OFFICE OF THE AlTORNEY GENERAL OF TEXAS
AUSTIN
Honorable mory H. Spenosr
County Attorney
Aransaa County
Rockport, Texas
Dear sir:
, 8ddr4aaed to
tter to r4-
or the saa An-
ang in Aransaa County
0r ~4~4, snd 8pe~iii04ilJ
the ElanAntonlo LOsn arul
d 8 lax-4 amount of real es-
ounty, Tabs, and they dB0
oottle vhl4h we19 p4xmwmntly
these Aratmr8 Cmnt~ lapdr, it
being the oustom of the San Antonio Lmn and
Trust canpany to retain thla hard in Arumcu
(Xmnky and to ship the lnor4a44 to their pro-
p4rt14s in m00k6 c0uatr for wupbg. 3m-
ing such years, lncrludlngthe yeou 1936, the
a
Honorable Emory la.Spsnaer, Pew 2
San ANonlo Loan and Tntat Cam- disposed
of all of Itr r4al e4tate alt\uted b Aran-
4aa County, T0m4, to th4 FoCeral govenment
for a game and Wild vater fowl r6mlgB. but
retained J.traattle in tald county, aa a
matter of fsat 076the 84m4 lands, having
leaa4d th4 84~14fQP $rBSiIIgp~rpOa4l from th4
P6dersl ~ov4rment, and therorftw mtiaed to
render said osttle for taxation, t&a th4
poaItlon auatain4d by your plwvIou4 oplnlon
in this ratter. A~anaas Countyhaa aontinued
to as8484 these osttle for taxation for th4
year4 1937 lo 1941, lnoluaIv4,and the tot41
amount of taxes dua on these aasesamentaat
the gm4ent tiae is rpproxiaokely )3,300.00,
"Upon the publloatlon OS your 0~191on
Ho. O-4202 the CcPiBBiOWPS’ Court of Aran-
naa County nqueat4d NV. Hobart Huaon, an
attommy OS Refuglo, Texa4, to make further
fav4st%g8tlcmof tbs feats uonaeming tk4
aotual oheraoter or the 34n Antonio Loan 4ml
Tm4t Capany, 4nd 4ap4al*llyvh4ther it v44
absn\ringoorporationvtthia the aeanlxq of
the rtatute mll4d on by you in the pr4vIoua
oplnlon. ml8 qu6rtlon vaa not gano lute by
you at that time, koauae the hata auImitt4d
for your aonalderatlon coweded that ths San
Antcmio Loan and Tmsst Capaayvas a bank-
aorporatlon. As a ~~ault of Hr. Huaon’a in-
vertigatlon of the faata, he haa arrived at
a oontrary conolu8Soa ar quite fully appear
from a copy of his opinion addr4484d to Jim-
orable B. 3. 30x County Judge of Aranaaa Cow-
ty, and vhloh la 4ttaohad hereto for your eon-
slderatlon.
"3 will be appreciatedif you vlll COP-
slder this question in the light of'tiw faota
above oet out and those given in Xr. %u80n18
OQI~IOZIattroh4d, and 4dvlse ua tither ths
areesaments of aattle ovned \;fthe S&a Anton-
lo Loan 8rld !mlst comp8ny8lld aatueill.~ altu-
.atsd3~ Armsaa County, Texas, for the years
1937-1941, f.noluaiv4,ar4 Valid a844saPant4,
and if not, what dlaposltton should be amAe
of suoh:so64aaa4nta In order to claar the tax
recotia of said oopnty.'
