Atlantic & Ohio Telegraph Co. v. Commonwealth

Citations

• 66 Pa. 57
• 1870 Pa. LEXIS 274

Syllabus

<p>1. A telegraph company incorporated by Pennsylvania, leased its line to, another company, who agreed to pay “ 10 per cent, per annum upon the par value of the stock, excepting the amount owned at the time of each payment by the said lessee;” the lessee owned almost all the stock of the lessor.</p> <p>Held, that tax was to be paid to the Commonwealth on dividends at the rate of 10 per cent, on the whole capital of the lessor.</p> <p>2. The treasurer of the lessor returned 10 per cent, as the amount of dividend. Held, that this was the true evidence to the auditor-general of the dividend declared.</p> <p>3. The Commonwealth had nothing to do with the relations between the lessors and lessees.</p> <p>4. A declared dividend furnishes the measure for the tax.</p>