Commonwealth v. Ocean Oil Co.
Supreme Court of Pennsylvania
Error to the Court of Common Pleas of Dauphin county: Of May Term 1868, No. 64. This case originated in the court below from an appeal by the defendant, The Ocean Oil Company, from the settlement of the Auditor-General and State Treasurer, made April 4th 1867. The company made a return of $311,954.14, as their net earnings or income for the year ending November 1st 1866, on which they were taxed at the rate of 3 per cent., making $9358.74. They appealed from this settlement,…
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Error to the Court of Common Pleas of Dauphin county: Of May Term 1868, No. 64. This case originated in the court below from an appeal by the defendant, The Ocean Oil Company, from the settlement of the Auditor-General and State Treasurer, made April 4th 1867. The company made a return of $311,954.14, as their net earnings or income for the year ending November 1st 1866, on which they were taxed at the rate of 3 per cent., making $9358.74. They appealed from this settlement, alleging that no net earnings had been realized during that year, and that the return had been made by mistake. On the…
1Opinion of the Court
The opinion of the court was delivered, May 27th 1868, by
Read, J.
The capital of oil companies is generally nominal, and when therefore the capital of this company is called $1,000,000, it is very evident that this sum was not paid for the 4 acres of land, but that it was valued for the purposes of a division into stock at one million. “ Some stock sold at $4, some .$20 per share,” says the treasurer, “original shares sold low— land had not been developed then.”
This company calling and returning its capital at one million, is taxed upon its capital stock at that sum, but by the Act of-the 30th…
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