Tax Cases Under the Act of March, 1841, chap. 23

The State has the power to exempt from taxation particular items of property, to the extent proposed in the act of March, 1841, chap. 23; as also in the charters of the Baltimore and Susquehanna Rail Road Company, act of 1827, chap. 172, sec. 20, and tlie Philadelphia, ’Wilmington and Baltimore Rail Road Company, act of 1831, chap. 296, sec, 19. The 7th and 11th sections of the act of 1821, chap. 131, are to be regarded as securing the banks from further tax or charge for their franchise or banking privilege, but not as exempting the property belonging to such banks, or the shares of stock therein held by individuals, from taxation. The property of a bank being represented by the shares of stock therein, both cannot be taxed; and therefore, when the tax is imposed on the stock in the hands of share holders, the property of the bank, real or personal, cannot also be taxed. Thp stock of the banks in Baltimore in the hands of share holders was rightfully taxed, but the appeal tax court erred in taxing the real and personal property of the same banks. The banks in the city of Baltimore, incorporated before and after the year 1821, are in the same condition, as to the exemption of the banking privilege from taxation — at all events, the act of 1835, chap. 142, must have relieved the case of all doubt as to the banks claiming under that law. Non residents of the State are liable to the tax in respect of stock held in the banks of this State, as well as residents here. It also results, that as the stock is the representative of the property of a company, the exemption of the one must be considered as the exemption of both, unless the exemption be made on the ground of selection, to show which is intended to be taxed to the exclusion of the other. In the case of The Baltimore and Susquehanna Rail Road Company, act of 1827, chap. 72, sec. 20, the stock is expressly exempted, and the whole object would be defeated by taxing the property ; the mortgage executed to the State, cannot exempt the property mortgaged from taxation in the hands of the company mortgagor. In the case of the Philadelphia, Wilmington and Baltimore Rail Road Company, the Legislature, by the same act (1831, chap. 296, sec. 19,) which exempts the stock, reserves the right to tax the fixed and permanent works of the company, the tax on the property thus excepted from the exemption is proper on the ground of selection. The tax in that case has been imposed according to the exception; the bed of the road, the rails, buildings and steam boat being within it; the principle of valuation adopted is proper; taxing the buildings, steam boats and rails, as of the value they bear, irrespective of their being portions of a rail road, and taxing the land as land, and not as of increased value by reason of its being used as a rail road. The charitable and literary institutions excepted in the act of 1841, are properly considered as exempted. The oxemption of the act of March, 1841, chap. 23, also protects from taxaation all “houses of public worship and burying grounds,” but not bank stock or other property held by or in trust for religious institutions, whether incorporated or otherwise. Shares in the hands of stockholders in the Insurance Companies being taxed, the stock held by the companies as part of their property cannot also be taxed. A bank, as in the case of The Farmers and Merchants Bank of Baltimore, being the holder of its capital stock, is not liable to be taxed thereupon. A mortgage in the hands of the mortgagee is liable to be taxed as an item of his property — though all his other property, apart of which was mortgaged) is also taxed, and he cannot claim to deduct the sum he owes, from the sum due to him on mortgage. A literary institution whose property is exempt from taxation, confessing a judgment to enable the plaintiff in the judgment to borrow money for it, doss not exempt such judgment in the hands of such plaintiff from being taxed. Protection to the institution, does not protect those who deal with it.

