People v. National Gold Bank of D. O. Mills & Co.

concurring:

It appears that the bank is incorporated, having a capital of $300,000, its entire capital stock, all duly issued and in the hands of shareholders, consisting of 3,000 shares of the par value of $100 per share.. That the bank, under the circumstances, is not the owner of the issued capital stock is plain, and there is no pretense that it had the possession, charge or control of the stock. An assessment to the bank of the capital stock under such circumstances is not authorized by the revenue act of 1861.

I therefore concur that the judgment be reversed and cause remanded with directions to render judgment for the defendant.

Action to recover delinquent taxes assessed by the city assessor of the city of Sacramento. The act of April 25, 1863, to incorporate said city requires the taxes to be levied and collected in accordance with the general revenue act of May 17, 1861. The finding shows that the defendant was assessed as follows: “Capital stock $300,0C0, and solvent debts secured by mortgage or otherwise, $6,000.” It is further found that the capital of the defendant is $300,000, all of which was and is invested in United States bonds; that its capital stock is $300,000 divided into shares of $100 each; that such shares are owned by persons other than the *510 defendant, and that the defendant is not interested therein.

It is provided by the act of Congress, under which the defendant was organized, that the capital of the bank, which is invested in United States bonds, shall not be subject to taxation. The defendant can be held liable for the taxes in this case only on the theory that a corporation is liable, under the provisions of the revenue act of 1861, for taxes assessed upon its capital stock—that is to say, the “capital stock ” regarded as the aggregate of the stock issued by the corporation.…