BOaOMbl4 IpIoryX. Speaoer, Pa64 3
lt4 have given 08xeSul study to the questions aub-
mitted to ua In JCJW lettar of Eov4W4r 19, 1942, vh4mi.n
you raqueated us to r4aoaald4r oux oplnloa to. o-4202, r4-
lating to the tuatlon of omttle ovmd by th4 S4n Antonio
Loan k Txuat CmPMy. Wshave d4ly4d aolongb4Sor4 r4-
plying ln oxder to lnv4atlgat4 thorimghly th4 oharter pov-
era andnattw4 of thp bualn488 04adwt4d by th4 San Antao
Lofm b Txuat Ccq4ny for th4 puqtoas of a4oert4ialngvheth-
er it be a "bank or 'bank oorpor4tl4n"vlwa th4 mean-
lng OS Artlalea 7165 ma& n 72 , R.C.S., 1925, w&d otbr atat-
utea. We thmk you for 4aoloslng in y4ur letter 4 oopy of
the oplnlon on this aubjeat d&ml J@y 16, 191)2,by Hr. Hobart
Busan, vhl4h ha4 km roat helpful. lf4 also viah to 4rpmas
our appnolatlon to the amb4ra of th4 State Bmklng Depart-
meat ud to Nr. Loroy 0. Derars, Attorney for tba San Aataa-
lo Loaa & Txuat Capmay, for their osop4rrtlan uuI eaalatane4
in 4ur lnv4atlgatl4n0s th4 Seats 4nd 18~ nlatiag to th4
qwatlona Imululainvolwd.
R4?4r4no4 to th4 noorda in th4 Ssaratary of
State*8 off104 lhov that the San Aatoalo L0aa & Trust Ca-
pmy vaa -tend CQ Warah 1, 1891, v%th the follwlng pur-
pose olauaer
"Th4 purpua48 of the oorposatl4n4r4 th4 44-
amuletian sad loaa of awey, to set a8 truat44
or aaa~ee or ~4041~4s vhea dea&nated by say
pa~on, oorporatlm or oourt to so de, and to do
a gen4r41 flduola~ amd dqwaltow business aml
to sat 48 ueuutor 4nd katm4ntary gruudlaa vh4n
dealgnrrt4d as auoh by a deeeased."
By erendwnt filed Febmary 8, 1897, tk4 purpose
018ua4 of the 6heirtervaa ahaq4d so aa to nad 4a follwa:
"The purposes of the corporationaxe the
eoaumulatioasad lopn of m4Uey~ to sot 48
txuaks or maaignu or r404lnr t&an dealgaated
by may permon, oorpoFstlonor uouxt to do BOJ
and to do 4 goner41 Slduoly and depository
buala48aJ sad to eat es ueoutor or gkmrdW3
vh4a dealgnat4d es auoh by a d4oouedJ and for
prumotlng urd taking hook %!I MnufsoturWg
oa~i4nl44 or oorperaklonaJsad for the 4~409
tloa or wpalr of any building or irpX0Vmott
aad for ths 404umulat10n
sod 10ur of m4Xi4y fo'or
add purpore; and for th4 puxah880, sale od
aubdlvlalonof nal property ln totma, oltl48
and villages 4nd their auburba, not 4Xt4Mw
Banorsbla Ewory H. sp4aoer, Fqe 4
MOM than two mile8 b4ycmd th4ir llmlta, and
sop the a4aauletlon 8nd lout 0s ucm4y Sor
thnt purpou.*
The pr484nt purpose 4leua4 0s th4 5m Antonio
Loan Q Trust Capany vu adopted by charter mmdmsnt
rim txnRoveadt6r4, 1911, and reads u rol1ova~
"The purpose 0s the oorporatlonla a~&
shell oontinue to ba to aot w truat40 or
assignee or nooiver wlwa dealgnebd by sly
poracm, oorporatlonOP otmrt to do so, arxl
to do 4 g4neml flduoiclr7 and depoalk~
bualwaa~ and to aot aa executor and testa-
mentaq gurdl~ vhea designated as auah w
a deoeeaed."
The only other -t t0 thm bt4r 0s tb
San Antonio Loan b Trust
Capauy vu 0n4 tiled Ootokr 26,
1937, for th4 8014 pwp484 OS 4xt4nding its aorporet.4
4x18-
tea44 ?or fifty ~442-4.
Astor a 0anN 04naid4mticnr0s th4 purpose olauar
0s the darter 0s th4 son Anton20 mm a Tru8t collpurr~ in 00n-
neotlan vlth th4 lppll4eble ltatutu, v4 ban mnalud4d tbet
said oarporetlonla lultbr e %enk* Por e 4beuMng oorpom-
tion", a nd,Uwvfo r ela M t luth4riz4d to do 8 bank&q bua-
lwaa. In raot, it d44s not olelr to hair4auah authority.
