott, Commissioner of Pub- 

 lic Lands and Buildings; William Lees, At- 

 torney-General ; W. W. W. Jones, Superintend- 

 ent of Public instruction. Supreme Court: 

 Chief- Justice, Amasa Cobb; Associate Jus- 

 tices, Samuel Maxwell and M. B. Reese. 



Legislative Session. The Legislature met on 

 the 6th of January and adjourned early in 

 March. Among the results of the session were 

 the following acts: 



To protect bee-husbandry from foul brood and 

 other infectious and contagious diseases. 



Concerning the cure of and to prevent the spread of 

 contagious and infectious diseases among domestic 

 animals ; to provide for the appointment of a live- 

 stock sanitary commission, and State veterinary sur- 

 geon. 



To prevent the spread of hog-cholera and other ki 

 dred diseases, and to prevent traffic in animals dying 

 from infectious or other diseases. 



To provide for taking a census. 



To prevent the fraudulent removal out of the county 

 of mortgaged personal property. 



To provide for viaducts, bridges, and tunnels m 

 certain cases in cities of the first class. 