Appeals in the tax causes under the act of March session, 1841, ch. 23, By the act of 1841, chap. 23, an act for the general valua - tion and assessment of property in this State, and to provide a tax to pay the debts of the State. It was enacted by the first section, “that all real and personal property in this State, all chattels real and personal, all goods, wares and merchandizes, and other stock in trade at home, or not permanently located elsewhere; the interest or proportion in all ships and other vessels, whether in or out of port owned by persons resident of this State; all debts secured by or due on judgment, decree, mortgage bond, bill of exchange, promissory note from insolvent debtors, (except debts due for goods sold and delivered after the passage of this act, and bank notes,) all stocks or shares owned by residents of this State in any bank, institution or company incorporated in other State or territory; all debts due to residents of this State by solvent debtors residing out of this State, except debts due for goods sold and delivered after the passage of this act; all investments in securities or stocks of other States, made or held by residents of this State; all public loans and stocks whatsoever (except those created or issued by the United Stales,) owned or held by residents of this State; all stocks or shares in any bank, institution or company incorporated by this State, and all other property of every description whatsoever, shall be valued agreeably to the directions of this act, and shall be chargeable according to such valuation with the public assessment; Provided, that nothing herein contained, shall be construed to authorize the assessment of any tax upon— 1. Property belonging to the United States, to this State, or to any county or city in this State. 2. Nor to any incorporated, literary or charitable institution, nor county schools. 3. Nor houses for public worship or burying grounds. 4. Nor the crop and produce of lands in the hands of the producer, or his, her, or their agent. 5. Nor provisions for the use and consumption of the person to whom the same shall belong, or his or'her family. 6. Nor plantation utensils. Nor the working tools of mechanics and manufacturers, moved or worked by hand, and the produce of their respective occupations whilst in their possession, or' the possession of their agents. 8. Nor wearing apparel.’ 9’. Nor fish, at the time fishermen may bé employed in catching, salting and packing the same, or while they remain in their possession, or that of their agents, Unsold. 10. Nor to household manufacture's. 11. ; Nor judgments, bonds, mortgages, promissory notes or other securities, belonging to any bank or other incorporated institution, the capital stock whereof is made subject tó' taxation by the provisions of this' act. 12. Nor to any goods, wares, merchandizes or other property belonging to persons not residents' of this State, in the hands of factors in this State, for sale. ' By the 33rd section of this act, it was declared, that upon the argument of any appeal under this act, “neither party shall be permitted to discuss any point involving merely a question of value or of regularity, or any other question of fact merely which may appear to have been acted on by the levy court, commissioners or appeal tax court, as the case may be; but the proper subject matter of such appeal, shall be' the right of the General Assembly to subject to valuation and assessment for the support of government, property which is hereby made subject thereto, and the right of the General Assembly to exempt from valuation and assessment, property which is hereby exempted, and to make such provision for such -valuation', assessment and exemption as is herein prescribed, and the conformity or otherwise of valuation, decision or other proceeding objected against, with the provisions of this act.” Under this act, the appeal tax court of the city of Baltimore proceeded to value and assess the capital stock of the Union Bank of Maryland, and also to value and assess its real property in this State, including the banking house of the said bank, and also its furniture and fixtures in the banking house. This bank held as proprietor, various houses and lots other than its banking house. It appeared from the record, that the stock of the said bank belonged in part to various persons not residents of the State of Maryland, but residents of other parts of the United States, and of foreign countries. That another portion of said stock belonged to various citizens of this State, and to certain incorporated literary and charitable institutions, viz: the Baltimore Female Orphan Asylum; the Benevolent Society of Baltimore; the Marine Charitable Society ; the Medical and Chirurgical Faculty of Maryland; the Baltimore General Dispensary, and the Saint Andrew’s Society. From such assessments all the stockholders respectively, and the said Union Bank of Maryland, appealed to this court. It also appeared, that certain stock held by the Baltimore Insurance Company, in the Mechanics Bank of Baltimore; in the Chesapeake Bank; in the Union Bank of