New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-03-06
PRICE FOUR CENTS.
THE CENTRAL RAILROAD TAX
THE CASE BEFORE COMMISSIONER PLEAS
ONION

PRESSED TESTIMONY.
1t will be remembered that on the 10Th OF
December 1863, the New-York Central Railroad Com
pany declared dividend OF s29OOOOcO. The Company
authorized the issuing OF interest certificates 20 tho
amount Of 20 per Of It's capital stock Instead NJ
uiVhng annually its whole surplus earningsramong s
s'oeAhoiders, the Company had from time time during
It's existence expended such earnings largo amounts
las the Company claims) In duplicating and otherwise
improving It's road and adding TO It's property. for
the purpose Of increasing It's power To do
'he additional work required OF IT, The
Interest certificates. above referred t. were
Issued for the purpose Of giving the several stoekhod
ers OF the Company evidence OF such expenditure and
TO reimburse the same when the Company shall be
aDled to do The Company claim that the use OF Its
surplus earnings for this purpose the econo
zeal mode OF raising moneyess expensive than to haye
divided all OF its earnings annually among Ia stookhod-
ers and TO have borrowed money from time TO time IL
was needed for the purpose OF improving its road. The
interest certificates are justified upon the gound that
the moneys which hoy represent belong fairly TO tho
stockholders OF the Company; and the Increased accom-
odatons the Company has been able t. furnish 70 tho
public as well as the increased safety OF those using tho
road have created mutually between the Company
and the people OF the State OF equal interest to 10th
To enable the Company exchange is stock FOR such
interest certificates in December 1893 Il WIS necessary
that authority should be given 10 increase IL Stock Ac
cordingy Mr. Vanderbilt and his party appealed to tho
Legislature or lbO9 6giliZf TIC issue Va nfi''
OF s2Oc. On the ID of February, 1862 in the Assem-
bly, on motion of Mr.. Bemus, the following resolution
was adopted
U1r,a, Large sdHon. have beer made time tim % -
Cenra he Buffalo and Ee RAILROAD and i- sIo. ~
toabts exist to the right Of aid Companies to 's' t~
Sosd Tia, Sfee Committee q be appointed Tor n,
sh ~acs Of aoc WITH power to .eri reoas snres and VIA
4 las OF TO- FsSG g'i 5 i loS sE 5g e t
ssae tLeru; and farther, seter under he provisions y 40
e. e s S; those ro.a shich laye VIC a, h c.
Iers5y Instructed 70 report to III, lou 30 DAYS
In accordance with this resousioa,a Committee con
sstiug OF the following memhers Nessr Benus, Chair
man selkreg. Ely suern Jacobs, walker and Gleason,
proceeded to the Fifth Avenue Hotel ia TIL, city, where.
in March, 1852 she affairs of the NewYork Central Rail
road were gated In number OF secret sessions IN
which the Committee received the testimony OF Corne-
Illus Vanderbilt the President 81 the Company; Edwin
d. Worcester Treasurer; Isaac H. FrOthingham, tho
then President OF the Union Trust Company OF this city.
which hen acted a. Register OF Transfers Of the stock
OF the New-York Central and Horace F. Clark, one "
the Directors OF the NewYOrk Central The testimony
WAS taken geographically by Hudson c. Tanner, then
stenOgrapher to the Assembly, and was by him tran
scribed and presented 10 the Committee who caused
what purported to he printed copy OF the senogr-
phers's minutes CSo 1l2 Assembly Printed Reports)
made and submitted It to the Legislature an accurate
report OF the proceedings of the investigation THIS
result of this investigation set forth In the following
bill, which the Committee, at the conclusion OF the IN
yestigation presented TO the Legislature
INCREASE OF STOCK Q, rus sSvroSx
RAiLROAD coSPASY.
The People Of e Of Sewfors represented Senate and Az
sSolos l. Ts. SssYort Central RrO. comp,n, ,u,sO
70 procure in the provided By entitled
l &c, 20 ' S o =. Of rs ese ssocs % H..
amount Of 80 per cent Off present capital
.. Act .ns Be used only u exchanging the s for re ,
their meeting he'd December 49, Los.
