Rufus Wheeler Peckham

“ In levying the charter tax it was conceded that the tax has always been measured by the par value of the shares of stock, while the actual value of such shares, because of the large surplus owned by the bank may have been very much greater, and the statute under which the surplus is taxed provides that such surplus must not be considered in the assessment upon the stock; so that provision is made whereby a tax upon the surplus and the charter tax upon the shares of stock will neither be double nor unjust taxation. ”

“ We are not inclined, therefore, to overrule or distinguish the Farrington Case, and we must now hold that the charter clause of exemption limits the amount of tax on each share of stock in the hands of the shareholder, and that any subsequent revenue law of the state which imposes an additional tax on such shares in the hands of shareholders impairs the obligation of the contract and is void. ”

“ These cases show the principle upon which is founded the rule that a claim for exemption from taxation must be clearly made out. Taxes being the sole means by which sovereignties can maintain their existence, any claim on the part of any one to be exempt from the full payment of his share of taxes on any portion of his property must on that account be clearly defined and founded upon plain language. There must be no doubt or ambiguity in the language used upon which the claim to the exemption is founded. It has been said that a well-founded doubt is fatal to the claim ”

“ It is true that dividends cannot rightfully be made until profits have accumulated; but it is one thing to accumulate profits each six months, or annually, and then divide them among the stockholders by way of dividends, and quite another thing to accumulate profits year after year, and, while still declaring dividends, accumulate a surplus which is not so divided. The sums accumulated by way of profit between the regularly recurring dividend days might not be regarded as surplus, provided those profits were regularly distributed in dividends. ”

“ Justice Swayne, in delivering the opinion of the court, enumerated many objects liable to be taxed other than the capital stock of a corporation, and among them he instanced (1) the franchise to be a corporation; (2) the accumulated earnings; (3) profits and dividends; (4) real estate belonging to the corporation, and necessary for its business ”

“ New Orleans City & L. R. Co. v. New Orleans, 143 U.S. 192, 195, 12 Sup. Ct. 406; Railroad Co. v. Dennis, 116 U.S. 655, 6 Sup. Ct. 625, and many cases there cited; Farrington v. Tennessee, 95 U.S. 679, 686; West Wisconsin Ry. Co. v. ”