Commonwealth v. Brush Elec. Light Co.

Citations

• 145 Pa. 147
• 22 A. 844
• 1891 Pa. LEXIS 658

Syllabus

<p>1. A corporation whose business is producing electricity and selling it to customers for the generation of light, heat or power, is not a manufacturing corporation within the meaning of § 20, act of June 30, 1885, P. L. 199, and is not exempted thereby from the tax imposed by § 4, act of June 7, 1879, P. L. 114: Commonwealth v. Light & P. Co., ante, 105.</p> <p>2. Capital stock, issued by . a corporation, in consideration of a license granting to it the exclusive right to use and sell a patented appliance within certain territory, the machines for such use and sale to be furnished to it by the licensor at the regular list prices, is not an investment in patent rights exempt from taxation: Commonwealth v. D. & P. Teleg. Co., ante, 121.</p> <p>(a) Section d, act of June 7, 1879, P. L. 112, provides that corporations which have “made or declared,” during any year, dividends amounting to six per cent or more upon the par value of their capital stock, shall be taxed at the rate of one half mill for each one per cent of dividend; otherwise, at the rate of three mills for each dollar of the actual value.</p> <p>(6) Tbe earnings of a corporation during a certain year were less than six per cent, but it declared a dividend in excess thereof, made up in part of accumulated earnings of prior years, in none of which did its earnings reach six per cent, and for each of which it had paid a tax of three mills on the actual value of its stock:</p> <p>3. The corporation was taxable for the year in which the dividend was declared, only, at the rate of three mills on each dollar of the actual value of its capital stock: Lehigh C. Iron Co. v. Commonwealth, 55 Pa. 448, distinguished. The declaration of the dividend was prima-faeie evidence that the money was all earned within the year, but not conclusive.</p> <p>4. Said § 4, act of June 7,1879, P. L. 114, providing the method by which the capital stock of private corporations shall be rated for taxation, is not in conflict with § 1,