Second & Third Street Passenger Railway Co. v. City of Philadelphia
Supreme Court of Pennsylvania
Certificate from the Nisi Prius. This was an action of debt by the City of Philadelphia against the Second and Third Street Passenger Railway Company, to recover the amount claimed to be' due the city as tax on dividends for the years 1861 and 1862. The claim is under the third section of the company’s charter of April 10th 1858. The section is: “ Whenever the said company shall declare dividends exceeding the rate of six per centum per annum in addition to any tax imposed…
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Certificate from the Nisi Prius. This was an action of debt by the City of Philadelphia against the Second and Third Street Passenger Railway Company, to recover the amount claimed to be' due the city as tax on dividends for the years 1861 and 1862. The claim is under the third section of the company’s charter of April 10th 1858. The section is: “ Whenever the said company shall declare dividends exceeding the rate of six per centum per annum in addition to any tax imposed by general laws of their capital stock, they shall pay into the treasury of the city of Philadelphia, for the use of the…
1Opinion of the Court
The opinion of the court was delivered, by
Thompson, J.
Our learned brother, Mr. Justice Read, was entirely right in holding that the rule of dividends which was the foundation for the city tax, was to be estimated on the amount of capital actually paid in, and'not on the nominal capital, nor upon the cost of the road and equipment. The tax is to be assessed on the excess of the dividends over six per cent. It would be quite easy for a company with large nominal capital to avoid ever exceeding six per cent, dividends on it, while it might be double that sum on the actual capital paid up. We…
2Cited by9 opinions
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- Shanbour v. Phillips 66 Natural Gas Co.Supreme Court of Oklahoma · 1993
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