, 1870-12-30
The Credit H1obi1Ecr.

The Taxpayers OF Pennsylvania have i'm
poltaut interests At stake in the case Of the
1ieas Court 1t uaf1isHdfg fdidfatg ddfatg N13GF 3sei, a
md in which the telegraph has announced
hat verdict Of 1856, ,s6s..33 was given in #
s1s Of the State. As il well known. large
gar,-of the State taxes is derived from AZ
stsmenta upon corporations. The joint
sock corporations hlve always fought this
tx, but the most eAtnest. ingenious and ln,-
p1tant opposition devised Il that involved in
te ctse uEder notieo.1
legislature incospo1ated tho :. peanssl slyiniA
lscAl Agoncy.' with extxaozdinaty liberal
sivi1eKes. which we're sold to New England
, Id New York capitalists, who obtained an act,
J. approved March s6. 1864. changing the name
/ t''Ihe Credit Hobilier Of America" At
! hs time one Ho1is had contract for build
y the eastern section, 47 miles, OF the
!; Gion Pacific Railroad. His contract Was
, hnsierred to the Credit MobiIe1, which
hilt tbs road, and made dividends out Of the
toceeds, paving the State taxea n the law
I kteets. The contract for the next 661
Piles Was Let 70 Oskes Ames, Of MAssachn-
lette. st about e5o, o,030, 600. Mr.. Ames assigned
y, but ito seren Trustees, who went into
lsIipastits compact with the corporation and
1OAkea Arnes, IN. this agreement Of t1anafef,
each Of the three parties stipnaattpE to DO
cert1in thiugs- The 1tustees weEe to execute
the entire contract and bold the proceeds
which we're, arst, to pay thesnselves Ill e1-
penses they might incur and 1000 Per 81
mum as ealaty; to p2y the Credit Nobi!ieE :
PER cent on Ill moneys they might 4drAnca
from tins to tins, and IN additional 2H pc.
cent for their guarsntee for tho execution o.
the ontract. The Credit Mobilie1 we're to
advance al the moneys necessary for the
rfYDr30*for Al $k6 rod RNH fhaV ware 70
g7Ar1ntee and saTe, hsrnleas. Oake. Ames,
nd also the Trustees; and in eonsidtsAhon
thereof, as would APPEAR. the Ifnsseed were ~
PIG Ill the uet profits of the ENTERPRISE to sae
pGsons who were stockholders OF the cospo-
| raiou.r
Under this arrangement shout SO, OK. ooo
oNpsoata waa paid to ths Trustees Of me
! C1edit Hobilter. which x1s divided TITO tne
| prkets Of the stockholders Ut that COMPANY"
n taxes <ere paid upon these pronts ot y, Uf H..
| dends. Notwithstanding tbs Anoto. ~ ~
| stee frequently called s,s es..e e ea;1iienis to
| Tnstees Ts1e not corporation dividends, eat
| thssa IT nrfrate individuAls OF pttsnefsMPs
| All therefore, not usble to taxatton ne
| $40 officers maintained tdA1 tms go ~
clnk to covar The ac3nA ,!sA p.sit a,atthn,tsn y, %
N N '11r Nm, ' b. evsded. Finally, tbs
~ +.rNsx tsfeu into tho Common n eae
odSt Of DAuphin County, which al g.ssss ss q 'es +,
aia, Nost 70 ,ha st.ta, Us court refusing 70 re-
% esSe p p.1ol evidence for The company. s1t hs.ans
1T lie written .ezeenenta xefs sse.en. Snnaem.
Gmrt. ~ ]hieh declared soz admsssi3o Of pare!
sadssee s1p.aat,en , et r. n e eosHs1
nNaa Tote .1itsa a. atated in tho outset, but -
spent as 1,*s million dollars additional aePsnd;
spon a. verde. 1sqas iSs st.ss eEs5 Trs.,ay %
~ stata shsli be sustained upon the a1Peali
Which are likely to be nade. ,... .,n.d
Tbs point upon Which the EefuGs ~ ;daa X
Il should be- sustained, it opens doof Hnase 70
b. ever. corporation N The STATE ~ e c,. sn
enpt from taxation fos diyidends Inc -;5lio, C5pa
Iobiliss did not deny that nine q ten nallol ~,
dolars va maae, but only denied tnas s,.toa taa
r.aulted from work esrsiea q IN ~ ~ n.s ~ n,
Of Individuals (she Tfustees) ls .na moi Ps.rso :. 10
made h,s ahatge, and upon ii the 1aa5 ess'a'
ARalnat eAaes.