JURISDICTION TO TAX 613 that the state might tax simple contract debts due to a nomresi- dent, arising out of business done within the state. National Fire Insurance Co. v. Board of Assessors, ^^"^ General Electric Co. v. Board of Assessors,^^^ soon followed in Travelers' Insurance Co. v. Board of Assessors. ^^^ The general Hne of reasoning adopted in these cases is that the permanent employment of capital in the carry- ing on of business within the state gave to all portions of the capital an actual situs within the state, even though it might for the time being take an intangible form. Several of the decisions of the Supreme Court of Louisiana were carried to the Supreme Court of the United States, and were there affirmed upon the reasoning indicated. ^^° While the weight of authority in favor of this doctrine is over- whelming, a few exceptional cases must be noted. Thus a statute of 185 1 in New York expressly exempted from taxation foreign capital transmitted to agents for investment.^^^ It was thereupon attempted to tax at the domicile of the owner in New York similar investments in the hands of an agent in another state. The court held, however, that such property had no situs in New York, and was therefore not taxable there under the New York law which, as has been seen, taxes tangible property only at its situs. ^^^ And in State v. Gaylord,^^ the court held that foreign investments of this sort could be taxed at the domicile of the owner. Of the numerous cases cited to sustain the contention that the investments were taxable in the state where the agent made them, Cassoday, J., said, "We decline to follow them." The ordinary cases in this class must be carefully distinguished from a mere deposit of securities with an agent to hold, or even to collect. Neither the deposit of securities for safe keeping in the place nor sending them into that place for collection is enough to fix the situs of the securities there.^^^ In a rather striking case ^ 121 La. 108, 46 So. 117 (1908). "' 121 La. 116, 46 So. 122 (1908). ^' 122 La. 129, 47 So. 439 (1908). 130 New Orleans v. Stempel, 175 U. S. 309 (1899); Board of Assessors v. Comptoir National, 191 U. S. 388 (1903); Metropolitan Life Insurance Co. v. New Orleans, 205 U. S. 395 (1907); Liverpool & London & Globe Insurance Co. v. Orleans Assessors, 221 U. S. 346 (1911). "* People V. Commissioners, 59 N. Y. 40 (1874). i'^ People V. Smith, 88 N. Y. 576 (1882). "» 73 Wis. 316, 41 N. W. S2I (1889). "* Reat V. People, 201 111. 469, 66 N. E. 242 (1903); Appeal of Borden, 208 111. 369,