Artlale '~65, R.C.S. 1925, expressly wpllos to
m4v4ry benk, vhekher of lamaa or deg4alt, bamkbr broker,
dealer In exohange, or atookJobbar. APtlob 7166 applies
to "every banking oorporatloa, atete or netlfmel." It la
obrlow that as the S8n Antonio Loan B TrU4t Coupany la
not a bank, eltblr of laatw or drpoalt, cad la not a knk-
er, broker. dealer in uruJ!uage or stooljobberor banking
aorporatloa,atets or netlonal, It do4a not ocm4 wlthla eny
of the oetegorlesmentlosud ln 4ith4r of these statutes.
Artlole 7166 vea osl&%nally 4nuMd ln 1885 la the
ldentlaal larrgupgees it nov neda u Seatlolr28 of IL B. Ro.
439, Seotlon 131, Page 105, Aota 1885, 19th L4glal4turr Reg-
ular Seaalon. ALrtiOlb 7165 vu origbml3j enacted in 3895,
ia the ld4atloel languge u it xmv reads, as put 0s 9.B. lo.
68, Chapter 33, Page 37, Aota 1895, 24th krgia~atatre, RegUlu
S4aalon. At the time 0s the or&&ml 4naatoent 0s t&es0 lava
the womb %nk” and @buWng oorporatlaa” oould not bar4 z-e-
rermd to aa~ oorpofcrtlcma
organizedunder the lr.vaof Texan,
Honorable Emory 1. speneer, ?age 5
slnae Artlale XVI, Seotiim 16, of the Constitution,as
it then red expressly forbed tha orlmtume of m state
oorpart%tlon%ith baakIng or dlroount prl+lloges'. ma80
tvo acts, vhen passed, could b8vs referred only to nation61
banks, private banks md Individualsor portnershlps. Under
the mmendment to Arti XYS, Section 16 of the Constitution
in 1904, the reremnoe to 'stat. benking oorporation'aumt
hsve been treated a0 surplusage. SiMe the s8n lntonio Loan
lkTrust Caspany is, by vlrtuo of its ohwter powers, ndthar
a bsnk, a bsnking corporation,nor a state aorporatlon with
banking or disoount privllegos, e national bank, 8 prlvrte
bank, au lndivldualor por+.nershAp engaged ln the bsnking
~lness, neither Artlale 7165 nor Artiole 7166 applies to
.
The Constttutionof S!exasin Artiole 8, Seation
11 thereof, provides as tolPovsr
lse tho pqaaitt of ta+s of non-resldants-ofooua-
ties to bs made at the oiflm ot the CaPrptroller
of F-ublioAaoounts. And all lands andotherpro-
perty not rendwad for taxation by the ovner them-
o f sh a ll b elsessa d a tits t8ir v8lue
b y th ep r o -
per oiiicer .*
Artlale 7153 of Yaman Annotated Civil Statutes
of 1925 provides ea follovsr
or oounty shall be iisted -~~assom6d in the o&?i-
ty OS the resldenoe of the mer thenot, 03 In
the eowaty where the prI.&tclpal
of'f'lee
ot sueh om-
er is situated.
As M int8rprOt the frets sot out In your letter,
the cattle belonging to the San Antonio Losn & Trust Company
had acquired a situs ln Arensas oowtr on January 1st of the
Honorable ~BsoryM. spenoor,
tagto
6
respectivepars thay vers us~ss~d for t&u bJ the ooun-
tY* YOU are ttlenfon nsp~otfull~ advised it Is the opin-
ion of’ this departrent that odd oattle vera properly sub-
ject to taxation by Aransu oountx.
Our oonolusion 18 supported by the lathoritl~s
cited belov. Clampitt v. Johnson, 42 S.Y. 8661 Wwgonor
v. Uhaley, 50 S.U. 153, vrit of error refused; 0uarmnt.y
USe Ins. 00. of Houston v. Oity of Austin, 108 Tex. 209,
190 8.~. 189.
our opinion Ilo.O-4202 vu based um the ustmp-
tiollthat the San Antonio Loan b Trust CapuQ- was 0 bulk-
lrq oorporatlon; slnoe that usumptlan was erroneous, said
oplnlon is vlthdravll.