Commonwealth v. Fall Brook Railway Co.

Citations

• 188 Pa. 199
• 41 A. 606
• 1898 Pa. LEXIS 591

Syllabus

<p>Taxation — Corporation—Capital stock.</p> <p>On an appeal from a tax settlement made by the auditor general and state treasurer, where there are no sales of stock of a solvent corporation during the tax year, the court must determine the actual value of the capital stock from the facts apparent from the report of the company and other documentary, as well as oral, evidence.</p> <p>Taxation — Corporation—Tax on capital stock — Debt.</p> <p>In ascertaining the value of the capital stock of a corporation, for the purposes of state taxation, under the act of June 8, 1891, the indebtedness of the company cannot be deducted from the value of the property and assets otherwise ascertained, but it may be considered as one of the relevant facts bearing upon the value of the stock.</p> <p>Taxation — Corporation—Consolidated railroad companies — Taxation m proportion to mileage.</p> <p>Where a railroad company is formed by the consolidation of Pennsylvania and New York corporations, it is taxable in Pennsylvania on its capital stock in the proportion of the mileage in Pennsylvania to the mileage in New York; and this is the ease, although the commonwealth in the returns for the three previous years had accepted without objection a different proportion.</p> <p>Taxation — Capital slock — Railroads—Exhaustion of coal fields.</p> <p>In ascertaining the value of the capital stock of a corporation for the purposes of state taxation, the value of the franchises, privileges and assets of the corporation must be considered, not only in connection with the past, but also in connection with the future probable prosperity of the company. Thus, the probable speedy exhaustion of coal fields in a region served by a railroad company is an element to be considered in determining the value of the railroad company’s stock for purposes of taxation.</p>