OFFICE OF THE ATTORNEY GENERAL OF TEXAS /’
AUSTIN
ur. L Il. rwu.ff, .ir.
cofnlty A~torncy
Dickens County
spur, Tesfs
Dear Sir,
ea OiTil etatn-
s,%w&
of pear letter of
18 $ttot% as iollOlrs~
I hara beeu
t to you the folIoping
*ithat is the
rsaaning of the temne *act-
ual valne* iutcl*nctual cash vsXue* as used fa
the abo7e stat.nteT
lfiw do you arrive nt the aaotual rsl~e*
or *aotual oat& value* of a share mmtionad
221 saidarticI.et
nr. L. 1). Ratliff, Jr., June 13, 1939, Page 2
*I)0 the teius 'actual value and *actual
cash value* as used in the above statute have
reference to the mount which a share would
bring en the open market or does such statute
ana the terms therein uacd have reference to
what is termed the 'book value', arrived at
by the nethod set out In 6 Texss Jurlsprudeoce,
pages 347 and 343, paragraph 266~~
The 6bji?Ct of Article 7165 of the Revised Civil
Stotutes of Texas of W25 is to furnish the data by which
to w-rive at the proper valuation of shares of stock. 6
tex. Jur. 348.
ArtlcleT16&& C= 6. OS Ter*8, prorides*r t&e
ienaering OS real estate heldby the bauk, and~tb%n~pr%ridec Far
theretditlonof~ttharesof at0aP by the*mhWl&~, 8Mt.be
same shall be rend@red at afhelr aatttal ralae*.
We believ% that when the oorreot a-mater has been made
to the following proposition, the whole of the repmtaule by
you will be auswre& Th% question being*
-Do the tenas'aotm~I value'aud ?aotual
value* as used ltt the above statute ham9
tnwzit
reference to thtanount~hleha slifbre.wiild
brIngon t&eopemumrket?"
TJxb queatiott ha81 beem d5reotly at&red by the 3upretae~
Court of the United 6tates. whereluthec%urtmald~
*The phrases tsal8ble valmP, Qtotual
value*, *cash value*, tutd others tteed ip
the directlone to assesdng Wfiaers, all
mean the same thing, andare deeigaed to
%fTeot the same purpos%.*
Cammia@ v. Ycrohants Nat91 Bank of Toledo, ml U.S.p.
The Saprem% Court of Alabama in the ease of State v.
Foodward, founcl in 93 SO- p. 826, mak%% the fOllOlrin& Statemntt
*Cash ralae, that 1% whut the property
would Sell for (for) cash by a vendor; why
wanted t.ae%ll, purchased by the purobaser
who wata2d to purchase the property for a
c a sh o o nsid%r a tio n. l
I
Mr. L. 1). RatlilY, Jr., June 13, 1sms Page 3
This court further states: *Tbc actual cash value,
then, Is the fair or reasonable cash price for which the pro-
perty czn Ix? sold in the narket.. 1 Words and Phrases p.152,
citing nw:emus cases, among thezr,Binninghaz FWc Ins. Co.
y. Tol.livt?r,18 pi. E. 304.
lTbc expression tactual value*, *market
value* and *market price* when applied to any
article noans the sum thing. They mean the
price or value of the artfcle cstabllshccl or
shown by sale, public ur private, In the way
of orainq baainesa a
Sacmnento Soathetn Xy. T. Xcilbtwn, 104 Pac,819.
vite best test .oi acsual value is a ttale
on the market under o%raaamtameee calailatdl
to eudt ml curdfree biddinl:73y lntersrited
ptIrehasenr*
Francis T. NIllion, 80 6-U. 486, by the Suprem
court of Kentacky*