New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1871-08-09

Tho bankers of the street are considerably eated bya
recent decision OF Commissioner PloasOnon, which, IL
sustained will substantially relieve them from taxation
under the Internal Revenue law That law levies among
other taxes la Of per cent per month upon the capital
employed in the business OF banking The bankers long
since took the ground that borrowed capital used In
banking should not under the law, be regarded as
capital, and that it not therefore habe 10
the tax The Assessor OF the XxXlId ("aii-stJ
District decided against the bankers, ana lnslsteu
that all moneys employed in the business OF DaiklnS
were taxable. An appeal made to the commissioner
Of Internal Revenue Nr Rolins) against the ruling OF
the Assessor Gir Webste, and the Assessor was sus
tanned subsequently, during the administration OF Mr.
DeanO as Commissioner another appeal was taken upon
the same point and after submitting the question 70
the Solicitor Of the Internal Revenue Bureau Win Tue
same result. The parties, appealing In TINS case ne
clared their anxiety to test the question Of their laOy
to tax in the Courts and employed counsel to prosecute
the proceeding,
The present Commissioner OF Internal Revenue Gen.
Peasonton has, II seems without awaiting decision OF
the Courts the rulings of his predecessor ana
declared that borrowed money used in banking Is not
capital within the meaning Of the law, and Is not there
fore subject to taxation. II this ruling is to stand az
law It is very clear that the bankers 1--WE don't mean in-
corporated banLs in the future easily escape all tax
alton upon capital employed, except license tax OF $50
per annum, by simply borrowing their capital
For instance: The firm Of Smith. Jones
Co., are bankers, and they find IT necessary
in the prosecution Of their business 10 employ three
millions Of dollars, the tax upon which would amount IN
year If constantly employed TO $4,000 To avoid this
tax under the ruling Of Commissioner Pleasonton, it is
only necessary that Smith should lend to the rm Of
Smith, Jones d Co. one million, that Jones shond loan to
the House the same amount, and That the "Co belhS
MI Brown should lend to the concern the same amount
Then is easy that the firm have capital except
that which they have borrowed and that, having only
4n.o l,gngf 70 tlyaf
the Internal Revenue law Referring 10 the net receipts
Of the Union Pacific Railway Company, The Ecentng Post
says:
The state Of facts presented in the monthly exhibits Of
rent wear as compared with those Of 1870 Is so singular
as demand an explanation The statements snow
ent year, and this although the actual paying desgme
and passenger traffic of the road T. steadily increasing
which will admit Of rivalry for years to come with
local business growing with the sure growth OF pOpua-
ton in the vast district through which it runs nothing
can arrest the annual increase or It's revenues Inel
WHY have tho earnings dimnishedi We suspect that
the reported gross earnings Of 1870 included purely ct-
tious amounts charged for tns OF freight and persons
FOR the contractors working upon the road. With the
final completion of the road the hypothetical income de
E end Of the road c9nd hardly be surprised at this
earnings Of the road TIE explanation il stn simpler
While ready to award great credit 10 the management
dent that within tbe past year enormous leaks
have been stopped. fhe Union Pacific Railway is said
penses ran up TO nearly IS per cent OF its gross earnings
The present income OF simply shows that this great
national ighway is in Trustworthy hands. The actual
operating the road IN June 1871 was less than
SO per OF the gross earnings although the published
expenses somewhat larger, because they include
damages paid for the loss of goods by an Indian
raid two years The expenses for July are similarly
increased by 100000 Of paid in that month which
belong to tile whole year. The earnings for August
promise to be about 100000 and the exposes about
32oOOO; and henceforth it Is the belief welnormed
that the Pacific road be operated more cheaply
than any other important railway in the country.
Mo to nj lex OF
from the port of NewYork FOR the week ending Aug 6,
1871, was s5,2OO,71S.
The Philadelphia stock market was inactive to-day.
Pennsylvania 6s third issue, sold at l07 Philadelphia
and Erie Railroad %; Reading Railroad, 81, and Penn
sylvania Railroad GCI. Gold closed at 1l2a
The following tile earnings Of the Central Pacific
Railroad Company for the months Of June and July:
64i75 81 9373 Increase O2 O2
Earnings first seven months:
ls7I g. s2,g20 lsfO...... 30 463-Iucrese 4457