Charles Evans Hughes

“ When we are dealing with the intangible interest of the shareholder, there is manifestly no question of physical situs, so far as this distinct property right is concerned, and the jurisdiction to tax it is not dependent upon the location of the lands and chattels of the corporation.
The argument, necessarily, is that shares are to be deemed to be taxable solely in the state of incorporation. It is urged that these rights rest in franchise, and that the principle of the decision in Louisville & J. Ferry Co. ”

“ Kentucky, supra, holding that a ferry franchise granted by Indiana to a Kentucky corporation was not taxable in Kentucky, is applicable to shares of stock. But that case went upon the ground that the franchise was an incorporeal hereditament, and hence had its legal situs in Indiana, id. p. 398. Shares fall within a different category. While the shareholder's rights are those of a member of the corporation entitled to have the corporate enterprise conducted in accordance with its charter, they are still in the nature of contract rights or choses in action. ”

“ As such, in the absence of legislation prescribing a different rule, they are appropriately related to the person of the owner, and, being held by him at his domicil, constitute property with respect to which he is under obligation to contribute to the support of the government whose protection he enjoys. ”