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Edwardsville, Madison County, Illinois
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In Chillicothe, Ohio, on September 22, state officials levied a $100,000 tax on the local branch of the United States Bank under a new Ohio law, despite the bank's attempt to obtain an injunction, which was not properly served.
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CHILLICOTHE, SEPT. 22.
By virtue of a warrant issued by the Auditor of state, agreeably to the provisions of an act passed by the legislature of the state of Ohio, at their last session, entitled, "An act to levy and collect a tax from all banks and individuals, and companies and associations of individuals, that may transact banking business within this state, without being authorized to do so by the laws thereof," Mr. John L. Harper, (to whom the warrant was directed) accompanied by Mr. Thomas Orr and Mr. James M'Collister, entered the Branch of the United States Bank at this place, on Friday last, and levied on the specie and bank paper in that institution, to the amount of one hundred thousand dollars, which is the tax assessed on the offices of discount and deposite of the Bank of the United States, located in this state.
As this transaction may receive from rumor a coloring, and from prejudice, misrepresentation; a brief statement of the facts may be useful in allaying any improper feelings which may have been excited. The Auditor of state, feeling himself bound by the law to execute the duty imposed on him, made known his determination to one or two individuals. Subsequent to this, he received a citation to appear before the Circuit Court, on Tuesday the 14th instant, as at that time, a motion would be made by the Bank of the United States to enjoin his proceedings under the law of the state. This citation was enclosed by him to a gentleman of the bar, with a request to him to appear for the state if he should deem it correct. On Tuesday, the petition of the Bank of the United States was heard by the counsel or solicitors for that institution: the state refused to appear, denying the jurisdiction. The court, after a short deliberation, allowed the injunction, on bonds with security to the amount of $100,000, being given by the bank. This was entered into.
In the mean time, or rather previously to the application in court or an injunction, the Auditor had been instructed by his counsel to charge the tax, and issue his warrant, and deliver it to the officer, unless he should be restrained by the injunction. On Tuesday afternoon, the agent of the bank started to Columbus to stay the proceedings of the Auditor; but unfortunately for the bank and the whole community, the counsel had forgotten to have a writ of injunction issued to stay the proceedings. The papers served on the Auditor were a copy of the petition, and a subpœna to appear before the circuit court of the United States, on the first Monday of January next, at Chillicothe. Previous to the service of these papers, the Auditor had charged the tax and made out his warrant. On the service of these papers, he enclosed them, together with the warrant, to the Secretary of state then here, requesting him to obtain the written opinions of four or five lawyers on the subject, whether the papers amounted to a notice of an injunction, or operated as an injunction. If they did, to re-enclose to him the warrant and papers, as he would not act in contradiction of that authority; but if, in the opinion of these lawyers, it did not amount to an injunction, then to deliver the warrant to the proper agent, and order him to proceed. On consultation and mature deliberation, the lawyers unanimously gave their opinion, that the papers amounted to nothing like a writ of injunction, and that he could not be in contempt for acting in contradiction of them. The warrant was then delivered to the officer, with instructions to enter the banking house, demand the payment of the tax, show his warrant, and on refusal to pay, to enter the vault and levy on specie and notes to the amount of the tax: to use no violence himself; and if opposed by force, to proceed until expelled from the banking-house, and then to complain before a proper authority of the resistance offered. The officer entered, made the demand, showed his warrant, secured the entrance to the vault, and, on refusal to pay, entered the vault himself and levied the amount of the tax with a small overplus, to correct any mistake which might have been made in counting; which overplus he has offered to refund, but he has been refused admittance in the banking-house. He used no force or violence, but conducted himself in an orderly, but determined manner. The money has since been conveyed to Columbus, and deposited in the Treasury. Supporter.
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Domestic News Details
Primary Location
Chillicothe
Event Date
Sept. 22
Key Persons
Outcome
tax of one hundred thousand dollars levied on specie and bank paper; money conveyed to columbus and deposited in the treasury; overplus offered for refund but refused.
Event Details
State officials entered the Branch of the United States Bank and levied the tax assessed under Ohio law, following legal proceedings where the bank's injunction was allowed but not properly issued to restrain the Auditor.