Minnesota v. First National Bank of St. Paul
273 U.S. 561 (1927)

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U.S. Supreme Court

Minnesota v. First National Bank of St. Paul, 273 U.S. 561 (1927)

Minnesota v. First National Bank of St. Paul

No. 245

Argued December 13, 1926

Decided March 21, 1927

273 U.S. 561

Syllabus

1. The taxation of national bank shares, authorized by Rev.Stats. § 5219, is against the holders of the shares ,and is to be measured by the value of the shares, and not by the assets of the bank without deducting its liabilities. P. 273 U. S. 564.

2. A tax on national bank shares at a greater rate than that imposed on competing credits in the hands of individuals cannot be sustained upon the ground that the discrimination is removed in practice by deducting liabilities of the bank from its assets in valuing its shares, while allowing no deduction of their liabilities to individuals in valuing their credits. P. 273 U. S. 564.

3. The shares of corporations employing capital in the note brokerage business or in buying and selling securities are "moneyed capital in the hands of individual citizens" (R.S. § 5219), i.e., the individuals holding the shares. P. 273 U. S. 566.

4. The competition guarded against by § 5219 may arise from the employment of capital invested in a business, even though the competition be with some but not all phases of the business of national banks, or it may arise from the employment of capital invested by institutions or individuals in particular operations or investments like those of national banks. P. 273 U. S. 566.

5. The evidence sustains a finding by the state court that moneyed capital in the hands of individuals was in competition with the business of national banks, including the plaintiff. P. 273 U. S. 567.

Page 273 U. S. 562

6. Surplus capital of individuals seeking investment and reinvestment in bonds, mortgages, and other evidences of indebtedness in competition with the capital of national banks is moneyed capital coming into competition with the business of national banks within the meaning of Rev.Stats. § 5219. P. 273 U. S. 568.

164 Minn. 550 affirmed.

Certiorari (269 U.S. 550) to a judgment of the Supreme Court of Minnesota which affirmed a judgment for the bank in an action brought against it by the state to recover taxes assessed against its shareholders.

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