Rosenblatt v. Johnston

The personal property of an insolvent national hank in the hands of a receiver appointed pursuant to sect. 5234 of the Revised Statutes is exempt from taxation under State laws.

- Appeal from the Circuit Court of the United States for the' Eastern District of Missouri. This is a bill in equity, filed Sept. 80, 1880, by Rosenblatt, collector'of the city of St. Louis, against Johnston, receiver'of the National Bank of the State of Missouri. The bank was duly incorporated pursuant to the act of Congress of June 3, 1864, c. 106 (13 Stat. p. 99), and the acts amendatory thereof, and had its situs in that city. It suspended payment June 9, 1877. Shortly thereafter Johnston was, -by the Comptroller of the Currency, ‘appointed such receiver. He then took possession of its assets, and disposed of them in the settlement of its liabilities. The bill avers that while in his hands the assets were subject to taxation under the laws of that State for the support of the State government, the government of the city, and the public schools, in like manner and to the same extent and effect as all other taxable -personal property in the city during the same period; that the assessment of taxes for the years 1877 and 1878 was duly made; that the fund in his hands is sufficient to pay them ; and that the shares of the bank since his appointment have been absolutely worthless. It prays for an order upon him to pay the taxes out of that fund, and for general relief. The court sustained a demurrer to the bill, and Rosenblatt appealed.