Commonwealth v. Central Transp. Co.

Citations

• 145 Pa. 89
• 22 A. 209
• 1891 Pa. LEXIS 652

Syllabus

<p>(a) A corporation, engaged in the business of manufacturing and leasing sleeping-cars, set apart as capital a fund accumulated from the rentals of its cars, etc., and subsequently, in good faith, in reduction of its capital stock paid therefrom to its stockholders twelve dollars per share, reducing the par value of each share by that amount:</p> <p>1. Such division among the stockholders being an actual bona-fide reduction of capital stock, and neither made, declared, nor returned as a dividend, either of annual profits or of accumulated surplus, did not subject the capital stock to taxation, under § 4, act of June 7, 1879, P. L. 114, on the basis of a dividend of twelve dollars per share.</p>