Upon this dividend Of SIS 100000 which the New-Yors
Central declared the 10Th OF September 1885, the Gov
has assessed tax OF sl5OOOO, which the Com
pany are anxious to avoid Their grounds of defense
against the payment Of this tax are:
First That this dividend earned before the pas
cage Of the tax act, viz, before 1861.
Second That this dividend was to be paid out Of thu
future earnings OF the road.
When Mr.. ElmOre, counsel for the NewYork Central
Railroad made the opening argument before Commits
siOner PeasOntOn at Washington, ne presented further
ground OF defense: That This dirideHd had been ec
pended from The earnings o. ne road ia Ge improvement
ofthe road When Senator Carpenter argued against
the payment OF this tax before Commissioner Peasonto-
February 49, 1871 he presented the further ground of de-
fense: That mis- not a script. When Horace j.
Clarke Mr.. vanderbts son-nlaw, closed the argument
behalf of the Company the same day, he presented
still further ground of deense That thus dioder'd rep
resented the enhanced raIue Of tho road.
The arguments heard in the room OF Collector
Smith, which adoins the office OF Commissioner Peason-
ton Previous the hearing, Mr.. Tanner the stcnogr
pber who reported the proceedings at the Fifth Avenue
Hotel was summoned TO Washington 10 testify IN regard
to the of the printed report go. 49, After
making the affidavit which is suhoined, he was permit
ted by Commissioner Peasonton report the argument,
and when it closed, the Commissioner requested =
copy Of it.
ARGUMENT OF SENATOR CARPENTER.
The following is in substance the argument ~ Senator
Matt. Carpenter against the payment OF tie tax:
In the first place IL should he remarked that this
Large OF money tobe disposed OF ly ms deter
nation. court OF justice, with al the surroundings OF
jury and all the machinery OF administering justice, Ire
quontly sits two three weeks "a determine ce Il
$4,000 or 5000! Yet here b, case, involving over $780,
90, To be disposed OF necessarily IN summary way
THE ACT AND lis AUTHORITY.
The OF Congress under which these taxes levied
Is as every knows exceedingly stringent aud, bui
for the necessities Of the ease, would be- exceedingly OF
pressve and outrageous. The necessities OF the Gov erD
ment in time Of war; when money must be had, and had
quickly the justification for the passage Of the act ~
the time while the rights OF the Government ar, 10
be protected by fearless and hrm OF t'
law all cases, the rights of citizens are not 10 e ds'
garded and the Honorable Commissioner ~ an t y.
cases u entrusted with a solemn responsibility.
not a thing to be put through simply because u u sOnS
put million OF dollars INTO the Treasury, Inns ~"
eednS comes Se5o,s you on OF New p IN Which he
this road over million OF dollars am lsS ~
thousand dollars want to have thls pom poi s
borne in mind that you sit here on an appeal rom an a
sessment, and all that Is before You - Ut ,d,r,riy
whether that assessment was properly vi i'Pi"PSH'
made ~. -, ~ ,,,,r5,,r an,
In this country you cannot ndct man Tor murder aha
convict him of rape You cannot cue man upon
nronissnrv note and Judgment against MN on BOOK
account" The Commissioner has no anthofiiy 20 49,
nything against this Company II the a>,e 'hent Was
Correct II IL 10 De affirmed II lt was Incorrect t,h'
aithough the County De liable 10 4Og1 as-s-en,''
a. i thino 10 be assssed hereafter. II, Tor instance
thsre was deficiency IN the Construction account g.,
md thev can be assessed your Assessor can maxi lie
IN he can show the account Is wrong. ana make
'6s nav H. on this appeal there L. nopo~ei Ia DO hdi
TTe s,s 10000 In dividends were made prior 9 o. IL
. 20 he horne mind again. that III con.ulnhe I've
,,,te tvo things be looked st-its letter and It's
spirit. There was no law prior 10 lsos va" az ~ ns