Commonwealth v. Phila. etc. C. & I. Co.

Citations

• 137 Pa. 481
• 26 W.N.C. 455
• 20 A. 531
• 1890 Pa. LEXIS 991

Syllabus

<p>1. The solvency of a corporation, for the purposes of taxation upon its bonded indebtedness under the provisions of the act of June 30, 1885, P. L. 194, will be assumed, on proof that the interest upon such indebtedness has been paid.</p> <p>2. When a corporation is in the hands of receivers, and the treasurer of the corporation is also the treasurer of the receivers, it is clearly the treasurer’s duty, under the act of 1885, to assess the tax upon the company’s bonds, on payment by the receivers of interest thereon.</p> <p>3. If such assessment were made by the treasurer, it would be the duty of the receivers to pay the tax to the commonwealth; and if he make default in the assessment, the corporation is liable therefor, and an account for the tax may properly be settled against it.</p> <p>(a) The receivers of a railroad company, which was the guarantor of bonds of a coal company, purchased, from the holders of some of the bonds, interest coupons at a discount. Said coupons were then canceled, surrendered to the coal company and charged to it in an account current :</p> <p>4. For the purposes of taxation, under said act, this was equivalent to payment of the interest by the coal company, and it was the duty of the treasurer to make the proper assessment, the commonwealth not being bound to await the general settlement of accounts between the two companies.</p>