James Moore Wayne

“ But whether the bonus for the franchise is paid by an annual tax upon the capital stock, or in any other way, it is in the discretion of the legislature to tax the capital stock as an aggregate, according to its actual value, or the stockholders on account of their separate ownership of it, or the dividends in the aggregate, or the stockholders on account of their portions of them. ”

“ Though the legislature thought the construction of the roads and paying the school-fund tax were no more than an adequate price for an extended franchise, it is very certain that the stockholders may have thought, that the incorporation of the banks into turnpike companies, with an obligation upon them to withdraw so much money from their business operations as was sufficient to finish the roads, presented only a contingent possibility that they could be remunerated by tolls from the roads. ”

“ The name is only the legislative baptism of the stockholders. Natural persons are the substratum of the corporation; they receive all its benefits. They pay the taxes, and yet we are told, that a contract for the benefit of the corporation does not reach them. They were the persons who accepted the law in a general meeting, and not the bank, acting as a corporation. What is the difference between taxing them in the gross and taxing them individually?
As to the case of Cheston. He is a stockholder of the Farmers' and Planters' Bank, one of what are called the new banks, chartered in 1836. ”

“ This is not only the case in Maryland. A franchise for banking is in every state of the union recognized as property. The banking capital attached to the franchise is another property, owned in its parts by persons, corporate or natural, for which they are liable to be taxed, as they are for all other property, for the support of government. ”

“ That the plaintiff in error was entitled to no immunity from taxation upon his shares of stock in said Farmers' and Planters' Bank of Baltimore, either under the acts of Assembly, herein before mentioned, or under the act of 1835, chap. 142.
Mr. Steele said, the Appeal Tax Court is the nominal defendant only; the real one is the state of Maryland. The act of 1841, chap. 33, is a general tax upon all property; not on banks alone, but every species of property. The Court of Appeals decided that it did not conflict with the act of 1821. ”

“ That they designed to accomplish those objects by making some of the banks construct the roads, and all of them contributors to the school fund, as the price for their charters. A round sum, or an annual charge, with or without reference to capital stock, may be asked by a legislature for such a franchise. It may be more convenient to the banks to have such a consideration or bonus distributed through the years of their corporate existence, than to pay its equivalent in advance. ”

“ Such a rule is necessary to protect the community from improvident legislation. Another rule is, that where there are two constructions, that one is adopted which will produce the least injury. It has been said that our construction, exempting franchises only, renders the whole nugatory, because the franchises would have been safe from taxation without such exemption. But not so. Being the creatures of law, they are peculiarly appropriate for the taxing power. ”

“ Then, there is the word 'further,' which refers to something which has been done before and additional. The other side wish to limit the meaning to an addition of the same nature; but no dictionary or example can be found to justify this restriction. ”