New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-03-06
THE CENTRAL RAILROAD TAX
Cnn,innnd from First Page.

poralon itsef and from the Stockholders There
frs those two sections are h. construed together
one Assesses the per when il shall be payable, and
BIC Other authorizes the Compsny when II males the
In per cent 20 the Government. that presents the
In The first place u very doubtful In my mind whethSr
this rs scrip dividend al .ai II Is very doubtful
more than scrip certificate. They call IL an interest
certacatc; that j., certdcate showing the interest of
60 represent the amount OF the earnings prior 1902
etc submit that is not scrip dividend ia any sense.
scrip a. understand 1t, must be dividend made In
sort OF an Instrument; they called scrip pro
Nido they payable for certain amount, at certain
time. out Of some particular fund; or u may be out OF
general fUnd ofthe Company 10 seems 20 me ms Is not
dividend OF anything The officers and directors Of tho,
Company mere trustees Of the stockholders suppose
employ an agent and send linn 10 the West Indies to
nadei l send 10 Lin TO know the condition OF
uf ana to zee noe k1y% H IND. T hae
What lie calls interest ccrte9tes cert'ncate SHOWING
"haS gone mp. 50 that Is worth $4,000 certify that
yOur Interest IN that Investment i S2500Ol' That IL
tween principal and agent To make a scrip dividend
from the Company the stakeholder Il must be he
money or scioe other valuable thing and al some cen
tain time This uot such thing. This rs not scrip
dividend In aAy such tern sense. II Is mere GER
nfcato informing lie stockholders Of the amount OF IN
terest which they have.
LEIAuoNs OF TIE COMPANY.
You cannot see the Company that dividend. IT Is
not obi CATION the part of the Company for any
Thing kept perhaps the dividends these certificates,
and understand that dividends have been declared 10
certain extent which tax has been paid The title
they have given Il describes what il is. IL is an Interest
ecri.3-e, showing TIE interest OF tho sockhoiUers III
the assets the COMPANY and the extent OF H. suppose
tey had issued any thng but simply asserted that
the value of this property was increased so per
cent In consequence OF repairs Ferumuent iulproNSt
tncrt, which Dad been made npon the road IRON tno
earnings Uf tle road prior 70 1852 u ls mere uotra
80. @. t1e 'ii ,lg .G i ~. ~ carry something
titled TO- The AMERICAN peope loIe ~ ,Iair iti
S. their pockets AID 90 baye the evidence o. theH I
r1 af.s 91I re 20 Der ce that was the stock
,5, ,srt u, IL yybefber this pauer was issued 70
M. il mn "A
iuC what bis interest Is. suppose Was stochhoiuer
In that nat IYaI' held sy a oe ~ ~stoes and that M
share Of tile value Of the property was 500
len wears hsd been SO adverse that there nothing
whatever % divide Would you eau That scrip NV
ee1t its certificate of what my rights are, and II
INC road does not make any prohts 20 ie
hadrf made prof' never would have got shilling
out Of L; Tie Company might have SAID ehere arc DO
submit MI Commissioner respectfully, That this s
nsEe any Nm INTO STes 81 so6 or whether the STOCK
If the company is SOo0oOoO ana the proportion be-
e,tV fos into dcnt ard isscs its scrir 1t saws wo
owe john smith 500, and viii pay him at such time.
The effect Of that corporation promise 20 pay
corporation which clothes him with new rights that be
had before. That makes II dividend Inc oiAcels
eoustrue accomplish the purpose t. tax the IN
~ consf-Ict0n 70 make II apply to "a former income,
you would be ieyying tax instead OF Congress: You
NNN -N'
8y Mr. Horace F CIarEe--ri they paid anything on
Ty IN Csfrentei-Of course that Is conceded Men
srlrot - he taxed upon what they may do, but upon
npor what thcy have done When a mar got his certid
rate he mad received nothing. IL was not Na9e. re
had received no dividend from the COMPANY lie had
paper which admission rs TO what ne would nave
In the future! Upon these papers SUBSEQUENT ~
he Government OF over $4,000.
