*1846.

No. 15.

REPORT of the Committee on Incorporations.

The committee on incorporations, to whom was referred a resolution instructing them to inquire into and report upon any alleged violations of its charter by the Oakland county Bank, have had the same under consideration, and after such examination, as the powers vested in your committee have enabled them to make, beg leave to report:

That the Bank of Oakland was chartered by an act of incorporation approved March 28th, A. D., 1836. In the 22d section of this act, it is provided, "that said bank shall pay to the state treasurer of the state, for the use of the state, one half of one per cent. per annum on the amount of capital stock paid in, in semi-annual payments, on the 2d Monday of January, and 2d Monday of July, in each and every year."

In the revised statutes, which were adopted some two years after this charter was granted, it was provided in chapter 8, title 5, part 1st, page 102, in section 1, as follows:

"Every Bank which is now incorporated within this state, or which may hereafter be incorporated under the authority of this state, shall pay a yearly tax to the state, of one half of one per cent on the amount of the capital stock actually paid in, which tax shall be paid to the treasurer of the state as follows: One half the amount of such tax, on or before the first Monday in April, and the other half, on or before the first Monday in October, in each year."

In section 3 of the same chapter, it is provided, that, "if any Bank shall neglect to make such payment, the state treasurer shall forthwith commence an action of debt, in the name of the people of this state, for the recovery of the same, with interest and costs."

In an act passed last winter, in relation to taxing banks, it was provided "that the specific state tax of one half of one per cent. on the capital stock of all Banks within the state, provided for in chapter * eight of the revised statutes, shall be deemed and construed to be in

REPORT of the Committee on Incorporations.

The committee on incorporations, to whom was referred a resolution instructing them to inquire into and report upon any alleged violations of its charter by the Oakland county Bank, have had the same under consideration, and after such examination, as the powers vested in your committee have enabled them to make, beg leave to report:

That the Bank of Oakland was chartered by an act of incorporation approved March 28th, A. D., 1836. In the 22d section of this act, it is provided, "that said bank shall pay to the state treasurer of the state, for the use of the state, one half of one per cent. per annum on the amount of capital stock paid in, in semi-annual payments, on the 2d Monday of January, and 2d Monday of July, in each and every year."

In the revised statutes, which were adopted some two years after this charter was granted, it was provided in chapter 8, title 5, part 1st, page 102, in section 1, as follows:

"Every Bank which is now incorporated within this state, or which may hereafter be incorporated under the authority of this state, shall pay a yearly tax to the state, of one half of one per cent on the amount of the capital stock actually paid in, which tax shall be paid to the treasurer of the state as follows: One half the amount of such tax, on or before the first Monday in April, and the other half, on or before the first Monday in October, in each year.

In section 3 of the same chapter, it is provided, that, "if any Bank shall neglect to make such payment, the state treasurer shall forthwith commence an action of debt, in the name of the people of this state, for the recovery of the same, with interest and costs."

In an act passed last winter, in relation to taxing banks, it was provided "that the specific state tax of one half of one per cent. on the capital stock of all Banks within the state, provided for in chapter eight of the revised statutes, shall be deemed and construed to be in

lieu of any like tax imposed by the charter of any Banks incorporated prior to the taking effect of said revised statutes, and in lieu of all other taxes imposed on the capital stock of any Bank within the state, for state purposes."

In view of the several provisions referred to by your committee, they offered a resolution which passed the Senate, calling upon the Auditor General for information on the subject of the tax, to which reference has been made, which elicited the following communication:

SIR: I have the honor to acknowledge the receipt of the following resolution, this day passed by the Senate:

"Resolved, That the Auditor General be, and he is hereby requested, to report at his earliest convenience, the name of any bank, or banks in this state which have neglected or refused to pay the specific tax due to the state; the number of payments, and the amounts due, from such bank or banks."

In reply to the above resolution, I would beg leave respectfully to state, that of the five banks now in existence in this state, two only have ever paid any specific tax to the state treasury, viz: the Oakland County Bank and the Michigan Insurance Company. Since the revival of the former institution, it paid in February, 1843, one hundred dollars, intended, it is presumed, for the tax due under its charter in July, 1842, and January, 1843;-the next payment from said bank was in March, 1845, intended for two years' tax, or for the specific state tax due under its charter in July, 1843, in January and July, 1844, and January, 1845, being two hundred and fifty dollars; and since the meeting of the present Legislature, the above bank has paid one hundred and twenty-five dollars, intended for the specific tax due in July, 1845, and January, 1846. The amount of capital on which this bank has paid for the last three years, the specific tax due under its charter of one half of one per cent. per annum, is twenty-five thousand dollars. This is the only bank now in operation, which is required by its charter, to pay a specific state

tax.

The Michigan Insurance Company, on the 20th of December last,

paid three hundred dollars, as a specific tax, due under Act No. 105, Laws of 1845, being one half of one per cent., or one year's tax under said act, on a capital of sixty thousand dollars.

The Farmers' and Mechanics' Bank, the Bank of River Raisin, and the Michigan State Bank, the other three Banks doing, or purporting to do, a banking business in this state, have never paid, as appears from the books of this office, any specific tax whatever.

As I have no official knowledge of the amount of capital of either of said banks, on which a tax of one half of one per cent. per annum would be due under the revised statutes, or under the act of last winter-and, as there are no data in this office, from which to ascertain the length of time each of them may have suspended operations, or from how much specific state tax they would be released under the act of last winter,-I cannot state the number of payments nor the several amounts due from any or all of said banks.

I have the honor to be,

Yours, most respectfully,

JOHN J. ADAM,

Auditor General.

By this communication, it appears that the Oakland County Bank has paid into the Auditor General's office, all the specific state tax due from said bank to the state up to, and including the 18th of Janu ary last.

The attention of the Senate having been called to the subject of the specific tax due from this bank to the state by the annual report of the Auditor General, your committee have deemed it within the scope of their duties, to enquire of the agents and owners of the bank, as to the cause of the omission to pay the tax required by the provisions of their charter.

In the prosecution of this enquiry, your committee were informed that the omission was occasioned by the impression and belief of the agents of the bank, that the payment of the tax would be demanded at the counter of the bank, in the same manner that all other taxes are collected, and in accordance with the long and well established usage in banks, of making all payments in that manner.

This, your committee esteem a sufficient excuse for the omission of the bank to pay the tax imposed by the statute, or reserved by the