Commonwealth v. Independence Trust Co.

Citations

• 233 Pa. 92
• 81 A. 928
• 1911 Pa. LEXIS 470

Syllabus

<p>Taxation — Corporations—Bonus—Increase of capital, stock — Change of rate of bonus — Acts of April 29, 1874, P- A 78, 107, J.une 8, 189.1, P. L. 228, June 15,1897, P. L. 155, May 8,1899, P. L. 189, and February 9,1901, P. L. 8.</p> <p>1. Where a corporation organized in 1889, under the Act of April 29, 1874, P. L. 73, 107, with an authorized' capital stoek of $1,000,000, pays a bonus thereon of one-quarter of one per centum as fixed by the act of 1874, such a corporation, if it increases its stock in 1909, will be required to pay a bonus of one-third of one per centum on the increase as provided by the Acts of May 3, 1899, P. L. 189, and February 9, 1901, P. L. 3.</p> <p>2. There is nothing in the acts providing for the payment of a bonus upon capital stock to require the courts to hold that the rate is in the nature of a continuing contract protected by the constitution, and beyond the power of the legislature to disturb. The legislature may, therefore, increase the rate of the bonus, and make the new rate applicable to the increase of stock of corporations previously chartered.</p> <p>3. Where a corporation organized in 1889, with a capital of $1,000,000 on which it pays a bonus of one-quarter of one per centum, decreases its capital stock in 1903 to $75,000, and subsequently, in 1909, increases it to $2,000,000, the company will only be required to pay a bonus on the additional capital stock of $1,000,000 which is the amount on which no bonus has been paid, but it will be required to pay on such increase at the rate of one-third of one per centum.</p>