AFFIDAVIT OF HUDSON c. TANNER.
The following IL the affidavit Of Hudson C. Tanner
tate Official Stenographer 10 the Legislature OF New
York In relation the scrip dividend issued by the
n. Y. c. r. T. Co:
Hudson c. Tanner. being duly sworn deposes and says
that he resident of The City OF OsWeso n D.; ina
Cunt of the state Of Ncw-YOrk, Fth Judicial District,
and 9ss been SSg e Ae S f Of the State Of New
Yort % 1879 tlat such photographer ne reported
YORK IN March, and at Albany, before the special
t OF New 96rk to investigate the facts connected
with tc increase of stock o. certain railroad companies
depoucut further that he alone reported the tesl
n6ny of Cornelius Vanderbilt the then President OF The
New York C,Utrl Railroad Company; LdWth -. W Oi
49, ~ ~ Isrion must CoInanv of York, which
ui., mon acted as T. i.er of transfers of the stock
Of me NtW-Iork Ccutlu Iarodu company ana h9,h,e
r G.a,Ef one Of Tire then Directors OF The New,1ork
f.pirai Railroad Company; IN relation Ia the affairs OF
t S,.-Y0r Central railroad Co.; that shortly atertbe
li','' rlad and mat The New-Yor Assembly Re
port No dated April - 1862 parpor' to be the ties
HDd yoar d.poneut further that the said Assem-
irII
T al Testimony as by depOnent 40 the time and
place Aforesaid. DcpOnent further says tlai the sdd
,r,eC r.yCr contains matters not testified 10 before
he said Committee while he was reporting before the
.. Committee the time aud place Aforesaid ana thai
matters which were testified to ard correctly Transcribed
ia tan.rt were stricken out not printed at an IN
md printed report DepOneut further says III Jutcc 10
,aid Committee that he understands that some portions
Of the came stricken out az irrelevant 70 tle q9e
ZION ten 1efoIc the Committee that beng aware hat
NJ York Central Railroad Company were contest
Ing th question OF taxation before the Internal Revenue
Department "A, Washington he felt 1t his duty as clen
.UG u
Tovcrnus1 OF the facts herein set forth, aud that,
aving been requested by the Government authorities 10
fotsid a. depunen considered pertinent TO the ques'
lion now before the honorable the Commissioner OF In-
per cent Government tax the alleged issue Of 80
eI scrip dividend Issued by the NewYork Central
Railroad Company, he has compared his original steno-
graphic notes, taken by him aforesaid, with tho pur-
ported printed testimony OF Edwin D. worcester u be
ing AT the first question that page. aud finds from de-
oopcnt's oc1nal stenographic notes which were cor
lily taken al the time that he testified the follow
BIZ, instead Of testifylng As there printed
CARBLED TESTIMONY.
O. The Chairman in his first question asked you your
,mount OF stock and you said s1a795oooi A. Yes,
6ir.
20 stated a. the report this Committee
an December 1851 A. Yes sir.
O. You have not issued any since = az tlmei A. No.
Eir not a share The amount oflcapl; took the 3Oh
pf December last a. will appear, was E77@o0o There
Wa added 20 that between the 3Oth OF December
and The mc the Committee reported al q none since.
q Did understand you to say ihat u entire capital
,tock Of the Company IS now about S,oo,oOi A. sZs
Is5,Oo ..---...-. -.,o,,, -,..,,, -. ,,.u...-
nav diydcnds to-day A. Yes, cir, the entire amount
SUPPRESSED TIsIIMoNl.
The following which continues right on. Is suppressed;
pr Mr. Clarkc--A on. no! pay dividends on more /;
xe nav dividends on the Interest. ~, 49, -.
Ye- sir. We paw dividends on more than that
By he witIessQ Did YOU mean the amount Of money
Sr cIaTEr-We pay interest the debt and on the