North Pennsylvania Railroad v. Philadelphia & Reading Railway Co.

Citations

• 249 Pa. 326
• 95 A. 100
• 1915 Pa. LEXIS 725

Syllabus

<p>Corporation—Leases—Agreement by les'see to pay lessees taxes —Construction—Intention. ■ \\</p> <p>A railroad company leased its property to. another railroad company by a lease providing that the lessee should “pay all taxes arid assessments......upon the yearly payments herein agreed to be^ made by the party of the second part to the party of the first part ......for the payment or collection of which taxes or assessments the said party of the first part would otherwise be liable or accountable under any lawful authority whatever”; that the lessee “should pay all taxes, charges, levies, claims, liens, and assessments of any and every kind, which, during the continuance of the term hereby demised, shall, in pursuance of any lawful authority, be assessed or imposed on the demised premises, or any part thereof......all payments required to be made by the party of the first part during the term of this indenture......shall be assumed and discharged by the party of the second part as if the party of the second part were primarily liable for the same.” The lessor having paid a tax under the Federal Income Tax Act of Oct. 3, 1918, c. 16, §11, 38 U. S. Stat. 114, 116, upon the income received under the lease, brought an action against the successor of the lessee, to recover the amount of such payments. The lower court entered judgment for plaintiff on demurrer to plaintiff’s statement of claim. Held, no error.</p>