Maryland ; in the Merchants Bank of Baltimore : That certain stock held by the Baltimore Fire Insurance Company, in the Mechanics Bank of Baltimore ; in the Farmers and Merchants Bank; in the Bank of Baltimore ; in the Union Bank of Maryland; in the Merchants’ Bank, and in the Farmers and Planters Bank: That certain stock held by the Chesapeake Bank of Baltimore, in the Mechanics Bank of Baltimore; in the Bank of Baltimore; and the Citizens Bank of Maryland; and in the Commercial and Farmers Bank of Maryland; in the Union Bank of Maryland; in the Merchants Bank : That certain stock held by the Firemens Insurance Company. The Maryland Insurance Company. The Merchants Fire Insurance Company, The Neptune Insurance Company, The Patapsco Bank of Maryland. The American Insurance Company. The Farmers and Planters Bank. The Farmers and Merchants Bank. The General Insurance Company, The Maryland Insurance Company. The Merchants Bank of Baltimore. The Baltimore and Susquehanna Rail Road Company. The Neptune Insurance Company, The Powhattan Manufacturing Company. The Western Bank. The Baltimore Life Insurance Company. The Union Insurance Company, and The American Life Insurance Company. In the Mechanics Bank of Baltimore; the Farmers and Merchants Bank; the Marine Bank; the Chesapeake Bank; the Bank of Baltimore ; the Citizens • Bank of Baltimore; the Commercial and Farmers Bank; the Franklin Bank of Baltimore; the Union Bank of Maryland; the Merchants Bank; the Western Bank, and the Farmers and Planters Bank. The Farmers and Merchants Bank being holders of 1711 shares of its own stock : Was valued and refused to be taxed by the appeal tax court aforesaid, and from which refusal, the State in the name of the said court, appealed to this court. It further appeared by the record in these causes, that Georgs M. Gill was assessed upon mortgages (an account of which he had rendered,) to amount of $7,000, from which he claimed to be exempt, from taxation, because he owed a larger sum on mortgage, and that under the bill of rights he could only be taxed upon his actual worth, while in fact he was taxed upon all his real and personal property, including mortgages to him, without deduction for the sum due by him on mortgage, and from which he appealed to this court. It also appeared from the same records, that Charles F. Mayer was assessed on debts due to him secured by mortgage of real property, and on bank stocks held by him, he contending that his mortgage claim was not taxable, the mortgagor being in respect of the mortgaged estate alone taxable. From this judgment of the appeal tax court of the city of Baltimore, he appealed to this court. It also appeared as aforesaid, that the Washington College was assessed, on the college lot, buildings, and furniture, and that Dr. Samuel 1L Jennings, who had a judgment against the said college, was also assessed. It was admitted that Dr. Jennings had advanced for the erection and furniture of the college about eleven thousand dollars, and to enable him to borrow money on the property of the institution, the professors of the college confessed the judgment to him, and he contended that the property being taxed, is as much, as in justice ought to be claimed, the judgment and the property on which it is dependent being identical. From this judgment the college and Dr. Jennings both appealed. It also appeared as aforesaid, that the Savings Bank of Baltimore was in possession of certain bank stocks and other securities, viz : stocks in banks incorporated by this State, turnpike road stock and mortgages, which were assessed— the Savings Bank appealed. It further appeared, that Daniel Atler and various other stockholders of the American Life Insurance and Trust Company, (an institution incorporated by the State of Maryland,) not residents in Maryland, were assessed upon their capital .stock therein, from which they severally appealed. It also appeared, that the Philadelphia, Wilmington and 'Baltimore Rail Road Company, were assessed by the commissioners of Harford county, viz : To the several parcels or tracts of land held and occupied by the said company from the Gunpowder Falls to the Susquehanna river, containing together 200 acres, valued at $2,000. To the houses and other improvements on the road, and at Havre de Grace, valued at $15,000. 1 The rail road track within the limits of Harford county, valued at $95,000. The steam ferry boat at Havre de Grace, valued at $15,000; in all $127,000, on which the tax was levied under the act of 1841. The company appealed from said decision. The resident and non-resident stockholders of the Farmers and Merchants Bank of Baltimore, and the said bank as in the case of the Union Bank of Maryland, were assessed, and appealed from the same to this court. Similar appeals were taken by all the stockholders in the cases of The Mechanics Bank of Baltimore. The Bank of Baltimore. The Marine Bank of Baltimore. The Commercial and Farmers Bank of Baltimore. The Citizens Bank of Baltimore. The Merchants Bank of Baltimore. The Farmers and Planters Bank of Baltimore. The Western Bank, and The Chesapeake Bank; to this court.